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Accruals & adjustments

Prepare the adjustments the close needs.

Our AI agents identify activity the ledger does not yet reflect, calculate the required accrual or adjustment, assemble the support and prepare the journal for accounting review.

Your policy. Your chart of accounts. Your approval process.

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An illustration of the March 2026 legal fees accrual prepared by the Close Agent. Carter & Webb's March statement shows 21,300.00 of work; 2,700.00 of it is already invoiced and recorded in NetSuite, so 18,600.00 is unbilled. The agent prepares journal entry JE-4472, debit 6410 Legal fees and credit 2100 Accrued expenses for 18,600.00, reversing on 1 April, with the statement, the invoice, February's treatment and the accrual policy attached. It waits on Dana Ruiz, Controller.

The work before the journal

Posting the journal is the last step.

Before accounting can book an accrual, someone has to determine what was incurred, what has already been recorded, which period it belongs to and how it should be treated.

An illustration of the same accrual prepared two ways: by hand, twelve steps across the AP inbox, the ledger, the engagement letter and a workbook; and by the Close Agent, which prepares the accounting work behind the entry: 21,300.00 incurred, less 2,700.00 recorded, an 18,600.00 accrual.

Worked example

From activity to adjustment.

Carter & Webb's March fees, from the statement in the AP inbox to an entry in the ledger.

An illustration of the March legal fees accrual in seven stages: the Close Agent identifies 21,300.00 of March services on Carter & Webb's statement; finds 2,700.00 already invoiced and recorded; applies the accrual policy; calculates 18,600.00; prepares JE-4472 with its workpaper; routes it to Dana Ruiz, Controller, who can approve, edit or reject it; and posts it to NetSuite on 2 April, after which 2100 Accrued expenses ties at 231,000.00.

Common adjustments

The adjustments every close needs.

Six kinds of adjustment, each with the work in front of it. Open one to see what the agent reads and what it prepares.

  • Vendor accrualsServices received but not yet invoiced.Carter & Webb · 18,600.00 · JE-4472
    What our agent does

    Compares statements, usage, purchase orders and contracts with what has been invoiced, and accrues the difference with its basis attached.

    Typically reads Gmail, NetSuite, and Purchase orders and contracts.

    21,300.00 of March services − 2,700.00 invoiced = 18,600.00 · Dr 6410 / Cr 2100

  • Payroll accrualsPay earned in the period but not yet paid or recorded.30–31 Mar earned, paid 3 Apr · 41,850.00
    What our agent does

    Reads the payroll register and the pay calendar, works out the days earned and not yet paid, and accrues wages and employer taxes.

    Typically reads Payroll register, Pay calendar, and NetSuite.

    460,350.00 for March's 22 working days ÷ 22 × 2 = 41,850.00 · reverses on payday

  • Bonus and commission accrualsAmounts earned under a compensation or sales plan.March commissions · 38,520.00
    What our agent does

    Applies the plan's rates to the deals closed in the period and the targets met, and accrues what will be paid later.

    Typically reads Salesforce, Commission plan, and Payroll register.

    642,000.00 closed-won in March × 6% = 38,520.00 · paid with April payroll

  • ReclassesRecorded, but in the wrong account, entity or department.INV-88213 · 7,200.00 · RB-3F2A1C
    What our agent does

    Compares the posting with the source document and the account's policy, and proposes the entry that moves it, with the reason.

    Typically reads NetSuite and Source documents.

    Dr 2100 / Cr 2000 · balance sheet only · no effect on profit and loss

  • Cut-off adjustmentsActivity recorded in the wrong accounting period.Goods received 31 Mar, invoiced 2 Apr · 9,640.00 to March
    What our agent does

    Compares the service or delivery date with the invoice and posting dates, and moves what belongs to the period into it.

    Typically reads Goods received, The final invoice, and NetSuite.

    Received 31 Mar · invoice dated 2 Apr · Dr 5100 / Cr 2100 9,640.00

  • Estimate true-upsAn accrual differs from what the final invoice says.February legal fees · 17,400.00 accrued, 17,650.00 invoiced
    What our agent does

    Matches each reversed accrual to the invoice that replaced it, and takes the difference to the right period with the explanation.

    Typically reads NetSuite and The final invoice.

    Accrued 17,400.00 in Feb · invoiced 17,650.00 in Mar · 250.00 to March legal fees

Show the calculation, not just the answer.

Every accrual the agent prepares comes with its workpaper: where each amount came from, the period it belongs to, how it was treated, and the arithmetic that makes the entry.

An illustration of the workpaper behind JE-4472. Carter & Webb's March statement has three matters: 12,600.00 on the Series B financing and 6,000.00 on commercial contracts, both accrued, and a 2,700.00 fixed fee on an employment matter, already invoiced as INV-CW-2603 and not accrued. Service incurred 21,300.00 less recorded invoices 2,700.00 equals an accrual of 18,600.00, and the journal is generated from it: debit 6410 Legal fees, credit 2100 Accrued expenses, reversing on 1 April.

The entry, and everything behind it.

The accrual's record holds the policy it follows, the inputs it used, the calculation, the entry, who approved it and what was posted.

An illustration of the record of JE-4472: the accrual policy, section 3; its inputs, Carter & Webb's statement, invoice INV-CW-2603 and the engagement letter; the calculation, 21,300.00 less 2,700.00, 18,600.00; the journal, debit 6410 and credit 2100; its approval by Dana Ruiz, Controller, on 2 April; and its posting to NetSuite the same day, reversing on 1 April.

The agent can prepare the entry. It does not bypass your approval policy.

From a missing expense to an account that ties.

2100 was 11,400.00 short of its support on 31 March. This accrual and one reclass put it right.

An illustration of 2100 Accrued expenses through the close: 11,400.00 short of its support on 31 March; the cause, Carter & Webb's March fees not accrued and INV-88213 posted there; two entries prepared, the 18,600.00 accrual JE-4472 and the 7,200.00 reclass RB-3F2A1C; both approved by Dana Ruiz and posted to NetSuite on 2 April; and 2100 tied at 231,000.00.

  1. Reconcile

    Difference detected

    2100 · −11,400.00 · 31 Mar

    Reconcile accounts

  2. Investigate

    Cause established

    March fees not accrued · INV-88213 in 2100

    Resolve close exceptions

  3. Adjust

    Accounting treatment prepared

    JE-4472 +18,600.00 · RB-3F2A1C −7,200.00

    Current page

  4. Review

    Human approval

    Both approved · Dana Ruiz

  5. Post

    ERP updated

    NetSuite · 2 Apr

  6. Verify

    Account reconciled

    2100 ties at 231,000.00

    Reconcile accounts
The productAutonomous CloseReconcile accounts, investigate exceptions, prepare adjustments and move the close forward across the finance stack you already use.Explore Autonomous Close

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