NetClose - Adjust Accruals

Overview

After an accrual is created and approved, you may need to change its amount or reverse it - for example, when new information changes the estimate, or when the actual bill is entered and the accrual should be drawn down. Both actions are made from the Adjust Accruals screen and are recorded as a NetClose Accrual Modification, tracked in the accrual's history.

Use the method that matches your situation:

To increase or decrease the accrued amount based on updated information, with no bill matched yet, follow Adjust without matching a transaction.
To draw down or reverse an accrual once the actual transaction is entered and matched to it, follow Adjust using matched transactions.
To change many accruals at once, follow Adjust by CSV import.

Prerequisites

The accrual must be created and approved before it can be adjusted.

Check your permissions. To adjust or modify a NetClose Accrual, the user must have at least Edit permission on the NetClose Accrual Record and Create permission on the NetClose Accrual Modification record. To approve a modification, the user must have at least Edit permission on the NetClose Accrual Modification record.

Adjust without matching a transaction

Use this method to increase or decrease the accrued amount when the estimate changes and no transaction has been matched to the accrual. The change posts an adjusting journal entry. Once approved, the accrual keeps a status of Accrued with the revised balance - or is marked Reversed if you reduce the balance to zero - and the change is recorded in its modification history.

Navigate to NetClose > Accruals > All Accruals and open the accrual you want to change. You can also go to NetClose > Accruals > Adjust Accruals and select it.
Click Adjust at the top of the accrual record.
Select the Adjustment Date. The adjusting journal entry posts on this date.
In the modification section, enter the corrected amount in the New Accrual Balance field. Leave the transaction list unmatched.
Click Adjust to create the modification.

Approve the modification:

If approval is required, the modification is created with a status of Pending.
Navigate to NetClose > Accruals > Approve Accruals, select the modification, and click Submit. You can also approve it directly from the accrual record.
Once approved, the adjusting journal entry posts and the accrual status returns to Accrued:
The accrual record is updated to reflect the modification and its history:

Adjust using matched transactions

Use this method to draw down or reverse an accrual after the corresponding bill or transaction is entered in NetSuite and matched to the accrual. Matching generates an adjustment journal entry for the matched amount. Transactions can be matched to the accrual either here on the Adjust Accruals page or on the Matching Accruals page.

The accrual's status after an approved adjustment depends on its New Accrual Balance. If the balance is reduced to zero, the accrual is marked Reversed. If a balance remains - for example, when a transaction is matched for less than the remaining accrual balance - the accrual stays Accrued with the reduced balance, and it can be adjusted again later.

Navigate to NetClose > Accruals > Adjust Accruals.
Click on the accrual to be adjusted. A list of all matched transactions displays on the right of the screen:
Select the Adjustment Date to post the journal entry:
The fields in the modification section, located directly below the Adjustment Date field, populate automatically based on the transactions associated with the accrual. If a remaining balance exists, positive or negative, adjust the Accrual Modification (GL Impact) and New Accrual Balance fields as needed to reverse the accrual:
Once the desired transaction is selected and matched to the accrual, click Adjust.
Before the adjustment journal entry can be created, the accrual must be approved. Navigate to NetClose > Accruals > Approve Accruals.
Select the accrual and click Submit to approve:
Once the journal entry posts, the accrual balance and status update. If the balance is now zero, the accrual is marked Reversed; if a balance remains, it stays Accrued with the reduced balance. The example below shows a full reversal:
To view the status of all accruals, navigate to NetClose > Accruals > All Accruals:

Adjust by CSV import

If you need to modify several accruals at once, you can import a CSV of NetClose Accrual Modification records.

Download the NetClose Accrual Modification Template and populate it with the required accrual modification data.
Navigate to Setup > Import/Export > Import CSV Records:
- Set Import Type to Custom Records.
- Select Record Type as NetClose Accrual Modification.
- Upload the prepared CSV file.
- Click Next:
- Under Data Handling, select Add.
- Enable Run Server SuiteScript and Trigger Workflows.
- Click Next:
- Map the CSV columns to the corresponding NetClose fields:
- Click Next and then Run to execute the import.
After the modifications finish importing, if approval is enabled, complete the approval process:
- Navigate to NetClose > Accruals > Approve Accruals.
- Select the accrual modifications and click Submit to approve:
- The journal entries post upon approval, and each accrual record updates to display the revised total and modification history:

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