Posting accrued expense & Reversing accrued expense entry in SAP

If you are new to accrual concept or to the term ‘Accrual’ please click here

 

Passing entries in SAP based on the following information

31-Jan-2016
(Accrual entry)
1-Feb-2016
(Accrual reversal entry)
5-Feb-2016
(Salary paid in Cash)
Salary account DR = 10,000
Accrued expense CR = 10,000
Accrued expense DR = 10,000
Salary account CR = 10,000
Salary account DR = 10,000
Cash account CR = 10,000
Expense incurred in Jan
Reversed on the 1st of Feb
Amount paid on the 5th of Feb

TC: FBS1

TC: F.81

TC: F-02

 

Accrual entry posting:

Transaction Code: FBS1

Steps:

  1. Document date = 31.1.2016 | Type = SA | Company code = ADFW | Posting date = 31.1.2016| Currency = USD | Period = This will be automatically updated hence leave it blank
  2. Reversal reason = 05 (you can create your own 2 digit alphanumeric code or chose from the drop down menu)
  3. Reversal date = 1.2.2016 (On this date the accrual entry have to be reversed)
  4. PstKy = 40 | Account = 270000 (Admin salary account) press ENTER
  5. —**Screen 2**—
  6. Amount = 10,000 | Value date = 1.5.2016 | Text = “Jan.2016 salary payable to the Accountant”
  7. PstKy = 50 | Account = 130000 (Accrued expenses account) and press ENTER
  8. —**Screen 3**—
  9. Amount = 10,000 (or type ‘*’ and press enter to copy the amount) | Value date = 1.5.2016 | Text = “Jan.2016 salary payable to the Accountant” (or type ‘+’ and press enter to copy the text)

Once this is done from the MAIN MENU select : Document > Simulate
(Have a look at the entry you just entered. If it looks fine click on the SAVE icon to save your entry)

 

Reversal of Accrual entry

Transaction Code F.81

Steps:

  1. Company Code = ADFW | Document Number = If you do not know leave it blank for now | Fiscal Year = 2016 | Document type = SA
  2. Click on the EXECUTE icon (small clock like button)
  • Document number is important. To see the document number follow the following step:
  • Once you execute all the ‘documents which can be reversed’ are displayed on screen. Note down the document number (First line item before company code)
  • Double Click on document number to see the accrual entry posted on 31.1.2016
  • Having seen the entry and the document number click on the ‘Back’ button twice
  1. Enter the document number (eg: 400)
  2. At the bottom of the same screen un-select ‘Test Run’ and click on execute button
  3. Now that you have removed the TEST RUN option and entered the document number the entry will get posted or in other words the accrual entry is reversed on 1.Feb.2016
  4. In a different scenario, if you had entered the company code, fiscal year, document type and un-checked TEST RUN option and clicked on the execute icon (without entering the document number) then all the pending reversal entries will be posted

To see if debit and credit are matching in ‘Accrued expenses a/c’ ledger use Transaction code FBL3; Enter the GL account 130000 (Accrued expenses a/c’) | Enter Company code : ADFW | Select ‘All Items’ and execute

  • You will notice that the document number 400 was reversed with document number 401
  • Take a look at the document type: SA for the original entry and AB for the reversal entry

Salary paid in cash

Assume that the salary was actually paid on the 5th of Feb. Use transaction code F-02 to post this transaction

 

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