Forum — When is it appropriate to recognize Accounts Payable?

A GABOTAF member asked:

Hello! May query lang ako. Once na naprepare na ang Obligation Request and Status at naapprove na ito, pwede na ba i-recognize ng accounting ang accounts payable neto lalo na sa mga malakihang contracts dahil naobligate mo na sya? thankyou! ☺️ (cai)

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No. Goods should be delivered, inspected and accepted or services should be rendered before recognizing accounts payable.

/agarcia
Hindi po. AP in the books of accounts should be due and demandable, meaning, goods/services should have been delivered and accepted/rendered already. Obligations NYDD are technically not yet AP.

/dleya

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https://gabotaf.com/2019/02/05/what-is-the-difference-between-due-and-demandable-obligations-and-not-yet-due-and-demandable-obligations-ddo-nyddo/
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Posted on Posted in Accounting 101
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