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Former Member

G/L account

Dear all,

Kindly explain about Acural account& What are the important inputs for creating of G/L-account.

Regards,

Renuga.A

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2 Answers

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    Former Member
    Oct 06, 2007 at 10:38 AM

    Dear

    in Acruals the one time payment would be distributed over the period of 12 months. Like for example take bonus, which is a one time payment in a fiscal year. ( it is not a repetetive expenditure) This amount will be distributed over all 12 periods of fiscal year by using the 3 or 4 cost element category. Here dummy cost center plays important role. At the time of posting you can post it to dummy cost center and then distribute over 12 periods.

    Gl Account creation will be as a regular process but at the time of creating the cost element you need to select the category as either 3 or 4.

    regards

    Harikishan

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    Former Member
    Oct 06, 2007 at 10:44 AM

    Accrual is not a GL account. It is only one type of document and is nothing but month end provisions which has to be reversed in the month beginning example rent. We have to do provision for rent in that month for the purpose of arrving correct profit.

    like that there are so many provisions like depreciation, electricity, interest etc are there in a company. All these has to be reversed on a specific date.

    Generally for creating a GL account for provisons we may create it under open item management.

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