Accruals are generated at period end or immediately when the material is received. Typically, inventory items are accrued when they are received, and this is configured in the purchasing options. A single account accumulates the accruals. You can choose a different account for inventory accruals and expense accruals. Expense accruals are generated at period end if they were received, but not invoices.
Inventory accruals are done at the time of receipt, which means that as you receive material that is stocked in inventory (identified by the destination type Inventory), the accounting entry will be made when it is received and delivered.
The destination type is defaulted to inventory if you choose an item that is stockable, and cannot be changed. If you choose any other line type, modify, or use an item description, the destination type will default to Expense in most cases.
On the other hand, accrual for expense items is configurable based on the three receipt accrual methods:
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