[Anonymous]

This is a simple question but I have my reasons for asking. I would like to know why some companies that are not tied to a hard deadline keep their accounts payable open longer at year end closing? Give me all of you possible reasons. Thanks!

[mla1169]

Could be a lot of reasons. Our AP is still open because we had hundreds of thousands of dollars of inventory receipts waiting to be vouchered at year end and due to a software conversion they want to wipe the Received not Vouchered account down to zero at 12/31/14. So the only AP transactions still hitting 2014 are transactions that are simply moving dollars from one balance sheet account to another without having to do a big accrual.

Basically if invoices are still coming in related to the previous year (which they will be for a while) and you have the luxury of keeping A/P open its a cleaner way to do it then making a bunch of reversing entries. Both ways are correct.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Author]

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