Run Accrual/Deferral
Application component: Transaction Manager
App type: SAP GUI
Scope items: Money Market Mutual Fund Management|Debt and Investment Management|Debt and Investment Management - Group Ledger IFRS|Money Market Mutual Fund Management - Group Ledger IFRS
Key features:  Accrual/Deferral Procedures:    Reset Procedure  In the reset procedure, the profit-related flows are posted as affecting net income. Income is adjusted during accrual/deferral, and the amount not yet affecting net income is posted as a liability or asset. The amounts (for Accruals and Deferrals) are determined and posted on a key date before being cleared (reset). If an income statement is output in the meantime, it contains the profit or loss that occurred during the calculation period.    Difference Procedure  With the difference procedure, the profit-related flow is posted to an asset or liability item on the due date without affecting net income. These items are then accrued/deferred gradually, affecting net income by degrees.  Discounts and premiums are accrued/deferred using the difference procedure. They’re generally posted directly to the accrual accounts. The item is then written off proportionally and posted to revenues/expenses using the accrual/deferral function. The accrual/deferral amount is based on the period between the last accrual/deferral run and the key date of the current accrual. In this case, there’s no reset posting.    Note Unscheduled writebacks as a result of unscheduled repayments or partial sales are disclosed separately.  Note If the payment date (due date) for a profit-related flow is in the middle of the calculation period, then it is at this time that the accrual becomes deferred. Consequently:   If the accrual/deferral key date is before the payment/due date, the flow is accrued.    If the accrual/deferral key date is after the payment/due date, the flow is deferred.   The reset procedure meets this requirement. A profit-related flow can’t be accrued/deferred using the difference procedure.  Accrual/Deferral Methods  Profits/losses incurred up to the key date are determined using the accrual/deferral method for each profit-related flow.     Linear The linear accrual/deferral method is used to calculate the amounts to be accrued/deferred: Accrual/deferral amount = Total amount x days* / total number of days*    Pro Rata The accrual/deferral amount is calculated according to the formula used to calculate the interest flow to be accrued/deferred. The calculation is either on a linear or exponential basis. The number of interest days is calculated on the basis of the 'calculated from' date and the accrual/deferral key date.   Complete The income amount is accrued/deferred in its entirety, regardless of the key date. This function is required, for example, to accrue/defer dividends in accordance with US GAAP.   Brazil Tax Calculation This method is only required for accruals/deferrals of Brazil tax flows. The accrual/deferral amount is calculated according to the formula used to calculate Brazil taxes (such as financial operation tax (IOF) and withholding tax (IRRF)).   Pro Rata with Linear Discounting This method is only used for Commercial Paper. The total amount is first accrued/deferred (pro rata) over the calculation period and then discounted on a linear basis. The system uses the following formula to calculate the discounting factor: For accrual: 1 + interest rate of profit-based flow / 100 * (days in period- D) / base days For deferral: 1 + interest rate of profit-based flow / 100 * D / base days D is the number of days between the start of the calculation of the profit-based flow and the accrual/deferral key date.    Note The days calculation method defined for the position or the flow to be accrued/deferred is used to determine the days / total number of days. The days calculation method is derived from the interest calculation method. Calculating the Accrual/Deferral Amount in Position Currency  The amount in time is first calculated and then applied as the basis for calculating the amount to be accrued/deferred.      Reset Procedure  With this procedure, the accrual/deferral method selected is used to determine the amount in time for the flow to be accrued/deferred. The resulting accrual/deferral amount depends on whether the item is an accrual or a deferral. In the case of accruals, the amount in time corresponds to the accrual amount. In the case of a deferral, the deferral amount is the amount in time subtracted from the total amount of the flow.    Difference Procedure  With this procedure, the accrual/deferral method selected is used to determine the amount in timefor the flow to be accrued/deferred. This is compared with the total amounts calculated for all previous accruals/deferrals. This accrual/deferral amount is the difference resulting from both amounts.  If the accrual/deferral amount is negative, the system generates an adjustment flow (update type Offsetting Flows for Accrual/Deferral).   Converting the Accrual/Deferral Amount into Valuation Currency  The amount in time and the accrual/deferral amount are first calculated in position currency. If the position currency differs from the valuation currency, the amounts are converted into the valuation currency.    The following rates are used:    Accrual  This is translated using the market rate.  Exception: If the flow to be accrued/deferred has already been posted with the difference procedure, the system uses the rate resulting from the amounts of the flow to be accrued/deferred.*    Deferral  The system uses the rate that is derived from the amounts of the flow to be accrued/deferred.*  *The difference procedure is as follows:  The amount in time in position currency is translated into the valuation currency using the rate resulting from the amounts of the flows to be accrued/deferred. Previous accruals/deferrals are then subtracted to give the amount to be accrued/deferred in valuation currency.  The accrual/deferral amount in position currency is then translated using the current market exchange rate. This amount is then posted as an accrual/deferral.  To obtain the total amount relevant for accrual/deferral in the valuation currency, the system generates a corresponding write-up or write-down flow.  Example A profit-related flow in foreign currency is posted with the exchange rate 1.2000 on 01/02 (USD 100 / EUR 120). Accrual/deferral occurs at a later date (12/31). On the accrual/deferral key date, the exchange rate is 1.0000. The system generates the following flows:   Accrual/deferral flow USD 100 / EUR 100    Adjustment flow (write-down) USD 0 / EUR 20        The difference procedure is as follows when you translate into the valuation currency:  The amount in time is translated into the valuation currency using the current market rate. Previous accruals/deferrals are then subtracted to produce the amount to be accrued/deferred in valuation currency.  The accrual/deferral amount in position currency is then translated using the current market exchange rate. This amount is then posted as an accrual/deferral.  To obtain the total amount relevant for accrual/deferral in the valuation currency, the system generates a corresponding write-up or write-down flow.  The difference procedure may produce inconsistencies in the accruals/deferrals accounts or the payables and receivables accounts.    Additional Notes    Accruals/deferrals can be performed according to valuation area.    For each selected position/transaction and for a given key date, the system determines the profit-related flows for which accruals or deferrals need to be created. This means all flows intended for accrual/deferral and for which the accrual/deferral key date is within the flow calculation period.    In the case of variable interest flows that have not yet been fixed, the system determines the interest rate on the basis of the planned record update strategy. If you do not want to accrue/defer non-fixed variable interest flows, set the Only Fixed Interest Flows indicator.  Variable interest flows with the interest calculation types Compound Interest Calculation and Average Compound Interest Calculation:  You must use the grouping function for positive and negative interest flows. You enable this function in the Assign Update Types for Accrual/Deferral configuration activity in your configuration environment.   For variable interest flows with the interest calculation types Compound Interest Calculation and Average Compound Interest Calculation, you must ensure that the current market data has been entered in the market data tables, that interest rate fixing has been performed for the interest flows of OTC transactions, and that the planned record update has been performed for the interest flows of securities positions.      Depending on the accrual/deferral procedure and the type of profit-related flow, the system creates an accrual/deferral flow that controls updates to Financial Accounting.    The accrual/deferral flows can be posted directly to Financial Accounting. If you select the setting Do not post immediately, you need to post the accrual/deferral at a later stage using the Process Business Transactions function.  With the default setting, the flows are posted immediately. The Do not post immediately setting is intended for exceptional situations, such as when the posting period is not yet open in Financial Accounting.    You can perform a test run.    If you need to reverse the accrual/deferral run, you can use the Reverse Accrual/Deferral function.    
Business roles: Treasury Accountant
Treasury Risk Manager : 
Manages all the company's treasury activities. Uses evaluation reports to ensure that the various strategies defined for trading, market risk management, limit management, and cash management have been observed.

Treasury Accountant : 
Makes postings in accounting to reflect treasury activities.