# Entering Accruals & Delays

This article explains how to **enter accruals and delays** in Model Reef.

You will learn:

* How to specify when a variable accrues in P\&L.
* How to set delays between accrual and cash movement.
* How accruals and delays create receivables and payables.

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### Accrual timing inputs

Accrual timing controls when the revenue or expense is **earned or incurred**, independent of cash.

You can set accrual timing via:

* Start and end dates in the Timing modal.
* Accrual frequency (daily, weekly, monthly, quarterly and so on).
* Schedules that define specific accrual dates.

Once configured, accrual amounts appear in P\&L in those periods.
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### Delay inputs

Delays control the gap between accrual and cashflow. In input fields you might see:

* A delay expressed in days (for example 30, 45, 60 days).
* A delay expressed in months or periods (for example one month after invoice).
* Predefined payment term options such as "end of next month".

The input format may accept natural language such as `30 days` or `1 month` and convert it internally.
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### How accrual and delay combine

The engine uses a simple rule:

* **Accrual** determines in which period the P\&L entry is recorded.
* **Delay** determines in which period the cash entry is recorded.

For example:

* Revenue accrues in January.
* Delay is 30 days.
* In a monthly model, cash may fall in February.
* January shows revenue and an increase in Accounts Receivable.
* February shows the cash receipt and a reduction in Accounts Receivable.

Similarly for costs, delaying payment creates Accounts Payable.
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### Entering different delays by category

You may configure different default delays for:

* Revenue variables.
* COGS and Opex variables.
* Staff costs.
* Tax and interest.

When editing specific variables you can override these defaults by entering explicit delay values in the relevant timing fields.
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### Working capital impact

Accruals and delays automatically create and unwind working capital balances:

* Receivables for delayed revenue.
* Payables for delayed costs.
* Tax and interest payables based on their own payment rules.

You do not work with these directly in input fields; they are outputs of the timing engine. The only inputs you maintain are accrual patterns and delays.
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### Validating accruals and delays

After changing accrual or delay inputs:

* Check the P\&L to ensure timing of recognition is correct.
* Check Cashflow and Cash Waterfall to ensure cash appears in the right periods.
* Check Balance Sheet receivables and payables to ensure they build and unwind as expected.

If timing is off, revisit the Timing modal inputs for that variable.
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## Related articles

* [Entering Delays](/syntax/timing-syntax/entering-delays.md)
* [Entering Schedules](/syntax/how-input-fields-work/entering-schedules.md)
* [Actuals Import](/help/xero-integration/actuals-import.md)
* [Build a DCF Model (FCFF)](/how-tos/valuation/build-a-dcf-model-fcff.md)


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