1 how to setup, use and balance your a/p accrual accounts douglas a. volz kpmg june 1998

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How to Setup, Use and Balance How to Setup, Use and Balance Your A/P Accrual AccountsYour A/P Accrual Accounts

Douglas A. VolzDouglas A. Volz

KPMGJune 1998

22

Update for May 2007Update for May 2007

In Release 12 there are significant enhancements:In Release 12 there are significant enhancements:• you finally have the ability to do mass A/P accrual write-offsyou finally have the ability to do mass A/P accrual write-offs• the standard Accrual Reconciliation Report will handle blanket the standard Accrual Reconciliation Report will handle blanket

purchase orderspurchase orders

Prior to Release 12 the A/P accruals design and features is Prior to Release 12 the A/P accruals design and features is essentially unchanged since 1990, when first designed by Doug essentially unchanged since 1990, when first designed by Doug Volz for Release 9 and subsequently upgraded for Release 10.Volz for Release 9 and subsequently upgraded for Release 10.

Doug Volz wrote this presentation while at Price Waterhouse, in Doug Volz wrote this presentation while at Price Waterhouse, in 1996. 1996.

Doug has helped clients with A/P Accruals since 1996, starting Doug has helped clients with A/P Accruals since 1996, starting with Cisco Systems, and even in Release 11i, continues to with Cisco Systems, and even in Release 11i, continues to assist clients with similar issues.assist clients with similar issues.

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IntroductionIntroduction

Learn about the Oracle Release 10 Learn about the Oracle Release 10 accrual processesaccrual processes

Find out why these accrual processes Find out why these accrual processes are so importantare so important

How many of you have difficulties with How many of you have difficulties with your accrual processes? your accrual processes?

Solve current problems you may haveSolve current problems you may have

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AgendaAgenda

Why are these accrual processes so Why are these accrual processes so important?important?

What are these accrual accounts?What are these accrual accounts? Periodic vs perpetual accrualsPeriodic vs perpetual accruals Basic accounting entries for the A/P Basic accounting entries for the A/P

accrualsaccruals Setup steps for the accrual processesSetup steps for the accrual processes Using the Accrual Reconciliation ReportUsing the Accrual Reconciliation Report

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AgendaAgenda

Using the expense accrual processesUsing the expense accrual processes Typical problems and issues with Typical problems and issues with

accrualsaccruals Implementation and conversion issuesImplementation and conversion issues Current bug fixesCurrent bug fixes Enhancements to considerEnhancements to consider ConclusionsConclusions

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Why Are These Accrual Why Are These Accrual Processes so Important?Processes so Important?

Valuable integration controlValuable integration control Monitors accuracy of receiving and Monitors accuracy of receiving and

payables processespayables processes Provides a vital barometer over these Provides a vital barometer over these

activitiesactivities Helps to ensure accurate inventory Helps to ensure accurate inventory

countscounts

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What Are These What Are These Accrual Accounts?Accrual Accounts?

Principle of accrual accountingPrinciple of accrual accounting

Timing difference between receiving Timing difference between receiving and invoicingand invoicing

Represents the accrued liability from Represents the accrued liability from your vendorsyour vendors

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Periodic Versus Periodic Versus Perpetual AccrualsPerpetual Accruals

Periodic accruals occurs at month-endPeriodic accruals occurs at month-end

With computers came perpetual accrualsWith computers came perpetual accruals

Perpetual accruals ensure that valued Perpetual accruals ensure that valued quantities equals accounting entriesquantities equals accounting entries

Don’t accrue expenses upon receiptDon’t accrue expenses upon receipt

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Why Not Use Perpetual Why Not Use Perpetual Accruals for Expenses?Accruals for Expenses?

Receiving inspection then includes both assets Receiving inspection then includes both assets and expensesand expenses• Have to reclass balancesHave to reclass balances

Double the accrual entries that you need to Double the accrual entries that you need to reconcilereconcile• Significantly more entries to review, Significantly more entries to review,

research, and correctresearch, and correct• Increased runtime for the Accrual Increased runtime for the Accrual

Reconciliation ReportReconciliation Report

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Background Information Background Information for A/P Accrualsfor A/P Accruals

May have multiple lines per POMay have multiple lines per PO

May have multiple PO distributions per May have multiple PO distributions per lineline

Four stored accounts per PO Four stored accounts per PO distributiondistribution

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More Background InformationMore Background Information

Charge AccountCharge Account

Accrual AccountAccrual Account

Variance (IPV) AccountVariance (IPV) Account

Budget AccountBudget Account

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Accrual Accounting EntriesAccrual Accounting Entries

Purchase order receiptPurchase order receipt Invoice matchInvoice match Return to vendorReturn to vendor Invoice correctionInvoice correction Receipt deliveryReceipt delivery Expense accrualExpense accrual

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Accounting Entries Accounting Entries for a PO Receiptfor a PO Receipt

Receive one item @ $100 PO unit priceReceive one item @ $100 PO unit price

AccountAccount DebitDebitCreditCredit

Receiving AccountReceiving Account 100100

A/P Accrual AccountA/P Accrual Account 100100

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Accounting Entries Accounting Entries for an Invoice Matchfor an Invoice Match

Same item, $80 invoice unit price, $100 Same item, $80 invoice unit price, $100 PO unit pricePO unit price

AccountAccount DebitDebit CreditCredit


A/P Trade PayablesA/P Trade Payables 8080

Invoice Price VarianceInvoice Price Variance 2020

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Accounting Entries Accounting Entries for a PO Return to Vendorfor a PO Return to Vendor

Same item, $100 PO unit priceSame item, $100 PO unit price



Receiving AccountReceiving Account 100100

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Accounting Entries Accounting Entries for an Invoice Correctionfor an Invoice Correction

Same item, $80 invoice unit priceSame item, $80 invoice unit price


New Charge AccountNew Charge Account 8080

Old Charge AccountOld Charge Account 8080

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CautionCaution

You cannot change an invoice You cannot change an invoice distribution from the A/P Accrual distribution from the A/P Accrual Account to another accountAccount to another account

However, your A/P staff can code the However, your A/P staff can code the invoice to the A/P Accrual Account by invoice to the A/P Accrual Account by mistakemistake

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Accounting Entries Accounting Entries for Receipt Deliveriesfor Receipt Deliveries


Delivery to stock inventoryDelivery to stock inventory

Subinventory AccountSubinventory Account XXXXXX

Receiving AccountReceiving Account XXXXXX

Delivery to WIP inventoryDelivery to WIP inventory

Job OSP AccountJob OSP Account XXXXXX

Receiving AccountReceiving Account XXXXXX

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Month-End Period AccrualsMonth-End Period Accruals

For expenses onlyFor expenses only


Charge AccountCharge Account XXXXXX

Expense A/P Accrual AccountExpense A/P Accrual Account XXXXXX

In Oracle General Ledger, reverse the In Oracle General Ledger, reverse the accrual entry in the following monthaccrual entry in the following month

2020

Where You Setup Where You Setup the Accrual Processesthe Accrual Processes

Setup in Oracle PurchasingSetup in Oracle Purchasing

Setup in Oracle InventorySetup in Oracle Inventory

2121

Setup in Oracle PurchasingSetup in Oracle Purchasing

Use the Define Purchasing Options FormUse the Define Purchasing Options Form

• Set Accrue Expense Items toSet Accrue Expense Items to Period Period EndEnd

• Set the Expense A/P Accrual Account Set the Expense A/P Accrual Account

Use the Define Receiving Options formUse the Define Receiving Options form

• Set the Receiving Account for each Set the Receiving Account for each inventory organizationinventory organization

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When Defining Purchase OrdersWhen Defining Purchase Orders

Never manually set the Accrue on Never manually set the Accrue on Receipt FlagReceipt Flag

• For expense destinations, the flag For expense destinations, the flag should beshould be No No

• For inventory and shop floor (OSP) For inventory and shop floor (OSP) destinations, the field should be destinations, the field should be YesYes

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Setup in Oracle InventorySetup in Oracle Inventory

Use the Define Organization Use the Define Organization Parameters FormParameters Form

• Set the Inventory A/P Accrual Set the Inventory A/P Accrual AccountAccount

• Use the same Inventory A/P Accrual Use the same Inventory A/P Accrual Account for all organizationsAccount for all organizations

2424

CautionCaution

Use separate accounts for each type of Use separate accounts for each type of system account:system account:

• Expense A/P Accrual AccountExpense A/P Accrual Account

• Inventory A/P Accrual AccountInventory A/P Accrual Account

• Receiving Account(s)Receiving Account(s)

• Expense Purchase Order Charge AccountsExpense Purchase Order Charge Accounts

• Other inventory, WIP and price variance Other inventory, WIP and price variance accountsaccounts

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CautionCaution

Release 10.7 SmartClient/NCA has a Release 10.7 SmartClient/NCA has a incorrect field name for the receiving incorrect field name for the receiving options:options:• In character it is the Receiving Account, In character it is the Receiving Account,

but the GUI screens incorrectly used but the GUI screens incorrectly used “Receiving Accrual Account”“Receiving Accrual Account”

• Enter your receiving valuation account, Enter your receiving valuation account, an asset account!an asset account!

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CautionCaution

Release 10.7 SmartClient/NCA has a Release 10.7 SmartClient/NCA has a incorrect field name for the receiving incorrect field name for the receiving options, continued:options, continued:• Using the Inventory A/P Accrual Account Using the Inventory A/P Accrual Account

for the Receiving Accrual Account will for the Receiving Accrual Account will completely invalidate your receiving completely invalidate your receiving accounting results, and make the Accrual accounting results, and make the Accrual Reconciliation Report completely Reconciliation Report completely unusable!!unusable!!

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Purpose for the Accrual Purpose for the Accrual Reconciliation ReportReconciliation Report

Report all perpetual accrual account Report all perpetual accrual account transactionstransactions

Provide a subsidiary ledger for the Provide a subsidiary ledger for the general ledger balancesgeneral ledger balances

Provide a tool to manage the perpetual Provide a tool to manage the perpetual accrual accountaccrual account

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Background InformationBackground Information

Two ways to run itTwo ways to run it• With rebuilding the temporary tableWith rebuilding the temporary table• Reporting existing information in the Reporting existing information in the

temporary tabletemporary table Need perpetual accruals to run itNeed perpetual accruals to run it All amounts reported in base currencyAll amounts reported in base currency Multiple organizations reportedMultiple organizations reported Note: this report uses 180 columnsNote: this report uses 180 columns

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How the Accrual Rebuild WorksHow the Accrual Rebuild Works

• Determines the install statusDetermines the install status• Select valid accrual accountsSelect valid accrual accounts• Finds all accrual entries and inserts into a Finds all accrual entries and inserts into a

temporary tabletemporary table• Matches invoices to receiptsMatches invoices to receipts• Determines the “write-off” conditionDetermines the “write-off” condition• Calculates PO line control totalsCalculates PO line control totals• Calculates IPV for Release 9 entriesCalculates IPV for Release 9 entries• Prints the reportPrints the report

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Major Accrual Reconciliation Major Accrual Reconciliation Report ColumnsReport Columns

Accrual Transaction ColumnAccrual Transaction Column

Transaction Amount ColumnTransaction Amount Column

Invoice Price VarianceInvoice Price Variance

Net Accrual BalanceNet Accrual Balance

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Payables Accrual TransactionsPayables Accrual Transactions

A/P Line MatchA/P Line Match A/P PO MatchA/P PO Match A/P Item MatchA/P Item Match A/P No MatchA/P No Match A/P No ItemA/P No Item A/P No POA/P No PO Invoice Price VarianceInvoice Price Variance Exchange Rate VarianceExchange Rate Variance

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Purchasing Purchasing Accrual TransactionsAccrual Transactions

Oracle Purchasing transactionsOracle Purchasing transactions

• ReceiveReceive

• DeliverDeliver

• MatchMatch

• Return to VendorReturn to Vendor

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Other Accrual TransactionsOther Accrual Transactions

Oracle Inventory transactionsOracle Inventory transactions• Release 9 PO receipts or returnsRelease 9 PO receipts or returns• Any other accrual account transactionAny other accrual account transaction

Oracle Work in Process transactionsOracle Work in Process transactions• Release 9 outside processing receipts Release 9 outside processing receipts

or returnsor returns• Any other accrual account transactionAny other accrual account transaction

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Transaction Amount ColumnTransaction Amount Column

The debit or credit from the subledgerThe debit or credit from the subledger

If no entries are screened out, the report If no entries are screened out, the report total equals your subledgerstotal equals your subledgers

However, you usually use the “Report However, you usually use the “Report Summary by Source and Accrual Summary by Source and Accrual Transaction” to tie back to your subledgersTransaction” to tie back to your subledgers

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Invoice Price Variance ColumnInvoice Price Variance Column

Primarily for reporting Release 9 IPVPrimarily for reporting Release 9 IPV

Also reports incorrect transactions, such Also reports incorrect transactions, such as:as:• A/P No POA/P No PO• A/P No ItemA/P No Item• R10 Invoice Price VarianceR10 Invoice Price Variance• R10 Exchange Rate VarianceR10 Exchange Rate Variance

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Net Accrual Balance ColumnNet Accrual Balance Column

Equals the Transaction Amount less the Equals the Transaction Amount less the Invoice Price Variance columnInvoice Price Variance column

This column is a carryover from This column is a carryover from Release 9Release 9

If Release 9 was not used, ignore this If Release 9 was not used, ignore this columncolumn

3737

Accrual Reconciliation Report Accrual Reconciliation Report Screening ParametersScreening Parameters

New R10.6.1 screening parametersNew R10.6.1 screening parameters• Include All TransactionsInclude All Transactions• Transaction Amount ToleranceTransaction Amount Tolerance• Transaction Quantity ToleranceTransaction Quantity Tolerance

Other screening parametersOther screening parameters• Include Written Off Transactions, Aging Include Written Off Transactions, Aging

Number of DaysNumber of Days• Item, Vendor and G/L Date rangesItem, Vendor and G/L Date ranges

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Include All TransactionsInclude All Transactions

YesYes disables the Transaction Amount disables the Transaction Amount and Transaction Quantity parametersand Transaction Quantity parameters

NoNo enables the Transaction Amount enables the Transaction Amount and Transaction Quantity parametersand Transaction Quantity parameters

Replaces the Include Zero Balance Replaces the Include Zero Balance Subtotals parameterSubtotals parameter

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Transaction Amount and Transaction Amount and Quantity Tolerance ParametersQuantity Tolerance Parameters

Used to limit reported informationUsed to limit reported information

You can now screen out small PO line You can now screen out small PO line differencesdifferences

Both parameters have to be metBoth parameters have to be met

Specify absolute amount and quantity Specify absolute amount and quantity tolerancestolerances

4040

Parameter ExampleParameter Example

Report parameters set to:Report parameters set to:• Include all transactions set to Include all transactions set to NoNo• Transaction Amount parameter = 25Transaction Amount parameter = 25• Transaction Quantity parameter = 3Transaction Quantity parameter = 3

For a given PO line on the report:For a given PO line on the report:• PO line net amount = 25PO line net amount = 25• PO line net quantity = 5PO line net quantity = 5

This purchase order line would still appear on the This purchase order line would still appear on the ReportReport

4141

Process Problems for ReceivingProcess Problems for Receiving

Why receipts do not equal invoicesWhy receipts do not equal invoices

• Wrong receipt quantitiesWrong receipt quantities

• Receiving goods to the wrong PO line or Receiving goods to the wrong PO line or POPO

• Trying to receive or return goods using Trying to receive or return goods using miscellaneous inventory transactionsmiscellaneous inventory transactions

• Routine over receipts with correct Routine over receipts with correct invoice quantitiesinvoice quantities

4242

Process Problems for Payables Process Problems for Payables

Why invoices do not equal receiptsWhy invoices do not equal receipts

• Incorrect invoice quantitiesIncorrect invoice quantities

• Payables not processing debit memos Payables not processing debit memos correctlycorrectly

• Expenses, invoice price or exchange rate Expenses, invoice price or exchange rate variances miscodedvariances miscoded

• Payables matching the invoice to the wrong Payables matching the invoice to the wrong PO line or POPO line or PO

• Not matching invoices to POsNot matching invoices to POs

4343

Process Problems Process Problems for Purchasingfor Purchasing

Why invoices may not be processed Why invoices may not be processed correctlycorrectly• Purchase orders prematurely closed or Purchase orders prematurely closed or

“final closed”“final closed”• Purged purchase ordersPurged purchase orders

Incorrect purchase order unit pricesIncorrect purchase order unit prices Late or no purchase orders created for Late or no purchase orders created for

the receiptthe receipt

4444

How to Balance the How to Balance the Accrual Reconciliation ReportAccrual Reconciliation Report

Only picks up transactions available to the Only picks up transactions available to the general ledgergeneral ledger

Use the “Report Summary by Source and Use the “Report Summary by Source and Accrual Transaction” to balance to the Accrual Transaction” to balance to the general ledgergeneral ledger

The Report Summary Total column must The Report Summary Total column must agree to your subledgersagree to your subledgers

4545

Subledger Reports for BalancingSubledger Reports for Balancing

Receiving Account Distribution ReportReceiving Account Distribution Report

Payables Expense Detail ReportPayables Expense Detail Report

Material Distribution Summary ReportMaterial Distribution Summary Report

WIP Account Summary ReportWIP Account Summary Report

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What to Check If the Perpetual What to Check If the Perpetual Accruals do Not BalanceAccruals do Not Balance

Latest version for the A/P and PO subledger Latest version for the A/P and PO subledger reportsreports

Latest version for the Accrual Reconciliation Latest version for the Accrual Reconciliation ReportReport

If you have applied the cumulative accrual If you have applied the cumulative accrual patch bug #337257 (pre 10.7)patch bug #337257 (pre 10.7)

• May be missing two PO lookup codesMay be missing two PO lookup codes Check for any conversion issuesCheck for any conversion issues Check for manual G/L journal entriesCheck for manual G/L journal entries

4747

How to Balance the Receipt How to Balance the Receipt Accrual - Period End ProcessAccrual - Period End Process

Run the Uninvoiced Receipts Report by Run the Uninvoiced Receipts Report by specifying Accrued Receipts: specifying Accrued Receipts: NoNo (before running the month-end (before running the month-end process),process), Yes Yes (after running the month- (after running the month-end process),end process), Include On-line accruals: Include On-line accruals: nono, the desired Period Name, and the , the desired Period Name, and the desired sort selection (purchasing desired sort selection (purchasing Category or Vendor)Category or Vendor)

4848

How to Balance the Receipt How to Balance the Receipt Accrual - Period End ProcessAccrual - Period End Process

Use careful cut-off controls for receipt Use careful cut-off controls for receipt and invoice transactionsand invoice transactions

Close purchase orders and lines Close purchase orders and lines afterafter you have reconciled the Expense A/P you have reconciled the Expense A/P Accrual AccountAccrual Account

Get bug patch #489880 (or later) for the Get bug patch #489880 (or later) for the Receipt Accrual - Period End processReceipt Accrual - Period End process

4949

If the Accrual Reconciliation If the Accrual Reconciliation Report Does Not CompleteReport Does Not Complete

Check for identical system accountsCheck for identical system accounts Ask your database administrator if there Ask your database administrator if there

is enough shared memory (or SGA)is enough shared memory (or SGA) Make sure you have the latest version Make sure you have the latest version

for the Accrual Reconciliation Reportfor the Accrual Reconciliation Report Major process problems with Receiving Major process problems with Receiving

and Payablesand Payables

5050

If the Accrual Reconcilation If the Accrual Reconcilation Report Is Too LargeReport Is Too Large

Check for identical system accountsCheck for identical system accounts You may have too many cumulative You may have too many cumulative

accrual transactionsaccrual transactions

• Use the amount and quantity parametersUse the amount and quantity parameters

• Use the G/L Date From and To Use the G/L Date From and To parameters to reduce the reportparameters to reduce the report

Caution: non-cumulative G/L Dates ranges Caution: non-cumulative G/L Dates ranges may omit needed transactionsmay omit needed transactions

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Implementation Issues (Mistakes Implementation Issues (Mistakes You Don’t Want to Make)You Don’t Want to Make)

Sharing system accountsSharing system accounts Badly defined receiving and payables Badly defined receiving and payables

processesprocesses Little or no system testing for your Little or no system testing for your

accrual processesaccrual processes After “go live”, late review for the first After “go live”, late review for the first

Accrual Reconciliation ReportAccrual Reconciliation Report

5252

Conversion Issues (More Conversion Issues (More Mistakes You Don’t Want)Mistakes You Don’t Want)

Not correctly matching invoices to receiptsNot correctly matching invoices to receipts• Need a valid PO_DISTRIBUTION_ID in Need a valid PO_DISTRIBUTION_ID in

AP_INVOICE_DISTRIBUTIONS_ALLAP_INVOICE_DISTRIBUTIONS_ALL Incorrect cumulative values for PO line Incorrect cumulative values for PO line

quantity received, returned, inspected, quantity received, returned, inspected, and billedand billed

Not setting the receipt on accrual flag Not setting the receipt on accrual flag correctly in PO_DISTRIBUTIONS_ALLcorrectly in PO_DISTRIBUTIONS_ALL

5353

Conversion Issues (Continued)Conversion Issues (Continued)

Incorrect foreign key relationships between Incorrect foreign key relationships between PO_HEADERS, PO_LINES, PO_HEADERS, PO_LINES, PO_LINE_LOCATIONS, and PO_LINE_LOCATIONS, and PO_DISTRIBUTIONS_ALLPO_DISTRIBUTIONS_ALL

Also note that REFERENCE3 in Also note that REFERENCE3 in RCV_RECEIVING_SUB_LEDGER must RCV_RECEIVING_SUB_LEDGER must join to PO_DISTRIBUTION_ID column in join to PO_DISTRIBUTION_ID column in PO_DISTRIBUTIONS_ALLPO_DISTRIBUTIONS_ALL

5454

Current Bug Fixes for Current Bug Fixes for Accrual and Related ProcessesAccrual and Related Processes

Release 10.7 or earlierRelease 10.7 or earlier• Bug # 489880 or later, fixes the Receipt Bug # 489880 or later, fixes the Receipt

Accrual - Period End process to use the Accrual - Period End process to use the PO_LINE_LOCATIONS_ALL PO_LINE_LOCATIONS_ALL CLOSE_DATE, instead of the CLOSE_DATE, instead of the PO_LINES_ALL CLOSE_DATE, thereby PO_LINES_ALL CLOSE_DATE, thereby causing the Receipt Accrual - Period End causing the Receipt Accrual - Period End process to agree with the Uninvoiced process to agree with the Uninvoiced Receipts ReportReceipts Report

5555


Release 10.7 or earlierRelease 10.7 or earlier• Current bug patch for the Accrual Current bug patch for the Accrual

Reconciliation Report, contact Oracle Reconciliation Report, contact Oracle WorldWide Support WorldWide Support (caution: bug patch 483453 breaks the (caution: bug patch 483453 breaks the PO.PO_VIEW, the ODF files are invalid)PO.PO_VIEW, the ODF files are invalid)

5656


Release 10.6.1 or earlierRelease 10.6.1 or earlier• Re-register the Receipt Accrual - Period Re-register the Receipt Accrual - Period

End process for no printing - gives an End process for no printing - gives an erroneous warning messageerroneous warning message

Release 10.5 or earlierRelease 10.5 or earlier• Apply the most current cumulative Apply the most current cumulative

accrual patch to get the latest accounting accrual patch to get the latest accounting and accruals code for both PO and A/Pand accruals code for both PO and A/P

5757

Current Bug Fixes for Release Current Bug Fixes for Release 10.4.2 or Earlier10.4.2 or Earlier

For outside processing, the import For outside processing, the import requisition process assigned the requisition process assigned the receiving account to the PO distribution receiving account to the PO distribution A/P Accrual Account. A/P Accrual Account.

• Repair historical accounting entries Repair historical accounting entries with bug No. 235288with bug No. 235288

• Get the most current patch for the Get the most current patch for the Import Requisition processImport Requisition process

5858

Current Bug Fixes for Release Current Bug Fixes for Release 10.4.2 or Earlier (Continued)10.4.2 or Earlier (Continued)

Incorrect IPV stored in the Incorrect IPV stored in the AP_INVOICE_DISTRIBUTIONS tableAP_INVOICE_DISTRIBUTIONS table• Causes the latest Accrual Reconcilation Causes the latest Accrual Reconcilation

Report to not balance to older versions Report to not balance to older versions of the Payables Expense Detail Reportof the Payables Expense Detail Report

• Request bug No. 319258 to obtain a Request bug No. 319258 to obtain a select only SQL*PLUS scriptselect only SQL*PLUS script

• However, the IPV in the G/L is correctHowever, the IPV in the G/L is correct

5959

Current Bug Fixes for Release Current Bug Fixes for Release 10.4.2 or Earlier (Continued)10.4.2 or Earlier (Continued)

Incorrectly set Receipt on Accrual FlagIncorrectly set Receipt on Accrual Flag

• Request the latest Enter Purchase Request the latest Enter Purchase Orders FormOrders Form

Incorrect encumbrance flag set in Incorrect encumbrance flag set in AP_INVOICE_DISTRIBUTIONSAP_INVOICE_DISTRIBUTIONS

• Request a bug fix for PO ReleasesRequest a bug fix for PO Releases

• Causes the latest Accrual Reconcilation Causes the latest Accrual Reconcilation Report to miss A/P entriesReport to miss A/P entries

6060

Desired EnhancementsDesired Enhancements

Have the ability to either exclude closed Have the ability to either exclude closed purchase orders and PO lines purchase orders and PO lines or or only only report closed POs and lines on the report closed POs and lines on the Accrual Reconciliation ReportAccrual Reconciliation Report

Sort by distribution account on the Sort by distribution account on the Uninvoiced Receipts ReportUninvoiced Receipts Report

6161

Desired Enhancements Desired Enhancements (Continued)(Continued)

Write off accrual transactions directly to Write off accrual transactions directly to the general ledger, and store these the general ledger, and store these write-offs in the AP_INVOICE_write-offs in the AP_INVOICE_DISTRIBUTIONS_ALL tableDISTRIBUTIONS_ALL table

Create the ability to do mass accrual Create the ability to do mass accrual write-offswrite-offs

6262

Desired Enhancements Desired Enhancements (Continued)(Continued)

Write off accrual discrepancies on a net Write off accrual discrepancies on a net basisbasis• Store net PO line amounts in the Store net PO line amounts in the

PO_LINE_LOCATIONS_ALL tablePO_LINE_LOCATIONS_ALL table• Write off net PO line amounts when the Write off net PO line amounts when the

PO line or purchase order is closedPO line or purchase order is closed Actually match invoices to specific receiptsActually match invoices to specific receipts

6363

ConclusionsConclusions

These accrual processes are very These accrual processes are very important to control your business important to control your business activityactivity

Proper implementation and data Proper implementation and data conversion is essentialconversion is essential

Major code bugs are resolvedMajor code bugs are resolved Please vote wisely on enhancement Please vote wisely on enhancement

requestsrequests

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Where to get more informationWhere to get more information

The OAUG paper that this presentation is The OAUG paper that this presentation is based uponbased upon

Oracle Purchasing Reference ManualOracle Purchasing Reference Manual• Accrual Reconciliation ReportAccrual Reconciliation Report• Accrual Write-Off FormAccrual Write-Off Form• Accrual Write-Off ReportAccrual Write-Off Report• Receipt Accruals Topical EssayReceipt Accruals Topical Essay

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Thank You for Your Attendance Thank You for Your Attendance and Participationand Participation

Douglas A. VolzDouglas A. Volz

1 how to setup, use and balance your a/p accrual accounts douglas a. volz kpmg june 1998

Documents

important n

agenda n

line n

invoicing n

activities n

n conclusions

balances n

introduction n