FAQ: Invoice Expensing - Accrual vs. Cash

Accrual

Question:

For accrual-based accounting, when is an invoice expensed?

Answer:

Invoices are expensed at the Ready for Payment step.  If the period is open, invoices are expensed on the invoice date.  If the period is closed, the invoice is expensed on the current (paid) date.

Cash

Question:

For cash-based accounting, when is an invoice expensed?

Answer:

The invoice is expensed when it is paid.