3425120 - Cash-Basis accounting SAP S/4HANA Cloud Public Edition

Some businesses are required to report accounting considering Cash-Basis accounting.

Cash basis accounting or Cash accounting is a simple and straightforward accounting method where payment receipts are recorded during the period in which they are received, and expenses are recorded in the period in which they are actually paid. In other words, revenues and expenses are recorded when cash is received and paid, respectively.

SAP follows accrual accounting which recognizes income at the time the revenue is earned and records expenses when liabilities are incurred regardless of when cash is actually received or paid.

The cash-basis reporting can be achieved by means of extensibility capabilities in SAP S/4HANA Cloud Public edition.

• SAP S/4HANA Cloud Public Edition
• 3-system landscape, developer extensibility

SAP S/4HANA Cloud Public Edition, cash accounting, cash-basis accounting, accrual accounting , KBA , FI-GL-GL-2CL , Basic Functions (Public Cloud) , How To