Accruals are adjustments for revenues that have been earned but are not yet recorded in the accounts, and expenses that have been incurred but are not yet recorded in the accounts. Common types of accruals are vacation, sick, or bonus. Each type of accrual is assigned an accrual code. These codes are used to collect and hold the different accrual balances, such as the total number of hours, days, or money.
An accrual policy Defines how and when balances for accrual codes are credited and debited. defines how and when balances associated with accrual codes are credited and debited. The policies control how employees accrue time or money, or both. An accrual profile contains the accrual rules that determine an employee’s accrual balances. An accrual profile can contain one or more accrual rules. Accrual profiles are assigned to similar groups of employees. For example, all full-time employees might have the same accrual profile.
To configure accruals, complete the following steps.