Year end revenue adjustment automatically in Public cloud

[SUSHMADAKE]

We want to check with if the year-end deferrals/accrual adjustments in the preceding year can be configured to be automatically reversed the following year? For example, the deferrals/accruals generated in the system in December 2024 can be automatically reverse in January 2025. If cannot be automatically reverse, how can we reverse the YE deferral/accrual in P/L that is currently lying in the balance sheet account. please help.

[Jeremy_Deo]

Hello dear user,

And thank you for asking your question on the SAP Community blog.

Yes, in SAP S/4HANA Cloud Public Edition, year-end accruals/deferrals can be automatically reversed in the following period if configured properly.

Option 1: Automatic Reversal Using Accruals Management (Scope Item 1J9)

If you use Accruals Management (1J9):

• You can define accrual objects with a posting schema that includes automatic reversal logic.
• Accruals posted in December 2024 (e.g., expenses accrued in a balance sheet account) can be configured to reverse automatically in January 2025.
• The system handles this using the Accrual Engine and period control rules.

Steps:

1. Use the "Manage Accrual Objects" app to define accruals.
2. In the posting schema, set the rule for automatic reversal in the next period.
3. Use "Run Accruals" to post the accrual and the future reversal.

Option 2: Manual Journal Entries with Auto Reversal Flag

If you're not using the Accruals Management scope item:

• You can post accruals/deferrals via “Post General Journal Entries”.
• In the entry, check the box for “Reversal” and specify the reversal reason and date (e.g., 01.01.2025).

This tells the system to auto-generate a reversing entry in the specified future period.

I hope my explanation is clear enough and answer your main question.

Best regards,

Jeremy

[SUSHMADAKE]

Thank you so much..This really help.