Using Storman for Accrual Accounting
Posted by Cameron Telfer, Last modified by Ngatokorua Elikana on 05 October 2016 12:58 PM
Storman recognises Debtors on an accruals basis. When rent is billed to a customers account, both the Debtor and the Income is recognised in the month when the charge is made. The corresponding journal entry would therefore be;
DR Debtors XXX
Cr Rent Income XXX
(to recognise the rent billed to customer)
When a customer pays the balance of their account, this is subtracted from the Debtors balance and the payment increases the bank account by the same amount.
DR Bank XXX
Cr Debtors XXX
(for receipt of payment from customer)
These journal entries can be processed manually at the end of each month using certain Storman reports to determine what amounts to use for the month. This article describes how to print these reports and then create the general ledger entries.
Preparing the General Ledger Entries
The following steps need to be completed:
First Print out the Customer Balances report and check that the total of the column headed Prev Mth Bal agrees with the closing receivables amount in the general ledger for the previous month. If it does agree then continue with step 1. If it doesn't then you will need to verify why the opening balance has changed from the previous month.
Most often the changes would be a result of an operator making changes to a customers transactions for the previous month after the month had been closed off and report printed .
The above steps reconcile the bank, receivables and deposits account to agree with Storman.