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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.
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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.
Even I got it. When invoice is created Expense will get accrued until payment done!!!
Thanks
Sandip
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.
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 $$$
To Cash/Bank A/c $$$$
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