Unrecorded Liabilities

What it checks

• Post-period invoices whose service period falls before period end.
• Post-period cash disbursements settling a pre-period obligation.
• GR/IR at period end, split by direction.
• Open purchase orders where delivery occurred before period end.

How the result is read

Four populations, because no one of them is enough. GR/IR is the one most often misread: a credit there is the liability already recorded, so the account is opened to corroborate completeness and to find the two things that do carry exposure — a debit balance, and an aged credit written back to profit. Delivery against an open order with neither receipt nor invoice is the true unrecorded case.

The worksheet, on the demo engagement

Unrecorded Liabilities, as the application draws it for Harrow Precision Engineering Ltd, the fictional demo engagement — one row per candidate unrecorded liability.

In the application

Unrecorded Liabilities is filed under Purchases & payables, index letter D. "Run all analyses" runs it with every other analysis the ledger can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under D, beside an index of the source files with their SHA-256 fingerprints.