Accural Account in the payables module?

[vaneetha]

Hii can any one explain wat is Accural Account in the payables module?

[raja_rthiyagu]

hi vaneetha


<b>Accruals</b>
Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense.

Notes:
The use of accrual accounts has greatly increased the amount of information on accounting statements. Before the use of accruals only cash transactions were recorded on these statements. But cash transactions don't give information about other important business activities, such as revenue based on credit and future liabilities. By using accruals, a company can measure what it owes looking forward and what cash revenue it expects to receive. It also allows a company to show assets that do not have a cash value, such as goodwill.


<b>Accrual Accounting</b>
An accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions happen.

Notes:
The opposite of this is cash accounting, which recognizes transactions only when there is an exchange of cash. But under accrual accounting, for example, if you buy a stereo on credit, the company you buy from would still recognize the event as a transaction.

IN Apps

They are two types of Accounting

1. Cash Accounting 2. Accural Acoounting

Accural Accounting :- Creating Liability and closing the Same

Example :-
Assume paying for the Invoice of Rs. 5000.00

In Invoice Windows
Action --> enable -- Create Accounting -->ok

(M)Tools -->View Accounting
It will give details of accounting

Charge Accounts - Rs. 5000.00 (Credit)
Cash Clearing -Rs.5000.00 (Debit)

i had given what i know since iam manf. backgrounf not in finance

for Further details check it in GL user guide

[vaneetha]

Thank u ya it will be very useful to me