[teresadownes]

What are accruals and how do I post them

[codyman144]

Simple example...

Say you bought something and received the good or service but have not been issued an invoice yet. You know how much it is going to be and you have incurred the cost so you accrue it. Best way is to set up a journal entry that automatically reverses.

For the accrual you would.

Debt Expense of some kind
Credit Accrued Expenses

Like I said it is best to have them auto reverse so you don't have to remember to go back and manually reverse it next month.