All 24 Invoice Processing questions
More in Invoice Processing
What is a pro forma invoice and how is it treated? How are prepayments to suppliers accounted for? How do recurring invoices (e.g., rent, subscriptions) get processed efficiently? How are utility and telecom invoices with variable amounts controlled? What is the GR/IR (Goods Received/Invoice Received) clearing account and how is it reconciled? How do you measure and improve AP invoice processing efficiency? What internal controls mitigate fraud risk in invoice processing? What is the difference between capital and revenue expenditure at the invoicing stage, and why does coding matter?
Advertisement
Accounts Payable & Receivable › Invoice Processing

How do you account for invoices received after period-end for goods/services already received (accruals)?

Advanced

Answer

If goods or services were received before period-end but the invoice arrives later, you accrue the cost with a period-end journal (debit expense, credit accrued liabilities) so the expense hits the correct period. When the invoice arrives, it's posted normally and the accrual is reversed to avoid double counting. This is the basis of the GR/IR (goods-received/invoice-received) mechanism.
Period-end accrual for received-not-invoiced goods $5,000:
  Dr Expense               5,000
      Cr Accrued Liabilities       5,000
Reverse next period, then book the actual invoice.
Real-world example At month-end the team accrues $5,000 for delivered materials not yet invoiced, then reverses it when the supplier invoice posts.

Common follow-ups: What is the GR/IR clearing account? | Why reverse the accrual?

Reconciliations Purchase Orders & 3-Way Matching Invoice Processing
All 24 Invoice Processing questions