Late invoices should be accrued in the period costs were incurred, then reversed when the invoice posts in the following period. Vergo's AP automation applies period-lock controls and accrual flags at the cost code level, keeping WIP schedules and job-cost reports accurate across the cutoff. This eliminates manual journal entries and reduces close-cycle rework.
The Current Problem
Construction projects often receive invoices after the monthly accounting cutoff date. This creates headaches for accounting teams, who must then manually track down approvals, re-open the books, and make period adjustments. This disrupts the close process and can lead to inaccurate financial reporting.
- Invoices get lost or buried on job sites, missing the cutoff
- Subcontractors submit late bills due to their own cash flow issues
- Manual approvals and data entry bottlenecks cause delays
- Reopening the books for late invoices is time-consuming
The Recommended Workflow
- Set up automatic invoice capture across all job sites and subcontractors.
- Route late invoices through a streamlined digital approval workflow.
- Sync approved invoices directly to your ERP or accounting system.
- Schedule automatic period-end close to lock down the books.
- Review outstanding invoices and make any needed adjustments before final close.
- Produce accurate, timely financial reports.
Tips for Construction Teams
- Require all subcontractors to submit invoices electronically
- Give field teams mobile access to review and approve invoices on the go
- Enforce clear accounting policies around invoice submission deadlines
- Integrate your AP system with your ERP to eliminate manual data entry
- Use software like Vergo to automate the entire post-cutoff invoice workflow
How Vergo Helps
Vergo is a card-agnostic expense management platform built for construction. Connect any corporate or project credit card and get full visibility and control over field spending.
- Job-cost coding at the point of capture — field teams assign job number, cost code, and cost type from their mobile device before the receipt leaves the job site.
- Per-job spend controls — set card limits by project, cost code, or cardholder so spending stays within approved budgets.
- Mobile receipt capture — superintendents and PMs photograph receipts on-site with automatic data extraction.
- Role-based approval workflows — route expenses through project managers, job-level approvers, and controllers based on your org structure.
- Vergo integrates natively with major construction ERPs, syncing coded expenses directly into job cost and general ledger without manual re-entry.
Related Questions
Frequently Asked Questions
What if we still get a few late invoices?
*If a small number of invoices come in after the cutoff, you can create an accrual entry to account for them. This keeps your books accurate without having to reopen the entire period.*
How do we handle exceptions for rush invoices?
*For true emergency invoices, create a fast-track approval process. But require the project manager to provide a written justification to prevent abuse of the exception.*
Can we still use paper invoices?
*Paper invoices are prone to getting lost and creating delays. We recommend transitioning to a fully digital AP process to streamline invoice capture and approvals.*
What if our ERP can't integrate with the AP system?
*If your ERP has limited integration capabilities, you can still use a specialized AP automation tool like Vergo. It will sync invoices and payments to your general ledger without the need for custom integrations.*