Wesley, you have to think through what the objective of the accrued accounting expense is and that is to charge the expense to the expense account as it accrues. You will eventually have to pay the money to the accountant when he presents his invoice so the total accrued amount is a liability for your business. On some regular basis (weekly/monthly etc - asks your accountant for advice), most likely with a scheduled transaction you could make an entry of the form:
Expense:Accrued Accounting DR xxx Liability:Accrued Accounting CR xxx where the sum of xxx over your accoutning period will be roughly equal to the annual value of the accounting charges yyyy. WHen you receive the invoice you would create an bill which transfers the accrued liability to your accounts payable, i.e. Liability:Accrued Accounting DR yyyy Expense:Accrued Accounting CR zzz Liability:Accounts Payable CR yyyy + zzz where zzz is an adjustment for the amount the invoice exceed your accrued accounting expenses in the liability account. ( if the amount of the invoice is less than the accrued expenses you would debit the Expense:Accrued Accounting account and subtract zzz from yyy in the third line. When you actually make the payment it is Liability :Accounts Payable DR yyyy + zzz Asset: Bank:Cheque CR yyyy + zzz where zzz was credited to the accrued expense account (invoice larger than accrued amount by zzz) and replacing with yyyy-zzz where the invoice amount is less than the accrued amount by zzz. There may be alternative ways of recording which may be jurisdiction dependant - check with you accountant - that's what you are paying him for. The aim is to use a value of the periodic accruals xxx which sums pretty closely to the expected final invoice amount. As always the above does not constitute specific accounting advice and you need to discuss exactly what is required with your accountant. David On Tue, 2024-05-14 at 14:39 +0100, Wesley Brooks wrote: > Dear users, > > I'm a basic level user of GNUCash, and generally enter transaction > details mostly by raising bills/invoices and subsequently processing > the > payments. The only exceptions to this are how I enter my salary > payments, and transfers between my company and private accounts > covering > director loans and repayments. > > My accountant has added their charge for accounting and an accrued > expense on their submissions, long before they would raise an > invoice. > > How do I generate an accrued expense so that it works with a > subsequently raised the invoice, and processed payment in the > following > year? > > Thanks. > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
