## December 2025 accruals review

There are 16 accruals totalling **$133,234.98**, up $36,370.03 (+38%) from November's $96,864.95. Account 2100 is $90,533.68 and freight account 2110 is $42,701.30. Most of the increase has a stated reason: the second audit visit, year-end volume, and the pre-buy ahead of the January price increase. Six items need action before close.

### Fix before close

1. **AC-14 Coastline fuel surcharge ($6,310.20): the invoice has already arrived** (`invoice_received = Y`, support is `CARRIER-INVOICE-DEC`). It should go through AP, not sit as an accrual. If AP has posted it too, the cost is counted twice. Check the AP subledger, then either remove the accrual or confirm the invoice is being held.
2. **AC-07 Lanternfly Creative ($5,400): no support reference.** It's marked PO-based but `support_ref` is blank. It's also unchanged for two months with no invoice. Get the PO, and confirm the first milestone was actually delivered by 31 Dec. If not, nothing should be accrued.
3. **AC-01 Harlow and Finch legal ($12,500): a stale estimate.** It's been open 7 months at exactly the same amount, it doesn't reverse, and no invoice has come in. A flat number for that long suggests nobody has refreshed it. Get an updated estimate of fees incurred from the firm or legal counsel. At year end the auditors are likely to test this one.

### Confirm the treatment

4. **AC-16 Tallgrass inbound freight ($6,330, +121%)**: freight on inventory receipts normally goes into inventory cost, not expense. Check where the debit was posted. Since these are pre-buy receipts that won't sell until 2026, expensing the freight would overstate December costs. Also check that receipt dates are on or before 31 Dec.
5. **AC-06 Summit racking repair ($7,600, new)**: a PO alone doesn't justify an accrual. Confirm the work was done by 31 Dec. Also check whether this is a repair (expense) or a component replacement that should be capitalised.
6. **AC-02 Brightline audit ($18,000, doubled)**: the doubling matches the note about a second visit. But the November visit's $9,000 is still unbilled after two months, so ask the firm for an invoice. Also confirm that accruing audit fees as fieldwork happens is consistent with how you handled this last year.

### Increases that look reasonable but should be checked

- **AC-05 Palmetto temp labour (+134%)** and **AC-15 Swiftway parcel (+37%)**: these fit the year-end volume and the pre-buy receiving. Tie them to the December timesheets and parcel manifest.
- **AC-13 Coastline outbound freight (+25%)**: tie it to the carrier log. AC-14's surcharge is about 33.9% of base freight in both months, so the two are at least consistent with each other.
- **AC-11 Kingsley common area charges (+46%, open 3 months)**: confirm the landlord's Q4 estimate supports $6,750, and look for an actual reconciliation from the landlord.

### No issues

AC-03, AC-04, AC-08, AC-09, AC-10 and AC-12 are all within ±6% of November, have support, and reverse as expected.

### Items to follow up by owner

| Owner | Items |
|---|---|
| Tomas Herrera | AC-14, AC-16, AC-06, AC-13 and AC-15 support |
| Dana Whitfield | AC-01, AC-02, AC-11 |
| Elena Brandt | AC-07 |
| Marcus Oyelaran | AC-05 timesheets |

If AC-14 has been posted twice and AC-07 can't be supported, December is overstated by up to **$11,710**, before any change to the AC-01 estimate.