Under US GAAP, clinical trial costs are research and development expenses under ASC 730, which must be recognised as they are incurred, when the work is performed, not when an invoice arrives or cash is paid (G-Squared CFO). For site costs, the work is the visits and procedures participants complete. And those are recorded first in one place: the EDC.
Most accrual processes do not use that data directly. Finance asks clinical teams for estimates, or spreads the budget evenly across the months. An article on clinical trial accruals published by SiteCouncil notes that straight-line methods can create a disconnect between what has actually happened in the trial and what is accrued, and that tracking work units against costs gives a much better view of incurred expense (SiteCouncil). The best record of those work units is the EDC.
|
Method |
How it works |
Weakness |
|---|---|---|
|
Straight-line |
Budget spread evenly over the study timeline |
Ignores actual enrolment and visit pace |
|
Estimate from clinical team |
Study managers estimate work done each month |
Depends on memory and on who is asked |
|
Invoice-based |
Accrue what vendors and sites invoice |
Lags the work by a payment cycle or more |
|
Activity-based from EDC |
Completed visits and procedures valued at contracted rates |
Needs EDC and budget data in one place |
When completed visits and procedures in EDC are valued at each site's contracted rates, the amount earned but not yet invoiced is known at any time, by study, site and payee. Month-end becomes a review of an existing number, not the creation of an estimate.
The same data shows how fast each site is enrolling and completing visits. Projecting the remaining visits at that pace, and valuing them at contracted rates, gives a forecast built on the study as it is, not the original plan.
Some procedures are only done when the protocol requires them for a participant. EDC records whether they happened, so they are accrued when performed and forecast from how often they actually occur.
Each accrued amount traces back to a visit or procedure recorded in EDC, with its date and audit trail. That gives auditors a clear, repeatable basis for the estimate, which matters because clinical trial accruals are often a focus area in audits.
Cloudbyz CTFM and Cloudbyz EDC are built natively on Salesforce as one platform, together with Cloudbyz CTMS. Visits and procedures completed in EDC are valued against each site's budget in CTFM, so accruals are available in real time rather than estimated at month-end. The CTFM forecasting module uses the same actual progress to forecast spend and enrolment, and can show whether a change order is needed. Payment, accrual and outstanding reports sit in one portfolio-level dashboard, and every number traces back to the visit that created it.
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