List of supplies needed
Final invoices from the prior year or the general ledger balance showing the cost for expenses for one year.
- The last three months of expense invoices for the current year or general ledger balances showing the value of expenses over the previous three months.
- Payable accrual worksheet
Time to get started?
Obtain the payable accrual worksheet, as a starting point make a list of all possible expenses that the organization is billed for on a quarterly, semi-annually and yearly basis. An example could be postage machine fees billed quarterly, or property taxes billed yearly. Reviewing the prior year bill in hand, manually adjust the bill approximately 5 percent for the upcoming year (use judgment on this step if the recommend increase seems high, review the prior year billing and adjust the increase accordingly).
Examples of expenses to accrue:
Company party, Christmas party.
Upcoming expenses which may not be classified as a fixed asset.
Documentation fee stamps.
Miscellaneous service related items such as filters.
It’s a good idea to create the worksheet before year-end, review and adjust before making entries for the upcoming year.
Does the DMS system or DMS provider provide a re-occurring posting journal template?
As a safety measure, consider using the Excel template and the DMS template if available.
Utilizing the worksheet record all data in the highlighted only area. The data will populate into the correct field so for January as an example set up the template and input the amounts into the January column, and the template will populate onto the general journal voucher and the worksheet. For reference, the accrual is always a credit (-), and the expense is still a (+). Do not reverse this monthly entry.