🧾 Clearing Unbilled Costs When No Vendor Bill Will Be Received

When you’ve already invoiced the customer but do not expect to receive a vendor bill, you may have remaining journal entries sitting in your Accrued Liabilities (Unbilled Cost) and COGS GL accounts. This occurs because the Accrued Liabilities feature is designed to recognize all expected costs at the time of revenue recognition to provide the most accurate P&L snapshot.

If a bill will never be received, follow the steps below to properly clear the unbilled cost.

⚙️ Best Practice Steps

1. Open the Project → navigate to the Acknowledgements/Costing module.

2. Select the Purchase Order in the top portion of the screen.

3. Under the Invoices section, click Add.

4. In the Invoice # field (required), enter something like “NO INVOICE” or “CLEARING.”

5. In the Invoice this Qty field, enter the total estimated quantity.

   • In the Invoice this Amount field, enter 0.00.

6. Click Apply Account Postings.

   • This creates a negative entry to the COGS account, offsetting the original accrued cost.

   • It does not automatically clear the Accrued Liabilities account, so you’ll need to manually adjust it under the Account Breakdown section.

7. Because QuickBooks does not allow zero-dollar or negative invoices, this transaction will not post to QuickBooks.

   • You’ll need to manually adjust the Accrued Liabilities and COGS accounts in QuickBooks to match.

8. Finally, clear the Estimated Cost in the upper-right section of the module.

   • This ensures there are no lingering costs in the system and that your e-manage|ONE balances align exactly with QuickBooks.

💡 Notes & Tips

• Only perform this process once you’re certain the vendor bill will never be received.

• Always confirm that both your Accrued Liabilities and COGS accounts are fully balanced in QuickBooks after the adjustment.

• Document the “NO INVOICE” entry in your internal accounting notes for clear audit history.