Accrual entry

Hi, am addressing accrual entry process which i can not getting in Manager, i can explain it as below;

  1. I have given a work order to my supplier $10000 as 1st week of this month.
  2. after 3 days i have received the product and using in my business.
  3. End of the month i did not received the bill against the delivery and it will be come after 3 month as per agreement.
  4. The Bill may be changed when they provide bill to us.
  5. if i am not getting the bill this month how can book expenses without bill in this month?
    is there any idea to book the accrual and once bill received then reversed the accruals and entry the expenses or any other idea to actual accrual entry system.


You record the accrual using a journal entry

Debit expense account
Credit Accruals

You will have to create the Accruals account as a Liability account

When you receive the Purchase Invoice you record it as normal and reverse the accrual entry with another journal entry

Debit Accruals
Credit expense account

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Further to @Joe91 if the Purchase Invoice is equal to the original Accrual Journal you can process the Purchase Invoice against the Accruals Account. So no need to reverse the original Accrual Journal.

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this didn’t work with me especially for suppliers

What didn’t work for you?

the idea is: There are service contracts whose amount is specified for a full year period, and the value is paid quarterly according to an invoice, and I would like to make a provision to keep aside the amount of the invoice to be ready when it is due (to accrued the expenses).

Use recurring journal entries to accrue the expense