Accrual accounting added to Next® Invoices

By popular request, we are adding the possibility to perform basic accrual accounting from within Next® Invoices. 

You do accrual accounting to secure that income and costs are recorded in the periods where they are actually generated and consumed, instead of when they are coincidently invoiced or paid. 

Accrual adjustments can be as easy as making sure that the invoice for office rental, received on 10th of July, dated 1st of July, due on 15th of July by covering rent for August, is actually recorded in the month of August.


Simply pushing the cost to the next month


Or slightly more complex, making sure that the invoice for 3 months warehouse rent dated 3. January, received on 7. of January is split into 3 postings in January, February, and March. 


Splitting the cost equally into 3


Even more complex - energy consumption in the office to be distributed according to official degree days. Or, energy consumption in the production to be distributed according to your standard production profile.


    

Distributing according to an external profile


Typically, accrual accounting is handled by the finance team directly in the finance system, but now we add the option to influence accrual posting from within Next® Invoices. The actual accrual posting is still done in and by the financial system, but based on dates and profiles chosen during the processing in Next®.


For this specific account, accrual is in use 


For each account you may define if an accrual date (and/or profile) can be set. You may even set it as required.


The business log


Future enhancements


For the techies


Commercial terms and conditions

This new feature is available at no additional cost, to users with an active service plan. Any consultancy assistance will be invoiced.

Disclaimer

Despite our best efforts, we may be forced to change both content and expected delivery of future product updates without notice.


Details

Title:

Accrual accounting added to Next® Invoices

Type:

New feature

Status:

Released

Expected release:

August 2021

Affected products:

Next® Invoices

Audience:

End user
Specialist

Classification:

Public 

Responsible product manager:

Jørn M Christensen

Updated:

27.08.2021

By:

Kim Hellum