Line Item Accrual reports

Line Item Accrual reports

What are Accrual reports?

Accrual accounting records revenues and expenses when they are incurred, regardless of when the respective cash transactions are made. This approach offers a more accurate representation of a company’s financial performance and obligations.
Accrual reports are crucial as they reflect expenses that were incurred within an accounting period but are not yet posted to the general ledger. This includes expenses like Bills for services provided but not yet approved, or Purchase Orders for goods already delivered but not yet billed.
Accruals in ApprovalMax provide a comprehensive solution that allows you to create accrual reports, generate journals based on them, submit them for approval and, ultimately, post them to Xero.
This functionality is currently available in beta. Please contact support if you want to try it.

Who has permissions to create Accrual reports?

Administrators/Auditors, if they participate in a Manual Journal workflow and hold the Requester role in there, have comprehensive access to the creation of accrual reports. They can set parameters for these Journals and export Line Item reports to Manual Journals.

How to create a Line Item Accrual report and export it to a Manual Journal

Creating Accruals in ApprovalMax is a straightforward process that helps maintaining accurate financial data. 
Please, follow this link to see the detailed explanation.

Accrual adjustments:

Reversing Manual Journals can be particularly useful for making accrual adjustments at the end of an accounting period. For example, if an Accrual entry was made to reflect an estimated expense, reversing this entry at the start of the following period allows for the adjustment of the actual expenses and so ensures accurate periodic reporting.

How amounts in a non-default currency are calculated

If a request's amounts are in a non-default currency, they should be recalculated in the company’s currency using the exchange rate fixed in that request.

How to handle Line Items when the remaining balance cannot be calculated

The remaining balance of a Purchase Order cannot be calculated if the Purchase Order has been matched to a Bill and has more than one Line Item.
In this case, you have to make a decision before Manual Journal creation. Either exclude such items from a Journal, or add a single line representing the total remaining balance of the Purchase Order:

 






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