Pay Later Workflow

Definition

Recording an expense now while deferring cash settlement: a liability (AP with invoice, ACCRUED without) holds the place of cash until payment.

Worked Example

June 10: $12,000 marketing campaign, invoice net-30:

Cost item:        expense $12,000, payment_status = UNPAID
Liability:        liability_type = AP, due July 10

July 10: settle:
Withdrawal $12,000 from bank, payment_status -> PAID

Interpretation & Pitfalls

Pay Later keeps the P&L honest (expense in June where it belongs) while the liability feeds the cash forecast (cash out in July).

In TupicFinance

The Pay Later option on cost entry creates the liability classification automatically and tracks it to settlement.