Question: How to view the accounting entries that get generated when the purchase order is received and delivered?
Answer: Expense POs set to accrue at receipt:
Accounting
entries for Expense purchase order receipts can be viewed from
Purchasing > Receiving > Receiving Transaction Summary > Keep
the cursor against the receiving transaction > Go to Tools > View
Accounting.Accounting can be viewed for all types of receiving
transactions which include Receive,Deliver,Return to Receiving,Return to
Vendor,Correction against delivery and Correction against Receiving
following this navigation.
Inventory POs set to accrue at receipt:
For
POs set to inventory destination, accounting entries for RECEIVE,RETURN
TO VENDOR and CORRECTION AGAINST RECEIVING can be viewed from
Purchasing > Receiving > Receiving Transaction Summary > Keep
the cursor against the receiving transaction > Go to Tools > View
Accounting. To view the accounting entries for DELIVER,RETURN TO
RECEIVING and CORRECTION AGAINST DELIVERY transactions, navigate to
Inventory > Transactions > Material transactions >
Distributions
Expense POs set to accrue at period end:
For
POs set to accrue at period end, accounting entries cannot be viewed
from application front end and the 'View Accounting' option from
Receiving Transaction Summary will be grayed out.
Question: View Accounting from Receiving Transaction Summary is grayed out. How
to view the accounting entries created for purchase order receipts?
Answer: View Accounting from Receiving Transaction Summary will be grayed out
when the receiving transaction is done for a Purchase Order which is set
to accrue at period end. Period end accrual entries created by Receipt
Accrual-Period end process are temporary accrual entries that get
created every month end till the invoice is created and it get reversed
in the next period. Therefore multiple accrual entries will exist in
Receiving subledger in different periods for the same PO receipt. Hence
these entries cannot be viewed from View Accounting in Receiving
Transaction Summary form.
Question: How can one tell whether each journal in the general ledger is for period- end or on Online accruals?
Answer: Period-end and Online accrual entries may be contained in the same GL
batch, but there will be separate journal created for each. Journals
created by the Receipt Accruals - Period-End Process will have a
category of 'Accrual' and journals created for online accruals will have
a category of 'Receiving'.
Here is some technical table-level
information that may provide assistance: Table: GL_INTERFACE Column :
USER_JE_SOURCE_NAME = Purchasing Column : USER_JE_CATEGORY_NAME =
Accrual (for period-end accruals) - OR - USER_JE_CATEGORY_NAME =
Receiving (for online accruals) Table: GL_JE_HEADERS Column : JE_SOURCE =
Purchasing JE_CATEGORY = Accrual (for period-end accruals) - OR -
JE_CATEGORY = Receiving (for online accruals)
Question: What reference columns in GL_JE_LINES are populated for the accounting entries created from Purchasing/Receiving?
Answer: Accruals generated in the purchasing module (Receiving
subledger-rcv_receiving_sub_ledger) after performing the PO receiving
transactions will be imported into General Ledger (GL_JE_LINES) as
accrual journals.
The following reference fields are used to capture and keep PO information in the GL_JE_LINES table.
These reference fields are populated when the Journal source (JE_SOURCE in GL_JE_HEADERS) is Purchasing.
REFERENCE_1- Source (PO)
REFERENCE_2- PO Header ID (from po_headers_all.po_header_id)
REFERENCE_3- Distribution ID (from po_distributions_all.po_distribution_id
REFERENCE_4- Purchase Order number (from po_headers_all.segment1)
REFERENCE_5- (ON LINE ACCRUALS ONLY) Receiving Transaction ID (from rcv_receiving_sub_ledger.rcv_transaction_id)
For Period end accruals, the REFERENCE_5 column is not used.
Note: This is applicable only for 11i and not for R12 architecture.
Question: Why does the invoice distribution show accrual account instead of
showing the PO charge account when the invoice is matched to the
purchase order or receipt?
Answer: If the purchase order is
set to accrue at receipt, then accrual account will get defaulted in the
invoice distributions so that accrual account will get hit once the
accounting is done for the invoice. Depending on the destination type
used in the PO, inventory accrual a/c or expense accrual a/c will get
defaulted in the invoice distributions.
PO charge account will
get defaulted in invoice distributions only when the purchase order is
set to accrue at period end so that charge account will get hit once the
accounting is done for the invoice. Accrual account will not come into
picture in Payables for period end accruals.
Question: How to get the balancing segment of PO Charge account for Accrual
account while creating the accounting entries for purchase order
receipts?
Answer: It is not possible to derive the balancing
segment of PO charge account for Accrual account in 11i. It can be done
only in R12 using the feature 'Account Derivation Rules' available in
SLA architecture.
But it is possible to derive the balancing
segment of PO charge account for Receiving Inspection account in 11i
using the feature 'Automatic offset method'.
This feature is available in Purchasing > Set up > Organization > Purchasing options > Receipt Accounting tab.
If this option is set to 'Balancing', the balancing segment of PO
Charge account will override the balancing segment of Receiving
Inspection account when the accounting entries get created for PO
receipt.
Question: How do you transfer the accounting entries created in Receiving subledger to General Ledger?
Answer: For online accruals,
Once
the receiving transaction is created, Receiving Transaction Processor
will generate the accounting entries in Receiving subledger as well as
gl_interface.
Similarly for Period end accruals,
The Receipt Accrual Period end process will generate the accounting entries in Receiving subledger as well as gl_interface.
The
data from the GL_INTERFACE table can be transfered to GL tables, by
running the Journal Import program from the GL Responsibility.
Accounting entries will be created in GL. Be sure to review the output
file from the Journal Import request to ensure that the records are
imported successfully.In case of encumbrance enabled environment, when
the purchase order is set to online accrual, accounting entries will
automatically get imported to General Ledger.The Journal import program
will be triggered by the Receiving Transaction Processor during the
receiving process itself.
Question: What are the conditions that need to be satisfied for the Uninvoiced Receipt Report to show a PO receipt ?
Answer: Uninvoiced Receipt Report(URR) picks all POs satisfying the below
conditions as on the last date of the Period specified on the
period_name parameter , if no parameter is specified, the URR run date
will be considered.
-
Received quantity > Billed quantity for the Purchase Order shipment
-
PO shipment should not be in closed( depending on the Include Closed POs parameter ) /finally closed/cancel status
Question: What is the impact/effect of Finally closing an uninvoiced PO on Accrual - after PO has been fully or partly received ?
Answer: The impact of final closing a uninvoiced PO on Accrual, depends on whether the PO is a Period End PO or Online PO.
For a Period end PO:
Once a PO is finally closed or just Closed, the PO is not eligible
to be accrued even though it has a accrual balance ( quantity received
is more than quanitty billed ) .The URR report will display the accrual
balance for these POs when you choose Include Closed POs : Yes . As
these POs do not have accrual account balances created, GL will not show
the supplier liability, if businesses still wish to see the balance for
these, they can use the parameter.This is because, when you are final
closing a Expense period end accrual enabled PO, system assumes that the
business is no longer concerned with the accrual on the particular PO.
One of the reasons being the low monetary impact of expense POs enabled
for period end accural. Which is the reason why Expense period end POs
are accrued periodically rather than perpetually.Hence, the PO will not
have any accrual balance in GL.
For online accrual enabled POs:
Final Closed or Closed or Cancelled, a PO enabled for Online
accruals, which has a accrual balance will be reported on the Accrual
reconciliation report. This report will help to review the accrual
liability for the supplier.Though final closed and cancel statuses do
not let any further actions on the PO, the accruals can be reversed by
using the write off feature for online accruals.Hence the PO will have
accrual balance untill written off using the Accrual Reconciliation
Write Off feature.
Question: Why does the View Accounting from Receiving Transaction Summary for DELIVER transaction not showing any accounting entries?
Answer: When a Purchase Order is received and delivered to inventory
destination, accounting entries for RECEIVE transaction alone will exist
in Receiving subledger and accounting for DELIVER transaction will not
happen in Receiving subledger, instead it will happen in Inventory
subledger. But the View Accounting from Receiving Transaction Summary is
intended to show only the accounting entries pertaining to Receiving
subledger. Hence it does not show the accounting entries for deliver
transaction when the purchase order is delivered to inventory
destination.
To view the accounting entries for DELIVER
transaction, navigate to Inventory > Transactions > Material
Transactions > Distributions.
Question: What is the impact of Retroactive Pricing on Receipt Accounting process?
Answer: Retroactive pricing will have its impact on On-line Accrual Accounting
when the PO price is modified after performing the receipt. When the
price is modified and when the Retroactive price adjustment program is
run, it will create the accounting entries given below in Receiving
subledger for both RECEIVE and DELIVER transaction. It will not create
any accounting in inventory subledger even if the destination type is
inventory.
RECEIVE transaction
Accrual a/c CR @ difference
between (received qty * new PO price) and (received qty * old PO
price)Receiving Inspection a/c DR @ difference between (received qty *
new PO price) and (received qty * old PO price)
DELIVER transaction
Receiving
Inspection a/c CR @ difference between (received qty * new PO price)
and (received qty * old PO price)Retroactive price adjustment a/c
defined in Receiving options CR/DR @ difference between (received qty *
new PO price) and (received qty * old PO price)
Note: PO price also includes the Non-Recoverable tax per unit price
Question: How does the accounting happen when a purchase order for a consigned item is received?
Answer: Accounting entries get created for a consigned item only on doing the
'Transfer to Regular' transaction in Inventory and there won't be any
accounting happening when the purchase order is received.Transfer to
Regular transaction
Average Costing:
AP Accrual a/c CR @ Qty for which 'transfer to regular' is done * PO unit price
Material valuation a/c DR @ Qty for which 'transfer to regular' is done * PO unit price
Standard Costing:
AP Accrual a/c CR @ Qty for which 'transfer to regular' is done * PO unit price
Material valuation a/c DR @ standard cost
Purchase Price Variance a/c CR/DR @ difference between Std.cost and PO price
Note: PO price also includes the Non-Recoverable tax per unit price
Question: Receiving Inspection account (or Receiving Inventory account) shows a
balance in GL for purchase orders with OSP items set to Shop floor
destination. Why does it happen?
Answer: For Receiving
Inspection a/c (or Receiving Inventory a/c) to get offset without any
balance in GL, purchase order should be received and delivered (Received
qty = Delivered qty) and the corresponding accounting entries should be
posted in GL.
Still if it shows a balance, it has to be ensured
that the Resource Absorption a/c defined in Bill of materials >
Routing > OSP Resources should be same as Receiving Inventory a/c
defined in Purchasing > Organization > Receiving Options.
For POs with OSP items set to Shop floor destination, accounting entries get created as follows:
RECEIVE:
Receiving Inventory a/c DR
Accrual account a/c CR
DELIVER:
Resource Absorption a/c CR
Outside Processing a/c DR
To
offset the Receiving Inventory a/c debited at the time of PO receipt,
Resource absorption a/c should be same as Receiving Inventory a/c so
that it gets credited at the time of delivery.
Question: Receipt against dropship PO hits the Clearing account instead of
Receiving Inventory account (or Receiving Inspection account). Why does
it happen?
Answer: In Dropshipment, the PO receipt is done in
the intermediate inventory organization which is a logical transaction
and not a physical transaction which does not involve any goods receipt
in the Receiving dock. Hence there is no need for the Receiving
Inventory a/c and just the Clearing a/c defined in Receiving options
gets debited and Accrual a/c gets credited for this logical
transaction.
Question: How does one include receipts into process enabled OPM inventory organization on Accrual Reconciliation Report?
Answer: Observation:
-
Create PO
-
Receive and deliver into OPM organization
-
Run Accrual Reconciliation Report
-
Receipts into OPM inventory organization does not show on the report output
Current design of Purchasing application release 11.5.10.2 does not
allow for OPM transactions to be reported in Accrual Reconciliation
Report.
This is confirmed by product development inBug 9042372 -
RECEIPT INTO OPM INV ORGANIZATION NOT SHOW ON ACCRUAL RECONCILIATION
REPORT
Enhancement Request Bug.8560981 (15) ACCRUAL REPORT FOR OPM TRANSACTIONS is also logged to request the feature for release 11i.
In release 12 or later, this feature is available.Reference: Note 973084.1 How Does One Include OPM Receipt in Accrual Reconciliation Report?
