We recently hired a new AP personnel who has been with us for a few months. I noticed that she has been booking almost all invoices to accrued receipts as soon as the goods are received. While I understand that we have received the goods and are awaiting payment to the vendor, this approach creates numerous transactions under a single PO. This has caused significant issues during month-end close, as the posting date triggers different accounting periods, especially at month-end.
Previously, our AP team would simply book invoices to accounts payable and credit them from this account when necessary. My question is: If we know the vendor will be paid soon, is it necessary to book the invoice to accrued receipts, or is it acceptable to book it directly to accounts payable?
Previously, our AP team would simply book invoices to accounts payable and credit them from this account when necessary. My question is: If we know the vendor will be paid soon, is it necessary to book the invoice to accrued receipts, or is it acceptable to book it directly to accounts payable?