White Paper: Purchase Order Accruals in SAP S/4HANA 1909

Organizations procure a wide variety of consumables, goods and services to run their day-to-day operations. On delivery, invoicing and payment for the products or services rendered can pose quite a challenge. Some of the challenges arise from invoices being delayed or if advances had been paid – for example, insurance payments and subscriptions. Finance has the legal obligation to accrue or defer these service and consumable costs as well as advance payments at month-end or quarter-end.

SAP S/4HANA 1909 Accruals Management automates the management of the accruals process by calculating, validating and posting transactions automatically, and enabling approval workflows. Accruals Management can be implemented independently after migrating to S/4HANA 1909 from any legacy system.

This white paper outlines the purchase order accruals process and provides a detailed step-by-step look at how purchase order accruals are transacted in SAP S/4HANA.