vendor bills post in period in which they're paid

Several large vendor bills are posting in year 2019 or when paid. The expense is posting on the same date the payment is made.

But these vendor bills are given dates in year 2018, and I want the expense to be reported in year 2018.

Right now, my CGS is overstated for year 2019, resulting in a net loss.

The system is set to Cash basis, but nothing changed when i tried Accrual basis.

Please help, thanks.

What accounting system? The way it is reporting is correct on cash basis, but it should adjust when selecting accrual basis unless done via journal entry (some accounting systems treat journal entries the same under cash and accrual). I have yet to see an accounting system that was able to 100% accurately toggle between cash and accrual--close, but not absolute, particularly when journal entries have been used.

If you are using QuickBooks and are accural basis then the date of the bill (not the due date) will determine what period the expense is applied. If cash basis then the expense is when paid. If the bills were received in 2018 and payments were sent in 2018 then cash basis can expense in 2018. If cash basis and payments weren’t sent until 2019, then expense in 2019. Really doesn’t matter in which period it is desired to take the expense. The period expensed is determined by the accounting method used by the taxpayer and the date of the bill (accural) or the date paid (cash).

Be very careful posting something in a year where the tax return has been completed. You may want to discuss entering old bills with your tax preparer.

Be very careful posting something in a year where the tax return has been completed. You may want to discuss entering old bills with your tax preparer.

There is a way to lock a year in QBO, which is what i use.
When i stop playing Whack-A-Mole, i'l lock it.

Year 2018 is a disaster, before i got this client.

What accounting system? The way it is reporting is correct on cash basis, but it should adjust when selecting accrual basis unless done via journal entry (some accounting systems treat journal entries the same under cash and accrual). I have yet to see an accounting system that was able to 100% accurately toggle between cash and accrual--close, but not absolute, particularly when journal entries have been used.

QBO.