PRICING PROCEDURE ACCRUAL KEY FUNCTIONALITY IN SAP MM

What is accruals in pricing procedure?

Accruals Key will store the accumulated values of the respective conditions. The buyer
can see the amount spent on the freights over a period of time.
Accruals mean accumulating, with the addition of the account key, the system can post
amounts to certain types of accruals accounts. For example, rebate accruals which are
calculated from pricing conditions can be posted to the corresponding account for rebate
accruals.

What is the difference between Accounting Key & Accruals Key?

Account key

Account key is mainly used for Frieghts.Account key enables amount to post to certain revenue accounts,
for example freight charges. When you add freight related condition types, it will be added to separate
G/L accounts, means this will not be added to material price.

Accruals key:

Accruals mean accumulating, with the addition of the account key, the system can post amounts to certain
types of accruals accounts. For example, rebate accruals which are calculated from pricing conditions can
be posted to the corresponding account for rebate accruals.

If Accruals activate what's the effect in sap?

A Accrual Key activation in condition type will allow to post the amount against a GL account.

A In the pricing schema against the condition type you will be assigning a account key for accruals

A GL account mapping will be done against this account KEY in OBYC.

A If Accrual Key is not activated, the amount against this condition will flow to GR/IR and
Inventory.

A Accrual key define whether the freight cost is added or not .

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Account Keys & Accruals on Their Classification

Acco unting Keys Accruals Condition Type

ERB Rebate sales deduct BO01
ERF Freight revenue KF00
ERL Revenue PR00
ERS Sales Deduct K004,K005
ERU Rebate Accruals BO05
EIN FR1,FR2,FR3,FRE FRA1,FRA2,FRA3

Prerequisite :

O BYC

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SAP Invoice Process with Accruals scenario:

Purchase Order #
4500005306

Mat # 1100001702

POQty-lOOKgs

Price Per Qty - Rs 334

Po Goods Price - Rs
32500

Po Freight Price -
Rs 10000

Total Po Price - 42500

Check The Accounting Entries:

Accounting Stock Account GR/IR AccountPurchasing Vendor Account
Entries (BSX) (WRX) Freight (KBS)
Account (FRE)
Goods Amount Of Rs + Amount Of Rs -
Receipt 42500 (Stock 32500 (GR/IR Amount Of Rs -
Inbound Credit) 10000 -
Movement) (Purchasing
Freight Account)
Invoice Amount Of Amount Of Rs -
Receipt Rs 42500
Amount Of Rs
- + 32500 +10000 (Invoice)
(GR/IR (Purchasing
Credit) Freight)

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Step # 1 Create Condition Type T-
Code M/06

lable View Edit Goto Selection Utilities System Help

Change View "Conditions: Condition Types": Details of Selected Set

Master Data

Proposed Valid-From Today's date Pricing Procedure

■■
Proposed Valid-To 31.12.9999 Delete from DB Do not delete (set the deletion flag only)

Scales

Scale Base Type | B Value scale Scale Routine n

Check Scale None Scale Unit n

Scale Type can be maintained in condition record

Control Data 2

Currency Conversion
Promotion Condition <•
[Accruals
Used for Var.Config.
_o
□
No entry possible
y| Suppl. Goods Receipt
Relevant for account assignment
□ Rel, for Acct Assigt

Invoice List Cond. □

Quantity Conversion □

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While enable the Accruals Field , when we create the po in condition tab ZFR1 conditio n statistical field
automatically enabled.

Check and save the data .

Step # 2 Assign Condition Type In To Pricing Procedure:

T -Code M/08

U pdate the Account key & Accruals check and save the data.

Step # 3 Create Account Determination T-Code -OBYC

Configuration Accounting Maintain : Automatic Posts - Procedures

Group RMK Materials Management postings (MM)

Procedures

Description Acquisition Tax

Cred Acquisition Tax Deb,
Freight clearing Freight
provisions Customs clearing
Customs provisions Purchasing
freight account

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 6

Posting Transaction Edit Goto Extras Uti ities System Help

Configuration Accounting Maintain : Automatic Posts - Accounts

► □ m a Posting Key ^Procedures Ru es

Chart of Accounts I NT Sample chart of accounts

Transaction Freight purch. acct.

A ccount assignment

Valuation class Account

Update the above all detail as per the sequence and save the data. Step #

4 Create The Purchase Order :

T -Code -ME21N

Here we can find the statistical tab automatic enabled check and save the data purchase order will be
created.

0 Standard PO created under the number 4500005306

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Step # 4 Create The Goods Receipt

T -Code :MIGO
Movement Type : 101

0 Material document 5000003611 posted

U pdate all the data as per above sequence check and save the data GRN has been created.

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Step # 5 Check T he Follow On Document Details Through Goods Receipt T-

Code -MIGO

A ) In GL # 300000 Raw material account the amount of Rs 42500 debited in following accounting key
BSX.
B) In GL # 191100 GR/IR Clrg .Ext. Procurement account the amount of Rs 32500 credited in
following accounting key WRX.
C ) In GL # 379998 Purchasing Freight account the amount of Rs 10000 credited in following
accounting key FRE.

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Step # 6 Create The Logistics Invoice Verification

T -Code -MIRO

0 Document no. 5105601930 created

Step # 6 Check The Follow On Document Details Through Invoice Verification T-

Code -MIRO

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A ) In GL # 1140 SPTS Tex Vendor account the amount of Rs 42500 credited in following
accounting key KBS
B) In GL # 191100 GR/IR Clrg .Ext. Procurement account the amount of Rs 32500 debited in
following accounting key WRX.
C ) In GL # 379998 Purchasing Freight account the amount of Rs 10000 debited in following
accounting key FRE.

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Step # 7 Check The Data Is In Table Level

T-Code-SE16N Table -BSEG

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