Closing the books at month-end can feel stressful, especially when something does not line up. One of the biggest areas that gets missed is accrued purchases.
If you are using NetSuite, this step is often overlooked, even though it is built right into the system. Using this tool the right way can keep your cost of goods sold accurate and reduce audit problems later on.
Let’s Talk About What Accrued Purchases Really Are
Accrued purchases are expenses you have received but have not been billed for yet. This happens when you get the product, but the vendor invoice has not come in.
To keep your accounting clean, you record these purchases at month-end. This helps match the cost of goods with the right accounting period. NetSuite gives you a built-in tool to handle this without needing outside spreadsheets or manual journal entries.
Why These Purchases Are Important During Close
During NetSuite implementation, most accounting teams focus on invoicing, payments, and bank recs. But accrued purchases should also be part of your regular month-end close checklist.
Here’s why they matter:
- They keep your financials accurate for the month
- They help explain big changes in your cost of sales
- They support clean audit trails with clear backup data
Key Takeaway: If you skip accrued purchases, you may record inventory received without matching costs. That mismatch creates confusion and reporting issues.
NetSuite Gives You a Simple Way to Handle This
NetSuite has a native screen called Posting Vendor Bill Variances. It is made to help you clean up records that do not match between item receipts and vendor bills.
Here is what you do:
- Open the Posting Vendor Bill Variances screen
- You will see a list of either:
-
- Purchase orders, or
- Vendor bills, based on how your system is set up
- Review the records with mismatched amounts
- Add any needed data
- Click Submit to create the journal entries
The great part is that these entries are automatically tied to the PO, the receipt, and the bill.
Need expert help with accrued purchases? Contact Meridian for a free consultation. We will help you build a clean, easy-to-use workflow that fits into your current month-end close.
Why We Recommend the Built-In NetSuite Method
The best part of using NetSuite’s native process is that everything links together in one system. If your CFO or auditor asks for backup, you can pull it up with a few clicks.
You can trace every part:
- Journal entry back to the vendor bill
- Vendor bill to the item receipt
- Item receipt to the purchase order
Pro Tip: This saves hours of searching through old emails or spreadsheets. Everything stays inside NetSuite, ready to go.
Getting This Right Comes With Big Benefits
When you handle this the right way, you get:
- Fewer last-minute journal entries
- More accurate financials
- Better internal reports and dashboards
- A smoother, faster audit process
This makes your close easier now and protects your numbers later.
Final Thoughts Before You Start
Accrued purchases may not seem like a top priority, but they are key to closing the books the right way. NetSuite’s built-in process makes it easy to track, manage, and report every step.
If you are ready to stop guessing and clean up your close process, we are ready to help.
Contact Meridian today for a free consultation and see how easy this can be.
