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Accrualsdeferrals/User Guide

ACCRUALS AND DEFERRALS USER GUIDE

Contents

Abstract and Justification

“Accruals & Deferrals” is a new OB ERP feature which is intended to correct periodization of Expense or Income. There is a requirement to distribute a cost which occurs over more than 1 year.

This feature is required in Germany, but is also generically useful in other countries.

User Goals

Accruals and Deferrals feature on ERP system is used to create the Purchase & Sales invoice specific to Accruals and Deferrals.

New Definitions and Acronyms

Prerequisites

Installation of the *.obx file for Accruals & Deferrals feature:

Now your application is set up with the Accruals & Deferrals feature.

Master data test cases execution

To make this "Accruals and Deferral" feature to work you need to setup the master data. For example you need to import the products, business partners and taxes.

New Client Vs Existing Client

For the "New Client" the Accruals and Deferrals feature will be installed automatically when we install the obx file on the system and the Accounting schema table for Accruals & Deferrals will be added by system in the below mentioned application path.


Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Account Schema Tables


For the "Existing Client", In-order to the Accruals and Deferrals feature needs to be ported, The new Accounting schema table for Accruals and Deferrals needs to be added which is subject to posting.


The Accounting schema table for Accruals and Deferrals can be added in the below application path after installing the "Accruals and Deferrals" feature on the ERP System.


Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Account Schema Tables

Accounting Schema tables to be activated for the Transactions to get posted

The new table for Accruals and Deferral(AccDef_Plan) is subject to posting into GL. So, this table needs to be added in the below Application path for existing client.

Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Account Schema Tables and should in Active mode.


FOR NEW CLIENT

This table will be automatically added and activated at the time of "Initial Client Setup" for new client.


FOR EXISTING CLIENT

This table needs to be added manually for existing client in the below Application path.

Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Account Schema Tables

AcctSchemaTable.png


Default Accounts for Accruals and Deferrals Plan Posting

The Default Account information for posting the Accruals and Deferrals plan are needed as below.

Accruals and Deferral plan requires the 4 Account for posting the plan lines as below.

The Defaults account for Accruals and Deferrals should be set in the below Application Path.

Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Defaults

Note:- Without setting the Default Account for Accruals and Deferrals, Plan line can not be posted.

Defaultac.png


User interface Changes

PurchaseInvoiceAAD UI.png


Plan Line Creation

After successful completion of the invoice, the Accruals & Deferrals plan line will be generated and can be found in the below application path.

Purchase Invoice

Procurement Management || Transactions || Purchase Invoice || Header >> Accruals and Deferrals Plan

PurchaseInvoiceAAD.png


UI Changes on Purchase Invoice for Accruals and Deferrals

The new fields for "Accruals and Deferrals" on Invoice has been added.( Refer the picture above.)

The above new 3 new fields has been added UI of the Purchase Invoice.

User needs to make sure to select the above fields In - Order create Invoice for Accruals and Deferrals.

When the user select the "Acc. and Def. Type , Date From & Date To". The system will automatically considers this Invoice for Accruals and Deferrals, The system will automatically generate the Accruals and Deferral Plan lines.


Accruals and Deferrals plan line generation


Procurement Management || Transactions || Purchase Invoice || Header >> Accruals and Deferrals Plan

PurchaseInvoiceAAD Lines.png


Accrual & Deferrals Plan lines will be generated by system automatically based on the "Date From" , "Date To" & "Acc. and Def. Type".

For our case "Date From : 01-10-2009" & "Date To : " 30-09-2010" and "Type is : Prepaid Expenses" & The total Amount : 69876.00.

The plan line will be generated in linear way, so that the amount can be distributed for each and every month.


Accruals & Deferrals Plan line posting


The Accruals and Deferral plan lines will be posted either by manually or by the system ( Through AcctServerProcess ).

The user can post the plan line by clicking on the post button on the each plan lines.

PurchaseInvoicePOST.png

The plan will be posted accordingly based accounting date of an Invoice


Accruals & Deferrals manual plan line generation


The Accruals & Deferrals plan can be generated manually in the below Application Path.

App.Path Procurement Management || Transactions || Purchase Invoice || Header >> Accruals and Deferrals Plan

Maadplines.png


Sales Invoice

To create the Accruals & Deferrals plan line the above steps needs to be followed as Purchase Invoice in the below Application Path.

App.Path Sales Management || Transactions || Sales Invoice || Header

The difference between the Plan lines of Purchase Invoice Vs Sales Invoice are as below.

The Acc. and Def. Type for Purchase Invoice and Sales Invoices are different.

For Purchase Invoice

For Sales Invoice.


Unposting of plan lines

When Click on unpost button in the Header tab of Invoice , It should check whether all Plan lines are posted or not in the Accruals and Deferrals tab. If any one of plan line is not posted , The header Invoice also will not be able to unpost. So invoice will be unpost, once the all plan lines are posted in the accruals and deferrals tab.

User Scenarios

Scenario 1

John is an accountant who needs to create the Invoice( Sales & Purchase Invoices ) for Accruals and Deferrals plan. In-order to enter the data into system John follow the steps below.

The above configuration dates for the plan line creation will raise the error like "The Period range is not properly configured: please check Date From and Date To Fields".

Note: Accounting date should not be greater than the Date From Field for the Acc. and Def type of Deferred income and Prepaid expenses for both Purchase Invoice and Sales Invoice.

Scenario 2

Note : Accounting date should not be less than the Date To Field for the Acc. and Def type of Other receivables and Other Liabilities for both Purchase Invoice and Sales Invoice. For example,


The above configuration dates for the plan line creation will raise the error like "The Period range is not properly configured: please check Date From and Date To Fields".