![]() ![]() Record the purchase invoice or other payment – When you receive the actual invoice or make the payment, record this as normal. This is corrected when you record the purchase invoice or other payment. ![]() When you view your profit and loss for the final month, the balance on the relevant nominal ledger account appears as a credit value. The reversal clears the value from the accrual nominal ledger account. Post a journal to reverse the accrual – The balance on your accruals nominal ledger account increases each month until the final month when you need to reverse it. The charge also posts to the accruals balance sheet nominal ledger account. Post the monthly accrual journal – To record an accrual, for each month affected by the accrual, you need to post a charge to a profit and loss nominal ledger account. In this example, you’d post these journals for January, February and March. You need to repeat these steps for each month the original transactions covers. This reduces the balance on your prepayment nominal ledger accounts and posts one month’s value to your profit and loss. You’ve now recorded the monthly prepayment.
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