What is accrual/deferral area in SAP FS-PE - Payment Engine?

SAP Term: accrual/deferral area

• Component: FS-PE

• Component Name: Payment Engine

• Description: Accrual is a process to create accrual orders for posting to an account management system in order to balance the general ledger at the end of the day. Accrual type area specifies a type of accrual used to group payment items.

Smart SAP Assistant

• Key Concepts: 
  Accrual/deferral area is a component of the SAP FS-PE Payment Engine. It is used to manage the accrual and deferral of payments, which are the recognition of income or expenses before or after they are actually received or paid. This allows for more accurate financial reporting and forecasting. 
  
  How to use it: 
  The accrual/deferral area can be used to set up payment rules that define when payments should be recognized. It also allows for the creation of payment plans that specify when payments should be made and how much should be paid each time. The payment engine then uses this information to calculate the accrual/deferral amounts for each payment. 
  
  Tips & Tricks: 
  When setting up payment rules, it is important to consider the timing of payments and how they will affect the financial statements. For example, if a payment is received in one period but not recognized until the next period, it will affect the financial statements of both periods. 
  
  Related Information: 
  The accrual/deferral area is closely related to other components of the SAP FS-PE Payment Engine, such as the payment plan area and the payment terms area. These components can be used together to create a comprehensive payment system that accurately reflects the timing of payments and their effects on financial statements.