Re: Why are accrual cost elements required to be created in FI

Hi Kamal,

I understand accrual accounting. here, I am specifically talking about CO accrual distribution and that too with CE category 04.

So you are saying that the same GL account you use for posting the Insurance premium in FI (in the beginning of the year) should be used for making accrual entry in CO (in all the 12 months) ?

Also, what does SAP mean with this - "You define the account in the chart of accounts, but you do not need to create the account as a G/L account in Financial Accounting."

Thanks for the reply.

BR

Abhi