Accruals for year end

Discussion in 'Microsoft Accounting' started by mensimah, Apr 19, 2009.

  1. mensimah

    mensimah Guest

    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
     
    mensimah, Apr 19, 2009
    #1
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  2. 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
     
    Ed Secco, CPA, Apr 19, 2009
    #2
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  3. mensimah

    Michael6494

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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!
     
    Michael6494, Mar 23, 2014
    #3
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