Liability Type (AP vs. ACCRUED)

Definition

The stored classification of an unpaid cost: AP when the invoice is in hand (exact amount, defined terms) or ACCRUED when no invoice exists yet (estimated amount).

Worked Example

Accounts Payable    Accrued Expense
Invoice in hand          yes                 no
Amount                  exact             estimated
Counterparty terms     defined          not yet defined

Interpretation & Pitfalls

Store the classification at the moment of entry rather than deriving it later — the distinction drives cash forecasting, audit sampling, and month-end true-ups.

In TupicFinance

liability_type is an explicit stored field on cost items and recurring subscriptions, set automatically by the invoice checkbox in the Pay Later flow.