## December 2025 accruals review

There are 16 accruals totalling **$133,234.98**, up $36,370.03 (+37.5%) from November's $96,864.95.
- **2100 (general):** $90,533.68, up $24,870.98
- **2110 (freight):** $42,701.30, up $11,499.05

I found two errors that should be fixed before close, four items that need support or a decision, and a few large increases worth a quick check.

### Fix before close

**1. AC-14 Coastline Carriers fuel surcharge ($6,310.20): the invoice has already arrived.**
`invoice_received = Y`, and the support is `CARRIER-INVOICE-DEC`, which is the invoice itself. If the invoice has been entered in AP, this amount is being counted twice. Reverse the accrual and let AP carry it, or confirm the invoice hasn't been entered yet. Also check that AC-13, the other Coastline accrual, doesn't overlap with the same invoice.

**2. AC-07 Lanternfly Creative ($5,400.00): the basis is a PO, but no PO number is given.**
This is the only accrual with no support reference. It has been open for 2 months at the same amount with no invoice. Two questions for Elena Brandt:
- Has the first milestone actually been delivered? A PO alone isn't a liability.
- Does the spring catalogue design belong in December's expense, or should it be a prepaid or deferred cost until the catalogue is used?

### Needs support or a decision

**3. AC-01 Harlow and Finch legal fees ($12,500.00): an old, unchanged estimate that doesn't reverse.**
It has been open 7 months at the same $12,500, with no invoice and no reversal. Get an updated estimate from the attorneys or the lease dispute status as of 12/31. A figure that hasn't moved in 7 months is probably stale. Also confirm that $12,500 is the total amount owed, not a monthly charge that should have been building up. And because this is a legal dispute, check whether it needs separate treatment as a contingency.

**4. AC-06 Summit Facility Services racking repair ($7,600.00, new): the basis is a PO.**
Accrue this only if the repair was actually done by 12/31. If the work happened in January, it doesn't belong in December. Also check whether the work is large enough to be a capital improvement rather than repair expense.

**5. AC-16 Tallgrass inbound freight ($6,330.00, +121%): this may belong in inventory, not expense.**
The note says this is freight on receipts bought early, ahead of the January price increase. Freight on incoming inventory normally goes into the inventory's cost. Confirm what the other side of this entry is. If it's freight expense, part of it should probably move to inventory. The increase itself makes sense given the early buying, but tie it to `RECEIVING-LOG`.

**6. AC-11 Kingsley common area charges ($6,750.00, +46%, open 3 months).**
The description says "fourth-quarter estimate." Confirm whether $6,750 covers all of Q4 or one month's estimate, since the jump from $4,620 suggests the basis changed. Also compare it with any Q4 billing already received from the landlord.

### Large increases to tie out

| ID | Item | Change | What to check |
|---|---|---|---|
| AC-02 | Brightline audit | +$9,000 (+100%) | The note says a second interim visit happened. Tie the $18,000 total to the engagement letter's fee schedule for fieldwork done so far. Also, it's flagged as reversing but shows 2 months open, so check whether November's accrual actually reversed. If not, the amount may be doubled. |
| AC-05 | Palmetto Staffing | +$5,629 (+134%) | Tie to `TIMESHEETS-DEC` hours × rates. Peak season makes the increase plausible. |
| AC-13 / AC-15 | Coastline / Swiftway shipping | +25% / +37% | These fit December's higher shipping volume. Spot-check against the carrier log and parcel manifest. |

### No issues found
AC-03, 04, 08, 09, 10 and 12 changed by less than 6%, are recurring, are supported by usage records or contracts, and reverse each month. The loan interest falling slightly (AC-09) fits the principal being paid down.

### Common to all
- Fifteen of the 16 accruals reverse each month. Confirm that November's reversals posted, especially for AC-02, AC-07 and AC-11, which show more than one month open despite being flagged as reversing.
- After 12/31, check January invoices against these accruals for anything missed or overstated.

I only reviewed the CSV. I haven't seen the documents it references (engagement letter, POs, timesheets, carrier logs, etc.), so the items above are what to ask for, not confirmed errors. Fixing AC-14 alone would cut the total by $6,310.20, if that invoice is already in AP.