To provide additional value to article RE Accruals/Deferrals Configuration Guide, here’s the detailed proforma accounting entries for the rental accrual/deferral process for your reference. You may share it with other SAP Consultants/Users.

A. RENTAL EXPENSE

»»»» Deferral of Rental Expense

• Dr Prepaid Rental                   xxxx
• Cr Rental Expense                                      xxxx
• Automatic set-up of prepaid rent

• Dr. Rental Expense                      xxxx
• Cr. Prepaid Rental                                              xxxx
• Auomatic amortization of prepaid rent

 »»»» Accrual of Rental Expense

• Dr. Rental Expense                             xxxx
• Cr. Accrued Rental Payable                               xxxx
• Automatic recognition of accrued rent expense

• Dr. Accrued Rental Payable            xxxx
• Cr. Rental Expense                                                 xxxx
• Automatic reversal of the periodic accrual

B. RENTAL REVENUE

»»»» Deferral of Rental Revenue

• Dr. Rental Income                                 xxxx
• Cr. Unearned Rental Income                              xxxx
• Automatic set-up of unearned rental income

• Dr. Unearned Rental Income             xxxx
• Cr. Rental Income                                                   xxxx
• Automatic recognition of unearned rental income

»»»» Accrual of Rental Revenue

• Dr. Accrued Rental Receivable                xxxx
• Cr. Rental Income                                                           xxxx
• Automatic recognition of accrued rental income
•  
• Dr. Rental Income                                          xxxx
• Cr. Accrued Rental Receivable                                  xxxx
• Automatic reversal of the periodic accrual.

Do note that all the above accounting entries are generated automatically by the system during periodic run of Contract Accruals/Deferrals. As a requirement, you need to mapped the g/l accounts in the configuration.