FAQ: Accounting Impact

When does a bill post to the GL?

Most bills post immediately when you save and confirm them. Some organizations delay posting until bills are matched with receipts (a process called "three-way matching"). Check your company's settings or ask your admin if you're unsure.

Why does my Accounts Payable balance not match my bill total?

Possible reasons:

• Some bills may not yet be posted (still in draft state).
• Partial payments or credits have reduced the liability.
• Multi-currency bills are converted to your base currency, affecting the balance.
• A bill was deleted or reversed, reducing the total.

To verify, generate an Accounts Payable Aging report, which shows all outstanding bills.

If I delete a bill, does the GL entry disappear too?

No. The original GL entry is reversed, not deleted. This preserves the audit trail. You'll see:

• The original posting entry (debit Expense, credit Accounts Payable)
• A reversal entry with the date of deletion (opposite sides)

This way, auditors can trace the full history.

What happens to COGS if I adjust a bill after it's posted?

If you reduce the bill amount after posting:

• The GL entry is NOT automatically adjusted.
• You must issue a bill credit or return to create an offsetting entry.
• Only then will COGS and Accounts Payable be corrected.

Best practice: Make bill corrections promptly to avoid confusion.

Can I change a bill's GL account (e.g., from Expense to Inventory)?

It depends on your permissions and whether the bill has posted:

• Before posting: You can edit the line-item accounts directly.
• After posting: You cannot change the GL account without the "unpost" permission. Contact your admin.

If you need to reclassify a bill, the safer way is to delete or reverse it, then create a new bill with the correct accounts.

Do draft bills affect my financial statements?

No. Financial statements only include posted transactions. Draft bills do not appear in:

• Trial balance
• Income statement
• Balance sheet
• Any financial reports

Once you confirm and post the bill, it appears in those reports.

What if the vendor invoice amount differs from my bill amount?

This is a common issue (variance). To handle it:

• Create a bill for the amount you received (matching the vendor's invoice).
• If you later discover a discrepancy, issue a bill credit or debit memo.
• Document the reason (e.g., "quantity discount not yet applied").

Keep both the original bill and the adjustment for the audit trail.

How does tax on a bill affect the GL?

Tax is split into two accounts:

• Tax Expense (or Tax Payable): The amount of tax you owe or have paid.
• Deductible Tax (or Tax Input): If applicable, the portion you can recover from tax authorities.

The exact posting depends on your tax setup. Ask your accountant to clarify your company's tax posting rules.

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