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Accruals schedule builder

Builds a period-end accruals schedule from expense inputs, producing line-by-line accrual amounts, debit/credit account coding, calculation basis, reversal timing, and supporting rationale for each entry. Use when…

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Purpose

Convert a list of unbilled or partially incurred expenses into a review-ready accruals schedule — with calculated amounts, GL account coding, calculation basis, and reversal timing for each line — so the close is defensible, consistent, and fast to review.

When to Use

Invoke this skill when the user asks to:

  • Build a month-end or quarter-end accruals schedule
  • Calculate accruals for expenses incurred but not yet invoiced
  • Document accrual estimates for manager review or external audit
  • Standardize an accruals workpaper across periods
  • Determine accrual amounts and the accounts to book them against
  • Prepare accrual journal entries with supporting rationale

Inputs Required

Before starting, collect:

  • Period being closed: Month/quarter and period-end date
  • Expense items to accrue: List of vendors/services/categories with any known amounts, contract values, or run-rates
  • Basis available per item: Invoice pending, contract/PO, prior-period actuals, run-rate estimate, or usage data
  • Chart of accounts references: Expense account and accrued liability account naming/numbering convention in use
  • Accounting basis: Accrual (GAAP) or other; monthly reversing vs. specific-reversal preference
  • Materiality threshold: Minimum dollar amount worth accruing (to avoid immaterial clutter)
  • Known one-offs: Bonuses, severance, legal, true-ups, or non-recurring items for this period

If the chart of accounts convention or materiality threshold is missing, use standard expense/accrued-liability pairings and a default $500 threshold, and note the assumption.

Instructions

Step 1: Classify Each Expense by Accrual Type

Sort every input item into one of these types, which drives the calculation method:

  • Invoice-pending accruals: Goods/services received, invoice not yet arrived. Accrue the expected invoice amount.
  • Recurring/run-rate accruals: Predictable ongoing costs (utilities, SaaS, rent overages). Accrue based on prior-period actuals or contract monthly rate.
  • Usage-based accruals: Costs tied to consumption (cloud, telecom, hourly contractors). Accrue based on usage data × rate.
  • Time-proportion accruals: Costs spanning the period boundary (annual fees, insurance). Accrue the portion earned/consumed within the period.
  • Estimate accruals: No firm figure available (legal, bonuses, professional fees). Accrue a documented best estimate with the estimation logic stated.

Step 2: Calculate the Accrual Amount per Line

For each item, apply the method for its type and show the calculation basis explicitly:

  • Invoice-pending: expected invoice value; if a PO exists, use PO amount less any portion already invoiced
  • Run-rate: (prior-period actual or contract monthly rate) × applicable fraction of period
  • Usage-based: units consumed × unit rate
  • Time-proportion: total cost × (days in period / total days covered)
  • Estimate: stated inputs (headcount, hours, %-complete) × rate, with the assumption named

Exclude any item below the materiality threshold and flag it as intentionally omitted.

Step 3: Assign GL Account Coding

For each accrual, specify the double entry:

  • Debit: the relevant expense account (mapped to the provided chart of accounts)
  • Credit: the accrued liabilities account (or a sub-account if the convention separates payroll accruals, vendor accruals, etc.)
  • Use the client's account numbers/names where provided; where absent, use a clear descriptive account name and flag it for mapping

Step 4: Set Reversal Timing

For each line, state when and how the accrual unwinds:

  • Auto-reversing (default for invoice-pending and run-rate): reverses on the first day of the next period; actual invoice is then booked normally
  • Specific-reversal: reverses when the actual event occurs (e.g., bonus paid) — used for estimates that won't be replaced by a routine invoice
  • Note the expected reversal period date for each line

Step 5: Write Supporting Rationale per Line

For every accrual, include a one-to-two sentence rationale a reviewer or auditor can rely on: what was incurred, the basis for the amount, and the source (invoice, contract, run-rate, usage report, estimate). This is the audit trail — it must stand alone without the preparer present.

Step 6: Summarize and Reconcile

  • Total the accruals by account and provide a grand total
  • Provide a summary journal entry (aggregated debits/credits by account)
  • List items intentionally excluded (below threshold or no basis) with a one-line reason each

Output Format

  • Structure: A schedule table (one row per accrual line) followed by a summary journal entry and an exclusions list
  • Length: Scales with input count; typically 600–1,200 words plus the table
  • Format: Table for the schedule; structured blocks for summary and exclusions
  • Sections: (1) Accruals Schedule table — columns: Line | Description/Vendor | Accrual Type | Amount | Debit Account | Credit Account | Calculation Basis | Reversal Timing | Rationale; (2) Summary Journal Entry (aggregated); (3) Totals by Account; (4) Intentional Exclusions
  • Tone: Precise, workpaper-ready, review-oriented — no hedging, every number traceable to a stated basis

Quality Checklist

Before delivering output, verify:

  • [ ] Every accrual line has a stated calculation basis — no amount appears without its derivation
  • [ ] Every line has both a debit and a credit account assigned
  • [ ] Debits and credits in the summary journal entry balance to the same total
  • [ ] Each line specifies reversal timing (auto-reversing or specific) with a reversal period
  • [ ] Items below the materiality threshold are listed as exclusions, not silently dropped
  • [ ] Each rationale identifies the source (invoice/contract/run-rate/usage/estimate) and stands alone

Notes

  • Auto-reversing accruals are the safest default — they prevent double-counting when the actual invoice arrives next period
  • For estimate accruals, always name the assumption (headcount, %-complete, rate) so the number is defensible if the actual differs
  • Where an amount is uncertain, accrue the best estimate and flag it for true-up rather than omitting it — omission is a bigger close risk than a modest estimate variance
  • Recurring accruals should be built to carry forward: keep the schedule structure identical period to period so only the amounts and bases change

How to use this skill

This file is a Claude Code skill in Anthropic's standard format — markdown with YAML frontmatter at the top.

Installing in Claude Code:

  • ~/.claude/skills/<folder-name>/SKILL.md — auto-loads in every session anywhere on your machine (recommended for skills you'll use across multiple projects)
  • <your-project>/.claude/skills/<folder-name>/SKILL.md — auto-loads only when working in that project (recommended for project-specific skills)

Restart Claude Code or open a new session to register.

Using in Claude.ai, ChatGPT, Gemini, or other AI tools:

  1. Drag this file into a new chat, or copy and paste its contents
  2. Send your task or request as your next message — the AI will apply the skill where it fits

For Claude Code skill details: https://docs.anthropic.com/en/docs/claude-code/skills