Contract Claim Accruals
Overview
This step in the Month End process helps organisations accumulate uncertified contract claims within a specific period, even if payments haven’t been processed, into a Contract Claim Accrual batch (CCC batch) that can be exported to Excel or financial system.
Example: a company has completed work valued at $500,000 for a client, but the client hasn’t certified the claim by the end of the financial period. The company can record this $500,000 as a Contract Claim Accrual to ensure the revenue is reflected in that period, even though payment hasn’t been confirmed. The system will automatically create a reversing entry in the following period to adjust for the actual certified claim, or if the amount changes, adjustments can be made to reflect the accurate figure in the financial statements.
It is important to note that after exporting or make it Not for Export, the CCC batch must be finalised to complete the process. This step will:
Shift accrued claims to the next period.
Automatically generate a second reversal batch for the next period.
The system does not allow a new batch to be created if either:
There is an existing unfinalised batch for that FinCo and period or
There are no unapproved claims for that FinCo (i.e. the accrual batch would be empty).
User Document: Contract Claim Accruals
Setting
The accrual account can be set up in the Financial Company’s GL Accounts tab.
Actions
Tasks | Actions | Person |
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CCC batch management |
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Contract Claim Accruals |
In case of any changes to the contract claim, such as new approvals or client certifications, you should rerun the generation process.
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Relations
Inputs | Outputs | Relations |
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Questions & Answers