Accruals Deferrals/User Guide
ACCRUALS AND DEFERRALS USER GUIDE
Abstract and Justification
“Accruals & Deferrals” is a new OB ERP feature which is intended to correct periodization of Expense or Income. There is a requirement to distribute a cost which occurs over more than 1 year.
This feature is required in Germany, but is also generically useful in other countries.
User Goals
Accruals and Deferrals feature on ERP system is used to create the Purchase & Sales invoice specific to Accruals and Deferrals.
New Definitions and Acronyms
Prerequisites
Installation of the *.obx file for Accruals & Deferrals feature:
- Openbravo application should be installed in your environment.
- Login as Openbravo/Openbravo
- Change the role to “System Admin” by clicking the button “User Info”.
- Go to General Setup -> Application -> Module Management. Click the tab Add Modules -> Browse File System.
- Install Module pop-up window will be opened. Browse the obx file and click continue.
- Accruals & Deferrals will be available in “Add Modules” with Install Now button.
- Click Install Now. This will do all the process and finally it will add the Accruals & Deferrals feature in our application.
- To Verify this go to “Installed Modules” tab in Module Management and check whether the newly added module appears there.
Now your application is set up with the Accruals & Deferrals feature.
Master data test cases execution
To make this "Accruals and Deferral" feature to work you need to setup the master data. For example you need to import the products, business partners and taxes.
New Client Vs Existing Client
For the "New Client" the Accruals and Deferrals feature will be installed automatically when we install the obx file on the system and the Accounting schema table for Accruals & Deferrals will be added by system in the below mentioned application path.
Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Account Schema Tables
For the "Existing Client", In-order to the Accruals and Deferrals feature needs to be ported, The new Accounting schema table for Accruals and Deferrals needs to be added which is subject to posting.
The Accounting schema table for Accruals and Deferrals can be added in the below application path after installing the "Accruals and Deferrals" feature on the ERP System.
Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Account Schema Tables
Accounting Schema tables to be activated for the Transactions to get posted
The new table for Accruals and Deferral(AccDef_Plan) is subject to posting into GL. So, this table needs to be added in the below Application path for existing client.
Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Account Schema Tables and should in Active mode.
FOR NEW CLIENT
This table will be automatically added and activated at the time of "Initial Client Setup" for new client.
FOR EXISTING CLIENT
This table needs to be added manually for existing client in the below Application path.
Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Account Schema Tables
Default Accounts for Accruals and Deferrals Plan Posting
The Default Account information for posting the Accruals and Deferrals plan are needed as below.
Accruals and Deferral plan requires the 4 Account for posting the plan lines as below.
- Prepaid Expenses.
- Other Liabilities
- Deferred Income.
- Other Receivables.
The Defaults account for Accruals and Deferrals should be set in the below Application Path.
Financial Management || Accounting || Setup || Accounting Schema || Accounting Schema >> Defaults
Note:- Without setting the Default Account for Accruals and Deferrals, Plan line can not be posted.
User interface Changes
The above marked 3 new fields has been added in UI of the purchase invoice and Sales Invoice for the creation of plan lines in the tab of accruals and deferrals.
Plan Line Creation
- Log into Openbravo ERP as Organization Administrator.
- From the Application menu, select Procurement Management-> Transactions->Purchase invoice.
- Click New.
- From the Transaction Document list, select the corresponding document type, AP invoice.
- By clicking the Business Partner icon, select the business partner
- Fill the fields of Accounting Date:"01-10-2009", Date From : "01-10-2009" & "Date To : " 30-09-2010" and "Type is : Prepaid Expenses" In Accruals and Deferrals tab.
- Click the Lines tab
- Click New.
- By clicking the Product icon, select the product.
- In the Invoiced Quantity field, type the quantity of the product to be invoiced.
- Go back to header tab and Click "Complete".
After successful completion of the invoice, the Accruals & Deferrals plan line will be generated and can be found in the below application path.
Purchase Invoice
Procurement Management || Transactions || Purchase Invoice || Header >> Accruals and Deferrals Plan
UI Changes on Purchase Invoice for Accruals and Deferrals
The new fields for "Accruals and Deferrals" on Invoice has been added.( Refer the picture above.)
- Acc. and Def. Type
- Date From.
- Date To.
The above new 3 new fields has been added UI of the Purchase Invoice.
User needs to make sure to select the above fields In - Order create Invoice for Accruals and Deferrals.
When the user select the "Acc. and Def. Type , Date From & Date To". The system will automatically considers this Invoice for Accruals and Deferrals, The system will automatically generate the Accruals and Deferral Plan lines.
Accruals and Deferrals plan line generation
Procurement Management || Transactions || Purchase Invoice || Header >> Accruals and Deferrals Plan
Accrual & Deferrals Plan lines will be generated by system automatically based on the "Date From" , "Date To" & "Acc. and Def. Type".
For our case "Date From : 01-10-2009" & "Date To : " 30-09-2010" and "Type is : Prepaid Expenses" & The total Amount : 69876.00.
The plan line will be generated in linear way, so that the amount can be distributed for each and every month.
Accruals & Deferrals Plan line posting
The Accruals and Deferral plan lines will be posted either by manually or by the system ( Through AcctServerProcess ).
The user can post the plan line by clicking on the post button on the each plan lines.
The plan will be posted accordingly based accounting date of an Invoice
Accruals & Deferrals manual plan line generation
The Accruals & Deferrals plan can be generated manually in the below Application Path.
App.Path Procurement Management || Transactions || Purchase Invoice || Header >> Accruals and Deferrals Plan
Sales Invoice
To create the Accruals & Deferrals plan line the above steps needs to be followed as Purchase Invoice in the below Application Path.
App.Path Sales Management || Transactions || Sales Invoice || Header
The difference between the Plan lines of Purchase Invoice Vs Sales Invoice are as below.
The Acc. and Def. Type for Purchase Invoice and Sales Invoices are different.
For Purchase Invoice
- Prepaid Expenses
- Other Liabilities
For Sales Invoice.
- Deferred Income.
- Other Receivables.
Unposting of plan lines
When Click on unpost button in the Header tab of Invoice , It should check whether all Plan lines are posted or not in the Accruals and Deferrals tab. If any one of plan line is not posted , The header Invoice also will not be able to unpost. So invoice will be unpost, once the all plan lines are posted in the accruals and deferrals tab.
User Scenarios
Scenario 1
John is an accountant who needs to create the Invoice( Sales & Purchase Invoices ) for Accruals and Deferrals plan. In-order to enter the data into system John follow the steps below.
- John has to Log in Openbravo ERP as Organization Administrator.
- From the Application menu, select Procurement Management-> Transactions->Purchase invoice.
- Click New.
- By clicking the Business Partner icon, select the business partner as McGiver Supplies
- Fill the fields of Accounting Date: 02-10-2009 , Date From : 01-10-2009" & "Date To : " 30-09-2010" and "Type is : Prepaid Expenses" In Accruals and Deferrals tab.
- Click the Lines tab
- Click New.
- By clicking the Product icon, select the product.
- In the Invoiced Quantity field, type the quantity of the product to be invoiced.
- Go back to header tab and Click "Complete".
The above configuration dates for the plan line creation will raise the error like "The Period range is not properly configured: please check Date From and Date To Fields".
Note: Accounting date should not be greater than the Date From Field for the Acc. and Def type of Deferred income and Prepaid expenses for both Purchase Invoice and Sales Invoice.
Scenario 2
- John has to Log in Openbravo ERP as Organization Administrator.
- From the Application menu, select Sales Management-> Transactions->Sales invoice.
- Click New.
- By clicking the Business Partner icon, select the business partner as McGiver Supplies
- Fill the fields of Accounting Date: "28-10-2009" , Date From : "01-09-2009" & "Date To : " 30-11-2009" and "Type is : Other receivables In Accruals and Deferrals tab.
- Click the Lines tab
- Click New.
- By clicking the Product icon, select the product.
- In the Invoiced Quantity field, type the quantity of the product to be invoiced.
- Go back to header tab and Click "Complete".
The above configuration dates for the plan line creation will raise the error like "The Period range is not properly configured: please check Date From and Date To Fields".
Note: Accounting date should not be less than the Date To Field for the Acc. and Def type of Other receivables and Other Liabilities for both Purchase Invoice and Sales Invoice.
Scenario 3
If transitory, the distance between "Date From" and "Date To" could be more then 1 year. If it is anticipatory, the distance between "Date From " and "Date To" must be 0 or 1 year otherwise error message will be displayed. For Example.
- John has to Log in Openbravo ERP as Organization Administrator.
- From the Application menu, select Procurement Management-> Transactions->Purchase invoice.
- Click New.
- By clicking the Business Partner icon, select the business partner as McGiver Supplies
- Fill the fields of Accounting Date: "08/12/2012" , Date From : "01/01/2010" & "Date To : " 01/12/2012" and "Type is : Other receivables In Accruals and Deferrals tab.
- Click the Lines tab
- Click New.
- By clicking the Product icon, select the product.
- In the Invoiced Quantity field, type the quantity of the product to be invoiced.
- Go back to header tab and Click "Complete".
Once complete the above steps , The error message will be displayed like "The distance between "Date from" and "Date to" must be 0 or 1 year"
Note:Create and open periods for year 2010, 2011, 2012