What does the Expense step signify in SABRS?

What does the Expense step signify in SABRS?

• A. Ordered goods/services are received by unit
• B. Administrative reservation of funds
• C. Payment for goods/services to vendor
• D. Firm, legally binding agreement between parties

Answer: (A)

In SABRS, the Expense step is the point at which the unit actually receives the ordered goods or services and the cost is recorded as an expense against the available appropriation. This is when the financial records reflect that resources have been consumed, converting the prior obligation into a realized expense. The other steps are about pre-commitment or post-receipt actions: reserving funds is just setting aside budget authority before delivery, paying the vendor happens after receipt to settle the invoice, and a firm contract establishes the obligation but does not itself signify that the goods or services have been received. So, recognizing the expense only occurs when possession or acceptance of the goods/services occurs.

In SABRS, the Expense step is the point at which the unit actually receives the ordered goods or services and the cost is recorded as an expense against the available appropriation. This is when the financial records reflect that resources have been consumed, converting the prior obligation into a realized expense. The other steps are about pre-commitment or post-receipt actions: reserving funds is just setting aside budget authority before delivery, paying the vendor happens after receipt to settle the invoice, and a firm contract establishes the obligation but does not itself signify that the goods or services have been received. So, recognizing the expense only occurs when possession or acceptance of the goods/services occurs.