This article focuses on cost accruals.
For the full expense recognition flow (prepayments through to accrual posting), see How to automate expense recognition journals in ScaleXP.
To automate accruals, go to Journals (top tab)>Add Accruals
First review all expenses. See How to Automate Expense Recognition Journals in ScaleXP
Add cost accruals
Open the Add Accruals page to add accruals.
ScaleXP uses pattern recognition to identify missing supplier bills and suggest accruals, and you can also add your own.
Filters at the top of the page control:
- Month for suggested accruals
- Expense date range
- As Spent vs IFRS/GAAP view
- Accounts
- Included data (issued bills, bank transactions, draft bills (Xero only), manual accruals)
Review suggestions
Suggested accruals will be highlighted in orange and, in the month selected for accrual suggestions, you will see suggested accruals in a white box for your review.
These will not be included in journals unless accepted (in which case the row will turn from orange to blue).
Delete unwanted suggested by clicking on the “x” or edit by clicking on the suggestion box.
To confirm, click on the amount and confirm.
To change amount, edit and click Change Amount
Add additional accruals
To add your own accrual, click the three dots at the top right, then select “Add Accrued Expense”
To accrue an existing draft bill (Xero only), ensure that Draft Bills is selected in the Included data and click “Add” below the draft bill.
For an existing supplier, you can also click on the supplier name to reveal the Add Cost Accrual button.
Note: Accruals release automatically once an associated bill arrives, a draft bill is converted to an issued bill, or a pre-set release date is reached. You can also release accruals manually if they are no longer required.
Check and update accrual releases
Go to Release Accruals on the sidebar or Journals tab.
Manual accruals without a release date specified must be released here.
To release an accrual, click on the Release button.
Change the release date to the month in which you want to set the release.
Click “Release” to save. Then click “Done.”
Accruals based on bills - or where a release date has been set in the accrual - will be automatically released on the bill issue date.
Review and Post Your Cost Accrual Journal
Go to Journal Accruals on the sidebar or Journals tab.
Use this page to automatically create and release cost accruals by account.
Section 1 - Suggested Journal (post journal)
Use Section 1 to review and post your journal. This is based on calculations from the sections below.
This shows net debits and credits between the expense account and your accrued liability account.
Section 2 - Accrued Cost by Account
This section summarizes the net accruals by expense account
Section 3 - Journals Already Posted
This section shows journals already in your accounting system for your selected accrued cost liability account.
Section 4 - Accrued Cost Balance Sheet (for reference)
This compares total accrued cost in ScaleXP to the total in your accounting system
Section 5 - Accrued Cost by Supplier
This section shows net accrued cost by supplier
Click on the customer to see detail by bill.
Click on the bill to see detail by line item.
Download the Journal
Use the download to document your accruals for audit.
It is important to attach this to your accounting journal for later reference.
Related articles
Prepaid Expenses: Best Practices and Quick Start Guide
How to Automate Expense Recognition Journals in ScaleXP
How to Automate Prepaid Expenses: Setting up Prepaid Expenses in ScaleXP
How to Automate Your Prepaid Expense Journal: Review and Post the Prepayments Journal
How to Review Bills by Issue Month
As Spent versus IFRS / GAAP view
How to Add a Missing Bill or Cost Supplier