Record to report / R2R – General Accounting – Accruals
We read how accruals would be a good back office process.
What would be the steps of this process?
- The accounting department at each unit of the client informs the back office of each contract / requirement, along with the period, periodicity, amount / percentage / rate of accruals
- They also inform of the frequency of the payment
- They inform of period end payables / receivables
- The back office creates a dynamic schedule for the accruals
- In some cases they set up automated procedures in the ERPs
- They pass regular entries in the ERP as per schedule
- The compare the best practices from each location
- The share the analysis of best practices
- All changes and updates to the contract terms are regularly monitored and updated.
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