Defining an Accrual

Prerequisites

To define an accrual, you should have:

  • Account (for which you want to define the accrual) defined in the application.

  • Accrual-specific active contract associated with the account.

  • Batch C1_​ACCRE defined in the application, if an accrual creation takes place through a batch.

  • Algorithm C1_​ACCR_​CRE defined for accrual creation in the application.

  • Algorithm C1_​ACCR_​CAL defined for accrual calculation in the application.

  • Algorithm C1_​ACCR_​REV defined for accrual reversal in the application.

  • Accrual type associated with the division to which the account belongs or accrual type associated with the account for accrual calculation.

  • Characteristic types defined in the application (where the characteristic entity is set to Accrual).

Procedure

To define an accrual:

  1. Click the Menu link in the Application toolbar.
    A list appears.
  2. From the Main menu, select Accounting and Receivable and then click Accrual.
    A sub-menu appears.
  3. Click the Add option from the Accrual sub menu.

    The Accrual screen appears. It contains the following sections:

    • Main - Used to specify basic details about the accrual.

    • Characteristics - Used to specify the detail-specific characteristics for an accrual.

    • Accrual Details - Used to specify the accrual details for an accrual.

    The Main section contains the following fields:

    Field Name Field Description Mandatory (Yes or No)
    Account ID Used to specify the account for which you want to define an accrual.
    Note:

    The Search (The Search Icon) icon appears corresponding to the this field. On clicking the Search icon, the Account Search window appears.

    On specifying the account, the description of the account appears corresponding to the Account ID field.

    		 Yes
    Contract Indicates the accrual-specific active contract that is associated with the account.
    Note:

    This field is populated automatically when you specify the account in the Account ID field.

    It is a read-only field and cannot be edited.

    		 Not applicable
    Reversal Start Date Used to specify the date from when the accrual reversal process starts.
    Note:

    The Reversal Start Date must be later than the Accrual Date.

    The Reversal Start Date cannot be later than the Reversal End Date.

    		 Yes
    Reversal End Date Used to specify the date till when the accrual reversal process ends.
    Note: The Reversal End Date cannot be earlier than the Reversal Start Date.
    		 Yes
    Posting Method Indicates the level at which the accrual is calculated for the account. The valid values are:

    • Bill Level - Indicates that the accrual is created to calculate the bill segments and adjustments of bills at the bill level.

    • Bill Distribution Code Level - Indicates that the accrual is created to calculate the bill segments and adjustments of bills at the distribution code level.

    • Price Item Level - Indicates that the accrual is created to calculate the bill segments and adjustments of bills at the price item level.

    • Price Item Distribution Code Level - Indicates that the accrual is created to calculate the bill segments of a particular price item at the distribution code level.

    Note:

    This field is populated automatically when you specify the account in the Account ID field.

    It is a read-only field and cannot be edited.

    		 Not applicable
    Accrual Type Indicates the accrual type associated with the account.
    Note:

    This field is populated automatically when you specify the account in the Account ID field.

    It is a read-only field and cannot be edited.

    		 Not applicable
    Accrual Creation Mode Indicates the method using which the accrual is created for the account in the system. The valid values are:

    • Batch - Indicates whether the accrual is created using the batch mode.

    • Manual - Indicates whether the accrual is created manually in the system.

    Note:

    This field is populated automatically when you specify the account in the Account ID field.

    It is a read-only field and cannot be edited.

    		 Not applicable
    Currency Indicates the currency using which the accrual is calculated for the account in the system.
    Note:

    This field is populated automatically when you specify the account in the Account ID field.

    It is a read-only field and cannot be edited.

    		 Not applicable
    Comments Used to specify additional information about the accrual. No
    Tip: Alternatively, you can access the Accrual screen by clicking the Add button in the Page Title area of the Accrual screen.
  4. Define detail-specific characteristics for the accrual, if required.
  5. Add details about the accrual, if required.
  6. Click Save.
  7. The accrual is defined.

Related Topics

For more information on... See...
How to define a characteristic for an accrual Defining a Characteristic for an Accrual
How to add the details for an accrual Adding the Details for an Accrual