Prepayments & Accruals in the workplace

nightshade

Hi Folks,

This is perhaps strictly beyond the scope of AAT, but I wasn't sure where to ask.
I'm studying at lvl 3 with only indirect tax and ethics to go. I've grasped Accruals and Prepayments enough to get so far, but am now in a position to need better understanding at work.

I've been lucky enough to be given some experience within our managements accounts team and am currently reviewing & investigating their expenditure control reports each month. This leaves me needing to do lots of digging on Sage (500), and the bulk of their accounts feature at least several Accruals and Prepayments. Now work have sat down and tried to explain to me, twice in fact, but as this is beyond my actual job and we're always pushed for time, I'm trying to do as much as I can off my own back.

Does anyone have any advice / resources that extend beyond AAT's 'manual' style accruals/ prepayments that may have more use in the workplace?
When confronted with a nominal printout of umpteen accruals and prepayments I find it difficult to work out what is increasing, decreasing and what are actual costs/ monthly impacts.

Any help greatly appreciated! :thumbup:

liveprincess

Not sure if that helps but we keep a spreadsheet where they are all listed..

ExcelAnt

Agree with live, if in doubt create a spreadsheet.

For example insurance is usually a cost paid for the whole year lets say its 1200

In month one the invoice would get posted to your accrued costs code sat on the B/s with a balance of 1200.

on your spreadsheet record this with a note of "12 monthly costs of 100'

each month you would then journal this out by 100 to the P&L.

Roll the spreadsheet forward with a new note, 11 months to pay etc.

Not foolproof for all situations, and you probably have more involved transactions but you get the idea i hope