Document 1107966.

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FAQ: Accrual Accounting - Online & Period end Accruals in R11.5.10 (Doc ID 1107966.1)
Modified 26-OCT-2010 Type FAQ Status PUBLISHED(EXTERNAL) Priority 1
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In this Document Purpose Questions and Answers Accrual Accounting - Online and Period end accruals 1. What is the difference between 'Accrue On Receipt' and 'Accrue at Period End'? 2. Why are expense items typically accrued at period-end, and why are inventory items always accrued on receipt? 3. Does Oracle Purchasing allow you to change from Online to period end for accruals and vice versa for expense items? And what are the implications? 4. How to determine a default value for "Accrue On Receipt" flag in the Purchase Order Shipments entry form? 5. How do you transfer the accounting entries created in Receiving subledger to General Ledger for the receiving transactions created against POs set to accrue at receipt? 6. What are the accounting entries that get created for Online and Period end accruals when the purchase order is received,delivered and billed? 7. How to view the accounting entries that get generated when the purchase order is received and delivered? 8. Why does the View Accounting from Receiving Transaction Summary for DELIVER transaction not showing any accounting entries? 9. View Accounting from Receiving Transaction Summary is grayed out. How to view the accounting entries created for purchase order receipts? 10. 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? 11. Why does the purchase order for expense items show accrue on receipt flag unchecked when the Purchasing Options has the set up as "Accrue expense items at Receipt"? 12. After entering receipts or running the Receipt Accruals - Period-End Process, the new journals do not appear in the General Ledger. Should the transactions automatically appear in GL after performing these steps? 13. How can one tell whether each journal in the general ledger is for period- end or on Online accruals? 14. How to get the balancing segment of PO Charge account for Accrual account while creating the accounting entries for purchase order receipts? 15. What is the impact of Retroactive Pricing on Receipt Accounting process? 16. How does the accounting happen when a purchase order for a consigned item is received? 17. What reference columns in GL_JE_LINES are populated for the accounting entries created from Purchasing/Receiving? 18. How does the accounting data flow in 11i Online & Period end Accrual Accounting? Period end accruals 1. What are the conditions that need to be satisfied for the Receipt Accrual-Period end program to generate the accrual entries? 2. How do you transfer the accounting entries created in Receiving subledger to General Ledger for the receiving transactions created against POs set to accrue at period end? 3. Can you automatically reverse Period End Accruals in GL? 4. A Purchase Order Shipment was partially received and canceled. It now appears on the Uninvoiced Receipts report (URR) and accrues each month when running the Receipt Accruals - Period-End process. Why is this happening? 5. How to avoid the Purchase Orders getting accrued every month and being shown in URR which are received and canceled? 6. Under what scenario, Uninvoiced Receipts Report shows the Purchase Order which is already closed or finally closed? Accounting in MRC environment 1. What set ups are required to enable MRC (Multiple Reporting Currency) so that accounting entries will get created in Reporting ledger for the transactions happening in Purchasing/Receiving subledger? 2. Journals for Purchasing source do not get created in GL_interface for Reporting SOB inspite of running the program 'MRC Purchasing setup Upgrade'. How do you transfer the entries from subledger to GL for Reporting SOB? 3. How do you transfer the accounting entries created in Receiving subledger to General Ledger for Reporting SOB? Accrual Reconciliation and Accrual Write-offs 1. What are the designated Reports used for On Line Accrual reconciliation?

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2. What determines whether a Transaction does not appear on the Accrual Reconciliation Report? 3. Which Purchasing report should be used to review and reconcile period-end accruals with GL? 4. Should the balance of Uninvoiced Receipt Report and Accrual Reconciliation Report tie? 5. How do transactions which have subtotals of $0.00 get removed from the Accrual Reconciliation Report? 6. Several transactions appear on the Accrual Reconciliation Report which were charged to the accrual account in error. Manual journal entries have already been created in GL to correct these transactions. How do these transactions now get removed from the report? 7. Is it possible to do a mass accrual write-off in Purchasing?The Accrual Reconciliation Report can have over 1,000 pages without having ever been reconciled. Does any function like a Mass Accrual Write-Off exist?

Applies to:
Oracle Purchasing - Version: 11.5.10 to 11.5.10.4 - Release: 11.5 to 11.5 Oracle Cost Management - Version: 11.5.10.0 to 11.5.10.3 [Release: 11.5 to 11.5] Information in this document applies to any platform. POXPORRA.rdf POXACREC.rdf

Purpose
The two recommended Accrual methods in oracle are On Line Accruals and Period end Accruals. This document answers commonly asked questions relating to these Accrual Methods and processes. The document will benefit users,consultants and engineers.

Questions and Answers

Accrual Accounting - Online and Period end accruals 1. W hat is the difference between 'Accrue On Receipt' and 'Accrue at Period End'? The two Accrual Methods used in Oracle are 'On Line Accrual' and 'Period End Accrual'. Accrue On Receipt means that when a receipt is saved, accrual transactions are immediately recorded and sent to the general ledger interface. This is also known as "online" accruals. Accrue at Period End means that when a receipt is saved, the accrual transactions are not immediately recorded and sent to the general ledger; instead, the accounting entries are generated and sent at the end of the month by running the Receipt Accruals - Period-End Process. All items with a destination type of either Inventory and Outside Processing are accrued on receipt. For items with a destination type of Expense, you have the option of accruing on receipt or at period end. On Line Accruals have the accrue_on_receipt_flag checked in PO Shipments > More tab. At the table level the accrue_on_receipt_flag in PO_DISTRIBUTIONS_ALL and PO_LINE_LOCATIONS_ALL are set to 'Y' 2. W hy are expense items typically accrued at period-end, and why are inventory items always accrued on receipt? One should accrue on receipt if perpetual inventory is adopted to facilitate reconciliation between inventory valuation reports and accounting entries. Expense items typically are not accounted for on a daily basis, and most companies find it easier to account for and reconcile these expenses at month-end rather than at the time each individual expense is incurred. When both inventory and expense items are accrued on receipt, the following problems may be encountered: - Receiving inspection balances will include both inventory assets and expenses, so at the end of the month, they will need to be manually reclassified. - The number of entries needed to research and reconcile the perpetual A/P Accrual Account(s) becomes significantly increased.

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Since the expense receipts could double the number of accrual accounting entries to process, the Accrual Reconciliation Report could take twice as long to run. The amount of time required by your staff to research any discrepancies would also increase. Most of the large customers use period-end for Expense Transactions as they experience a large volume of low cost expenditures. Period-end accrual methods reduces labor and overall cost for processing these large volume low cost expenditures.

3. Does Oracle Purchasing allow you to change from Online to period end for accruals and vice versa for expense items? And what are the implications? Yes, you can change this as a setup parameter. Navigation: Setup -> Organizations -> Purchasing Options (Accrual alternate region) However it is recommended that this business decision be taken at the time of implementing the Application as they will have major accounting impact. The business should be clear about using Online accrual method or period end accrual method for expense items based on their requirement to track expense spending. Most manufacturing customers choose to track Expense Accruals only on period basis and hence choose period end accrual process to track them while using 'Online Accrual process' only for high value inventory receipts which substantially increase a manufacturing company's assets and hence need to be tracked on a daily basis. New POs created after the switch will however immediately be accrued using the new accrual method. The Purchase Orders that were created before the setup change will continue to use the method they were created in. The accrual method used for a PO is determined by the field Accrue_on_receipt flag on the PO shipments. This value can be viewed as part of the PO Shipments data. This change in accrual setup may pose problems when you reconcile accrual account with GL balance as in this case one has to take care of both Uninvoiced Receipt Report of old period end accruals and Accrual Reconciliation Report for newer accrual accounting transactions or vice versa. Hence it is advisable to reconcile the accrual account and close the balances before making this switch. ie, either, 1) invoice and final close the existing POs or 2) return the receipts and cancel/delete the shipments with old accrual method setup or 3) Deal with online and period end accrual balances seperately in GL when reconciling accrual account using Uninvoiced Receipt report or Accrual reconciliation report. Decisions regarding accrual method change for Expense destination should therefore not be taken lightly. Reconciliation will be easier if there are no open uninvoiced POs or the old POs are cancelled or closed before a change is made. 4. How to determine a default v alue for "Accrue On Receipt" flag in the Purchase Order Shipments entry form? Logic to derive the Accrue on Receipt flag setting in Po shipments form is as follows: Navigation: Purchasing Responsibility > Purchase Orders > Purchase Orders (POXPOEPO.fmb), click on the Shipments button, then select the 'More' tab. If line type is OSP (outside processing), the Accrue On Receipt flag will be enabled (i.e., the flag will be checked) If item is stockable in the shipto organization, the Accrue On Receipt flag will be enabled If the Purchasing Options form has Accrue Expense Items set to 'Period End', then the Accrue On Receipt flag will be disabled (unchecked) If Consigned Flag is checked, the Accrue On Receipt flag will be disabled Otherwise, the Accrue On Receipt flag setting will be determined by the 'Receipt Required' value on item or line type setup. If it is set as yes, then the Accrue on Receipt flag will default as checked. Purchasing responsibility ->Items -> Item master / Organization item -> Query the item -> Purchasing tab ->Set the receipt required flag to Yes

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5. How do you transfer the accounting entries created in Receiving subledger to General Ledger for the receiving transactions created against POs set to accrue at receipt? Once the receiving transactions are created, Receiving Transaction Processor will generate the accounting entries in Receiving subledger as well as gl_interface. On performing the Journal import from the GL Responsibility, accounting entries get created in GL. 6. W hat are the accounting entries that get created for Online and Period end accruals when the purchase order is received,delivered and billed? Please refer to Note.386807.1 to understand the accounting entries that gets created for online & period end accruals when the purchase order is received,delivered and billed. 7. How to view the accounting entries that get generated when the purchase order is received and delivered? Accounting entries for 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 both Receive and Deliver transactions if the destination type of the PO is Expense. For Inventory, only Receive transaction accounting will be available. For Inventory destination receipts, deliver transaction, go to Material Transactions->Distribution form in Inventory module to view the accounting. For Period End Accruals for Expense item receipts, the accounting cannot be viewed from application front end. 8. W hy does the View Accounting from Receiving Transaction Summary for DELIVER transaction not showing any accounting entries? 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. 9. View Accounting from Receiving Transaction Summary is grayed out. How to view the accounting entries created for purchase order receipts? 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 AccrualPeriod 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. 10. W hy 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? 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. 11. W hy does the purchase order for expense items show accrue on receipt flag unchecked when the

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Purchasing Options has the set up as "Accrue expense items at Receipt"? If the purchase order is set to 2 way matching, then the accrue on receipt flag in the PO shipments will be unchecked by default even though Purchasing Options has the set up as "Accrue expense items at Receipt". But system will allow you to override the accrue on receipt flag by enabling the check box. When the purchase order is having 2 way match, it signifies that no receipt is required. If there is no receipt, there is no need for receipt accounting and the accounting happens only when the invoice is matched to the PO. In such cases, the option of accrue at receipt does not make any sense. Hence the default setting becomes as accrue at period end where accrual is not at all required if invoice matching is done directly without performing the receipt. 12. After entering receipts or running the Receipt Accruals - Period-End Process, the new journals do not appear in the General Ledger. Should the transactions automatically appear in GL after performing these steps? Accounting entries created for purchase order receipts are only sent to the GL_INTERFACE table. In order to create the journals and see them in General Ledger, the Journal Import concurrent program must be run from a General Ledger responsibility. Be sure to review the output file from the Journal Import request to ensure that the records got imported successfully. In case of encumbrance enabled environment, when the purchase order set to online accrual is received, accounting entries will automatically get imported to General Ledger as the Journal import program gets triggered by the Receiving Transaction Processor during the receiving process itself. 13. How can one tell whether each journal in the general ledger is for period- end or on Online accruals? 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) 14. How to get the balancing segment of PO Charge account for Accrual account while creating the accounting entries for purchase order receipts? 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. 15. W hat is the impact of Retroactive Pricing on Receipt Accounting process? 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)

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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 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 16. How does the accounting happen when a purchase order for a consigned item is received? 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 17. W hat reference columns in GL_JE_LINES are populated for the accounting entries created from Purchasing/Receiving? 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. 18. How does the accounting data flow in 11i Online & Period end Accrual Accounting? Please click the attachment below which explains the data flow for 11i Online & Period end Accrual Accounting in encumbrance enabled environment. a) Online accruals for Expense destination b) Online accruals for Inventory destination c) Period end accruals Period end accruals 1. W hat are the conditions that need to be satisfied for the Receipt Accrual-Period end program to generate the accrual entries?

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Accrue on Receipt flag should be unchecked in PO Shipments Received quantity > Billed quantity for the Purchase Order shipment Accrued_flag in po_distributions_all should not be set to Y PO period should be opened and AP period should be closed PO shipment should not be in closed/finally closed status If it is in closed/finally closed status, then the closed_date should be greater than the dates falling under the period which is given as the parameter for Receipt Accruals-Period end program 2. How do you transfer the accounting entries created in Receiving subledger to General Ledger for the receiving transactions created against POs set to accrue at period end? Once the receiving transactions are created, Receipt Accrual-Period end program needs to be submitted which will generate the accounting entries in Receiving subledger as well as gl_interface. On performing the Journal import from the GL Responsibility, accounting entries get created in GL. 3. Can you automatically reverse Period End Accruals in GL? Yes, this can be achieved using the 'Auto Reversal' feature available in GL and by setting the profile option GL: Launch Auto Reverse After Open Period to Yes. Please refer to Note.805458.1 for more details on this. Note: This feature should be used only in 11i and not for R12 architecture 4. A Purchase Order Shipment was partially receiv ed and canceled. It now appears on the Uninvoiced Receipts report (URR) and accrues each month when running the Receipt Accruals - Period-End process. W hy is this happening? When a purchase order is canceled (whether at the header, line, or shipment level), only the unreceived quantity is actually canceled. Cancellation does not effect quantities already received, as an obligation still remains for these receipts. If the quantity received is equal to the quantity invoiced (billed), or if no receipts have been entered against the purchase order shipment, then cancellation sets the Canceled flag of the shipment to 'Yes' and the Closure Status to 'Closed'. In this case, no accrual transaction will be generated. If the quantity received is not equal to the quantity invoiced, then cancellation sets the Canceled flag of the shipment to 'Yes' and the Closure Status remains in its current status (i.e., not 'Closed'). The difference between quantity received and quantity invoiced will appear on the Uninvoiced Receipts report, and will continue to accrue each month until an invoice is matched for the entire received quantity. 5. How to avoid the Purchase Orders getting accrued every month and being shown in URR which are received and canceled? a) Create an invoice in AP and match it to the purchase order for the entire received quantity or b) Create a 'dummy' invoice for $0.00 or c) Close the PO at shipment,Line and Header. Make sure that closed_code at shipment (Line_locations_all Table) is closed and closed_date populated. Then run the URR with the parameter "Include Closed POs" as No so that these POs will not appear in the report. This parameter is introduced in the report only after the file version POXPORRA.rdf - 115.35.11510.12. (Patch.4921348 gives this file version) 6. Under what scenario, Uninvoiced Receipts Report shows the Purchase Order which is already closed or finally closed? When the closed date of purchase order that is received but not billed falls in a period which is greater than the period that is given in the report parameters, URR will show those purchase orders even though the current status is closed or finally closed. Example: If a PO has a closed date of 15-May-10 and if the URR is submitted on 16-May-10 giving the period as Apr-10 in report parameters, this PO will appear in the report.

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Accounting in MRC environment 1. W hat set ups are required to enable MRC (Multiple Reporting Currency) so that accounting entries will get created in Reporting ledger for the transactions happening in Purchasing/Receiving subledger?

Define a new Set Of Books (SOB) with same calendar and chart of accounts as the one used in Primary SOB and enable the option Reporting Define a new GL Responsibility for the Reporting SOB.Set up the following profile options for the Responsibility defined for the Reporting SOB - GL:Set of Books name = Reporting SOB - MRC:Reporting Set of Books = Reporting SOB Define the currency conversion rate between Primary SOBs functional currency and Reporting SOBs functional currency Open the GL periods for the Reporting SOB Assign the Reporting SOB to the subledgers in GL>Set up>Financials>Books>Assign. Then click the 'Conversion Options' button and choose the application If the application 'General Ledger' alone is selected in the conversion options, accounting entries for transactions created in subledger will not get populated in reporting subledger. Once the accounting entries are transferred to GL in primary SOB and posted, the entries will get generated in GL for Reporting SOB. If some other subledger application such as 'Purchasing' or 'Payables' is selected, accounting entries for transactions created in subledger will get populated in reporting subledger and will get transferred to GL for both primary and reporting SOB directly from the subledger Run the program MRC Setup - Create Opening Balance Journals in Reporting Books to populate the Opening Balance in the GL Reporting Set Of Books If MRC is enabled in between where subledger transactions exists already, then submit the program 'MRC Purchasing setup Upgrade' from Purchasing responsibility which will create the accounting entries in Reporting subledger for Purchasing/Receiving for the transactions created already. 2. Journals for Purchasing source do not get created in GL_interface for Reporting SOB inspite of running the program 'MRC Purchasing setup Upgrade'. How do you transfer the entries from subledger to GL for Reporting SOB? As per the intended design, the program 'MRC Purchasing setup Upgrade' generates the accounting entries in Reporting subledger (rcv_mc_rec_sub_ledger) for Purchasing/Receiving for the transactions created prior to enabling the MRC and it will not generate the accounting in gl_interface. This program does not create the entries in gl_interface because the opening balance for Purchasing in Primary set of books will anyway be carried out to Reporting set of books by the program 'MRC Setup - Create Opening Balance Journals' which exists in GL. Therefore the balance for Purchasing subledger will match in GL and subledger for the Reporting SOB.

3. How do you transfer the accounting entries created in Receiving subledger to General Ledger for Reporting SOB? Once the receiving transactions are created, Receiving Transaction Processor will generate the accounting entries in Receiving subledger as well as gl_interface for both primary and reporting SOB (rcv_receiving_sub_ledger & rcv_mc_rec_sub_ledger) provided conversion option is defined for the subledger. On performing the Journal import from the GL Responsibility for the Reporting SOB, accounting entries get created in GL for Reporting SOB.

Accrual Reconciliation and Accrual W rite-offs 1. W hat are the designated Reports used for On Line Accrual reconciliation?

The Accrual Reconciliation Report is the recommended Report to use for Online Accruals. Before running the

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Reconciliation Report, you have to first run the Accrual Rebuild Manager (which has replaced the old Accrual Rebuild No Output) which picks all the transactions that use accrual account and populate the table po_accrual_reconcile_temp_all in incremental refresh mode. Prior to the file version POXACREC.rdf - 115.80.11510.9, the rebuild program was removing all data for a given operating unit and then only build the data for a selected date range. After patch application, the program will only remove the data within the selected date range and then rebuild the data for that range, just appending the new accrual transactions to the existing data. Various accrual codes which get generated in this report are given below. Receive/Return to Supplier/Correct - PO receiving transactions that hit the accrual account will have these accrual codes Deliver - If any of the accounts that gets hit when a PO receipt is delivered, is having the code combination same as accrual account, then those transactions will have the accrual code as 'Deliver' Transfer to Regular - When the ownership of Consigned items gets transferred from Supplier to receiving organization,accrual account gets hit which will have this accrual code Int Req Intr Rcpt - This accrual code gets created for an Internal requisition - internal order transaction when the internal requisition is delivered in destination organization A/P PO Match - If any of the accounts having the code combination same as accrual account which gets hit when the Invoice matched to the PO gets accounted, those entries will have this accrual code A/P Receipt Match - If any of the accounts having the code combination same as accrual account which gets hit when the Invoice matched to the PO receipt gets accounted, those entries will have this accrual code A/P No PO - When the invoice has any distribution with charge account having the code combination of accrual account, the accounting created for that invoice will have this accrual code.

2. W hat determines whether a Transaction does not appear on the Accrual Reconciliation Report? The following two columns in the PO_ACCRUAL_RECONCILE_TEMP_ALL table determines whether a Transaction appears on the Accrual Reconciliation Report. Net_po_line_quantity Net_po_line_amount For a Transaction not to appear on the Accrual Reconciliation Report, net transaction quantity AND the net transaction amount for each PO Line must be less than or equal to the values entered in the tolerance parameters (or <= 0,which is the default value). 3. W hich Purchasing report should be used to rev iew and reconcile period-end accruals with GL? The Uninvoiced Receipts Report (URR) should be used to view and reconcile period-end accruals. The following parameters should be used to run the report before the Receipt_Accrual_period-end is run. Accrued Receipts=NO Include on Line Accruals=NO Include closed POs =NO This will show the total amount to be accrued for the period given in the report parameters. To verify whether all the PO receipts which are eligible to get accrued have got accrued by the Receipt AccrualsPeriod end program, run the URR again after running the period end process with the following parameters. But this report should be run before closing the purchasing period. Accrued Receipts=Y Include on Line Accruals=NO

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Include closed POs =NO This will show the total amount that got accrued by the period end process which should match with the amount shown in URR earlier when it was run before submitting the period end program.

4. Should the balance of Uninvoiced Receipt Report and Accrual Reconciliation Report tie? The Accrual Reconciliation Report and the Uninvoiced Receipts Report are not intended to reconcile to one another. Although they have some similarities, these two reports use different logic and their outputs will very often be different. Please note that Development requests that for purposes of logging bug only the Accrual Reconciliation Report should be used to reconcile on line accruals to GL. A bug should only be logged if there is a material difference between the Accrual Reconciliation Report and GL. The Uninvoiced Receipt Report should be used only for reconciling Period End Accruals to GL. 5. How do transactions which have subtotals of $0.00 get removed from the Accrual Reconciliation Report? When submitting the report, setting the following parameters as shown will allow for these transactions to not show on the report output: Include All Transactions = No Transaction Amount Tolerance = 0 (or higher) 6. Several transactions appear on the Accrual Reconciliation Report which were charged to the accrual account in error. Manual journal entries have already been created in GL to correct these transactions. How do these transactions now get removed from the report? In Oracle Purchasing, go to the Accrual Write-Offs form. Responsibility: Purchasing Super User Navigation: Accounting/Accrual Write Offs Select the lines that need to be removed from the report and save. Then, run the Accrual Reconciliation Report again, setting the parameter 'Include Written-Off Transactions' to No. The written-off transactions will no longer be included in the report. NOTE: You can run the Accrual Write-Off Report to review the transactions that were written off; this can be used to support the manual journal entry created in the general ledger. 7. Is it possible to do a mass accrual write-off in Purchasing?The Accrual Reconciliation Report can have over 1,000 pages without hav ing ever been reconciled. Does any function like a Mass Accrual W rite-Off exist? This is not available via the standard functionality. The application does not allow users to mass write-off transactions. The following enhancement request has been filed with product development: Bug 3013041:MASS ACCRUAL WRITE OFF FUNCTIONALITY IN PURCHASING.

Attachments 11i Accounting flow - online expense.pptx (117 KB) 11i Accounting flow - online inventory.pptx (122 KB) 11i Accounting flow - period end accrual.pptx (122 KB)

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Oracle E-Business Suite > Procurement > Procurement > Oracle Purchasing > Accounting related > Accrual Accounting, Processes and Setup Oracle E-Business Suite > Manufacturing > Discrete Manufacturing > Oracle Cost Management > Accrual Accounting > Accrual Accounting Receipt Issues
Knowledge Categories

EBS > Mfg > CostMgmt > ACCRUAL_RECEIPT Accrual Accounting Receipt Issues EBS > Mfg > CostMgmt > ACCRUAL_WRITE_OFF Accrual Accounting Write-off Issues EBS > Mfg > Procurement > PurchasingAccounting > ACCRUAL: Accrual Accounting, Processes and Setup
Keywords

PO_ACCRUAL_RECONCILE_TEMP_ALL POXACREC.RDF POXPORRA.RDF RECONCILE ACCRUAL RECONCILIATION ACCRUAL RECONCILIATION REPORT PERIOD END RECEIPT ACCRUALS PERIOD-END
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