This account template is used to reconcile the underlying accruals value per your trial balance to the relevant documentation (i.e. details of the amount accrued for).
Firstly you will need to get the relevant accruals information from the client's underlying bookkeeping system. Once you have this data you can either:
Option 1: Enter the data manually into the template
Option 2: Upload an extract from the underlying bookkeeping system into the account template
[ Note: there is no preference to which option you choose to complete your accruals, it's up to you!]
Option 1: Enter the data manually into the template
The accrued amount is calculated based on the date of the current period relative to the “period from” and “period to” fields as well as the invoice amount.
1. Pull in the relevant nominal code accounts using the # functionality
2. Frequency
- “D” is for Days: the total invoice amount is multiplied by the days that have elapsed as a fraction of the total number of days (based on the 'period from' and 'period to' dates)
- “M” is for months: the total invoice amount is multiplied by the months that have elapsed as a fraction of the total number of months (based on the 'period from' and 'period to' dates)
- E.g. 01/11/2020 to 30/10/2021 covers November 2020 to October 2021 which is 12 months
- However, if you submit 10/11/2020 to 09/11/2021 covers November 2020 to November 2021 which is 13 months
Note: The 'days' option is advisable for the most accurate outcome
3.'Period from' date
4. 'Period to' date
5. Total invoice amount
Option 2: Upload an extract from the underlying bookkeeping system / Excel into the account template
If you already have your accruals data in another system, there is no need to manually enter it in. You can simply download an Excel extract of your accruals and upload this into Silverfin!
Here's a few key points to remember when doing this:
- Make sure all the columns in your import have column headers
- Silverfin recognises commas as the end of a whole number so please ensure thousands are not separated with a comma
e.g. Use £15000.00 and not £15,000.00
- You will still need to drag in the relevant account using the # functionality, so there is no need to map this when uploading your Excel document.
- You will need to select the 'frequency' once the data has been imported
You can download an example upload template from the working paper itself here:
1. To import a document, click ' Actions' → 'Import reconciliation data'
2. Select the ' Upload Excel file' option and then map your account headers on your import to the account headers available in Silverfin
*INVOICE DATE*
By default, the invoice date is an optional field in the template and will not impact the accrued amount if the invoice date entered falls within the period you are working in.
However, if you would like the invoice date to be taken into account then there is a configuration that caters for this. This needs to be applied to the 'Accruals' account template by an Admin user:
{% assign invoice_date_logic = true %}
NOTE: This will apply to ALL client files that have accruals. This means that if a user had previously reconciled the template but not input the correct dates, it may no longer reconcile and will alter the % completion of the workflow. Please bear this in mind and let users know before applying this configuration.
The fields for “ Invoice number”, “Invoice date” and “Description” are optional fields (unless the 'invoice date' configuration above has been applied).
If the accruals identified here are correct, the amount recalculated will reconcile to the underlying book value coming through from your bookkeeping system and the account will be reconciled. The 'green dot' will be shining brightly on you screen (unlike in the example above...Oops!)
If any additional explanation is required regarding further differences, this can be accommodated through the " Explanation of differences" field. This value will form part of the value being reconciled (i.e. it will be added to the sum of the 'Accrued amount' column).
Copy Data
When you move into the next period, you can quickly and easily copy the data from the prior period over to the current period. You will only need to enter any new accruals.
'Show journal summary'
You may already have the option to see the journal summary on your reconciliation. Simply tick the box next to ' show journal summary' and the proposed journal to be posted will pop up! If this isn't showing on your reconciliation let us know and we will happily get that sorted out for you!
As they say...it's accrual world