Automating the Monthly Accruals

If your credit union currently posts share and certificate accruals to an expense dividend general ledger account (300 series), Automated Accruals will let you automate the monthly accrual process using Journal Voucher batch processing to create general ledger entries. When the Automated Accruals option is activated, the system will:

• Automatically make the monthly accrual expense entries on the first calendar day of the month with an effective date of the previous month end for any share, certificate and loan types designated.
• Create accrual batches for both the accruals and offsetting reversal batches based on credit union-defined options as a result of the month-end processing.
• Display accrual batches and offsetting reversal batches on the JV Batch Posting Summary window.
• Display details of accrual transactions on the JV Batch Details window.
• Post a separate accrual entry for each share type, certificate type and loan type.
• Post the reversal batch based on the Post Reversals Method field in the Auto Accruals section on the Credit Union Profile – Accounting tab.
• If the field is A, the reversal batch will be posted on the day of the current month indicated in the Post Day field.
• If the field is P (pending), the reversal batch will be created with a P (pending) indicator on the JV Batch Posting Summary window, requiring you to manually select the Scheduled to Post check box on the JV Batch Posting Summary window and select a date in the Effective Date field to post the reversing entries.

If the Auto Accrual check box is not selected on the Share Profiles – Account Information tab, Certificate Profiles – Account Information tab or Loan Profiles – Account Information tab, manual accrual entries will be required for that share, certificate or loan type.