(I) How to Use Accrual in Accounts Payable

Most churches operate on a cash basis, not letting expenses affect the general fund until they are actually paid. Using Accrual will give you a more accurate picture of expenditures by accruing invoices as liabilities when the expense is incurred. The effect on the general fund will be reflected immediately, instead of waiting until the invoice is actually paid. Expenses will appear on reports in the month in which they were incurred, rather than when they were paid.

NOTE: If you wish to make a partial payment of an invoice, it must be accrued.

  1. First make sure that an Accounts Payable Liability exists in your Chart of Accounts, such as the following:

    Accruing Invoices in CDM+ Accounts Payable

  2. Enter Invoices normally through Invoices in Accounts Payable.
  3. Select Accrue Invoices from the Accounts Payable menu on the Accounting menu.
  4. Click the drop down arrow on the Liabilities field and select from the drop list the liability into which you wish to accrue invoices.

    Accruing Invoices in CDM+ Accounts Payable

  5. Double-click on each of the invoices you wish to accrue into the selected liability. The selected liability will be listed in the Liability column to the far right, indicating the items marked for accrual. One or more invoices may be accrued at any given time. The Accrue All button may be used to mark all items for accrual. To change the accrual date for an invoice/ invoice line, double-click the accrual date, enter your new date and click OK.
  6. Click the Save button. These Invoices have not actually been paid yet, but all Income, Expense, and Budget Comparison reports will reflect the expense that has been incurred, regardless of whether the invoice has been paid.
  7. Accrued invoices appear in the Invoice Entry window with the label "Accrued" in the breakdown line.

An accrued invoice in CDM+ Accounts Payable

Troubleshooting Tip:

Accrual is an option that can be disabled in CDM+ System Preferences. To accrue invoices, make sure that "Don't Show Accrual Options" is NOT checked in Systems Preferences:

File(Windows)/CDM+ (Mac) > Preferences > CDM+ System > Accounting tab > Accounts Payable icon

Accrual Accounting must be enabled in System Preferences