What is accrual in SAP FI-GL - General Ledger Accounting?

SAP Term: accrual

• Component: FI-GL

• Component Name: General Ledger Accounting

• Description: Method used to distribute expenditures, revenue, receivables, and losses to the correct period and based on the origin of those amounts. Example: For the lessor, the lease and the lease term determine the amounts to be accrued.

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• Key Concepts: 
  Accrual is an accounting concept that involves recognizing revenue and expenses when they are incurred, rather than when they are paid. This means that when a company provides a service or sells a product, the revenue is recognized in the accounting records even if the customer has not yet paid for it. Similarly, expenses are recognized in the accounting records even if the supplier has not yet been paid. 
  
  How to use it: 
  In SAP FI-GL General Ledger Accounting, accrual is used to record transactions in the accounting records as soon as they occur. This allows companies to accurately track their financial performance and ensure that their financial statements are up-to-date and accurate. 
  
  Tips & Tricks: 
  When recording accrual transactions in SAP FI-GL General Ledger Accounting, it is important to ensure that all relevant information is included in the transaction. This includes the date of the transaction, the amount of the transaction, and any other relevant details such as customer or supplier information. 
  
  Related Information: 
  Accrual is an important concept in accounting and is used by many companies to accurately track their financial performance. It is also used by auditors to ensure that companies are following proper accounting procedures. For more information on accrual and other accounting concepts, please refer to the SAP FI-GL General Ledger Accounting documentation.