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Hi,
So at our organization, we typically do a soft closure monthly and a hard closure every quarter.
My question is with regard to the accounting date vis-a-vis the invoice date. Often the invoices pertaining to a particular months spend are dated next month. e.g. March month expense. Invoice Date could be 8th of April.
Now it such cases, typically for quarterly hard closures, we tend to have a deadline of 10th of April. All invoices received upto the 10th of April, we tend to provide for on or before 31st March. The actuals get updated in accounting and the provision reversed on the invoice date . Is this the best practise?
Can we also look to update the invoice in accounting on 31st March for an invoice received on 8th April which is before our hard closure completion deadline? Would be technically incorrect to do so?
We would want to adopt the best practise as per accounting norms.
So at our organization, we typically do a soft closure monthly and a hard closure every quarter.
My question is with regard to the accounting date vis-a-vis the invoice date. Often the invoices pertaining to a particular months spend are dated next month. e.g. March month expense. Invoice Date could be 8th of April.
Now it such cases, typically for quarterly hard closures, we tend to have a deadline of 10th of April. All invoices received upto the 10th of April, we tend to provide for on or before 31st March. The actuals get updated in accounting and the provision reversed on the invoice date . Is this the best practise?
Can we also look to update the invoice in accounting on 31st March for an invoice received on 8th April which is before our hard closure completion deadline? Would be technically incorrect to do so?
We would want to adopt the best practise as per accounting norms.