## December 2025 accruals review

**What's in the file:** 16 accruals totalling **$133,234.98**, up from $96,864.95 in November (+$36,370, +38%).

| Account | Dec | Nov | Change |
|---|---|---|---|
| 2100 (general) | 90,533.68 | 65,662.70 | +24,870.98 |
| 2110 (freight) | 42,701.30 | 31,202.25 | +11,499.05 |

Most of the increase comes from five accruals: AC-02 audit (+9.0k), AC-06 racking repair (+7.6k, new), AC-05 temp labour (+5.6k), AC-13 outbound freight (+3.7k) and AC-16 inbound freight (+3.5k).

### Issues to fix before close

1. **AC-14, Coastline fuel surcharge, $6,310.20.** The vendor invoice has been received (`invoice_received = Y`, support ref `CARRIER-INVOICE-DEC`). If that invoice is already in AP, this amount is counted twice. Confirm it isn't in AP, then either reverse the accrual or move it to AP.
2. **AC-07, Lanternfly catalogue design, $5,400.00.** The basis is a PO but no PO number is given. The amount is the same as November and it has been open 2 months with no invoice. Get the PO and confirm the first milestone was actually delivered by 31 Dec. If it wasn't, nothing should be accrued.
3. **AC-16, Tallgrass inbound freight, $6,330.00 (+121%).** Inbound freight on inventory purchases normally becomes part of inventory cost rather than freight expense. Check which account the debit went to. Also confirm the "pre-buy" goods were received, or that title passed, by 31 Dec.
4. **AC-01, Harlow and Finch legal, $12,500.00.** This is an estimate that has been open 7 months at the same amount, doesn't reverse, and no invoice has arrived. It looks stale. Get an updated estimate from the law firm, or their year-end letter, covering both fees incurred to date and whether the lease dispute itself creates a liability that needs disclosure or an accrual.

### Items to check

- **AC-06, Summit racking repair, $7,600.00 (new).** A PO alone doesn't create a liability, so confirm the work was finished by 31 Dec. Also check whether the job is a repair (expense) or an improvement that should be capitalised.
- **AC-11, Kingsley common area charges, $6,750.00 (+46%, open 3 months).** Check this against the landlord's Q4 estimate. If it's a Q4 catch-up, confirm the earlier months weren't already accrued as well.
- **AC-02, Brightline audit, $18,000.00 (doubled).** The note says a second interim visit took place in December. Tie the amount to the engagement letter's fee schedule, and accrue only fieldwork actually done by 31 Dec.
- **AC-05, Palmetto temp labour, $9,842.60 (+134%).** This is plausible for peak season, but tie it to the December timesheets.
- **AC-13 / AC-15, outbound and parcel freight (+25% / +37%).** These are in line with December volumes. Spot-check them against the carrier log and parcel manifest.

### No concerns

AC-03, 04, 08, 09, 10 and 12 have small changes, recurring support, and reverse each month as expected.

### Process notes

- AC-01 is the only accrual that doesn't reverse. Confirm that's intended and that it isn't being re-booked on top of the existing balance each month.
- Tomas Herrera owns 7 of the 16 accruals ($56.3k), including most of the items flagged above. That's worth raising with him in one review.

This review is based only on the CSV. I haven't checked the AP ledger, the GL or any support documents, so items 1–4 need those records to settle.