diff --git a/src/pages/accounting/AccountingReportsPage.tsx b/src/pages/accounting/AccountingReportsPage.tsx
index 17c719a..095e535 100644
--- a/src/pages/accounting/AccountingReportsPage.tsx
+++ b/src/pages/accounting/AccountingReportsPage.tsx
@@ -125,7 +125,7 @@ async function fetchAllGLLines(cid: string, to: string, select: string, from?: s
 // Shared fetch for the financial reports (also used by the report-batch engine).
 export async function fetchReportData(cid: string, from: string, to: string) {
       const ytdStart = new Date(new Date().getFullYear(), 0, 1).toISOString().slice(0,10);
-      const [inv, bills, accs, exp, custs, vends, ob, ytdInv, ytdExp, ytdBills, allBills, glRes, glCumRes, allInvRes, companyRes] = await Promise.all([
+      const [inv, bills, accs, exp, custs, vends, ob, ytdInv, ytdExp, ytdBills, allBills, glRes, glCumRes, allInvRes, companyRes, periodBillItemsRes] = await Promise.all([
         accounting.from("invoices").select("number,total,paid_amount,status,issue_date,customers(name)").eq("company_id", cid).gte("issue_date", from).lte("issue_date", to),
         accounting.from("bills").select("number,total,paid_amount,status,issue_date,due_date,vendors(name)").eq("company_id", cid).gte("issue_date", from).lte("issue_date", to),
         accounting.from("accounts").select("id,name,code,type,subtype,balance,is_bank").eq("company_id", cid).eq("is_archived", false),
@@ -149,6 +149,9 @@ export async function fetchReportData(cid: string, from: string, to: string) {
         // Imported-GL companies (gl_auto_post=false) keep their own AR/AP, so the sub-ledger
         // vs GL control reconciliation (R7/R8) does not apply to them.
         accounting.from("companies").select("gl_auto_post").eq("id", cid).maybeSingle(),
+        // Bill items for bills issued in the period — lets the Expense Summary
+        // back out the expense of bills that aren't paid yet (cash-aware view).
+        accounting.from("bill_items").select("account_id,amount,bills!inner(total,paid_amount,status,issue_date,company_id)").eq("bills.company_id", cid).gte("bills.issue_date", from).lte("bills.issue_date", to).not("account_id", "is", null),
       ]);
       return {
         invoices: inv.data ?? [], bills: bills.data ?? [], accounts: accs.data ?? [],
@@ -160,6 +163,7 @@ export async function fetchReportData(cid: string, from: string, to: string) {
         glCumulative: glCumRes ?? [],
         allInvoices: allInvRes.data ?? [],
         glManaged: companyRes.data ? companyRes.data.gl_auto_post !== false : true,
+        periodBillItems: periodBillItemsRes.data ?? [],
         from, asOf: to,
       };
 }
@@ -1795,10 +1799,12 @@ function buildFlat(id: ReportId, d: any, cur: string): Flat | null {
         rows: d.customers.map((c: any) => [c.name, m(Number(c.balance ?? 0))]),
       };
     case "expense-summary": {
-      // GL-driven so it follows the same recognition rule as the P&L: a bill's
-      // expense counts on the bill date (Dr Expense / Cr A/P), and a vendor payment
-      // with no bill counts on the payment date (Dr Expense / Cr Bank). Reading the
-      // ledger avoids double-counting and never misses direct payments.
+      // GL-driven, billed-date recognition (a bill's expense counts on the bill
+      // date — Dr Expense / Cr A/P — and a direct vendor payment on the payment
+      // date — Dr Expense / Cr Bank), then we back out the expense of bills issued
+      // in the period that aren't paid yet, so the summary reflects amounts the
+      // association has actually paid. Direct payments are cash already, so they
+      // stay; only the unpaid portion of open bills is removed.
       const byAcct: Record<string, number> = {};
       for (const l of (d.glLines ?? []) as any[]) {
         const acc = l.accounts;
@@ -1808,9 +1814,23 @@ function buildFlat(id: ReportId, d: any, cur: string): Flat | null {
         const name = acc.name ?? "Expense";
         byAcct[name] = (byAcct[name] ?? 0) + amt;
       }
-      const rows = Object.entries(byAcct).sort((a, b) => b[1] - a[1]).map(([acct, amt]) => [acct, m(amt)]);
-      const total = Object.values(byAcct).reduce((s, v) => s + v, 0);
-      return { title: "Expense Summary (Accrual)", columns: ["Expense Account", "Amount"], rows: [...rows, ["TOTAL", m(total)]], boldRows: [rows.length] };
+      // Remove the unpaid portion of period bills, prorated, keyed by account name.
+      const acctNameById = new Map((d.accounts ?? []).map((a: any) => [a.id, a.name]));
+      for (const bi of (d.periodBillItems ?? []) as any[]) {
+        const b = bi.bills;
+        if (!b || b.status === "void") continue;
+        const total = Number(b.total) || 0;
+        if (total <= 0) continue;
+        const unpaid = total - (Number(b.paid_amount) || 0);
+        if (unpaid <= 0) continue;
+        const name = acctNameById.get(bi.account_id);
+        if (!name || byAcct[name] === undefined) continue;
+        byAcct[name] -= Number(bi.amount) * (unpaid / total);
+      }
+      const kept = Object.entries(byAcct).filter(([, amt]) => Math.abs(amt) >= 0.005);
+      const rows = kept.sort((a, b) => b[1] - a[1]).map(([acct, amt]) => [acct, m(amt)]);
+      const total = kept.reduce((s, [, v]) => s + v, 0);
+      return { title: "Expense Summary (Paid)", columns: ["Expense Account", "Amount"], rows: [...rows, ["TOTAL", m(total)]], boldRows: [rows.length] };
     }
     case "vendor-balances": {
       const byVendor: Record<string, number> = {};