Accrual
Recording an expense you have incurred but not been billed for yet (or revenue earned but not invoiced), so the period is complete.
In Solo Superstars
Post it as an adjusting entry at period end, ideally as an auto-reversing accrual so the real bill next month does not double count.
Example
A subcontractor completes $900 of work in December but does not send the bill until January.
December 31 — accrue the cost
| CoA | Account | Class | Debit | Credit |
|---|---|---|---|---|
5040 | Subcontractors | Cost of goods sold | $900 | — |
2000 | Accounts Payable | Liabilities | — | $900 |
December carries the cost and the balance sheet shows the amount still owed. If the entry is set to auto-reverse, it reverses on January 1 so the real January bill can be entered without counting the cost twice.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- accrued expense
- accrued liability
Related
- Auto-reversing accrual — An accrual that the app automatically reverses on the first day of the next period, so the actual bill can post normally.
- Adjusting entry — A journal entry made at period end to fix timing: an accrual, a prepaid release, depreciation. Not tied to a bill or invoice.
- Accrual basis — Counting revenue when you send the invoice and expense when you receive the bill, whether or not money has moved. The alternative is cash basis.
- 2000 Accounts Payable (A/P) — Money you owe vendors for bills you have received but not yet paid. A liability until the money leaves your bank.