Accounting postings for invoices processed but not paid

Summary:

We changed our payment practises, and are trying to work out if we need to change the way we recognise future period invoices that have been approved and processed, but not paid

Content (please ensure you mask any confidential information):

We changed our payment practises, so we now pay to invoice terms rather than paying as soon as the PO has been approved and invoice has come through. This has led to our technical accounting team disputing the accounting bookings coming out of Fusion, using the example below:

Eg. if an expense of £100 related to month 2, is approved, with the invoice received and processed, but not paid in month 1. Then our accounting entries in month 1 would result in 100 CR Accrued expenses, 100 DR Prepayment (with corresponding P&L entries that net off), as the accrual is posted, but then moved through MPA as it relates to a future period.