Accrual Accounting Overview

What's in this article

• What is Accrual Accounting?
• Setting Up Accrual Accounting
  • Enabling Accrual Accounting in Kindertales
  • Setting Up Your Debit Types
• Applying and Editing Charges with Service Dates
  
  • Applying Charges with Service Dates
  • Editing Charges with Service Dates

What is Accrual Accounting?

Accrual basis accounting recognizes business revenue and matching expenses when they are generated — not when money actually changes hands. To learn more about accrual accounting, check out these videos that our team used while building Kindertales' accruals features to learn more.

Enabling Accrual Accounting in Kindertales

To begin using Kindertales on Accrual Accounting basis, you need to first turn the setting.

1. Navigate to Settings > Features
2. In the Billing section, make sure the toggle is set to ON
3. Click the radio button for Accrual Accounting

Setting Up Your Debit Types

Now that Accrual Accounting is turned on in your settings, you'll need to set up which Debit Types will be accounted on an accrual basis.

1. Navigate to Settings > Billing > Debit Types
2. You will now see an additional checkbox labeled Accrual for each debit type
3. Check the box for each debit type you would like to be accounted for on an accrual basis; these settings will auto-save

Applying and Editing Charges with Service Dates

Now that you've set up your settings and debit types, you're ready to being inputting charges with service dates.

Applying Charges with Service Dates

1. Navigate to a student's page either by searching their name or clicking Enrollment in the main menu
2. Click Programs & Billing > Charge
3. When applying a charge with a debit type you've marked as Accrual, you'll see an additional input field for Service Date
   
   
   
   
4. Choose the Service Date(s) for this charge and click Apply Charge to submit
   1. THIS AUTO-PICKS TODAY, REMEMBER THAT
5. In the Charges table below, you'll see a new column where Service Dates are listed
   
   

Editing Charges with Service Dates

1. Navigate to a student's page either by searching their name or clicking Enrollment in the main menu
2. Click Programs & Billing > Charge
3. In the Charges table below, click the Edit button on a charge
4. You can now use the Service Dates field to edit the Service Dates after the charge has been created. Don't forget to click Update Transaction to submit your edits
   
   
   
   
5. Click on the charge in the Charges table below to see the Transaction History