Friday, February 12, 2010

In Accounting, What does ';True-Up'; mean?

I have to do a building use fee true up journal entry at work and I just want to better understand what I'm doing. I don't feel like asking because I think I should already know what it means and I don't any one to think I'm stupid.





Thanks! Appreciate your help!In Accounting, What does ';True-Up'; mean?
It means to bring to the correct balance. For instance, if you calculated total building fees to be 100K for the year, but only have a debit balance of 85K in the building fees account, you would have to make an entry of 15k to ';true-up'; the balance. I could be wrong, but that's how we use the term where I work.

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