Automation of the Accrual Process

 Accruals are adjustments made to financial statements to recognize revenues and expenses that have been incurred but not yet recorded 

 Business is heavily relying on manual process and spread sheets for accrual calculation which increased the risk of errors. Business is struggling to establish standardized accrual process across the entire organization due to complex business structure, multiple subsidiaries, and diverse revenue streams. 

Business want to record accruals to enhances the accuracy of financial reporting, align expenses with revenues, ensures compliance with accounting standards, and supports effective budgeting, planning, and decision-making processes within organizations. 

 We proposed Accrual Automation solution which highly configurable, allowing to tailor the system to the specific business requirements, it seamlessly integrates with various SAP modules, including General Ledger, Accounts Payable, and Materials Management. We have designed an intuitive workflow for accrual review and approval. This streamlines the process, allowing for efficient collaboration between finance, procurement, and other relevant departments, ensuring that accruals are accurately captured and approved in a timely manner. Our experienced team followed seamless implementation process and provided support to maximizes the benefits of SAP Accrual Automation. 

 SAP Accruals Management functions build on the Accrual Engine which calculates, proposes and eventually posting in Financial. 

 Accrual management functions are:

• Manual Accruals
• Purchase Order Accruals (PO Based)
• Service Entry Sheet Accruals

1. Automation of Accruals:  SAP Accrual Management automates the accrual process, allowing organizations to automatically calculate and post accrual entries based on predefined rules and criteria.
2. Integration with ERP: Accrual Management integrates with other SAP Financial modules and external financial systems,
3. Workflow and Approval Processes: It provides workflow capabilities for the review and approval of accrual entries
4. Integration with SAP Analytics: Integration with SAP Analytics tools allows for deeper insights and analysis of accrual data which helps organizations make informed financial decisions.