In the accrual process for period end accruals, which event generate accounting entries that can be transferred to general ledger
-
A. Processing a receipt
-
B. Entering a purchase order
-
C. Entering invoices and matching them in payables
-
D. None of the above
Entering invoices and matching them to purchase orders in Payables generates the accounting entries for period-end accruals. The accrual process creates liabilities for goods received but not yet invoiced, which happens when you enter and match invoices to corresponding receipts/POs.
In the period-end accrual process for expense items, accounting entries transferred to the General Ledger are generated when invoices are entered and matched to purchase orders/receipts in Payables — this is what creates the actual liability/expense accounting lines that flow to GL via Payables' transfer-to-GL process. Simply processing a receipt or entering a PO creates receiving/PO records but not GL-postable accounting entries by itself (receipt accrual entries for perpetual/inventory items are a separate uninvoiced-receipts accrual, distinct from this event-driven answer). So matching invoices in Payables is the trigger for GL-bound accounting.