How to set up a one month accrual for over the year end

In the following example, you have estimated that approximately £/€100 of an expected telephone bill relates to the current year.

Post a year end accrual

1. Click Nominal codes then click Journal entry.
2. Enter a reference and date for the journal, then enter the relevant information to record the accrual into the current year's accounts, for example:
   

   N/C	Name	Dept	Details	T/C	Debit	Credit
   7502	Telephone	Department	Accrual Adjustment	T9	100.00	0.00
   2109	Accruals	Department	Accrual Adjustment	T9	0.00	100.00

   The date for this journal must be in the new financial year.
   
   To print the list, click Print list.
3. Click Save then click Close.

You have now increased the balance on the Telephone nominal code, and on the Accrual nominal code in the Current Liability section of the balance sheet report by £/€100. After running the Year End option you should reverse this transaction, this moves the value back from the balance sheet to the overhead nominal code.

Reverse the year end accrual

1. Click Nominal codes then click Journal entry.
2. Enter a reference and date for the journal, then enter the relevant information to record the accrual into the new year's accounts, for example:
   

   N/C	Name	Dept	Details	T/C	Debit	Credit
   2109	Accruals	Department	Accrual Adjustment	T9	100.00	0.00
   7502	Telephone	Department	Accrual Adjustment	T9	0.00	100.00

   The date for this journal must be in the new financial year.
   
   To print the list, click Print list.
3. Click Save then click Close.

You have now moved the value of the accrual from the balance sheet nominal code back to the relevant profit and loss nominal code. This appears as a credit balance on the overhead nominal code and reduces the new year's balance on the overhead by the value relating to the prior year.

When the invoice is eventually received, post it in the usual way. This leaves the correct value for the new financial year on the overhead nominal code.

Upgrading your licence

Need a little more room? To add extra companies, users, employees or more to your software licence, leave your details and we'll be in touch.

Leave your details