Best practice for accruing expenses

1

If you have expenses that are tied to sales invoices (aka $1 per invoice or 2% of an invoice), what’s the recommended method to record them in Manager?

  1. Use a journal entry for each accounting period
  2. Create 2 non-inventory items and include them on the sales invoice: 1 debts expense and 1 credits accrued expense liability when purchased
  3. More elegant method

Then adjust using journal entry when a purchase invoice is issued for payment.

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2

Option 1.

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Option 2

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4

Thank you both for the reply. Now I’m a bit confused on what do to because the answers are different.

5

Setup a test business and try both options to see which one suits you the best

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I will try both setup thank you.