Process financial accruals and reversals

Trigger: A financial reporting period nears its close or a specific unrecorded transaction is identified.

1. Identify unrecorded expenses or revenues for the current period
2. Calculate the required accrual amounts based on contracts or open orders
3. Create and validate accrual journal entries
4. Post accrual entries to the general ledger
5. Execute reversal entries in the subsequent accounting period
6. Reconcile ledger accounts to confirm accurate balancing

Outcome: Accrual and reversal journal entries are posted to the general ledger and affected accounts are balanced.