How To: Create and Process a Reversing Accrual Journal Template


A Reversing Accrual Journal Template is used to save up regular amounts and then make one payment at the end.

Reversing Accrual Template Prerequisites for examples How To

Here is a list of Nominals to give the How To a narrative, these are for example only:

Code Description System Type Account Type
700 License Accrual Current Asset Company
710 Software Licenses Expense Company

Creation and Template Generation Procedure

The following steps are used to create a journal template called 'Software License 2021' starting on 1st January 2021, to be processed on the 1st day of each month for a total of 12 months:

  1. Open a Journal Templates screen (show me how).
  2. Press Ctrl+N or click the New item icon is the button bar's NEW button to create a new journal template.
  3. Enter data into the fields:
    Description/Name: e.g. Software License 2021.
    Date Started: e.g. 01/01/2021.
    Day of: e.g. 1.
    Interval: e.g. Month.
    Count: e.g. 12.
    Template Type: e.g. Reversing Accrual.
  4. Add the nominal codes to use, for example:
    [210] Sterling Account.
    [700] Licence Accrual.
  5. Split Amount: 1200.
  6. Click the BtnApplyCD.jpg button.
  7. Go to [ 2: Final Journal ] sub-tab.
  8. Add the following Nominal codes:
    [710] Software Licenses.
    [700] License Accrual.
  9. Credit the [700] Licence Accrual by 1200.
  10. Debit the [710] Software Licenses by 1200.
  11. Press Ctrl+S or click the disk icon is the button bar's SAVE button to save.
  12. Click the BtnJTGenerateSchList.jpg button.

Processing a Reversing Accrual Journal Template

  1. Go to the [ Process List ] tab.
  2. Process each interval as required, for more information on processing journal template intervals see Process a Journal Template Schedule List
  3. The Final Journal will be processed at the same time as the last interval journal is done, see the example below.

Example

In the following example the Reversing Accrual Journal Template is setup for three months at £500 per month making a total of £1500.

The Journal Setup

The Journal Template example showing the Recurring tab for reversing accrual.

The Journal Template example showing the Final Journal tab for reversing accrual.

The Journals

The Licence Accrual nominal showing the recurring entries for monthly amount of £500 and then the final payment of £1500:

Note: If you look at the Journals IDs you can see that the first two entries are for the same journals, the bottom two entries are for the final journal leaving the balance in the Licence Accrual nominal as zero.
The Licence Accrual nominal showing the journals that have taken place



See Also


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