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Accounts Payable

Accounts Payable Month-End Close Checklist

If accounts payable is wrong at month end, every cost line in the management accounts is wrong with it.

Short answer

At month end, accounts payable should confirm cut-off so every invoice sits in the right period, accrue goods and services received but not yet invoiced, reconcile key supplier statements, investigate debit balances, run a duplicate check, and reconcile the payables subledger to the general ledger control account before handing over to the rest of the close.

The checklist, in order

  1. Close the invoice inbox for the period. Post every invoice received for goods or services delivered in the month, and record the cut-off date you used.
  2. Accrue goods received not invoiced. Use your goods-received records or open purchase orders to accrue for anything delivered but not yet billed. This is usually the largest AP accrual.
  3. Accrue services received. Utilities, professional fees and subscriptions often arrive after month end. Use contracts and last month's run-rate.
  4. Review invoices awaiting approval. An invoice for this month's costs that is stuck in approval still belongs in this month's expenses.
  5. Reconcile key supplier statements. Start with your largest suppliers and any with disputes. See how to reconcile a supplier statement.
  6. Investigate debit balances. Each one is a possible duplicate payment or unclaimed credit note.
  7. Run a duplicate check on the month's invoices and payments.
  8. Reconcile the subledger to the general ledger. The AP ageing total must equal the AP control account.
  9. Review prepayments and deposits paid to suppliers and match them to invoices received.
  10. Sign off. Preparer and reviewer sign and date the AP reconciliation pack.

Cut-off: the step most often missed

An invoice dated 2 March for work done in February belongs in February. An invoice dated 28 February for goods delivered in March belongs in March. Cut-off follows when the goods or services were received, not the invoice date. Check the largest invoices posted in the first week of the new month for items that belong to the old one.

Goods received not invoiced

If you use purchase orders and record goods receipts, the system can produce a report of receipts without matching invoices. Review it: old lines are often orders received but never invoiced, or receipts recorded twice, and both distort the accrual.

Checklist

  • Cut-off date recorded and first-week invoices reviewed
  • Goods received not invoiced accrued
  • Services received but not billed accrued
  • Key supplier statements reconciled
  • Debit balances investigated
  • Duplicate check run on the month's invoices and payments
  • AP subledger agreed to the general ledger
  • Pack signed by preparer and reviewer
UK and US

The steps are the same in the UK and the US. In the US, the goods received not invoiced accrual is often called the received not invoiced, or GRNI, accrual. Public companies should keep evidence of each review for Sarbanes-Oxley testing.

Free tool

Duplicate Invoice Checker

Paste your invoice list and see likely duplicates in minutes. Free Excel file: enter your work email to download it.

Use the Duplicate Invoice Checker

Make it a control, not a one-off

The Accounts Payable Control System runs four duplicate-invoice tests, supplier master fraud checks and a three-way match on every invoice, with a payment run release gate that blocks release while exceptions are open. Excel, no macros, one-time price.

View the Accounts Payable Control System

Common questions

How many supplier statements should we reconcile each month?

Cover your largest suppliers by spend, any with disputes, and a rotating sample of the rest, so every active supplier is reconciled at least once or twice a year.

What is the difference between an accrual and an invoice awaiting approval?

An invoice awaiting approval has been received and can be posted with a pending status. An accrual estimates a cost where no invoice has arrived yet. Both belong in the month the goods or services were received.

How do we stop the AP close holding up the whole close?

Move work earlier: run duplicate checks and statement reconciliations in the last week of the month, and set a firm invoice cut-off on working day one or two.

What evidence should the AP close pack contain?

The subledger-to-ledger reconciliation, the accruals schedule with its support, the supplier statement reconciliations completed, the debit balance review and the duplicate check results, each signed and dated by the preparer and reviewer.

Related guides

Last updated 18 October 2026. General guidance for finance teams; check it against your own policies, systems and local rules.