Accrual tool helps to create accrual journals based on receipts allocated to more than one month. The accrual tool retrieves the entries dated to a chosen month, but which billing period exceeds the particular month, and creates the accrual journals based on them. Sales, purchases and statement of earnings accrual accounts are possible to change.
Accrual tool can be found from Accounting > Accrual tools.
General information
- In order to be able to create accrual receipts, the user needs to have at least viewing rights to creating sales and purchase invoices and all rights to creating journals.
- Search criteria is located at the top part of Accrual tools view and the search results are listed to the lower part of the view.
- 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.
Fields of the view
Entry period to accrue
- In the search criteria, it is possible to select the entry period to accrue (year-month, for example, 2019-05).
- The oldest open tracking period is in the field as a default.
- If tracking periods are not in use, the previous month is in the field as a default.
Receipt types to accrue
- In the field, it can be selected if Procountor searches for sales or purchases or both.
Accrual receipts
- Accrued receipts can be searched by selecting the option Accrual receipts.
Buttons of the view
Search transactions to accruals
- The button searches the receipts according to set search criteria.
Create accrual journals
- The button opens a Create accrual journals view, on which accrual journal can be created.
Select all
- Clicking the button selects all entries in the search results.
Accounting
- Clicking the button allows switching to the accounting page of the selected receipt.
Creating an accrual journal
1. Define the search criteria.
2. Click on the Search transactions to accruals button.
3. Select the receipts to be accrued.
4. Click on the Create accrual journals button.
5. Make the selections and fill out the information on Create accrual journals window.
- To the Invoice group name field, 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 these accounts can be changed 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 Dimensions section, it can be specified whether the dimensions are wanted to be copied.
- 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 selecting 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.
6. When you are finished, click Continue.
Created accrual journals
- In accrual journal creation, a single journal is created 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.
- If the accrual journals are created, for example, for an incorrect period, the receipts can be returned to Unfinished status at once with Verification of multiple invoices function. After this, the receipts can be invalidated with Multiple invoice invalidation function.
Notice regarding balance sheet items on journals created by the accrual tool:
During summer 2021 a change was made to the way that balance sheet items are added to the journals created with the accrual tool.
- In Procountor at Management > Company info > Usage settings it is possible to determine whether balance sheet items are used or not. This setting can be made by adding a marker to the option "Show balance sheet item identifier information on the accounting page".
- Previously, if this option was not chosen, journals created by the accrual tool would still feature balance sheet items. These would not be visible to the user but would be hidden in the journals' information nevertheless. The balance sheet item would feature the original receipt type and number where the accrual was made. Since the balance sheet item was in the journal's information, even though the user could not see it, also balance sheet itemisation could be made to these journals by using the Search open balance sheet items option on the Balance sheet itemisation page.
- Currently in order for the balance sheet items to be formed to the journals created by the accrual tool, the setting "Show balance sheet item identifier information on the accounting page" must be chosen active. If it not, then no balance sheet items will not be formed to the journals' information. If there is no balance sheet items on the journal, the Search open balance sheet items option cannot be utilized on the Balance sheet itemisation page. Other options can be utilized normally, such as Search transactions.
Accrual tool's posting defaults
It's possible to determine own posting defaults for both the receivable and payable in Management > Accounting info > Posting defaults > General account posting. In the accrual tool there accounts would be then used instead of Procountor's defaults.
