I wanted to accrue for accounting fees in the Balance and P&L.
Steps taken:
I created a P&L-account: “Accounting Fees”
I created a Balance-account in the group Short Term Liabilities called “Accrued Expenses”
I created a journal entry:
I expected to see the accrual in the balance under the heading “accrued expenses” for an amount of 1000,-
As a matter of fact, it is shown in the balance one line under “retained earnings” on an account called “suspense account”
Question: can anyone tell what went wrong.
A couple of things to check: a) is the “Accrued Expenses” displaying correctly in the chart of accounts and b) is the General Journal still displaying the correct accounts and c) did you actually enter the credit side amount. If you only entered the debit side the system will see this as an unbalanced journal and post to the suspense account
Hi Brucanna,
I discovered why it didn’t work. I renamed the System-account Customer Credit and wanted to use that account for accrued expenses. This is why it didn’t work. I created a new GL-account for accrued expenses under the proper heading and now it works fine.
Sorry to have bothered you with my “problem”…
I don’t mind if the forum administrator deletes this thread.
@Hennie Thanks for the feed back and glad you resolved the issue.
Those Control Accounts can be a pain in the butt when they “boss” you around.
Just wish they were flagged or highlighted when working in the chart of accounts - Tot Ziens
@Brucanna it seems to me you didn’t provide another method of recording accrual or prepaid expenses.
I take it as I have to key-in manually through Journal Entries? Manager Accounting doesn’t automate the account classification in case of prepaid or accrued for each accounting period, is it?
@acecombat2, most of the discussion in this topic is obsolete, as the automatic control account, Customer credits, that was renamed no longer exists. The other two users were discussing a specific problem related to misunderstanding of how it could be used.
@tut I’m a bit curious in related to the above mentioning of Manager Accounting capabilities which you just confirmed for me.
My next question would be your sentences “… automatic control account…” What do you meant? Pre-configured through modular design by Lubos like Customer Tab and Invoice Tab?
By automatic, I mean the account is activated when various tabs or settings are in use. The user does not create the account in the chart of accounts; the program creates the account.
By control account, I mean an account made up of subaccounts.
For example, Accounts receivable is an automatic control account. It is activated when the first customer is entered under the Customers tab. It is made up of subaccounts for all customers defined.
I understand now.