Financial Accounting Data - 2
The finance department's job
- Is book keeping of actual transactions
They do not make an entry
- Until an actual transaction occurs
This could be long after
- The money is effectively "spent", because
- The work has to take place
- The responsible party has to invoice for it
- The invoice has to be checked, and approved
- A payment made by whatever means
- The charge has to show up in the accounts
- A period ending statement has to be distributed
- And all of that could take several months !