It is expected that a basic understanding of the core Purchasing process has been achieved. What Are The Basic Steps Of The Purchasing Receipt Accrual Period- End Process? The steps outlined below show a basic Receipt Accrual Period End flow - to include a description of the reports involved complimented with sql statements that may prove useful when executing the process. Step 1: Understanding the accounts being used and where/why they are coming from? Expense AP Accrual Account - Purchasing Super User Responsibility or equivalent Nav: Setup/Organization/Purchasing Options Select the tab/region/alternative region which states "Accrual" Take notice of the "AP Expense Accrual" account which has been entered
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It is expected that a basic understanding of the core Purchasing process has been achieved.
What Are The Basic Steps Of The Purchasing Receipt Accrual Period-End Process?
The steps outlined below show a basic Receipt Accrual Period End flow - to include a description of the reports involved complimented with sql statements that may prove useful when executing the process.
Step 1: Understanding the accounts being used and where/why they are coming from?
Expense AP Accrual Account - Purchasing Super User Responsibility or equivalent
Nav: Setup/Organization/Purchasing Options
Select the tab/region/alternative region which states "Accrual" Take notice of the "AP Expense Accrual" account which has been entered
Distribution Expense Charge Account - that is on the Purchase Order Distribution
The defaulting rules (Levels) are as follows for Expense Destination:
Review the Expense Account that is entered The item will not have any boxes checked under the Costing tab If the Item has Inventory Item checked under the Inventory tab - the expense account is
mandatory under the Purchasing tab. The Expense account is pulled from the Organization attributes for the item, so ensure
that the Purchasing Tab is viewed at the Inventory Organization Level item attributes - matching the same Inventory Organization that was used as the Deliver To on the Requisition Form.
The logic is called in the Requisition Account Generator workflow in the following package/procedure - PO_WF_PO_CHARGE_ACC.EXPENSE
Level 2 - Employee Record
The Charge Account is pulled from the Employee Record if not found at the Item Level.
Shared HR install:
Navigation: Purchasing Super User - Setup/Personnel/Employees Query the Employee in question - next, choose the "MORE" button in the lower right Upon entering the sub-form, choose "ASSIGNMENT" from the drop-down alt region -
press tab Take notice of the Employee's expense account
Full HR install:
Navigation: Human Resources, Vision Enterprises - People/Enter and Maintain Use the FIND form to locate the employee question Choose the "Assignments" button in the lower portion of the form In the lower sub form, within Assignments, choose the "Purchasing" tab region Take note of the Set of Books and account which has been entered for Employee Charge
Account
The logic is located in the package/procedure PO_WF_PO_RULE_ACC/GET_DEFAULT_REQUESTER_ACC.
If using iProcurement, it is possible to setup Favorite Charge Accounts. These are defaulted when the first two levels (above) are exhausted and an account cannot be found. Within iProcurement choose the Preferences tab - iProcurement Preferences - the Favorite Accounts are setup here.
The logic is located in the package/procedure - PO_WF_PO_RULE_ACC/GET_FAVORITE_CHARGE_ACC
Select the Inventory Organization which was entered as the Ship-To Organization on the purchase order shipment; in this case, it is Vision Operations (V1)
Use the Find Expected Receipts window to locate the Purchase Order information Conduct a receipt, using Direct Delivery, against the purchase order shipment Enter a Deliver-to Location, as this is mandatory for expense deliver transactions
Confirm that the transactions were successful Choose Tools/View Accounting from the top text menus while on the Receive transaction:
Notice this is not an option yet, as no accounting transactions have been created.
It should be noted that no accounting transactions haven taken place at all during the Receive/Deliver process. There have been no transactions transferred to the GL_INTERFACE at this time, nor has the RCV_RECEIVING_SUB_LEDGER table been updated to reflect the receipt transactions which have taken place.
The above SQL statement can be used to track the transactions as they are transferred to the GL_INTERFACE. At this time, this statement will not return any rows of data.
Step 4: Run the Uninvoiced Receipts Report prior to Receipt Accrual Period-End Process
The Uninvoiced Receipts Report is designed to give a representation as to what is about to be accrued. Using the parameters above shows all the data/transactions which are eligible to be transferred to the General Ledger when the Purchasing Receipt Accrual Period-End Process is executed.
Example: Uninvoiced Receipts Report output
The only accounts which are tracked with period-end accruals are the expense account (which was on the purchase order distribution) and the AP Expense Accrual Account from the Purchasing Options Accrual tab/region. This report is designed to show what is GOING to be accrued when running theReceipt Accrual Period- End Report - a total of 2 accounting transactions.
There are two very important parameters with this report:
Include Online Accruals - If this parameter is set to Yes, then the Purchase Order distributions which are having the 'Accrue On Receipt' box checked will be included. It is recommended that the report be run with 'No' selected, so as to achieve a true picture of what is about to be accrued. It will pick up all Expense - Period End - Purchase Order Distributions having a ACCRUED_FLAG of null or 'N'.
Accrued Receipts - If this parameter is set to Yes, it is going to show purchase order distributions which are already accrued and essentially have been transferred to General Ledger. It is recommended the report be run with the parameter as 'No' so as to achieve a true picture of what is about to be transferred to GL.
Looking close at these parameters and how they correlate to the data in the Purchasing tables:
Using this SQL statement, the following can be seen:
OPERATING_UNIT
PO_NUMBER
LINE_NUMBER
SHIPMENT_NUM
ACCRUE_AT_RECEIPT_SHIP
DISTRIBUTION_NUM
ACCRUED_FLAG
ACCRUE_AT_RECEIPT_DIST
Vision Operations
5038 1 1 N 1 N N
Vision Operations
5038 2 1 N 1 N N
The 'Include Online Accruals' parameter correlates to the ACCRUE_ON_RECEIPT_FLAG.The 'Accrued Receipts' flag correlates to the 'ACCRUED_FLAG' above.
The ACCRUED_FLAG is null because this is a new purchase order - first time accrual.
Step 5: Complete the Matching and Close the Account Payables Period
It is vital that all invoices be entered prior to closing the Accounts Payable period in order to ensure that the purchase order does not accrue for the period in question.
Navigation: Payables Manager - Accounting/Control Payables Period
Close the Payables period. The period must be closed in order for it to be considered for the Receipt Accrual Period-End Process.
Step 6: Running the Receipt Accrual Period-End ProcessOverview: The Receipt Accrual Period-End Process will be looking to both the purchase order
shipments and purchase order distributions for scenarios where quantity received surpasses that
of quantity billed, meaning quantity has been received but not yet invoiced.
In order for transactions to be picked up by the process, the ACCRUE_ON_RECEIPT_FLAG in
both the PO_LINE_LOCATIONS_ALL (at shipment level) and PO_DISTRIBUTIONS_ALL (at
distribution level) tables has to be "N". Also, the ACCRUED_FLAG in the
PO_DISTRIBUTIONS_ALL table should either be NULL or "N"; if the flag is NULL, it is safe to
assume that the distribution has never seen an period-end accrual cycle. Again, this process is
responsible for getting accounting transactions to the general ledger where quantity has been
received but not yet invoiced.
Navigation: Purchasing, Vision Operations - Reports/Run - Receipt Accrual-Period-End Process
Choose the period - noting the following must hold true for the period to be listed in the list of values:
Accounts Payable period must be closed Purchasing period must be Open General Ledger period must be Open
Confirmation of Accounting Transactions created by the period end process:
a) Confirm the Purchase Order distribution was updated to showed it is now accrued:
Look at the ACCRUED_FLAG - notice it is "Y" as the distribution was considered during this run of the period-end process.
b) Resubmit the Uninvoiced Receipts Report. (This can be used to confirm that the ACCRUED_FLAG was changed using the application.)
Navigation: Purchasing - Reports/Run - choose the "Uninvoiced Receipts Report" request Contrary to the first run in Step 4, specify YES for parameter "Accrued Receipts" Set the Include Online Accruals as NO
The report drives off of the ACCRUED_FLAG in the PO_DISTRIBUTIONS_ALL table, and because the period-end process has run, the table has been updated to reflect the ACCRUED_FLAG as "Y". Therefore, running this report with Accrued Receipts = YES, there will be data found.
c) Confirm the data is present in the GL_INTERFACE:
In this case, the two records were created because only when matching to the receipt do the details get created in RCV_SUB_LEDGER_DETAILS.
Step 7: Journal Import - Reversal Transactions
It is necessary to understand that the accounting transactions that are being transferred to the General Ledger are going to be reversed at the time when the next accounting period opens.
Step 8: Close the Purchasing Period/Open Next Purchasing Period
Navigation: Purchasing Super User -Setup/Financials/Accounting/Control Purchasing Periods
Facts about what takes place when opening and/or closing the Purchasing period:
The ACCRUED_FLAG on the PO distribution will be updated to N This update will affect all the operating units for the set of books it is run in.
After closing the Purchasing period, choose View/Requests - you will see that the concurrent request was submitted for "Reset Period End Accruals".
Executing the following SQL will now show that the ACCRUED_FLAG has been set back to "N":