Vendor bills at month-end: reviewing received invoices and missing costs

Compare the invoice date with delivery, service period, acceptance, and purchasing terms. Under an accrual policy, the date a PDF arrives in the inbox may differ from the period when the cost and obligation arise.

Ask the accountant to define cutoff rules and materiality for the company. Keep the approved policy available to the person entering bills.

Check open purchase orders, receiving reports, recurring service contracts, and invoices waiting for approval. Ask operations which goods or services were received before month-end but have not been billed.

An open purchase order can represent an unfulfilled commitment rather than an incurred payable. Obtain the relevant evidence before accruing it.

Where an accrual is appropriate, retain the supplier quote, contract, received quantity, service period, or other support for the estimate. Identify the amount, accounts, period, owner, and reviewer.

For illustration, a monthly service costing $3,000 delivered through month-end but invoiced next month may require an accrual under the relevant policy. The actual invoice should later clear or replace the estimate without duplicating expense.

Review material invoices received after cutoff for evidence of prior-period goods or services. Prioritize categories with delayed billing or recurring close differences.

Do not reopen every small item automatically. Have the reviewer assess the period, amount, and reporting effect, with the conclusion retained.

Separate received, posted, approved, scheduled, and paid bills. An invoice approved for next week remains unpaid until the cash event occurs.

At the next close, compare estimated accruals with actual bills, explain differences, and clear stale estimates. Use repeated missing costs to improve purchasing and invoice intake. The final payable and expense record should reflect the underlying activity, with material estimates distinguishable from confirmed invoices.