How To: Enter Accruals to Deal With Expenditure Paid In Arrears in Sage 50 Accounts

Accruals deal with expenditure paid in arrears. Examples of such expenditures are electricity, gas and telephone bills. Sage 50 Accounts deals with accruals in a similar manner to prepayments. A payment can be spread over a number of months so that it is accounted for in the right period, not just the month it is paid. However, with arrcruals you do not usually know in advance how much your payment will be. An accrual is often an estimate based on previous payments.

The Sage 50 Accounts Accrual option is used to set up an accrual. The example above estimates that the quarterly electricity bill will be £600, it then sets up an accrual to spread the cost over the three months of the quarter.