An invoice is a bill from a vendor for goods or services the committee has received but not yet paid for. Both the amount owed and the payment to the vendor must be recorded. ISP handles invoices using Accrued Expenses and Accrued Expense Payments.
Rule of Thumb:
- Use an Accrued Expense if the invoice has not yet been paid
- Use an Expense if the invoice has already been paid and you are recording it after the fact
Method 1: Invoice Not Yet Paid
- Record the total amount owed to the vendor as an Accrued Expense, dated for the date the goods or services were received.
- When the invoice is paid, record the payment as an Accrued Expense Payment against the original Accrued Expense, dated for the date the invoice was paid.
If the invoice is paid in installments, add a partial Accrued Expense Payment for each payment until the balance is paid off.
Method 2: Invoice Already Paid
- Record the invoice as an Expense for the total amount paid, dated for the date of payment.
Related: If you are expecting an expense before the invoice arrives, see How Do I Create and Report Accrued Expenses Without the Invoice? (Applies To: Federal Election Commission).
