Accruals is a module within the Autoline Accounting suite, and is used in conjunction with the Nominal Ledger.
The Accruals module provides automatic posting into the Nominal Ledger of repetitive monthly journals such as pre-payments, accruals and standing orders. Accrual 'types' can be defined to suit your own requirements.
Note:They are referred to collectively as 'accruals' within this on-line help.
Each accrual has a unique reference number ('accrual number'). Alpha or numeric references can be used.
Autoline provides the necessary controls and features to accommodate the following:
Accrual types set up as required, for example 'P' for pre-payments, 'A' for accruals.
Automatic reversal of accruals, controlled at individual accrual level.
Control on maximum number of periods for which a given accrual is operational.
Full daybook audit trail.
A facility to free or suspend a range of accruals by accrual number and/or accrual type.
You cannot accidentally post the same Accrual more than once in a given Nominal Ledger period.
A posting run can be cancelled if necessary, either 'across the board' or for just one accrual type. For example a standing order accrual.
Before you start to use the Accruals module contact your consultant and ensure that all basic set up procedures have been performed.
Some background parameters MUST be correctly completed before any data is input to avoid wasted effort.
The Nominal Ledger must be present, with a suitable chart of accounts, before accrual records can be created or posted. When accruals are created, the nominal account codes to which they will be posted are verified against the nominal chart of accounts.
In Autoline you can define your own accrual types. For example for pre-payments and for accruals. At least one accrual type must be defined because 'type' is a mandatory field on every accrual record created. Further types can be added as required, either when the system is initially set up or at a future date.
By the time the Accruals module is available on Autoline, routines will have been established on how your accounts daybooks are produced. When introducing this module, it is important to discuss the daybook implications with your consultant because Accruals daybooks can be printed either from within the Accruals module, or via the Nominal Ledger. This on-line help describes the daybook printing within accruals.
Each accrual record consists of two main parts. The Header holds the descriptive and control information, such as accrual type and date last posted. The Postings is a list of the individual postings to be made for an accrual, which are balanced by a control entry on the header. For example, the header might describe the monthly posting out of (credit) a rent pre-payment account. The associated postings are a debit of various amounts to the profit and loss account for the several departments of the company.
If new accruals are added to the file after the monthly accruals posting run, it can be run again and will only post the new accruals on the second run. This is because the 'date last posted' is held on the header, thus stopping a posting twice in one accounting period.
The 'date last posted' control ensures that amendments you make to existing accruals will not take effect until a posting run that is the first in its accounting period.
The header section of an accrual record contains the following fields. This form offers you the buttons to Create, Amend, Delete, View Postings, Exit, or Help. There is also a button to enable users to perform ad-hoc enquiries using the header or transaction file. (Radio buttons are used here to select the required file.)
Accrual
reference: This is the
accrual reference number. It is a character field, and there is a
search option here, which is activated by clicking the 
button.
Accrual narrative: This is a thirty character field that is passed to the narrative field in the Nominal Ledger transactions that are generated on a posting run.
Additional text :This is a thirty-character field, used to add extra description to the accrual.
Accrual type: Accrual
types are defined together with other journal types in the Nominal
ledger, within the Miscellaneous options menu. There is a search
option when editing this field, which is activated by clicking the
button.
NL Control
account: This consists of two
fields, the Cost centre and the Expense code. These two together make
up a Nominal Ledger account. Please refer to the Nominal Ledger
on-line help for a detailed description of these fields. There is a
search feature option available on both fields, which is activated by
clicking the
button.
Only valid nominal account codes are accepted. Neither this field
or the Accrual type field can be searched in unless an Accrual
reference number has been entered and the Create
or Amend
buttons have been clicked.
NL control value: This is the balancing entry to the sum of the postings (and will be posted to the control account above), and is updated automatically as an accrual is created or amended. After entering the postings you can re-display the header screen.
NL suffix:If a suffix is required on the Nominal postings, it should be entered in this field.
Note:Please see the Nominal Ledger on-line help for detail on the use of the suffix.
Maximum periods: Many accruals have a limited 'life', and this field is used to control such situations. For example, if an accrual is applicable for twelve months, '12' should be entered in the field. The system then automatically stops posting after the required time. The accrual is not deleted after the allotted 'life', but merely becomes inactive until edited.
Periods taken: This is a system-maintained field, which cannot be edited under normal user priorities. It is a count of the number of postings made for the accrual in question. Thus Autoline can stop further postings when this field equals the 'maximum periods' field.
YTD:As 'periods taken' this is a system-maintained field. It is a count of the number of postings made on an accrual since the beginning of your Financial Year.
Auto reverse: This is a check box that indicates if you want the accrual automatically reversed when it is posted. The technique the system uses is to generate the reversal postings at the same time as the 'normal' postings (in the 'Post accruals' run), but with the reversals dated in the next financial period. The date used for the reversal postings is controlled by a System parameter.
Status: This field is used to free and suspend individual accruals. When creating or editing an accrual, either leave this field blank to have the accrual posted as normal or key in 'S' to suspend the accrual indefinitely. See also the option Free or suspend accruals that offers a selective automatic update of this field.
Date last posted or Period:These three fields on the penultimate line of data on the header screen are updated automatically by the 'Post accruals' run and show details of the last posting run. Date last posted is the posting date from the last accruals run, while the period fields show effective accounting period number and year for that run. The default posting date for the accruals run is the calendar date if it is within the current NL period, else the default is the end date of the current NL period.
Previous Posting Date or Period: These three fields hold the same basic data as described in the above paragraph, but for the previous post accruals run, and are updated automatically at the same time. Please see also the option Cancel posted accruals which uses and 'downdates' these fields.
Amended: This is a check box that is maintained by the system, and cannot be edited under normal user priorities. It is used as a control by the Cancel posted accruals run. If an accrual run is cancelled, the system can identify any accruals that you have edited since the last posting run and therefore not cancel them. The cancellation, which is a reverse posting, would differ from the original.
When an accrual is first created, the amended flag defaults to blank. Any edit activity on an accrual sets the flag to a check (or tick) in the check box . The Post accruals run resets any check boxes back to blanks.
As mentioned earlier, an accrual comprises a series of postings with a balancing control entry shown on the header. In fact, to create a valid accrual, only one posting line is necessary, but equally several pages of postings may be input.
Each posting line is basically a Nominal Ledger account and value. The fields that constitute one posting line entry are described below:
Cost Centre:This is the cost centre element of the Nominal Ledger account code, and must be a valid code as set up in the Nominal cost centre description file.
Expense:This is the expense code element of the Nominal Ledger account code, and must be a valid code as set up in the Nominal expense code description file.
Suffix:This is the eight-character suffix which is added to the transaction posted to the Nominal Ledger.
Value:This is the value that will be posted for the line in question. Credits are entered with a preceding minus sign.
Expense Code Description:This is the description from the expense code file for reference purposes.
