What is accrual procedure in SAP FS-BA-PM-AFP - Accounting for Financial Products?

SAP Term: accrual procedure

• Component: FS-BA-PM-AFP

• Component Name: Accounting for Financial Products

• Description: Calculation method that is applied in the key date valuation to calculate accruals and deferrals. Accrual procedures are part of the 'accrual/deferral' class of calculation procedures.

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• Key Concepts: 
  Accrual procedure is a component of the Accounting for Financial Products (AFP) module in SAP. It is used to record and process accruals, which are periodic payments made to cover expenses that have been incurred but not yet paid. Accrual procedures are used to ensure that all expenses are accounted for in a timely manner.
  
  How to use it: 
  Accrual procedures can be used to record and process accruals in SAP. To do this, the user must first create an accrual document in the system. This document will contain all the necessary information about the accrual, such as the amount, date, and type of payment. Once the document is created, it can be processed and posted to the general ledger.
  
  Tips & Tricks: 
  When creating an accrual document in SAP, it is important to ensure that all of the necessary information is included. This includes the amount, date, and type of payment. Additionally, it is important to ensure that all of the relevant accounts are correctly specified in order for the accrual to be properly recorded and processed.
  
  Related Information: 
  Accrual procedures are closely related to other accounting processes such as amortization and depreciation. Additionally, they are often used in conjunction with other financial processes such as budgeting and forecasting. Understanding how these processes interact with each other can help users better manage their finances in SAP.