What configuration supports the requirement to accrue expense items at receipt?

The correct choice is to set Accrue Expense Items to At Receipt in Payables. This configuration directly enables the accrual of expenses when goods are received, aligning the accounting treatment with the principle of matching expenses to the period when the related benefits are obtained. It ensures that when items are received, they are recorded as expenses in the financial system right away, which reflects more accurate financial statements and allows for better tracking and management of expenses related to inventory.

Other options, while they may pertain to good financial practices or inventory management, do not address the specific requirement of accruing expenses at the point of receipt. For instance, establishing a standard accounting cycle focuses on the frequency and timing of accounting processes rather than expense accrual at receipt. Implementing regular inventory audits pertains to the verification and valuation of inventory rather than the timing of expense recognition. Requiring manager approval for all expenses relates to control and approval processes but does not impact the timing of when expenses are accrued in accounting records.