Vendor Invoice Dates
We bill customers for recycling services that occur within a month period & add on a mgmt fee - we bill our customers using the last date of the month these services occurred - we then pay the vendors invoices as they come in usually the following month We have been dating our AP using the date on the vendor invoice dates- my boss now wants us to change all vendor invoice dates to match the same month we billed the customer for those services - this does seem right - is it and if not why not?
Quick Answer:
Changing the date on your Accounts Payable entries to match the month you billed customers is generally not an appropriate practice for tax purposes.
For accrual-basis taxpayers, expenses are deductible when the liability is fixed and the amount can be determined with reasonable accuracy. The vendor's invoice date typically serves as key evidence for when this liability is established and when the expense is incurred. Recording Accounts Payable based on the
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
