Payroll expense calculations via payroll registers don't always fall completely within an accounting period. When a pay period crosses accounting periods, an accrual must be recorded in the former accounting period to reflect the amount of wages earned but not yet payable. This action allows for accurate matching of expenses to the proper period. The values are based on each job’s wage and contract days for the accounting period following the last payroll register through the last day of the accounting period.
This feature can be used in systems using the cash basis accounting method for payroll. The accounting method is specified during setup in the Accounting Cycle window. There are some complexities regarding accruing while using the cash basis method, so you may want to consult your accounting advisors.
Recording payroll accruals can be done at a variety of points in time depending on your organization's business practices. It can be done annually just before the close of the fiscal year, quarterly, monthly, or anytime deemed necessary.
The accrual process must be run and posted before the close of the accrual accounting period.
The accrual reversal should be run prior to the following accounting period’s regularly scheduled payroll register
Accruals will only be through the last day of any given accounting period.
The following adjustments are not available in this process: regular days, deficient days, dock days/amounts, leave hours/days, and overtime.
The daily job type is not available in this process.
See Manage Payroll Overview for details about those features.
Correcting Errors in the Period Accrual Report
Period Accrual Data Export
Return to Payroll Overview
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