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Jun 05, 2009 at 02:24 PM

Clearing Rebate GL account- Accrual & settlement

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Hi,

Require your help for the clearing of Rebate Accrual account. We have the following set of entries:

Initially when you accrue rebates, the following entry is passed

Accrued Expense a/c Dr.

Accrued B/S a/c Cr.

Then when you actually pay to customer then the journal entry that is passed is:

Customer Cr.

Accrued Expense a/c Dr.

Accrued B/S a/c Dr.

Accrued Expense a/c Cr.

How the accrual B/S GL account isis cleared - at the time of settlement (how) or automatic clearing (how - what parameters). Please revert

Thanks

Amit