NetClose - Accreting (Target Amount) Accruals
Overview
With NetClose Accruals, users can create accruals that will increase over time to a Target Amount and Target Date, also called Accreting Accruals. When an Accreting Accrual is created, NetClose will add schedule lines to an accrual record to increase the Accrual Balance pro rata monthly from the initial amount (usually 0) to the Target Amount.
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Step-by-Step Process
Creating a new Accreting Accrual follows the same process as creating a standard Accrual in NetClose, which can be found in this article. This article will explain the specific fields and actions that are relevant for Accreitng Accruals
Accreting Accrual Fields
Target Amount: The target amount field is the amount that the Accrual you are creating should build up to by the indicated target date.
Target Date: The target date field is the date that the Accrual you are creating should reach the target amount.
Terms: The number of terms that the Accrual will build up for.
Starting Accreting Accruals
Once an Accreting Accrual has been created the Accrual Schedule will need to be generated. A schedule can be generated by clicking Generate on the Accrual record or from the Accruals Generate Schedules Page.
After a schedule has been generated, the user can commence the Accrual by clicking the Commence button on the Accrual or on the Commence Accruals Page.
Matching and Adjusting Accruals
Similar to standard Accruals, users can match incoming Bills to Accreting Accruals and modify or adjust Accreting Accruals mid-life. When matching and/or adjusting an Accreting Accrual, there are additional fields on the Match and Adjust pages that users must be aware of. When an accrual is matched to a bill or adjusted, NetClose will not automatically update the Accreting Accrual's Target Amount, Target Date, or Terms. If the estimated accrual Target Amount or Date has changed as a result of the matched bill or adjustment, then the user should change the Target Amount, Date, or Terms on the Match or Adjust page before submitting the action. NetClose will update the Accreting Accrual schedule based on the New Accrual Balance, Target Amount, and Target Date shown on the Match and/or Adjust Page.