Accrual

LEEHUG

When I revrese the accrual entered in last month (invoice came in this month but with slightly different amount compared with what's accrued), should I reverse the accrued amount, or the actual invoice amount?

Lexy

reverse the accrued amount and record the actual invoice amount.

LEEHUG

Thanks :)
So if the actual doesn't arrive until 2 months later, and we accrue the amount each month, we won't need to reverse the accrual until we see the actual invoice, right?

pacey

Depend on how your company works.

The way I work on accrual is to accrue for that month and reverse the following month. Then when actual invoice comes, just record in creditors.
If the invoice doesn't come the following month, keep accrue until it finally comes, then month end you don't need to accrue.

LEEHUG

If I keep accruing each month, I either keep reversing each month or reverse the whole lot when I receive actual invoice?