Why are purchases showing as outstanding Accounts Payable?
This article is for churches and charities that account on an accruals basis.
Why does the purchase show as an outstanding Accounts Payable amount?
When a purchase is entered, as well as showing as expenditure within your income and expenditure reports, the purchase will also show as an 'Accounts Payable (money you owe)' transaction on your balance sheet, until the point at which it is reconciled with an uploaded bank transaction.
- When a purchase is entered, the expenditure shows in your income and expenditure report and your balance sheet shows the purchase amount as being owed (accounts payable).
- When the purchase is paid and reconciled with the corresponding payment on your bank statement, on your balance sheet the purchase amount no longer shows as being owed.
Do I need to do anything differently as a result of this change?
Auto-accruals happen in the background, so there is no need to enter or match transactions any differently from how you have been doing this before auto-accruals were introduced.
There are however two things you might want to pay more attention to:
- When checking receipts, ensure the purchase date that has been entered is correct. This date is used as the date the expenditure will appear in your reports, so it's important that it's correct.
- Once you have reconciled all uploaded bank transactions, check that the payments shown on the right-hand table of the match transactions screen are genuinely outstanding. If you have payments showing on the right-hand table that aren't outstanding and shouldn't be there, delete these to avoid the expenditure from incorrectly showing in your financial reports.
Top Tip: Once you have completed year-end within ExpensePlus and are ready to use the data to create year-end accounts, it's highly recommended that you lock that financial year. This will prevent someone from submitting a purchase dated in the year you are creating accounts for (which would change your year-end reports).
To help you better understand the Adjustments module as a whole, please visit the module overview page here.