What is deferral in SAP RE - Real Estate Management?

SAP Term: deferral

• Component: RE

• Component Name: Real Estate Management

• Description: Procedure for posting rent paid in advance, related to multiple posting periods but shown in relation to a key date. The SAP System differentiates between posting periods in the rent display.

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• Key Concepts: 
  Deferral in SAP Real Estate Management (RE-FX) is a process of postponing the recognition of revenue or expenses from one accounting period to another. This is done to ensure that the financial statements accurately reflect the economic reality of the business. Deferral can be used to recognize revenue or expenses that have been incurred but not yet received or paid. 
  
  How to use it: 
  In SAP RE-FX, deferral is used to recognize revenue or expenses that have been incurred but not yet received or paid. The deferral process involves creating a deferral document in the system, which contains the details of the transaction and the amount to be deferred. The deferral document is then posted to the general ledger and the deferred amount is recognized in the next accounting period. 
  
  Tips & Tricks: 
  When using deferral in SAP RE-FX, it is important to ensure that all relevant information is included in the deferral document. This includes details such as the date of the transaction, the amount to be deferred, and any other relevant information. Additionally, it is important to ensure that all necessary approvals are obtained before posting the deferral document. 
  
  Related Information: 
  Deferral is a common accounting practice used by many businesses and organizations. It is important to understand how deferral works and how it can be used in SAP RE-FX in order to ensure accurate financial reporting. Additionally, it is important to understand how deferral can affect other areas of accounting such as taxes and cash flow.