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    gabriel kinovisques
    How to Incur Accruals for Indirect Projects
    Topic posted November 12, 2019 by gabriel kinovisquesRed Ribbon: 250+ Points, tagged Project Billing & Revenue, Project Contracts, Project Costing, Project Management, Project Performance Reporting, Project Planning & Scheduling, Project Planning, Budgeting, & Forecasting, Project Resource Management, Reports, Sample Reports, Tip 
    21 Views, 1 Comment
    How to Incur Accruals for Indirect Projects
    Expense Accruals for indirect Projects

    Hello :

    We have a business requirement :

    The company provide one benefit to the employee called Mobile Phone for Managers up to 200 USD per Month.

    At the end of the Month the carrier i.e. ATT send the invoice to be paid for example 10,000 USD for all the mobiles phones and the AP invoice is fully paid to ATT.

    Once the ATT invoice has been paid Finance team review the invoice for each employee in order to check review the 200 USD threshold, so for example one manager spend 250 USD instead of 200 USD.

    In this case the manager owes 50 USD for the difference and this amount will be deducted from his payroll.

    Finance teams wants to book and expense accrual through Projects

    Debit Expense

    Credit Accrual

    This journal will be send to Payroll in order to deduct this amount for his payroll, and once they process the monthly Payroll they will send a Journal to be posted in General Ledger in order to confirm that 50 USD were deducted from his Payroll.

    Debit Accural 50

    Credit Banks or Wedge deductions 50

    Can we book those Expense Accruals troughs Projects or shall we book them trough GL instead ? If we book through GL we do not have a segment called Project.

    Please Advise










    • Shifa Shafeeq

      When the expense reports are submitted one can select the indirect projects. These expense reports are imported into AP. Once create accounting is run for AP it is automatically mapped based on the SLA and posted to GL. Does this make sense?