You can use accrual accounting to distribute income and expenses over a period of time. To use accrual accounting, a periodic template posting group must be set up to define the accrual parameters. You can then apply a periodic template posting group to a line in a general ledger journal, sales document, or purchase document. When the line is posted, it will automatically accrue.
Accrual accounting can be used to simplify vendor invoice posting. For example, a yearly subscription fee can be distributed over the 12 months that the subscription covers.
You can also use accrual accounting to make adjustments in a journal. For example, you can design a periodic template to distribute a quarterly rent payment equally over three months.