The purpose of accrual is to divide income or costs from a single invoice over several months as part of accounting. An invoice for six months' rent, for example, should be accrued over six months.
The Accrual tool can be found in Accounting > Accrual tool. This function is free of charge for all users and is available to users with the required privileges.
Structure and buttons of the accrual tool
The main view of the Accrual tool contains search criteria as tables at the top and search results at the bottom. The search criteria include the selections Entry period to accrue (year-month, e.g 2016-05). The view displays the earliest open fiscal period by default. If fiscal periods are not in use, the previous month is shown. Next, select the Receipt types to accrue , i.e. retrieve sales or purchases. You can also search for previously accrued receipts by ticking the selection Accrual receipts.
The Search transactions to accruals button will initiate the search according to the search criteria.
The search results will display the accounting entries to be accrued (not counter entries or balancing differences). The list will include all accounting entries that meet the following criteria:
- The accounting page related to the entry is dated in accordance with the period being accrued
At the entry level, the receipt’s accounting page has a Service period with a start and/or end date in a period other than the accrual period entered as a search criterion, or the entry-level service period is empty and a service period meeting the above-mentioned criterion has been specified at the header level
- Any other search criteria, such as Receipt types to accrue and a search of previously accrued receipts will match
You can select all entries in the search results by clicking on the Select all button.
Clicking on the Accounting button will take you to the accounting page of the entry selected from the search results.
Clicking on the Create accrual journals button will open the next window.
Under Invoice group name, the program will automatically create a name reading Accruals dd.mm.yyyy 00:00. By default, Procountor displays the accounts in the basic chart of accounts in the sections Sales accrual account and Purchases accrual account, but you can change these accounts from the menu that opens by clicking on the magnifying glass icon.
If the section Values calculated on a daily basis is checked, the accrued values will be calculated by number of days, not by months. In the Dimensionssection, you can specify whether you want to copy dimensions.
If Use original account is checked, the accruals are posted on income statement accounts on the original invoice of the invoice rows. Unchecking the item will open the following option:
Using the magnifying glass allows you to select the income statement account on which the accruals will be posted. This account will be used for all accruals of the selected invoices and rows.
When you are finished, select Continue.
Created accrual journals
In accrual journal creation, you create a single journal for the accrual period and for each month falling within the service period of a row selected from the search results. The program compiles all accrual entries related to this accrual run that affect the accounting of the month in question into the generated journal, and processes the selected rows one at a time.
In addition, accrual journal creation processes all months from the beginning to the end of the service period and calculates the percentage of each entry’s value belonging to each month. (By the number of days or months. Only the correct, calculated percentage of the value will remain in the period on which the accounting date falls.) Value is transferred from the accrual period to other months in the service period by deducting accounting value from the accrual period, i.e. making an entry in the journal with an opposite sign to the original one, on the same account as the original entry. The reversing entry for this entry will be allocated to the balance sheet as accrued income or expenses. Correspondingly, accounting value is added to the service period, i.e. entries with signs opposite to those mentioned above are made to the original account as accrued income/expenses.
All transaction descriptions will indicate the receipt accrued by the entry in question, along with the calculation principle. As a result, the sum of the accruals made for each entry is zero, as is the sum of all entries on each accrual journal.