Accounting
Accruals and deferrals
Adjustments that assign income or expense to the financial year it belongs to rather than the year cash is received or paid.
They make each year's result reflect what economically happened during that year and are especially important when clients pay in advance.
An example
Part of an annual licence billed in November belongs to the following financial year.
The typical mistake
Recognising all revenue on the collection date. That overstates the current year and understates the next.
How it appears in AndCompta
Accrual and deferral adjustments are posted with their date and rationale, so the reason remains clear at the next close.
Where we explain it in depth
Related terms
This definition is general information, not tax or accounting advice. For your specific case, consult a professional and always check the official source.