ACCRUALS

Accrual Basics

When a Purchase is executed, accruals are created for the purchase amounts. When a Sale is executed, accruals are created for the sale amounts. When the Purchase invoice is created, it reverses the previously created accrual and creates a new accrual for the new amount. This causes a change in the total of the Purchase cost sheet, which prompts an update in the Sales cost sheet. The Sales accrual is then updated accordingly.

Different activities like officially reporting an inventory lot as lost have impact on accruals.  Agiblocks also supports accrual generation according to IFRS15 (Estimated price support) and IFRS9 (Fair Value) regulations.