Month End Accruals


Month End Accruals are used to enable the split of personnel expenses so that they can be assigned for exact periods to different posting periods within financial accounting.

There are two ways of splitting personnel expenses for exact periods:

Approach using Estimates
The personnel expenses expected for a posting period are estimated on the basis of the results from past payroll periods and the appropriate accruals are created. These accruals are then reversed in the posting period to which the corresponding payroll results are posted.

Approach using Actual Values
The personnel expenses calculated by the payroll run are split directly for the posting periods in question.

Change system parameters in customizing

For additional information refer to the section Month End Accruals in the Implementation Guide.

Further notes

As month end accruals is an extension of the Transfer to FI/CO functionality, you should have a clear understanding of this area and carry out the implementation in close co-operation with the team settingup the Transfer to FI/CO section.