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Document Date vs Transaction Date

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What is the best practice for recording an old invoice received in the current period but activity took place in the closed period?

  • Brian_IL Profile Picture
    Brian_IL 715 on at
    RE: Document Date vs Transaction Date

    Unless the amount is material, most customers run the transaction through the current accounting period because posting an entry back to a prior period would change the related financial statements. If the amount was accrued in the prior period, a reversing entry in the current period would be expected to offset the AP voucher entry in the current period recording an expense.

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