CONCEPT OF ACCRUAL SCHEME IN AX 2012

Accrual Scheme: Financial statements are prepared under the Accruals Concept of accounting which requires that income and expense must be recognized in the accounting periods to which they relate rather than on cash basis. For a better understanding, we take the example of insurance expenses. We have paid 18000 USD in 01-Aug-2014 for the one-year expense. Our fiscal year is Jan to Dec 2014 so we are only booking 7500 USD in this year and 10500 USD is booked in the next fiscal year.

For the accrual scheme, follow this step.

General Ledger->Setup->Posting->Accrual Scheme

Click on New and add a new accrual scheme

Create a new journal for insurance expenses paid of 18000 USD.

Go to Function tab select the ledger accruals and a new window opens; select the insurance accrual scheme from there.

To see further details click on the transactions.

You see that insurance accrual scheme divides the total amount in 12 months and creates 12 entries per month as per our requirements and releases per month entry of 1500 to the expense account.

Close it, select on ok and post it

To check the effect of the entry, open the account statement of 132100 for fiscal year 2014

It shows 10500 amounts that is our prepaid expense. To check the insurance expenses open the insurance expense account.

It shows 7500 USD as per our requirement and insurance accrual scheme works as per our requirement. We are also changing it day wise.