Because I want to be able to post product lines to the Accruals account (which in QuickFile is account 2109, is undeletable, unhideable and will not accept postings from purchase invoices) I have created a new account 2110 Accruals New, and allowed it to receive postings from purchase invoices. Is there any problem with this?
I have books (I am not an accountant) for 45 years and my treatment for accruals has always been:
31/12/22 Dr Electricty £120.00 Electricity not yet invoiced
31/12/22 Cr Accruals £120.00 Electricity for 2022 not yet invoiced
Then when the invoice from the electricity company for say £200 is received:
15/01/23 Cr Accounts Receiveable (Electricity Company) £200.00
15/01/23 Dr Electricty £80.00 Electricity Jan 2023
15/01/23 Dr Accruals £120.00 Electricity for 2022
Year accrual and prepayments, just reverse them on 1st day of the new year and continue recording invoices as normal, no need of Cr Accounts Receiveable
Ah ok I see looks like I have been doing it wrong these years.
The accruals figure I have in my accounts was from my closing TB in QuickBooks PC based. I have moved over from QuickBooks as of 1st January because to keep the four sets of books that I keep on QB would cost £100 a month, which is absurd.
Yes, I would just reverse the journal on 1st Jan (£120 Dr accruals and Cr electricity), then record the next bill as a normal purchase of £200 electricity and everything will line up nicely.
