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.
In Solo Superstars
Tick "auto-reverse" on the adjusting entry. The year-end close uses this for accruals it posts, so January starts with the reversal already in place.
Example
Dec 31 accrue 900; Jan 1 reversal −900; Jan 12 the real 900 bill posts. Net effect: December carries the cost once.
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
- reversing accrual
Related
- Accrual — Recording an expense you have incurred but not been billed for yet (or revenue earned but not invoiced), so the period is complete.
- Reversing entry — A mirror-image journal entry that cancels an earlier one without deleting it. How every correction is made, so both entries stay in the history.
- 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.
- Year-end close — Closing the fiscal year: zeroing revenue and expense accounts into retained earnings, rolling owner draws into equity, and locking the year.