# Review of December accruals (`data/accruals_2025-12.csv`)

The file has 16 accruals totalling **$133,234.98**, against $96,864.95 in November (up $36,370.03, or 37.5%). I only had the CSV, so these are things to check, not confirmed errors.

## Likely errors or needs action

| ID | Issue | Suggested action |
|---|---|---|
| **AC-14** | Coastline fuel surcharge, $6,310.20. `invoice_received = Y` and the support is the carrier invoice, so this should be booked as a payable, not accrued. It may also overlap with AC-13, which is the same vendor's December freight. | Move it to AP. Confirm AC-13 doesn't already include the surcharge. |
| **AC-01** | Legal fees on the lease dispute: $12,500 flat, open 7 months, no invoice, and it is the only accrual that doesn't reverse (`reverses = N`). A flat figure suggests it is a placeholder, not a current estimate. | Get a current WIP or fee estimate from Harlow and Finch. Check whether the non-reversal is intentional and whether the cumulative balance is right. |
| **AC-07** | Lanternfly spring catalogue design, $5,400. The support reference is blank, it is unchanged for 2 months, and the work is for spring. | Find the PO. Confirm the milestone was actually delivered by 12/31. If not, release the accrual. |
| **AC-06** | Racking repair, $7,600, supported only by a PO. A PO is a commitment, not an incurred expense. | Accrue only for work completed by year-end, using a completion confirmation. |
| **AC-16** | Inbound freight on pre-buy receipts, $6,330, up 130%. The note says the pre-buy was ahead of a January price increase. | Inbound freight on goods held at year-end is normally part of inventory cost, so check whether it should be capitalised and not expensed. |

## Large movements to support

- **AC-05, Palmetto Staffing:** $9,842.60, up 134% from $4,213.80, described as "last two weeks". Tie it to the timesheets and check the cutoff, since the November amount should cover a similar period.
- **AC-02, Brightline Audit:** doubled from $9,000 to $18,000. The note cites a second interim visit. Because November reversed, $18,000 is plausible as a cumulative amount, but confirm it against the engagement letter.
- **AC-11, Kingsley CAM:** $6,750, up 46%, and based on a landlord estimate. Check whether the estimate was revised or the Q4 true-up is included.
- **AC-15, Swiftway Parcel:** up 37% for the last week of December. Check it against the manifest. It is probably seasonal volume.

## Looks reasonable

AC-03, AC-04, AC-08, AC-09, AC-10, AC-12 and AC-13 all move by less than about 5% (AC-13 is up 25%, in line with AC-14 and AC-15). Their basis is a contract, a schedule or usage data, which supports them. The fuel surcharge is 33.9% of freight in both months, so it is consistent. AC-13 is the exception to the "<5%" range, so confirm its volume against the carrier log.

## Process observations

- Every other accrual reverses, so AC-01 stands out as inconsistent.
- AC-01 and AC-07 are the weakest on support (a stale estimate and a missing reference).
- The two AC-13/AC-14 lines are the only ones where an invoice may already exist. It's worth checking whether any other lines have been invoiced since the file was prepared.

Would you like me to build a roll-forward (November reversal vs December booking) or draft the adjusting entries for AC-14 and AC-16?