Deferred Accrual Accounting

Some implementations use a hybrid accounting method that combines cash and accrual accounting. In this case revenue, taxes, etc. are recognized on the earlier of the bill due date or the date payment is received. In this scenario, the cash accounting method is used up until the bill's due date, at which time the accrual method is enforced (let's call this "deferred accrual accounting"). A simpler flavor of deferred accrual accounting is when the revenue and liability recognition is done solely at bill due date regardless of when the payment is made.

Deferred accrual accounting affects distribution codes identified as Use For Non-Accrual Accounting with an associated Accounting Method of either Payable on Earlier of Payment or Due Date or Payable on Due Date. The system accomplishes the holding amount settlement on the bill due date using a customer class post bill completion algorithm C1-CR-BLRVWS that creates a bill review record to be processed on the bill's due date. The bill review batch process then analyzes these bill review records on the bill due date. If a bill review record is due for processing, the algorithm checks the outstanding balance of the holding accounts on each SA linked to the bill and creates a settlement adjustment for each SA.