How Do I Create and Report Accrued Expenses Without the Invoice?
Sometimes, before an invoice is even received, we are expecting an expense. Entering in this Accrued Expense and how it is reported comes with some guidelines by the FEC.
“A written contract (including a media contract), promise, or agreement to make an expenditure which has not been paid for by the committee is an expenditure as of the date the contract, promise or obligation is made and is subject to the reporting requirements. Accounts payable and written contracts, promises, or agreements to make expenditures, in amounts of $500 or less, need not be disclosed until outstanding for sixty days or more. Note that special reporting rules apply when an individual makes an advance of personal funds for a good or service but expects to be reimbursed.”
In short, the date of the Accrued Expense applies to the date the contract or obligation was made, regardless of the invoice. However, if the Accrued Expense is under $500, it does not need to be disclosed until outstanding for 60 days or more.