When should you update a category?
You may need to update a category if an accrual was created with the wrong category, or if the expense should be posted to a different expense account. You can change the category on the individual periods: if you change your chart of accounts, for example, you can correct the category on the periods after the new chart of accounts is implemented, so future accruals are posted according to the new chart of accounts.
How to do it
Open the bill with the accrual you want to edit.
Click (...) and select Manage accruals.
Select the accrual you want to edit.
Update Category.
Save your changes.
What happens when you change the category on the accrual?
The new category is applied to the period or periods that were changed. If a period has been synchronized, the system creates a reversing entry with the previous category. This means that the accounting effect on the previous category (expense account) becomes 0.
A journal entry is created with the new category.
If a period has not been posted, the period is created with the new category.
The new category applies to the accrual from the moment the change is saved. The category determines which expense account the accrual is posted to.
Note
Accruals that fall in a closed fiscal year cannot be edited.
If the accrual contains periods in a closed fiscal year, the amount has to be reversed or re-posted in the active fiscal year instead.
Related articles
How to accrue a bill
Reverse an accrual
Overview of active and historical accruals