What is 'deferrals' in SAP SRD-FIN-GL - FIN-General Ledger?

deferrals - Overview

• Component: SRD-FIN-GL

• Component Name: FIN-General Ledger

• Description: An item of revenue or expense that has been billed or collected but not yet earned or incurred, such as rent prepaid for one year.

deferrals - Details

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  Key Concepts: 
  Deferrals are a type of accounting transaction that involves the recognition of income or expenses at a later date than when the transaction actually occurred. This is done to better match the timing of revenue and expenses with the period in which they are earned or incurred. In SAP, deferrals are handled through the General Ledger Accounting (GL) component. 
  
  How to use it: 
  In SAP, deferrals are handled through the GL component. To set up a deferral, you must first create a deferral account in the GL. This account will be used to track the deferred amounts until they are recognized in a later period. Once the deferral account is created, you can then enter transactions into the GL that will be deferred to a later period. 
  
  Tips & Tricks: 
  When setting up a deferral in SAP, it is important to ensure that all transactions related to the deferral are entered into the GL correctly. This includes any adjustments that may need to be made in order to properly recognize the deferred amounts in a later period. Additionally, it is important to ensure that all transactions related to the deferral are properly documented and tracked in order to ensure accuracy and compliance with accounting standards. 
  
  Related Information: 
  For more information on deferrals and how they are handled in SAP, please refer to SAP