Principles
The Accruals Calculation Method settings determine the generation and posting of accruals for individual subjects of the payment calendar or for individual calculation inputs to the contract.
Dependencies and assumptions
The dependency is on the settings of the General Bus-Posting Group and the General Posting Group (Gen. Bus. Posting Group and Gen. Prod. Posting Group) and Currency Contracts.
The assumption for RC must be set up for each type of HF in such a way that it corresponds to the required methodology, what should be distinguished and what should not.
The Accruals Calculation Method Setup table has two purposes:
Set whether and under what conditions the individual parts of the payment should be accrued
To generate an accrual repayments (principal incl. down payment, interest), insurance and Contract Servicesmust be in Accruals Calculation Method Setup based corresponding line (Gen. Bus. Posting Group + Gen. Prod. Posting Group + Accrual Object + Accounting Area) (General Business Posting Group + General Product Posting Group + Accrual Object + Accounting Area).
If a line is not created for these accrual objects, the Contract Accrual Lines calendar will not be generated (for calculation inputs the creation of a row is not important, because calendars are generated based on the flags on the Calculation input - Calc. input accruals local = Yes and Calc. input accruals = Yes)
Set how payments and calculation inputs should be accrued
Setting up the accrual method is mandatory for all courses for which accruals are required
The objects of accruals are
Accrual Subjects:
Down Payment
Principal
Interest
Insurance Contract
Contract Service
Accrual Objects of Calculation Inputs:
Expense Input Fee
Income Input Fee
Expense Subsidy
Income Subsidy (Income Subsidy)
Expense Commission
Income Commission (Income Commission)
If accruals are set for the given calculation input type in the Gen. Posting Groups and CI Type Relations, the accruals method must be set here.
Meaning of fields:
Gen. Business Posting Group
Gen. Bus. Posting Group from the Financing Contract header (Insurance Contracts and Services Contracts must have the same posting group as the Financing Contract)
General Product Posting Group
General Posting Group of Goods by Accrual Objects:
From the Header of the Financing Contract
For the subjects: Down Payment, Principal, Interest, Expense Flat Fee, Income Input Fee, Expense Subsidy, Income Subsidy, Expense Commission, Income Commission, Simple Insurance, and Simple Fee
From the Insurance Contract
For Subject: Insurance Contract
From Contract Service
For Subject: Contract Services
Accrual Object
Down Payment
Principal on the line of the repayment calendar that is marked as "Down Payment Line"
Principal
principal on the "regular" line of the payment calendar ("Down Payment Line" = No and "Selling Price Line" = No)
Interest
Interest on Installments
Insurance Contract
Insurance premium from the client's insurance calendar
Contract Service
Detailed service used in operational leasing with services or in fleet management
Expense Input Fee
Calculation Input Type = Cost, Variant = Fee
Income Input Fee
Calculation Input Type = Revenue, Variant = Fee
Expense Subsidy
Calculation input type = cost, variant = subsidy
Income Subsidy (Income Subsidy)
Calculation input type = yield, variant = subsidy
Expense Commission
Calculation input of type = cost, variant = commission
Income Commission (Income Commission)
Calculation Input Type = Yield, Variant = Commission
Accounting Area
Specifies the accounting system for which the accrual method is valid. For one accrual object, two accrual calendars can be generated according to the accounting system:
Local
The set method is valid for accruals in the local accounting system
IFRS (IFRS)
This setting is valid for accruals in IFRS
Accruals Calculation Method
Specifies how accruals will be calculated for the subject and accounting system:
Linear
The amount is budgeted evenly according to the number of months of the reference period (instalment or contract); e.g. interest on the quarterly instalment will be calculated over 3 months, the down payment will be calculated over 36 months for the duration of the contract)
The "Linear" method can be set for all accrual objects
By Interest
The amount is divided into periods (installments or contracts) in proportion To the course of interest
The "By interest" method can only be set for down payment and calculation inputs accruals
Condition of Accruals
The setting is relevant only for contract accrual objects and specifies what the Financing Contract or Insurance Contract must be for the object to start accruals
This setting is not taken into account for accruals of calculation inputs (subsidies, fees, commissions).
Options are available:
Always
If set for items based on a payment, these items will always be accrued, regardless of the periodicity of the payments or the irregularity of the contract
For courses based on calculation inputs, the default value is set to "Always", as this setting is not taken into account
Modality>1 (Modality > 1)
Items based on the instalment will be accrued only on contracts with a payment periodicity of more than 1 month (e.g. quarterly contracts)
Not Regular
Items based on the payment will be accrued only if the contract is marked Irregular Contract for Accruals = Yes.
Modality>>1 or Not Regular
Items based on the payment will be accrued on a contract with a payment periodicity of more than 1 month or if the contract is marked as a Non-Regular Contract for accruals
Difference Posting Method
This functionality is not part of the standard solution, it can be added as a customer modification
When recalculating accruals, there may be a difference in the booked part of the repayments (e.g. a change in the financing period or an exchange rate difference in a contract denominated in a foreign currency, if the accruals were converted to local currency and posted before the payment was posted). This setting determines which row the difference is added to:
First Non-Posted
The difference is added to the first unposted and at the same time unlocked line of the Contract Accrual Calendar. For the exchange rate difference, the calculated difference is added to the first unposted line of the calendar.
Last
The difference is added to the last line of the contract accrual calendar
The setting will also apply to the difference caused by the extraordinary payment
Source Data
The setting is relevant only for calculation inputs and determines which data from the Calculation input should be used as the source for calculating accruals. The options are:
Base Amount
It is always filled in on the calculation input
Financed Amount
Usually the same as the Base Amount, only the purchase price of the loan agreement can be reduced by the amount paid by the customer
Calculation Amount
The amount is filled in only if the calculation input enters the calculation
The setting of the source data for accruals should match the settings of the source data of the calculation input for calculation input posting (in OneCore Posting Settings) if the calculation input is posted as an accrual "recipe".
Exch. Rate Difference Calculation Method (Exch. Rate Difference Calc. Method)
This functionality is not part of the standard solution, it can be added as a customer modification. The following options are prepared for this modification:
Standard
Balance Adjustment
The expected functionality for calculating exchange rate differences in the accrual period of the contract is described in the document "Finance"
The settings are copied to the calendar lines of the Contract Accrual Lines. If the setting is changed and at least one line is already posted in the calendar, the change of the setting does not affect the calendar, the accruals continue with the original method, even in the case of contract recalculation.