Handling contracts and/or accruals

Hi there,

I have a problem in my accounting which is the following. The company has many different contracts for IT related costs (normally bandwidth in a certain region). Some of these contracts are invoiced in advance and some are invoiced after we have used the service/bandwidth. Management wants better transparency on these costs so now each region is split out on a different account and we can keep track of each account in excel. But I think there should be a better way to solve this within NAV but I don’t know how, since I am not a very experienced user. The problem is really if there is a way to deal with contracts and/or accruals that go both back and forward in time. Does anybody out there have a solution to the problem?

Thank you very much in advance.


Look at the Periodic Journals Reverse functionality - this can be used in your situation. It will post the expected costs (or whatever entered) on Posting date set and reverse the transaction on the next day automatically, usually the Posting date is the last day of month or whatever is your accounting period.

When the real Invoice comes in later, you then post it normally, but reports for the period will show the accrued expenses also - if they were known precisely and in that Amts entered in Periodic Journal, the reports will be accurate, if it was an estimate of expected expenses, the report will be less accurate, but will give more reliable view to management than without them at all.