Accruals for year end


M

mensimah

I have a dilemna. I have reversible accruals that I need to enter as year end
adjusting entries, and I am not sure if this software has that feature. For
example, my December 2008 payroll taxes were not paid until January 7th, 2009
but I need to accrue for it in 2008, so that in 2009, it reverses and the
payment made can net it out.
Pls help
 
E

Ed Secco, CPA

The accrual for payroll taxes need not be reversed. Instead, you post the
payment against the accrual. Debit accrual and credit cash. Accrued payroll,
however, would be an item that needs to be reversed. From what I can tell,
the software does not handle automatic reversing entries. However, you can
make the reversing entry directly in the same journal entry form by
specifying the date it is to reverse. For instance, your record the accrual
as of 12/31/08 and then the reverse dated 1/1/09.

I hope this answers your question.

Ed Secco, CPA
 
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Hi Sir,

I am using JDEdwards accounting software and every month, I have to upload the accruals and JDE allows me to reverse those accruals automatically at the beginning of next month. My problem is how to re-accrue the reversed accruals for the next period? Below is the illustration;

Mar'14

Dr Expenses(I/S) 100
Cr Accrued Expenses(B/S) 100

April( Reversal)

Dr- Accrued Expenses(B/S) 100
Cr- Expenses 100

Invoices received in April

Dr- Expenses 80
Cr- Cash 80
Dr Accrued Exp(B/S) 20
Cr Expenses 20

How do I re-accrue the remaining 20 ?

Dr- Exp(I/S) 40
Cr- Accrue Exp(B/S) - 40

Or ??

Thanks!
 

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