Accrual of expenses

Eunice Oyungu

How do you accrue an expense in NXT apart from posting a journal?

Patrick Lunn

That's the only way I know how to do it - credit Accrued Expenses, debit expense.

Eunice Oyungu

Thanks Patrick! Appreciate your response.  

Eddie Barker

May not fit your use case at all, but it was a recent topic on a client call for the Sky Reporting/Insight Designer early adopter program. Encumbrance status is a filter in insights, this client doesn't use the encumbrance accounting functionality at all (not relieving it with purchase order receipts, etc.), and I suggested using encumbrance entries (journal entry, the encumbrance filter is in almost every ledger report, but isn't always present in data entry screens outside journal entry) as a way to get expenses in for the purposes of a cash requirements dashboard tile for her program managers, and then relieve it with a journal entry, so far so good. Thought I'd take a moment and toss that out.

Eunice Oyungu

Thanks - It makes sense.  I will have to explore the encumbrance option further to understand how it works.

Judy Ramos

We post all invoices through AP directly to their expense account using the correct accrual basis post date (future date for prepaids). At the end of each reporting period we run a report and do a bulk reclass from AP to a Prepaid account and auto-reverse it the next day. Finding stock reports with the right information has been challenging but my Accounting Manager has a query she built that helps her out. We found this to be the best way to keep good detail in AP and keep the balance sheet accounts clean by not directly posting to them outside of the reclass journal entry. If anyone has a better way we'd love to hear it as well.

Francisco Murillo

We were just exploring the possibility of using Fixed Asset module to amortize prepaid expenses, since Fixed Asset module allows us to set up the necessary expense accounts (i.e., aside from depreciation expense).  However, we found that FE does not allow useful life of less than 2 years; if it allowed useful life of 1 year or even a fractions of years, it would help amortize prepaid expenses.

Christine Sullivan

Did you ever find a easy way to book accruals and reverse in the following month? Is it all just done through manual JE's?