What is meant by accrual write off?

The liability for the uninvoiced receipts is kept in the AP Accrual Account (which is a suspense account) till the time you have an invoice for the receipt. This will happen as soon as you create the receipt(if you are using accrue on receipt ) or at period close. The same is accrued as soon as you enter an invoice for these receipts.

When you might want to write off this liability?

Here are some resons:

1.What PO warehouse has received may not be the one finance/accounting has invoiced. Hence you PO remains open as if it is not invoiced.

2.Sometimes finance may invoice without matching and pay vendor.Hence vendor may not question and procurement is also not questioning because they have received material.

3.Lot of times finance creates invoice for freight with accrual account with no reference to PO.this gets qualified for writeoff.

4.Invoicing for more quantity than what has been received. On the similar note invoicing in advance but never received.