What is AP Accruals?
AP Accruals is a solution that automates and streamlines the process of recording expenses that have been incurred but not yet invoiced or paid. It’s designed for finance and AP teams to:
Get an accurate month-end expense picture
Reduce manual spreadsheet work
Improve auditability and control over accruals
It sits on top of your source systems (ERP, procurement tools, etc.) and uses your transactional data to propose or post accruals automatically.
Why AP Accruals Matters
Typical manual accrual processes suffer from:
Spreadsheets everywhere – decentralized, error‑prone tracking
Late or missing invoices – expenses hit the P&L in the wrong period
Back-and-forth emails with business owners to confirm amounts
High month-end crunch – tight close window, heavy reliance on tribal knowledge
AP Accruals addresses this by:
Centralizing accrual logic and workflows
Using rules and data to generate accruals consistently
Providing clear visibility into what was accrued, by whom, and why
Core Capabilities (at a high level)
While the deck goes deep into product training, conceptually AP Accruals typically supports:
Data Ingestion & Matching
Pulls AP, PO, GRN/receipt, and/or spend data from your ERP
Identifies gaps (goods/services received but not yet invoiced, or POs partially billed)
Accrual Calculation
Applies configurable rules (by vendor, account, cost center, PO, etc.)
Calculates recommended accruals per period
Review & Workflow
Routes accruals for review/approval to finance or business owners
Provides dashboards or worklists to manage open items
Posting & Reversal
Generates journal entries or files for your ERP
Automates standard reversals in the following period
Reporting & Audit Trail
Full traceability: source transactions → accrual rule → journal
Views by entity, GL, vendor, cost center, period, etc.
Business Outcomes
Organizations typically aim for:
Faster close – less last‑minute manual work
More accurate financials – fewer surprises after close
Better controls & compliance – standardized logic, robust audit trail
Scalability – process holds up as volume and entity complexity grow