Accrual Journals are used when:

• An expense cross multiple time periods
• The expense is expected in the future
• An accrual is required each month for the purposes of analysis of the business

Preconditions

Journal must be end of the month (last day)

Action - Create Accrual - Pick Journal Reversal Date (next month or 3 months time)

Save - system creates mirror copy of that journal dated the month chosen

A link is shown to the Accrual Journal 

Example

• Electricity Invoice is expected in 3 months for $300 (ie $100 per month)
• The Accountant wants to show $100 expense every month
• A General journal is required in each month for $100
• Best practice is to reverse this journal at the beginning of the next month
• Then create a new journal for $200 in the second month with a reversal in the third month
• Then the actual journal for $300 should arrive in the Third month

The result appears to be an expense of $100 in each month

Electricity Accrual Journal - Create a Journal Template

A Journal Template is useful as a place to see all the journals created

Use the template to create the accrual journals

Edit and then save the journal

After saving

A corresponding Reversal is created as you save