Understanding Accrual Entries

When you use cash basis accounting, you create transactions in the AZ ledger at the time that you receive and disburse money. Transactions involving the receipt and disbursement of money occur as receipts and payments in the JD Edwards EnterpriseOne Accounts Receivable and JD Edwards EnterpriseOne Accounts Payable systems.

For accrual entries, the system creates debits and credits to the bank account in the F0911 table for these batch types:

• K: automatic payments

• M: manual payments with match

• W: manual payments without match

• RB: receipts

The system creates the entry as one sided with a document type of PK, PN, or PT for Accounts Payable and RC or RK for Accounts Receivable. It then creates a balancing entry in the accounts payable and accounts receivable trade accounts with a document type of AE (automatic entry). Because the system creates both documents in the same batch, the batch is in balance and can be posted without error.