> For the complete documentation index, see [llms.txt](https://help.modelreef.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.modelreef.io/syntax/timing-syntax/accrual-behaviour.md).

# Accrual Behaviour

This article explains **accrual behaviour** for variables in Model Reef.

You will learn:

* How timing settings control when accrual hits P\&L.
* How accrual differs from cash.
* How frequency, start dates and seasonality determine accrual patterns.

Accrual behaviour is about when revenue and costs are recognised, independent of cash movement.

***

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### What accrual means in Model Reef

Accrual refers to the recognition of revenue or expense in the period when the underlying economic activity occurs, regardless of when cash is paid or received.

In Model Reef:

* Accruals drive the P\&L.
* Cash timing does not change accrual timing.
* The difference between accrual and cash creates working capital balances.
  {% endstep %}

{% step %}

### Inputs that control accrual behaviour

Accrual behaviour is influenced by:

* **Start and end dates**\
  Which periods can have non zero values.
* **Frequency and schedule**\
  How often accrual occurs within the window.
* **Seasonality**\
  How accrual is distributed within cycles.
* **Presets or formulas**\
  The underlying pattern of amounts before timing is applied.

None of these inputs directly alter when cash moves. That is the role of delays and payment terms.
{% endstep %}

{% step %}

### How accrual feeds into statements

Accrual behaviour affects:

* P\&L line items by variable type and category.
* The Cash Waterfall's starting point, as it begins from accrual based EBITDA.
* Working capital calculations, via the difference between accrual and cash.

Balance Sheet asset and liability balances reflect the cumulative effect of timing differences over time.
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{% step %}

### Adjusting accrual behaviour

To adjust accrual behaviour you can:

* Change start or end dates.
* Switch between schedule and range frequency.
* Modify seasonality patterns.
* Update presets or formulas that define the underlying series.

Reviewing accrual patterns via the Timing preview and P\&L outputs helps confirm that changes reflect reality.
{% endstep %}

{% step %}

### Separating accrual and cash decisions

A key principle is to set accrual behaviour to reflect economic reality first, then configure cash timing via delays and payment terms. Mixing the two concepts makes models harder to reason about.
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***

## Related articles

* [Autocomplete Behaviour](/syntax/formula-syntax/autocomplete-behaviour.md)
* [Drilldown Behaviour](/syntax/chart-and-table-syntax/drilldown-behaviour.md)
* [Refresh Engine Behaviour](/help/quickbooks-integration/refresh-engine-behaviour.md)
* [Core Modelling](/how-tos/core-modelling.md)


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