When is an invoice expensed?

The Expense Date is the date that your Invoice appears on your Financial Documents (such as Income Statement). That date is determined by several factors, such as your accounting method. 

Question

When is an invoice expensed for different accounting methods? (Cash vs Accrual)

Answer

Accrual - For accrual-based accounting, Invoices are expensed as they enter the Ready for Payment step after all approvals have been completed. 

• If the fiscal period is open, invoices are expensed on the Invoice Date.
• If the fiscal period is closed, the invoice is expensed on the first day of the open period. Example: The period is closed as of 1/31/2022, then the invoice will expense as of 2/1/2022. The Invoice Date will remain as it was entered regardless of fiscal period.
• If you need to edit an expense date after the invoice is approved, go to Vendors > Invoices > Audit > Edit Date

Cash - For cash-based accounting, the invoice is expensed when it is paid, as of the Paid Date.