Sie sind auf Seite 1von 20

Document ID: 1169884.

Date Last Revised: 11/12/2010

Title: Accruals in Advanced Pricing


Abstract: Overview, setup, and example of accrual adjustments in Advanced Pricing.
Additional adjustments can be created that provide sales incentives other than the
traditional line item price discount. For example, a company can encourage sales by
including free goods with a purchase or giving a discount based on a total order amount
(repricing). It is also possible to accrue sales commissions by creating an accrual
adjustment.
Using accrual adjustments makes it possible to reserve monetary amounts through
journal entries for such items as commissions and royalties. The monetary amount can be
tracked, but the order price does not change. This white paper has been written for the
release information 8.12 and above.
Overview
Advanced Pricing Definition
Item Price Group and AAI Setup 3
Price Adjustment Details 5
Customer Billing Instructions
6
Item Branch Details 8
Creating the Sales Order (P4210) 10
Sales Update 12
Post the Sale Batch 14
Simple Accrual Example 15
20

Overview
Accruals are adjustments that accrue amounts to a specific account that will be paid at a
later date. It is possible to have the system accrue the amount of an adjustment instead of
applying the adjustment to the order line price. A company might want to do this for:
Advertising allowances and cooperative allowances.
Commissions.
Royalties based on product or customer.

Accrual adjustments do not affect the base price or print on the invoice. The adjustment
shows in the Price History (P4074), and the adjustment name is highlighted. The
accruals are posted to the G/L at the time of sales update.

In the example shown below, an accrual is set up to accrue commissions. A complex item
group for all customers is used, and the salesperson will be written to the subledger of the
accrual and price adjustment accounts. Complex item group TOYS is based on Sales Cat
Code 5. Toys that belong to Cat Code LEG (Legos) pay out a 5% commission.
Back to Top

Advanced Pricing Definition


The Adjustment Control Code must be set to Accrued to G/L (control code 4):

The Subledger in G/L field creates a subledger account that is written at the time of post
(not required). This subledger will override the subledger directed by the Update tab,
processing option Subledger, in Sales Update (R42800).
The G/L Class directs AAI 4280 (accrual) and AAI 4270 (price adjustments). If the G/L
Class in the adjustment definition is blank, the system uses the G/L Class from the order.
In this example, the Subledger in G/L field is set to 6 to use the salesperson number as
a subledger. The complex item price group TOYS is attached to the definition.

Back to Top

Item Price Group and AAI Setup


NOTE: Neither groups nor complex groups are required for accruals.
Complex item group TOYS is based on Sales Cat Code 5:

AAI 4280 for Company 00001, Order Type SO, G/L Class FG10 is directed to account
4190, Commissions Payable.

AAI 4270 for Company 00001, Order Type SO, G/L Class FG10 is directed to account
7020, Commissions Expense.

Back to Top

Price Adjustment Details


In the Price Adjustment Detail, the Factor Value Numeric must be negative so that the
amounts are written correctly at post:

Toys that belong to Cat Code LEG (Legos) pay out a 5% commission:

Back to Top

Customer Billing Instructions

Customer 424255 has schedule TX attached in the Customer Billing Instructions:

Sales Rep 9653 is attached to the Commission Codes:

Back to Top

Item Branch Details

Attach the Item Branch Category Codes:

Back to Top

Creating the Sales Order (P4210)


Enter a sales order for 1 item CARGO TRAIN (Sales Cat Code 5 = LEG).

Use the Form exit to view the Price History (P4074) records.
NOTE: The Base Price is not affected by the accrual adjustment and the accrual
adjustment name is highlighted.
NOTE: The commission accrual is calculated as 5% of the net unit price. This was
based on the complex group TOYS attached to the Adjustment Schedule Definition and
the Sales Category Code LEG attached to item CARGOTRAIN.

Back to Top

Sales Update
Run Sales Update (R42800) over this order. On the Update tab, set processing option #9
to blank.
Note regarding this processing option: If the user requires the subledger only for the
adjustment accrual GL entries, the Processing Option (PO) for subledger in R42800
should be set to blank. This R42800 PO is at the order level. When this PO is set, all the
GL entries will have the subledger attached to it. For example, if the subledger defined
in the adjustment definition and the R42800 PO are the same (Sales person), the sales
person number will be written to ALL F0911 records. If the user specifies a different
subledger PO in R42800, only the Accrual GL entries in F0911 will have the subledger
mentioned in the adjustment definition. The remaining GL entries will have the subledger

as per the PO of R42800.


If the requirement is to have the subledger as defined for the adjustment only for the
Accrual GL entries then the R42800 PO should be blank. If the user requires the
subledger as defined for the adjustment for the Accrual GL entries and a different
subledger for the remaining GL entries, then R42800 PO needs to be set appropriately.

Note that AAI 4270 (price adjustment) for G/L Class FG10 is directed to account 30.7020
and that AAI 4280 (accrual) for G/L Class TCOM is directed to account 30.4190:

Back to Top

Post the Sales Batch


Post the sales update batch. Note that the Subledger is for 00009653 (salesperson
number) and Subledger Type of A (address book) is for the price adjustment and accrual
entries. The accrual adjustment created this due to the fact that it was defined to use 6
(Salesperson) as the Subledger in G/L.

Back to Top

Simple Accrual Example


Lets assume the request is to create a Royalty payment to a specific customer every time
a certain item is sold (by any salesperson). This can be accomplished through a simple
accrual, without using the subledger:
Price Adjustment Definition:

The Subledger and G/L Offset fields are blank so the system will use the G/L Class from
the sales order line to determine the AAI accounts:

Price Adjustment Detail, the royalty is set to 10% of the current price of the item:

Enter a sales order for customer 424255:

View the Price History (P4074) which shows the accrual was applied:

Sales Update (R42800) entries are created for the accounts defined in the AAI 4270 and
4280 for the royalty payment:

Back to Top

Did you find this document helpful? If so, please provide your feedback and
comments on this document in MOS. Your feedback helps us help you.