Thursday, 15 March 2012


Hi Platinum,

Can you please clarify or explain the following doubts about Accruals:

The very definition of Accruals is considering the expenses and revenues for the P&L period. The way we do at Florian Actual (YTD) v Budget (YTD) results in variance and rounding the Amount to closest $10 and Accrue them accordingly.

1. How can we accrue the actual expenses and revenues for the P & L period without the budget.
2. If you can explain me with a invoice dated 15thof the month for 2 months for $2000.
3. Explain where services provided and payment received $1500 but income unearned.

Thank you and appreciate your help.

John Pulla

1 comment:

  1. HI John

    In answer to your questions:

    1. If you dont have a budget, the best way is to use the prior month bill as an indication of the monthly spend.

    2. Your question is not written clearly. If you wanted to enter this, if you recvd the invoice in the middle of the month, which is after you finalise the financials, if you under-accrued, you cannot go back to change the figure. However most companies would factor in this $2000 in their budget which would allow you to accrue to this level.

    3. Your question is not clear, please be clearer in what you would like explained.

    Good luck