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Accrued Expense Analysis

This worksheet performs a predictive test of accrued expenses based on a payment made after year end and/or compares the accrual percentage (accrual divided by annual expense) from the current year to the prior year.

Entering Data

This workbook allows you to specify criteria to be used for highlighting unexpected results. Specify the dollar and/or percentage amount that is considered significant. The criteria or criterion input is applied to each individual accrual.
If you enter only a percentage criterion, then all differences greater than that percentage will be identified with a red border in the "percentage difference" column regardless of their dollar amount. Conversely, if you enter only a dollar amount criterion, then all differences greater than that dollar amount will be identified with a red border in the "dollar difference" column regardless of their percentage difference.
If both criteria are input, only rows with differences greater than both criteria will be identified with a red border around the cells of the "Dollar Difference" and “Percentage Difference" columns. Specifying both criteria aids efficiency by eliminating the selection of high percentage differences that are insignificant dollar amounts or high dollar amount differences that are insignificant percentages. After entering the data, scan the differences identified as significant based on the criteria and consider whether the criteria appear appropriate for identifying unusual items.
When inputting data within the table, a blue outline around an individual cell or cells indicates that an input row was skipped or data remains to be input for that row. Certain formulas will not calculate if data inputs are missing. Red borders around any cells in the “Dollar Difference” and “Percentage Difference” columns identify significant differences between the expected revenue and the amount recorded in the general ledger for the particular line item(s) (based on the amount and/or percentage criteria entered near the top of the worksheet).
In addition to the conditional formatting, this workbook also includes automatic rollforward, clear workbook, and hide/show empty rows functionality. All of this functionality is described in the “General Workpaper Functionality and Tips for Entering Data” section.

Inserting and Deleting Line Items

Do not insert additional line items or delete existing line items as this will corrupt the conditional formatting for the Type of Accrued Expense section.