Knowledge Sharing | Difference between perpetual accrual and period end accrual accounting?

Summary

Knowledge Sharing | Difference between perpetual accrual and period end accrual accounting?

Content

For perpetual, or on-receipt accrual accounting, the receiving transaction automatically creates a receipt accrual journal entry that debits the receipt inventory and credits uninvoiced receipts. After the received material is delivered to its final destination, the receipt inventory account is cleared and the material account is debited.

For period end accrual, no accounting is created at either material receipt or at delivery to the final destination.

Note: Period end accrual applies only to expense items because inventory items are always accrued on receipt.

For perpetual accrual accounting, you don't have to run the Create Uninvoiced Receipts Accruals process.