RE-FX Accrual to previous months

[former_member289211]

Hi all,

I have a business requirement that I don't know if RERALCN can help me.

In the beggining of the month we create all the invoices regarding previous months.

We need a posting document in that month but then make an "accrual" of the proffit GL accounts to the previous month.

Per example we have a contract with:

Condition A (01.11.2022 - 30.11.2022) : 100€

Today (07.12.2022) we will create the invoices of the previous months and we need to have the following documents:

Posting document (07.12.2022):

Item 1 (Costumer) : -123€

Item 2 (GL Account) : +100€

Item 3 (VAT Account) : +23€

"Accrual" document 1 (07.12.2022):

Item 1 (GL Account) : -100€

Item 2 (Provision Account) : +100€

"Accrual" document 2 (30.11.2022):

Item 1 (GL Account) : +100€

Item 2 (Provision Account) : -100€

Can anyone help me to setup this scenario?

Best regards,

Luis

[former_member200749]

Hello Luis,

The accrual/deferral functionality is designed to take irregular payments generated by Periodic Processing and then post the required accruals. Take for example a payment of 300 EUR made on a quarterly basis, in advance and is not subject to IFRS16.

Periodic processing

7/1/2022: DR 300 EUR - Operating Expense, CR 300 EUR - Vendor

Accrual processing

7/1/2022: DR 300 EUR - Prepaid Liability, CR 300 EUR - Operating Expense

7/1/2022: DR 100 EUR - Operating Expense, CR 100 EUR - Prepaid Liability

At this point, the Prepaid account has a balance of 200 EUR and 100 EUR has been recognized in expense.

The configuration is rather involved. You must:

1. Define your acounting priciples and assign them to a company code
2. Define your accrual method
3. Define your accrual types
4. Define your posting controls for each accrual type
5. Define your posting rules for each accrual type

The sample configuration is helpful here. My recommendation is to start with one condition type, define it and adjust the posting controls to understand how each setting will impact the postings. This is a very overlooked bit of functionality that adds a great deal of value.

Best regards,

Tom Anderson