Accrued Expenses

This account reconciliation is a Liability account type and a List reconciliation type. This type of reconciliation allows you to make a list of the amounts that make up the account balance.

The Description shown above tells you what should be recorded in this account at the end of each month. You can also see the Company Policy that states that "amounts less than $500 do not have to be accrued". This is always available by clicking on the Account Information tab in the reconciliation dialog window. Changes to the Description and Policy/Procedure sections can be made in the Application Setup section.

Below is the reconciliation for this account for the month ended 12/31/2010.

The reconciliation has been Prepared, Approved and Reviewed as noted by the appropriate staff members. The Supporting Document that substantiates the Henson Welding accrual has been attached. Below is the Reconciling Item for the Henson Welding repairs.

This item has an Open Date of 11/30/2010, and the Close Date is blank. This was accrued at the end of November to record the expense when the repair was actually completed. The amount still has not been processed through the payables system or it would be included in Accounts Payable. When the amount is recorded through the payables system the close date can be completed. You can see that the description has a detailed description of what the invoice was for and who it is payable to. This is good documentation.

The month end report is shown here:

This particular account is reconciled with no Unidentified Difference.

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