AP Accrual

(0) Share

Report

Posted on by Nela

140

Hi everyone,

I am kind of newbie in accounting and I do appreciate your help. I have received an invoice from FedEx and wanted to make a payment and issue a check in Microsoft Dynamics GP but my manager told me I don't have to issue a check or make a payment at this point but I can accrue it today. SO the question is how to accrue in GP without issue a check or make a payment. Sorry if my question look silly. Thanks for helping me.

*This post is locked for comments

I have the same question (0)

All responses (9)

Answers (1)

Suggested answer

sandipdjadhav 18,306 on at

Like (0)

Report

Nela,

1) You need to pass following Journal Entry In Transaction-->Financial-->General.

Expenses A/c Dr $$$

To Expense Clearing A/c (PO Clearing A/c) $$$.

This way you will Accured your expenses.

2) When you are ready to make Invoice for FedEx make sure you will change A/c in Distributions screen

Expense Clearing A/c Dr $$$

To Accounts Payable $$$

3) On Payment you don't have to make any changes but it entry will be

Accounts Payable A/c Dr $$$

To Cash/Bank A/c $$$$

Was this reply helpful? Yes No
Nela 140 on at

Like (0)

Report

Thanks Sandip

Was this reply helpful? Yes No
Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

Like (0)

Report

You don't have to issue payment just because you enter the invoice. You can enter the invoice, which will debit Freight Expense (or the appropriate account) and credit the Accounts Payable account. Then, when ready to pay it, you cut a check, which debits Accounts Payable and credits cash. No need to make an accrual.

Was this reply helpful? Yes No
L Vail 65,271 on at

Like (0)

Report

Howdy,

I vote for Frank's answer!

Kind regards,

Leslie

Was this reply helpful? Yes No
Verified answer

sandipdjadhav 18,306 on at

Like (0)

Report

Even I got it. When invoice is created Expense will get accrued until payment done!!!

Thanks

Sandip

Was this reply helpful? Yes No
Nela 140 on at

Like (0)

Report

Thanks guys, I got it , in GP in A/P I just did invoice entry and save it . and that took care of it. so thanks all for your supports and comments.

Was this reply helpful? Yes No
Nela 140 on at

Like (0)

Report

Thanks Frank for your suggestion. I see your point but the problem here was my Manager asked me to accrue it. but its taken care now. again thanks for your support.

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

Nela - you need to talk to your manager. the question is: when does your manager want the expense to hit the income statement?

When you enter the invoice into AP, the normal occurrence will be to debit the expense and credit accounts payable.

However, if your manager wants the expense to hit in a different accounting period, you will debit an accrual account and still credit accounts payable.

Was this reply helpful? Yes No
Nela 140 on at

Like (0)

Report

Thanks Deanne

Was this reply helpful? Yes No