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The invoice arrived after an accrual: explain the difference before adjusting
Compare an expense estimate with the eventual invoice and document the adjustment without duplicating the liability.
Applies to: General accrual-accounting review for U.S. businesses; posting decisions follow the entity's accounting policy and reviewer approval.
A close estimate is useful only if someone follows it through to the actual invoice. Otherwise, an old accrual can remain in the ledger after the invoice has also been recorded, leaving a duplicate liability or an unexplained expense movement.
Intuit’s liability guide describes accrued expenses as costs already incurred but not yet invoiced or paid. The worksheet below is an original review aid for connecting that estimate to later evidence.
Keep one reconciliation row per obligation
- Supplier and service period.
- Original estimate, its calculation and approval reference.
- Accrual entry number and any automatic reversal reference.
- Actual invoice number, amount and covered period.
- Variance, explanation, reviewer and resulting posting reference.
Check the reversal before posting a correction. A reversed accrual and an unreversed accrual need different handling. Do not apply a standard adjustment merely because the invoice has arrived.
Explain a $50 difference
Imagine a hypothetical September service estimated at $800. The supplier later invoices $850 for the same work. The review should explain the $50 difference and show how the $800 estimate was cleared or reversed. If the invoice includes October work too, first split the periods using supporting evidence; the full difference is not automatically a September estimation error.
The approved posting approach depends on the existing entries, reporting period and accounting policy. Preserve the invoice date and underlying service dates rather than altering documents to make the worksheet agree.
Our bookkeeping and accounting service can help organize the records and review questions behind this workflow.
Accrual follow-up questions
Can an old accrual simply be deleted?
Investigate its purpose and later entries first. Use the approved correction process with a traceable reason.
What if no invoice arrives?
Assign a follow-up owner and review the obligation with the supplier or responsible manager.
Does this determine tax deductibility?
No. Financial reporting and tax treatment require their own applicable rules and review.
Prepared by The Solution Bridge. Sources checked October 12, 2026. Educational guidance; verify current product instructions and applicable requirements.
Useful answers
Accounting FAQs
Why can profit and cash tell different stories?
Timing, unpaid invoices, bills, financing and non-expense cash movements can affect the comparison. Review the reporting period and accounting basis before drawing conclusions.
Which reports should I bring to a review?
Bring reports relevant to your question, their dates and accounting basis, plus balances that need explanation. Your adviser can confirm what additional evidence is needed.
Can you review an accounting workflow?
Describe the current process and desired outcome in the contact form. We will discuss scope, responsibility and next steps before work begins.
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