Source truth: - Journal Entries - Source Documents - ADR 0020: Initial Release Scope and Financial Workflow Taxonomy - ADR 0024: Operational Summary Workflow Boundaries and Purchasing Facts - ADR 0025: Contractor Classification and Information-Return Filing - Purchasing and Payables Summary Fact Contract
Purchasing and Payables Summary
Purchasing and Payables Summary records summarized operating expenses, inventory acquisitions, prepayments, payables, accruals, vendor-payment issuance, contractor/vendor facts, and 1099 support.
Current desktop availability
Purchasing and Payables preparation, posting, contractor, and information- return behavior is implemented behind services, but it is not wired into the current desktop navigation. This page describes BooksPlus 1.0 scope and accounting boundaries, not a procedure users can perform now.
Workflow family placement: Operating Transaction Capture / General expenses and Purchasing & payables.
See Accounting Imports and Batch Review for the shared import, evidence, review, approval, and posting process used across Sales and Receivables, Purchasing and Payables, Inventory, and Banking and Finance Summary.
- Accept or enter summarized expense activity from external operations.
- Link bills, receipts, statements, W-9 records, and other supporting evidence when required.
- Review expense, payable, contractor, and payment accounting before posting.
- Post approved accounting effects through the normal posting path.
- Preserve contractor facts needed for 1099 support reports.
Unresolved worker classification remains a visible compliance exception. It does not suppress a valid payable or the accounting result of a payment that already occurred, but contractor and information-return readiness remain blocked until classification is reviewed. Initial filing uses a reviewed IRIS Taxpayer Portal handoff.
What the initial purchasing facts mean
The first ordinary purchase path is invoice-led:
| Source activity | BooksPlus treatment |
|---|---|
| purchase order approved | no accounting entry |
| goods or services received | retain or reference matching evidence; normally no acquisition entry |
| vendor invoice accepted | record the reviewed expense, inventory acquisition, or prepayment and the payable |
| invoice put on hold or marked OK to pay | retain the control status; no accounting entry |
| vendor payment issued | settle the payable directly to the selected bank account or through payment clearing |
| bank statement matched after a direct-bank payment | update reconciliation evidence; no additional accounting entry |
An invoice can be a valid liability even while it is unmatched, disputed, or on payment hold. “OK to pay” controls settlement; it does not decide whether the payable exists.
An operating expense is a purchase consumed in the current period. It includes ordinary SG&A goods and services and may also include noncapitalizable production, selling, or service-delivery costs. Inventory, future-period prepayments, capital-project costs, and fixed assets are not operating expense.
Matching and payment evidence
The operational system continues to perform two-way or three-way matching, tolerance checks, partial receipt and invoice handling, approval, payment preparation, and payment execution. BooksPlus preserves or references the reviewed results needed to explain the summary, including:
- vendor, invoice, purchase-order, receipt, and payment references;
- invoice, receipt, due, approval, payment, and clearing dates;
- match status, holds, exceptions, approval identity, and approval time;
- gross, tax, freight, discount, net, and payment totals;
- payment allocations, including one payment applied to several invoices; and
- supporting documents and the source control total.
The allocation total must equal the payment total. The summarized BooksPlus posting must reconcile to the detailed operational control total.
Inventory and accrual boundary
The accepted initial policy records an ordinary inventory acquisition from the vendor invoice. A receipt or later Inventory Summary event must not record the same acquisition again. Inventory Summary may later record consumption, valuation adjustments, or a supported purchase-price variance.
An uninvoiced operating cost credits accrued expenses; uninvoiced inventory credits Goods Received Not Invoiced. When the invoice later arrives, it clears that liability rather than acquiring the same inventory again.
For a non-inventory prepayment, the payable or direct purchase first records the reviewed amount in Prepaid Expenses. Later expense recognition is a separate, manually reviewed event linked to that posted acquisition. Partial recognition is allowed, but the linked allocations cannot exceed the remaining prepaid balance. BooksPlus does not infer a service period or automatically create an amortization schedule or recurring recognition entries.
Direct-bank and clearing payments
The selected payment policy determines one posting:
- Direct bank: debit Accounts Payable and credit the selected bank account. The later statement match does not post again.
- Payment clearing: debit Accounts Payable and credit Payment Disbursements Clearing. A later Banking and Finance Summary event clears it to the bank.
BooksPlus must never use both templates for the same payment. Bank fees, interest, exchange differences, and discrepancies are separate Banking and Finance events.
Initial release boundary
For the initial release, BooksPlus does not own operational purchasing, purchase orders, receipts, vendor-bill workflow, payment execution, banking detail, sales operations, or perpetual inventory work. BillCatcher, capital projects, and the entire fixed-asset lifecycle are deferred. Potentially capitalizable purchases remain held. Payroll accounting is also deferred. BooksPlus accounts for accepted summarized purchase and contractor facts.