New Module: Accruals

 

---

 

 

Setting Up Accruals

 

MKG has developed a new module where accrued items can be distributed and managed. To use this, the ledger accounts must be configured to be used as accrued items. This is set up as follows:

• Configuration in the Ledger Accounts Module: 'Accrued Items' can be checked for a ledger account. Additionally, the contra account for accrued items must be filled in. This setting makes the ledger account suitable for booking accrued items but is not mandatory.
• Setting the Process Numbering: the process numbering for accrued items must be configured in the administration settings.

 

Administration Settings General » Process Numbering » Other

 

 

Using Accruals

 

Once the ledger accounts and process numbering are set up, accrued items can be booked. The Accruals button has been added to the Purchase Invoices, Payments, and Memorial Entries modules. The button is usable when creating a line of the 'Ledger' type, where the use of accrued items is set. After clicking the button, an input screen with 4 fields appears:

• Accruals » activate the function
• Start Fiscal Year
• Start Period
• Number of Periods

This indicates that it concerns an accrued item and determines over which period the costs or revenues are distributed. This distribution can be changed later in the Accruals module. After saving, a line is automatically created in the module with the chosen general ledger account. A checkmark 'Accrual' is visible on the source line - if this column is displayed in the table - indicating that it is an accrued item.

 

 

Managing Accruals

 

Source Information

 

When opening the Detail of an accrued item, the source is visible at the top. This could be, for example, a purchase invoice line or a journal entry when the accrued item is created from a payment or memorial entry.

 

Period Distribution and Manual Changes

 

Below the source information, the period distribution is displayed as specified when creating the item. This distribution can be manually adjusted. Additionally, there are extra functions available:

• Change Ledger Account: this function changes the ledger account of all period entries (changing periods is only possible for unprocessed periods).
• Distribute: this function creates a new distribution.
• Process: this function ensures the final processing of the periods in the accounting.

 

 

Processing Accruals

 

When clicking on Process, all periods are displayed, including those of other open accrued items. This allows all entries for the selected period to be processed at once.

 

Please note! An exception to this are periods created under an accrued item from a purchase invoice line. These periods can only be processed if the purchase invoice is approved.