Does anyone really find the General Accruals option for items that are not inventory or assembly useful? The reconciliation between the Item Receipt and Vendor Bill seems to be not straightforward. We currently have a saved search of all received but not yet billed as of each month. Then, we export then import this as a JE to record the accrual and reverse on the first day of next month.

generate accrual option is based on having item receipt/fulfillment, and these transactions are non posting with non-inv items, so you cannot generate accruals fro non-inv items, actually

Yes, we do have item receipts. We just don't turn on the Generate Accruals.

IRs are non-posting trans for non-inv items, cannot generate accruals

Even if I check the Generate Accruals box on the non-inventory item record? Per our testing, it does. It debits the Expense Account and credits Accrued Purchases.

It did not work for me, in a non-inventory environment..

We found it useful when the customer wants to record the expenses prior to the Vendor Bill. Say if you want to record Consulting Services expenses and you don't have a bill, you can enable Generate accruals on Non Inventory item and check "Can be received/Fulfilled' when you receive the PO, it will Dr Expense (defined on Item a/c). So you won't have to wait for the Bill to be recorded for recognizing expenses.