Margin Support/Reserve & Accrual
Reserve & Accrual
Calculate reserve requirements and reconcile to the GL (MS-011 – MS-014)
How the reserve comes down. Matching a deduction to a request does not release the reserve. It is released when the deduction is cleared in SAP and carries a clearing date. The monthly resolution report is uploaded here, and any deduction with a clearing date moves to closed and drops out of the balance below.
Last calculation run 07/22/2026 05:30 AM by scheduled job · next run 07/23/2026 05:30 AM
Reserve Composition
Components of the required reserve (MS-012)| Component | ELG | Kids | Accessories | Total |
|---|---|---|---|---|
| Approved open deals | $1,640,000 | $720,000 | $880,000 | $3,240,000 |
| Open deductions (matched) | $310,000 | $185,000 | $214,000 | $709,000 |
| Adjustments / true-ups | ($40,000) | $53,000 | $38,000 | $51,000 |
| Less: cleared in SAP(from resolution report) | ($146,200) | ($88,000) | ($61,400) | ($295,600) |
| Required Reserve | $1,763,800 | $870,000 | $1,070,600 | $3,704,400 |
Open: confirm the reserve formula — components shown follow MS-012. An estimate for future/unclaimed support is not included pending a decision.
Reserve Roll-Forward
Period 06 — FY2026 (MS-014)| Movement | Amount | Driver |
|---|---|---|
| Opening balance — 06/01/2026 | $7,980,000 | prior period close |
| New approved deals | +$1,240,000 | 11 deals approved |
| Deductions applied | −$740,000 | 63 deductions settled |
| Releases / expirations | −$110,000 | 4 deals expired unused |
| True-up adjustments | +$50,000 | accrual vs actual |
| Closing balance — 06/30/2026 | $8,420,000 |
GL Reconciliation
MS-013System reserve$8,420,000
GL balance (214500)$8,388,500
Variance$31,500
3 unmatched deductions in Accessories account for the variance.
Accrual vs Actual
MS-017Accrued this period$612,000
Actual deductions$540,500
Over-accrual$71,500
True-up posts in the next period JE.