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Updated 6 months ago

How do I account for the accruals associated with my financial transactions in carbon accounting?

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The community member asked a common user question. In response, another community member provided an answer, explaining that accruals should be accounted for just like any other transaction, as the accrual exists because some activity has occurred but not been billed yet. The activity needs to be accounted for when it occurs, from both a financial and carbon perspective. The community member also mentioned that more details on this, along with the treatment of pre-payments, can be found in the Knowledge Centre.

HHenry Chinchen

[common user question]

TToby Gower
Marked as solution

Great question! Accruals should be accounted for just like any other transaction, for the same reason as typical financial accounting. The accrual exists because some activity has occurred but not been billed yet. Regardless of when the bill comes in that activity needs to be accounted for when the activity occurs from both a financial and carbon perspective.

You can find some more details on this along with treatment of pre-payments in the Knowledge Centre here.

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TToby Gower

Great question! Accruals should be accounted for just like any other transaction, for the same reason as typical financial accounting. The accrual exists because some activity has occurred but not been billed yet. Regardless of when the bill comes in that activity needs to be accounted for when the activity occurs from both a financial and carbon perspective.

You can find some more details on this along with treatment of pre-payments in the Knowledge Centre here.