Service Entry Sheet Accruals - Posting and Configurations for SAP S/4HANA 2023

[FI_Kaushik]

1.  Overview

In SAP S/4HANA, a Service Entry Sheet (SES) is used to confirm that services ordered through a purchase order have been rendered by the vendor. Once accepted, the SES triggers the posting of a service receipt in the system, which serves as the basis for vendor invoicing and financial postings.

Accruals in the context of SES ensure that expenses for services received but not yet invoiced are recognized in the correct accounting period. This is critical for accurate period-end closing, aligning with accrual-based accounting principles. In SAP S/4HANA, the system can automatically generate accrual postings for unbilled services, recording them in GR/IR (Goods Receipt/Invoice Receipt) or specific accrual accounts, depending on configuration.

The process typically involves:

1. Creation of Purchase Order (PO) for services.
2. Entry of Service Entry Sheet and Send for Approval
3. Automatic Posting for Accrual at period-end for unapproved SES items.

With the Service Entry Sheet Accrual, organizations benefit from:

• Embedded Fiori apps for SES creation, approval, and accrual management.
• Integration with Finance (FI) and Materials Management (MM) modules for seamless tracking.
• Real-time reporting capabilities to monitor open SES accruals.
• Compliance with IFRS/GAAP through precise period-based expense recognition.

This functionality ensures financial accuracy, enhances transparency, and supports audit readiness by maintaining a clear link between service receipt, accrual recognition, and final settlement.

2.  Posting of Service Entry Sheet Accruals – Overview

Steps to Create Service Entry Sheet Accrual

1. Create Service Purchase Order
• Use the Fiori app “Manage Purchase Orders” or transaction ME21N.
• Select Document Type for service procurement (e.g., NB).
• Enter vendor, service item category (Standard or E), and service specifications.
• Maintain service conditions, quantities, and delivery dates.
• Save the PO to generate the PO number.
2. Create Service Entry Sheet
• Use Fiori app “Manage Service Entry Sheets”
• Reference the PO number.
• Enter the service lines, quantities, and any notes.
• Confirm the services are delivery date according to the PO.
3. Send Service Entry Sheet for Approval
• Initiate approval via workflow (configured in Flexible Workflow for SES).
4. Display Service Entry Sheet Accruals
• Use Fiori app “Display Journal Entries – Accruals” or Manage Accruals – Purchase Orders.
• Filter by SES, PO, or accounting period.
• Review the accrual calculation.
5. Post Service Entry Sheet Accruals

Post Periodic Entries for Service Entry Sheet Accruals

• Open the Schedule Accrual Jobs Fiori app.
• Select the predefined job template “Post Periodic Entries for Service Entry Sheet Accrual”.
• Enter parameters such as Company Code, Fiscal Year/Period, and relevant filters.
• Turn off Test Run to post actual entries.
• Execute or schedule the job for period-end
• The system posts accruals for unapproved Service Entry Sheet, ensuring proper expense recognition in the correct accounting period.

2.1.   Service Purchase Order

In Order to create SES Accruals, Service Purchase Order with Standard Document Type (NB) and Account Assignment needs to be created.

P.S:

1. SES works only for Standard Purchase Order Type (NB)
2. Item Category should be blank(standard) or E (Limit)
3. Product Category should be “2” for Services

2.2.   Create Service Entry Sheet

Service Entry Sheet should be created from the Service Purchase Order. Accrual Engine will pick up only Service entry sheet which has document status “In Approval”.

P.S:

1. Service Entry Sheet Should be created in Fiori

2.3.   Display Service Entry Sheet Accruals

Once the SES sent for approval accrual object and accrual will be created automatically.

P.S:

1. Performance period of Service Entry sheet not considered for accrual calculation
2. Accrual will be calculated respectively based on
3. a) Posting Date for Goods Receipt
4. b) Last Change Date/Creation date of Service Entry sheet

2.4.   Posting of Service Entry Sheet Accruals

Fiori app “Schedule Accrual Jobs” will be used to post Service Entry sheet Accruals

Reversal of Accruals can be posted to together for Service Entry Sheet Accrual

3.  Configuration of SES – Accruals

SES Accrual configuration follow the below path in SPRO

SES – accruals require accrual engine configuration under Financial Accounting>Business Transactions>Accruals Management

3.1.     Basic Settings – Assign Company Codes

3.2.     Basic Settings – Close Fiscal Year for Changes to Accrual Objects

3.3.     Basic Settings – Define Accrual Item Types

Application Component	SSAC	SSAC
Accrual Item Type	SACCRL	SCSTACT
Derived Accrual Item Type
Upload of Periodic Accrual Amount Allwd
Item type combination check
Item Type Category	N	A
Item Type for Planned Costs
Accrual Item Type for Actual Costs	SCSTACT
Deferral Item Type
Default Accrual Method	SES_ACCRL	SSES_ACT
Description
Obsolete
Obsolete
Obsolete
Obsolete

Application Component	SSAC	SSAC
Accrual Item Type	SACCRL	SCSTACT
Company Code	FL01	FL01
Ledger Group
Accrual Type (For Compatibility)
Posting Frequency	P	P
Closing Frequency
Quantity Handling
Reversal Posting Type
Handling of Currency	A	A
Do Not Allow Zero Amount
Threshold Variant
Review of Perdc Accrual Amounts Active
Approval of Accrual Amounts Required
Review and Appr. Variant
Table Entry is Inactive
Review Exclusion
Approval Exclusion
Optional Reason Code

Application Component	SSAC	SSAC	SSAC
Company Code	FL01	FL01	FL01
Accrual Object Category	0LITIGATN	0RENTING	0VENDORINV
Accrual Item Type	ACCRL	ACCRL	ACCRL

3.4.     Basic Settings – Assign Currency Types to Accrual Item Types

Application Component	Accrual Item Type	Company Code	Ledger	Currency Type	Handling of Currency
SSAC	SACCRL	FL01	0L	00	A
SSAC	SCSTACT	FL01	0L	00	A

3.5.     Define Accrual Methods – Define Accrual Methods

3.6.     Accrual Postings – Define Accrual Methods

3.7.     Accrual Postings – Define Accrual Methods

Application Component	SSAC
Accrual Item Type	SACCRL
Company Code	FL01
Accruals Transaction Type	PP
Document Type	SA
Transaction Type
Posting Schema	SAP_ACE_PP
Post Delta Amounts
Post Accrual Amounts Online
Post Periodically	X
Table Entry is Inactive

3.8.     Accrual Postings – Account Determination

3.9.     Applications of the Accrual Engine - Service Entry Sheet Accruals - Define Accrual Item Types and Methods for Purchase Orders of Services

Application Component	SSAC
Accrual Item Type	SSAC Servic
Derived Accrual Item Type	e
Upload of Periodic Accrual Amount Allwd
Item type combination check	E
Item Type Category	n
Item Type for Planned Costs	try Sheet
Accrual Item Type for Actual Costs
Deferral Item Type
Default Accrual Method
Description	X
Obsolete
Obsolete
Obsolete
Obsolete

Application Component	SSAC	SSAC	SSAC	SSAC
Accrual Item Type	FNB  0SDELS	FNB  0SPERP	FNB  ASDELS	FNB  ASPERP
Company Code	SCST	SCST	SCST	SCST
Ledger Group	ACT	ACT	ACT	ACT
Accrual Type (For Compatibility)	ACCRL	ACCRL	ACCRL	ACCRL
Posting Frequency
Closing Frequency
Quantity Handling
Reversal Posting Type
Handling of Currency			E	E
Do Not Allow Zero Amount	S	S	S	S
Threshold Variant	SES_ACT  S	SES_ACT  S	SES_ACT  S	SES_ACT  S
Review of Perdc Accrual Amounts Active	E	E	E	E
Approval of Accrual Amounts Required	S	S	S	S

3.10.  Applications of the Accrual Engine - Service Entry Sheet Accruals - Check Customizing Settings for Service Entry Sheet Accruals

4.  Conclusion

Getting Service Entry Sheet accruals right in SAP S/4HANA Private Cloud isn’t just an accounting formality — it’s the backbone of accurate, timely financial reporting for service procurement. By pairing a clear SES approval process with the automated “Post Periodic Entries for Service Entry Sheet Accrual” job, businesses can confidently close their books knowing every accepted-but-unbilled service is captured in the right period. The result? Smoother month-ends, stronger compliance, and cleaner insights for smarter decision-making

[ava951robinson]

Thanks a lot! Glad you liked it and appreciate the support ! mywisely

[Pablo_Romo]

Nice post, but the images are so small, is impossible to see anything. Thanks! 

[marco_correa2]

Hi @FI_Kaushik :

Do you know where is configuration for automatic reversal of accrual posting? 

In our system is not reversing automatically in the first day of next month.

Best regards