This article focuses on how to add and journal cost accruals.
For the full expense recognition flow (prepayments through to accrual posting), see How to Automate Expense Recognition Journals in ScaleXP
Step 1: Open the page to add cost accruals
First, go to Journals (top tab)>Add Accruals. Click on the box next to the name.
Step 2: Add cost accruals
Suggested accruals will be marked in orange and outlined on the screen.
Click on the proposed accrual to 1. confirm, 2. change the amount, or 3. remove the suggestion.
You can also add a cost accrual for an existing or new supplier using the “Add Accrual” button at the top right of the screen.
This will open a screen in which to add a description, select the expense account (and other relevant codes/classes) and confirm the amount and date.
Step 3: Review and update accrual releases
Accruals based on bills - or where a release date has been set in the accrual - will be automatically released on the bill issue date.
Go to Release Accruals on the sidebar or Journals tab to see a summary of all accrued cost as well as the balance sheet position for accrued cost.
Issued bills and spent money transactions
Accrued bills and bank transactions will be automatically matched and released when the associated bill is received.
See How ScaleXP will auto-match your cost accruals.
Alternatively, you can choose to set an automatic release date.
See How to set an auto-release date for a cost accrual.
Manual accruals
Manual accruals without a release date specified must be released here.
To release an accrual, click on the Release button.
Change the release date to the month in which you want to set the release.
Click “Release” to save. Then click “Done.”
Step 4: Review and post your cost accrual journal
Go to Journal Accruals on the sidebar or Journals tab.
Use this page to automatically create and release cost accruals by account.
Section 1 - Suggested Journal (post journal)
Use Section 1 to review and post your journal. This is based on calculations from the sections below.
This shows net debits and credits between the expense account and your accrued liability account.
Section 2 - Accrued Cost by Account
This section summarises the net accruals by expense account
Section 3 - Journals Already Posted
This section shows journals already in your accounting system for your selected accrued cost liability account.
Section 4 - Accrued Cost Balance Sheet (for reference)
This compares total accrued cost in ScaleXP to the total in your accounting system
Section 5 - Accrued Cost by Supplier
This section shows net accrued cost by supplier
Click on the customer to see detail by bill.
Click on the bill to see detail by line item.
Download the Journal
Use the download to document your accruals for audit.
It is important to attach this to your accounting journal for later reference.
Related articles
How to Automate Expense Recognition Journals in ScaleXP
Prepaid Expenses: Best Practices and Quick Start Guide
How to Automate Prepaid Expenses: Setting up Prepaid Expenses in ScaleXP
How to Automate Your Prepaid Expense Journal: Review and Post the Prepayments Journal
How to Review Bills by Issue Month
As Spent versus IFRS / GAAP view
How to Add a Missing Bill or Cost Supplier
How to Set and Change Expense Journal Settings
Prepaid Expense Download Options