Periodic Accrual Proposals
Use this process to transfer accruals to the general ledger.
Introduction
This supporting function is used to generate financial entries for calculated periodic accruals and record entries in the general ledger for trade agreements.
Before you start
To use this function, accounts must be specified for the accounting types in 'Accounting Rule. Set' (CRS395) for accounting event OI40 (Trade agreement - Settlement):
- 168-Trade agreement
- 169-Trade agreement reservation
The accounting event for trade agreement settlement (OI40) is made available in 'Accounting Event. Open' (CRS375) by using F14='Actions'.
Accounting types '168-Trade agreement' and '169-Trade agreement' reservation are made available in 'Accounting Type. Open' (CRS385) by using F14='Actions'.
Accounting rules OI40/168 and OI40/169 are made available in 'Accounting Rule. Set' (CRS395) by using F14='Actions' and specifying the account event OI40/168 and OI40/169.
The 'Field group' CRACC is made available in 'Field Group. Open' (CRS108) by using F14='Actions'. The permitted fields for trade agreement must also be available in the field group. The permitted fields for field group CRACC can be accessed by using related option 11='Fields', and fields are added by using F14='Actions'.
Voucher details for accounting event OI40 must set in 'FAM Function. Open' (CRS405).
Other prerequisites for processing trade agreements are described in Trade agreements - Overview.
Create a periodic accrual proposal
A periodic accrual proposal is created through 'Trade Agr FIM Periodic Proposal. Open' (OIS455).
Specify the accounting period for the periodic accrual proposal in the range YYYYPP where YYYY is the year and PP is the period. For example, 202001 is year 2020 and period 01, then specify the version for the accounting period specified. There can be several versions per accounting period.
Use option 1='Create' to create the periodic accrual proposal for the accounting period specified. The status of the proposal is initially set to status 10-'Record created’.
Generate a periodic accrual proposal
This function handles the generation of accounted entries based on the accounting period specified. This triggers the batch program (OIS455S1) by selecting related option 15='Generate Accrual Proposal' in (OIS455).
This function generates a range of calculated trade agreement accruals that is not yet transferred to the general ledger. The specified accounting period determines the range of trade agreement accruals to be generated. Upon generation, the status of the proposal is raised to 20-'Accounted entries are generated'.
The proposal lines for the generated accounting period are then populated in 'Trade Agr FIM Periodic Proposal Ln. Open' (OIS456). This can be accessed by using related option 12 in (OIS455).
Proposal lines in (OIS456) are included in a single provisional voucher. The provisional voucher contains these proposal line types:
- Proposal line type 1 records are the sales deduction amount (accrual) per trade agreement, invoice number, and invoice line. These records use the accounting rule OI40/168.
- Proposal line type 2 record is the aggregation amount per agreement which is the deferred cost/revenue that balances all the cost transactions. These records use the accounting rule OI40/169.
After creation of the periodic proposal, qualified records in the trade agreement transaction file (OIS435) are set to transaction status 1-'Included in accrual proposal'.
Accrual proposal accounting is always generated in the division local currency. The trade agreement currency is not used when generating accounting entries in (OIS455). On the generated voucher lines, both the 'Recorded amount' and 'For Curr Amount' fields are filled with the amount in the division local currency, and the division currency code is used as the voucher currency.
Creating another version of the periodic proposal does not include already transferred records. When no records are available for the period specified, the created periodic proposal is set to status 18-'No records exist for the selection'.
When an error is detected upon generation of accounted entries, the proposal has status 19-'Error detected-rerun the process'.
Modify a periodic accrual proposal
Transfer periodic accrual proposal to general ledger
This function handles the transfer of accounted entries to general ledger which triggers the batch program (OIS455S2) by selecting related option 19-'Transfer to GL' in (OIS455).
Upon transfer to general ledger, the periodic accrual proposal is raised to status 60-'Transferred to GL'. A voucher is generated for the proposal lines and is reflected in (OIS456). This can be viewed in 'Voucher. Display' (GLS200). (GLS200) can also be accessed by selecting related option 14 in (OIS456).
After transfer to the general ledger, transferred records in the trade agreement transaction file (OIS435) are set to transaction status 2-'Transferred to FIM (the accruals are generated in General Ledger)'.
Viewing of related options 12='Trade Agreements. Open' and 13='Invoice. Display' is only possible for proposal line type 1 records.
Items that are only tagged as generating in the item master 'Item. Open' (MMS001) are items with 0 reservation amounts. These are generated in (OIS456) but are not included in the transfer to the general ledger. No voucher number is populated for these records.
Limitations
Printout for the periodic accrual proposal is not available.