What is accruals and deferrals in SAP RE - Real Estate Management?

SAP Term: accruals and deferrals

• Component: RE

• Component Name: Real Estate Management

• Description: A process used for assigning revenue to the correct accounting period for revenue that has already been posted or revenue that is expected. differentiates between the following accrual/deferral processes: Accrual of rents paid in advance Deferral of rents paid in arrears Sales accrual/deferral for contracts in which rent is determined by the reported sales

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• Key Concepts: 
  Accruals and deferrals are accounting terms used to describe the timing of when income and expenses are recognized. In SAP Real Estate Management (RE), accruals and deferrals are used to recognize income and expenses that have been incurred but not yet paid or received. This allows for a more accurate representation of the company’s financial position. 
  
  How to use it: 
  In SAP RE, accruals and deferrals can be used to recognize income and expenses that have been incurred but not yet paid or received. This is done by creating an accrual or deferral document in the system. The document will contain the details of the transaction, such as the amount, date, and type of transaction. Once the document is created, it can be posted to the general ledger. 
  
  Tips & Tricks: 
  When creating an accrual or deferral document in SAP RE, it is important to ensure that all of the details are accurate. This includes the amount, date, and type of transaction. Additionally, it is important to ensure that the document is posted to the correct general ledger account. 
  
  Related Information: 
  Accruals and deferrals are a key concept in accounting and are used in many different industries. For more information on accruals and deferrals, please refer to the SAP Help Portal or consult with your accountant or financial advisor.