Writing off an over accrual

shaxxa

I need to write off an over accrual and am using VT.
In my past when doing management accounts we always wrote this off to the profit & loss account but I can't seem to find this on VT.
Any help or suggestions much appreciated?
Apologies if this is a dumb question, going round in circles here :blink:

Sharon

PaulPSB

Don't use VT but surely the opposite entry is the account to which the "over accrual" applies?

Eg Telephone, Heat & Light etc

Hope that helps

Paul

shaxxa

Hi Paul,
I have already done this but the account in question (Protective Clothing) gives me a credit balance on the P&L so it's has been over accrued the previous year.
I need to correct the figure to show the new accrual.

Still going round in circles

Sharon

PaulPSB

shaxxa wrote: »

Hi Paul,
I have already done this but the account in question (Protective Clothing) gives me a credit balance on the P&L so it's has been over accrued the previous year.
I need to correct the figure to show the new accrual.

Still going round in circles

Sharon

OK so you have removed the previous year's accrual and posted to Protective clothing. If you now Dr Protective Clothing with this year's cost and Cr Accruals with the opposite entry your closing accrual should be correct.
Whether the Profit & loss heading for Protective clothing ends up as Dr or Cr is incidental. If Protective clothing has been over accrued last year then you might end up with a Cr this year to compensate.

shaxxa

Hi Paul,
I have done what you have said but just don't like the cr in the P&L as it looks strange.
Thanks for your help, maybe I'm just being picky :001_smile: