On 3/20/2025 12:49 PM, Murugan Mariappan wrote:
The effective date for recording the expense transaction should be based on when the goods or services are received rather than the due date of the bill or the credit period provided by the vendor. This aligns with the accrual basis of accounting, which states that expenses should be recognized in the period in which they are incurred, not necessarily when they are paid.
"the accrual basis of accounting which states that expenses should be recognized in the period in which they are incurred, not necessarily when they are paid.
PRECISELY --- But That does not always seem that simple.. That is why I am asking what date people tend to use. Remember, some expenses are normally billed due AFTER the "benefit" and others before (like will not be turned on/activated till paid for).
This could get very complicated, as a bill might contain options for things in advance. In other words, not necessarily ever going to be "paid in full" (some options might be mutually exclusive and/or inclusive)
You need an example? OK, invoice (bill) for renewing with your professional association. Might have an option to pay multi-year, might have options to include this or that professional publication or package of them. And yes I know, technically/legally not a "payable", but we'll ignore that.
Michael D Novack _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
