Accrual
In Arabic الاستحقاق
An accrual is an entry that records income or an expense in the period it was earned or incurred, before the invoice is issued or the cash changes hands.
In plain words
Accruals tie costs and liabilities to the period they belong to. Services used or goods received in March are owed in March, even if the supplier’s bill only arrives in April. Without the accrual, March shows less owed, and often less cost, than it really had.
An accrual is posted as an expense or an asset against a liability, then cleared when the real document arrives. Goods received not invoiced is one accrual: the receipt books the liability and the bill settles it. Others, such as electricity or wages owed, are entered by hand at month end.
The common mistake is accruing by hand and then booking the bill as well, without reversing the accrual. The cost is counted twice. When the bill arrives, it should settle or reverse the accrual, not sit beside it.
- Receipt, 2026-03-28: inventory up
- SAR 6,000.00
- Accrued liability at 2026-03-31
- SAR 6,000.00
- Bill posted, 2026-04-05
- SAR 6,000.00
- Accrual left after the bill
- SAR 0.00
In Axon Suite
How Axon Suite handles it
In Axon Suite posting a goods receipt debits inventory and credits goods received not yet billed, and posting the vendor’s bill settles that accrual.
Feature
Bill what arrived, at the agreed price
Draw the bill from the goods receipt and each line is billed at the purchase order’s agreed price and discount, under the vendor’s own invoice number. You can’t bill more than was received, and the same vendor invoice can’t be entered twice.
Open: Bill what arrived, at the agreed price