Monthly Accruals

As part of the Month End routine it is advisable to accrue for any expected late entries before producing the Profit & Loss and Balance Sheet reports, to ensure that the profit/loss is accurate for the period. To assist with these late entries two skeleton journals have been added to the program, æMonthly Accrual for Purchases - MTHACCRU.NJRÆ, records the accrual and æReversing Monthly Accrual - REVMTHAC.NJRÆ, reverses the accrual.

Example

At the December 2000 Month End you discover that you have received ú200.00 worth of goods but as yet no purchase invoices. As you wish to produce an accurate Profit & Loss and Balance Sheet report for December 2000, you must enter a Journal to account for these goods. Use the skeleton journal MTHACCRU.NJR to help you. To load this, from the Journal Entries window, open the Edit menu and choose the Recall option. Choose the MTHACCRU.NJR journal.

Enter the date as 31st December 2000:-

Once you have rolled over into January 2001 and have received the purchase invoices previously accrued, you need to reverse the journal carried out in December 2000, otherwise the purchases will be included twice on the Profit & Loss report. Using the skeleton journal REVMTHAC.NJR, process the following:-

Enter the date as 31st January 2001:-

You are now ready to enter the original purchase invoices.

Related Topics

Late Entries

Late Entries Example

Month End Procedure

To Run Your Month End