Revenue /

Revenue / Cost Accruals

Revenue / Cost Accruals is a way of distributing the revenue / cost accruals into periods where the revenue / cost should have been taken.

💡 Pro Tips 💡

Lease Rent Example Assume you pay an annual lease of 40,000/- in January and would like to account for it as an expense each quarter to help with proper costing of overheads, then this module will apportion the amount into 4 equal parts as if payable at the beginning of each quarter.

2015-01-01 By Property Owner Cr. 10000
2015-01-01 To Lease Expenses A/c Dr. 10000
2015-02-16 To Property Owner Dr. 40000
2015-02-16 By Bank Chq A/c Cr. 40000
2015-04-01 By Property Owner Cr. 10000
2015-04-01 To Lease Expenses A/c Dr. 10000
2015-07-01 By Property Owner Cr. 10000
2015-07-01 To Lease Expenses A/c Dr. 10000
2016-10-01 By Property Owner Cr. 10000
2016-10-01 To Lease Expenses A/c Dr. 10000.

Step 1: Go to Banking/GL

Select Revenue / Cost Accruals

Scenario: You pay a yearly Insurance for your stocks for 2000. This is paid in January.

Credit Bank Account 2000
Debit would be an accrued balance account in the assets section.
Not the normal expense account for insurance.
Now you decide to Accrual this expense from your accrued balance account into the expense account for insurance during 12 periods of 1 month.

This is what this module handles, but with more selectable frequencies!