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💰 Managing Un-Billed Costs with Accrued Liabilities

💰 Managing Un-Billed Costs with Accrued Liabilities

As a business owner, having a clear and accurate view of your company’s financials—especially Income and Cost of Goods Sold (COGS)—is critical. One common challenge is tracking un-billed costs, such as Vendor Purchase Order Acknowledgements that have not yet been invoiced.

e-manage|ONE helps solve this by automatically accounting for these un-billed costs so your financial reports reflect a true and complete picture of your business.

⚙️ How It Works

When you create a final customer invoice, e-manage|ONE automatically identifies any Vendor Purchase Order Acknowledgements that have not yet been invoiced.

Instead of leaving these costs unaccounted for, the system:

  • Posts the amount to an Accrued Liabilities account

  • Includes those costs in your profit and COGS reporting

This ensures your financials accurately reflect expenses that are expected to be billed in the near future.

✅ Key Benefits

📊 Accurate Financial Reporting

Un-billed costs are captured in an Accrued Liabilities account, ensuring reports—such as profit reports—accurately reflect true income and COGS.

💵 Better Cash Flow Management

By tracking un-billed costs, you gain visibility into upcoming expenses. This allows you to plan cash flow more effectively and avoid unexpected cost surprises.

🧾 Improved Vendor Invoice Management

When the Vendor Invoice is received:

  • The system automatically deducts the amount from the Accrued Liabilities account

  • The cost is posted directly to the appropriate COGS account

This keeps your financials accurate and up to date in real time.

🚀 How to Activate This Feature

Follow the steps below to enable un-billed cost tracking using accrued liabilities:

🧱 Step 1: Create Accrued Liabilities Account in QuickBooks

Create an Accrued Liabilities account in QuickBooks using the account type:
Other Current Liability

🔄 Step 2: Import Chart of Accounts into e-manage|ONE

Import your Chart of Accounts into e-manage|ONE using the QuickBooks Integration Application
📎 (See linked article for detailed instructions here)

🏷️ Step 3: Configure Account in e-manage|ONE

In the Chart of Accounts within e-manage|ONE, mark the Accrued Liabilities account as:

  • ✅ Use in e-manage

  • ✅ Receivable Account

  • ✅ Payable Account

📎 (See linked article for additional configuration details here)

🛠️ Step 4: Assign Default Accrued Liabilities Account

  1. Open the e-manage|ONE Administrator Application

  2. Navigate to Corporate Division Configuration

  3. Select the newly created Accrued Liabilities account in the Def Accr Liab Acct field

    Once configured, e-manage|ONE will automatically manage un-billed costs and ensure your financial reporting remains accurate and reliable.