An accrual is the recognition of revenue when earned or expenses when incurred regardless of when cash is received or disbursed.
For example, Eagle Accounting can accrue interest on holdings of fixed rate bonds on a daily basis, even though you do not receive interest until the next coupon payment date. Accrued interest is the amount of interest that the buyer owes the seller on transactions involving fixed income securities, such as bonds or notes.
Most entries to the ledger are generated through trades. For example, when you book an open trade for a fixed income security, Eagle Accounting automatically posts entries to the ledger's cost, interest receivable, and investment payable accounts for the net amount of the trade. Automation Center's Exceptions workspace routes rejected earnings and ledger posting events, allowing you to monitor, repair, and resubmit them to Eagle Accounting for processing. While you can configure Eagle Accounting to process accruals automatically, Eagle Accounting also allows you to process accruals manually.
When Eagle Accounting runs interest accruals on fixed income positions, Eagle Accounting applies tax withholding and reclaim.
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