FINANCE PROCESS ยท MEASURE
Period-end adjustments place income and expense in the correct reporting period and valuation basis.
Accruals, deferrals, provisions, allocations, depreciation, foreign-currency valuation, and reclassifications refine the raw transaction record.
How SAP controls it
Posting rules, valuation methods, recurring entries, allocation cycles, exchange-rate types, and reversal settings must reflect accounting policy.
Example
A July service received without an invoice is accrued in July and automatically reversed in August.