Purchase Accruals
The Purchase Accruals extension for Microsoft Dynamics 365 Business Central automates the recognition of expenses at the time of receipt—eliminating the need for manual accruals at month-end. This ensures your profit and loss statement and balance sheet remain accurate and up to date throughout the month.
Accruals are traditionally performed manually during the month-end close, delaying financial visibility and increasing the risk of missed or inaccurate entries. By automating the accrual of non-inventory purchases, this extension delivers real-time financial insights and reduces the operational workload for your finance team.
Business Value
Many organisations receive services and goods that are not treated as inventory throughout the month. Out of the box, Business Central only supports expected cost posting for items of type Inventory. As a result, expenses for other purchases are not reflected in your financials until the purchase invoice is posted.
The Purchase Accruals extension closes this gap by enabling automatic accruals for various purchase types, ensuring your financial statements always reflect current liabilities and expenses—even before the invoice is received.
Feature Details
The extension supports accruals for the following scenarios:
- All non-inventory line types, including G/L Account, Fixed Asset, Resource, Charge Item, and Item (where the Type is Service or Non-Inventory).
- Items valued using the Standard Cost method by accruing for the variance between the expected and standard costs. Business Central posts expected costs using standard costs, which may not reflect the purchase price.
- All project-related purchases, creating Project Ledger Entries to support WIP calculations for received-but-not-invoiced items.
- Sub-contracting receipts relating to production orders
- Purchase Return Shipments when goods have been shipped back but the corresponding purchase credit memo has not yet been received.
The extension follows Business Central’s principle that inventory is valued at the invoiced amount. When the purchase receipt is invoiced, the accrual is automatically reversed on the invoice date, and standard Business Central processes take over. If a receipt or return shipment is undone, the accrual is also reversed accordingly.
Additional Features
- Specify the posting date when undoing a purchase receipt or return shipment.
- Optionally post to interim accounts instead of expensing at the time of receipt, allowing you to delay expense recognition until invoicing—while still reflecting current liabilities accurately.