Caution!
• Currency accruals are not supported when creating currency sales orders from costing. The accrual periods and accrual nominal account fields are not set. The same applies to home accruals if an accrual nominal code has not been set in SL options. The accrual details can be edited from the SOP batch though.
• Accruals are not supported for pipeline entry from CRM. The accrual details will not be set but they can be edited from the estimates batch.

You must first setup the Accruals option. Then, against the analysis codes, set the option for accrual and the default number of periods to accrue. When processing Sales and Purchase Orders you then have the option to accrue the income or cost and you can choose whether or not to defer the accrual.

On processing a transaction, it is posted and two journals are created. One is posted immediately to post the value to be accrued to the balance sheet: if you are deferring the accrual then this will be the whole net value; if you are not deferring the accrual then this will be the net value less the accrual for the first accrual period. The second journal is batched as a recurring journal to recognise the income or cost over the remaining accrual periods.

For example, where you have selected to accrue over a 12 month period and not deferred the accrual, 11/12ths will be journaled out, and a recurring journal for 11 postings will be batched. Where you have deferred the accrual then the entire value will be journaled out and a recurring journal for 12 postings will be batched.

Note: The method used below applies to both the Sales Ledger and the Purchase Ledger.