Accrual Basis Reporting

OGsql General Ledger reports can be generated by Accrual Basis to show balances by the GL Accounting month rather than by Journal date (transaction date/production month) or Cash date. This is helpful when accounting for prior period adjustments because they can be included in the current processing month rather than changing an older, closed period.   To utilize the Accrual Basis to its fullest, closing the GL month regularly, and consistently is required.  The GL Close Month process assigns the Accrual Date.  Adjustments can be made to a closed accrual month with a manual journal voucher that has the Accrual Date field populated at the time the voucher is final posted.

The rule for how the GL Close Month assigns the accrual date is as follows:

When a voucher is final posted the GL detail lines have no accrual date (with one exception) so they are considered ‘unclosed’.  When the GL Close Month is run to close an accounting month, the program looks for any final posted GL detail that has no accrual date and that has a journal date on or before the month being closed.  All GL detail items that qualify will be assigned an accrual date for the month being closed.  Any that don’t qualify because they already have an accrual date, are still unposted or because the transaction date is later than the month being closed will remain unchanged by the GL Close Month process. 

For example, when closing the GL for January, any posted vouchers that have no accrual date (because they were final posted after the last GL month was closed) and that have a journal date of January or prior will be closed into the January accrual period, that is, they will be assigned an accrual date of January.

Typically, the GL Close Month is run once per month and on a regular schedule (such as by the 15th or 25th of the next month).  The actual closing schedule is up to the user but it is strongly recommended that the month be closed each month according to a set schedule.  For accrual basis reporting, it is not recommended that GL months be left open for extended periods, even for the last month of the year.

Because it is not unusual to have adjusting entries to a close period such as adjustments to the previous year end then the preferred method for making such adjusting entries is with a manual journal entry that utilizes the optional basis date field for the desired accrual date (i.e., 12/25/16).  This is the exception mentioned above.  When this accrual date is pre-populated before the voucher is final posted then no additional GL Close is needed to assign the accrual date since that voucher already has an accrual date, therefore this voucher is unaffected by any subsequent GL Close Month processes.