This is the traditional approach, the more modern approach is to leave the accrual expense in the accrual account and allocate the invoice directly to the accrual account. By reversing the Journal your expense account is now in “credit/profit” until the invoice arrives. Also, by not reversing you are keeping 2016 P&L chatter out of your 2017 P&L. Any variation between the accrual and the invoice would be allocated to the P&L account.
Its noted that you basically withdrew this one, but am a little aghast that an accountant would even hint at it. Journal entries into bank accounts are a BIG no-no. Bank Statements can only show your receipts and payments and nothing else so how could you ever reconcile your BS Bank Account if it included non receipt/payment type entries.
Totally support this in, nothing peeves me off more then having to can a multi line transaction due to a new item, but I now have a work around. I leave the “offending” line putting towards suspense and when the transaction is completed, create the COA/Fixed Asset/Inventory Item and then edit
@tut added “is this really such a big deal as far as usability goes”. Yes it is, especially when you have had the advantage of such a feature in previous packages. Imagine that you could add a Fixed Asset or Inventory Item on the fly during the processing of the Purchase Invoice without having to go separately to the Fixed Asset/Inventory Item tab. When you click on the item dropdown listing there would be an option “new” which would open the appropriate dialog for completion without having to exit the Purchase Invoice. The same “new” feature could be applied to Customer, Supplier, Employee etc.