Set up an accrual
In this example, we're creating an accrual for an electricity bill that we receive every three months. We've estimated the charge to be £/€300.
- Go to Nominal codes, then click Accruals.
- Enter the relevant information to record the Accrual in the Accruals window, for example:
TIP: If preferred, you can click Wizard then follow the on-screen prompt.
| N/C | Nominal code, for example, Electricity. |
| Details | Description, for example, Accrual. |
| Department | Enter a department, if required. |
| Fund | Enter a fund, if required. Only available if you have the charities option enabled. |
| Accrual N/C | Updated automatically. |
| Value | Total net accrual value, for example, £/€300. If you're unable to divide your accrual amount evenly, the software rounds in the final month.
TIP: If the monthly values change during the length of the accrual, delete and re-add the accrual. |
| Months | Number of months for the accrual. This can be between 2 and 12. |
| Monthly Amount | Updated automatically. |
| Posted | Updated automatically. |
- Click Save, then OK.
You've now created an accrual. The software will process this when you next run your month end routine by selecting the accrual check box.
Automatic accrual postings
In the example, create an accrual to accrue £/€100.00 a month for electricity, to account for your cost for over a three-month period. The accrual postings then reverse in the final period.
Month one
| Transaction | N/C | Nominal Name | Debit | Credit |
| Accrual 1 | 7200 | Electricity | 100 | |
| Accrual 1 | 2109 | Accruals | | 100 |
The software posts the monthly value to your overheads nominal code each month, and the opposite entry posts to your Accruals nominal code.
NOTE: The Accruals nominal code is a current liability on the balance sheet, showing the value of services used but not yet paid for.
Month two
| Transaction | N/C | Nominal Name | Debit | Credit |
| Accrual 2 | 7200 | Electricity | 100 | |
| Accrual 2 | 2109 | Accruals | | 100 |
Month three
| Transaction | N/C | Nominal Name | Debit | Credit |
| Accrual 3 | 7200 | Electricity | 100 | |
| Accrual 3 | 2109 | Accruals | | 100 |
| Accrual Reversal | 2109 | Accruals | 300 | |
| Accrual Reversal | 7200 | Electricity | | 300 |
The software reverses the total value of the monthly postings in the final month. This reduces the balance on your Accruals and overheads nominal codes to zero.
Post the actual transaction
When you make the payment or you receive the invoice, post this as a bank payment or purchase invoice.
TIP: To split payment over more than one month, you can part pay the purchase invoice each month with several purchase payments.