About Accounting Methods & Accounts Payable

AptaFund supports both accrual and cash basis accounting methods for accounts payable.

The accounting method is specified in the Chart of Accounts Administration > Accounting Cycle window.

The method you choose is accounting cycle-dependent and cannot be changed once any order receipt is Received or any invoice is in the Submitted state.

Cash basis accounting for accounts payable

• Funds are encumbered when a PO is issued.

• The encumbrance is released and the expenditure is realized in Payment Management when the payment voucher is approved.

• No general ledger transactions occur when items are received in Order Receipt.

Accrual method accounting for accounts payable

• Funds are encumbered when a PO is issued.

• The encumbrance is released and the expenditure is realized in Order Receipt when an order receipt is received.

• Price adjustments — price changes, account code adjustments — are made in the Vendor Invoice window if the amount paid is different from the price on the original purchase order. Then the adjustment transactions are made in the general ledger when the payment voucher is approved.

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