1/31/2015

Document106583.1

PurchasingFAQ:AccrualsandAccounting(DocID106583.1)
InthisDocument
Purpose
QuestionsandAnswers

Whatisthedifferencebetween'AccrueOnReceipt'and'AccrueatPeriodEnd'?

Whyareexpenseitemstypicallyaccruedatperiodend,andwhyareinventory
itemsalwaysaccruedonreceipt?

WhichPurchasingreportshouldbeusedtoreviewperiodendaccruals?

WhichPurchasingreportshouldbeusedtoreviewonlineaccruals?

AfterenteringreceiptsandrunningtheReceiptAccrualsPeriodEndProcess,thenewjournalsdonotappearin
theGeneralLedger.ShouldthetransactionsautomaticallyappearinGLafterperformingthesesteps?

Howcanonetellwhethereachjournalinthegeneralledgerisforperiodendoronreceipt(online)accruals?

DoestheprocessofreversingjournalsforperiodendaccrualsoccurautomaticallyinGL?

InUninvoicedReceiptsReport,whatisthepurposeoftheparameter'AccruedReceipts'?

RecordsareappearingontheUninvoicedReceiptsreportforexpenseitemswhichhavebeenreceivedbutnot
invoiced.Howcantheserecordsberemovedfromthereportandkeptfromaccruingeachmonth?

Apurchaseordershipmentwasreceivedagainst,thencanceled.ItnowappearsontheUninvoicedReceipts
reportandaccrueseachmonthwhenrunningtheReceiptAccrualsPeriodEndprocess.Whyisthishappening?

WhatisthedifferencebetweentheAccrualReconciliationReportandtheAccrualRebuildReconciliationReport?

Howdotransactionswhichhavesubtotalsof$0.00getremovedfromtheAccrualReconciliationReport?

SeveraltransactionsappearontheAccrualReconciliationReportwhichwerechargedtotheaccrualaccountin
error.ManualjournalentrieshavealreadybeencreatedinGLtocorrectthesetransactions.Howdothese
transactionsnowgetremovedfromthereport?

APPLIESTO:
OraclePurchasingVersion10.7to11.5.9[Release10.7to11.5]
Informationinthisdocumentappliestoanyplatform.
***Checkedforrelevanceon07May2013***

PURPOSE
AccrualsandAccountingFAQRelease10.7to11.5.9
Frequentlyreportedhowtoquestionsrelatingtoproductspecificprograms.

QUESTIONSANDANSWERS
Whatisthedifferencebetween'AccrueOnReceipt'and'AccrueatPeriodEnd'?
AccrueOnReceiptmeansthatwhenareceiptissaved,accrualtransactionsareimmediatelyrecordedandsenttothe
generalledgerinterface.Thisisalsoknownas"online"accruals.AccrueatPeriodEndmeansthatwhenareceiptis
saved,theaccrualtransactionsarenotimmediatelyrecordedandsenttothegeneralledgerinstead,theaccounting
entriesaregeneratedandsentattheendofthemonthbyrunningtheReceiptAccrualsPeriodEndProcess.
AllitemswithadestinationtypeofeitherInventoryandOutsideProcessingareaccruedonreceipt.Foritemswitha
destinationtypeofExpense,youhavetheoptionofaccruingonreceiptoratperiodend.
https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=kmedqsh7r_390&id=106583.1

1/4

1/31/2015

Document106583.1

Whyareexpenseitemstypicallyaccruedatperiodend,andwhyareinventory
itemsalwaysaccruedonreceipt?
Oneshouldaccrueonreceiptifperpetualinventoryisadoptedtofacilitatereconciliationbetweeninventoryvaluation
reportsandaccountingentries.Expenseitemstypicallyarenotaccountedforonadailybasis,andmostcompaniesfind
iteasiertoaccountforandreconciletheseexpensesatmonthendratherthanatthetimeeachindividualexpenseis
incurred.
Whenbothinventoryandexpenseitemsareaccruedonreceipt,thefollowingproblemsmaybeencountered:
A)Receivinginspectionbalanceswillincludebothinventoryassetsandexpenses,soattheendofthemonth,theywill
needtobemanuallyreclassified.
B)ThenumberofentriesneededtoresearchandreconciletheperpetualA/PAccrualAccount(s)becomessignificantly
increased.Sincetheexpensereceiptscoulddoublethenumberofaccrualaccountingentriestoprocess,theAccrual
ReconciliationReportcouldtaketwiceaslongtorun.Theamountoftimerequiredbyyourstafftoresearchany
discrepancieswouldalsoincrease.

WhichPurchasingreportshouldbeusedtoreviewperiodendaccruals?
TheUninvoicedReceiptsReportshouldbeusedtoviewperiodendaccruals.ThisReportshouldbeusedtoreconcile
PeriodEndAccrualswithGL.

WhichPurchasingreportshouldbeusedtoreviewonlineaccruals?
TheAccrualRebuildReconciliationReportshouldbeusedtoviewaccrualtransactionsforinventoryitemsandexpense
itemswhicharesettoaccrueonreceipt(onlineaccruals).ThisistheReportthatshouldbeusedtoreconcileaccrue
onreceipttransactionswithGL.

AfterenteringreceiptsandrunningtheReceiptAccrualsPeriodEndProcess,thenewjournalsdonot
appearintheGeneralLedger.ShouldthetransactionsautomaticallyappearinGLafterperforming
thesesteps?
ThetransactionsfromOraclePurchasingareonlysenttotheGL_INTERFACEtable.Inordertocreatethejournalsand
seetheminGeneralLedger,theJournalImportconcurrentprogrammustberunfromaGeneralLedgerresponsibility.
BesuretoreviewtheoutputfilefromtheJournalImportrequesttoensurethattherecordsimportedsuccessfully.

Howcanonetellwhethereachjournalinthegeneralledgerisforperiodendoronreceipt(online)
accruals?
PeriodendandonlineaccrualentriesmaybecontainedinthesameGLbatch,buttherewillbeseparatejournals
createdforeach.JournalscreatedbytheReceiptAccrualsPeriodEndProcesswillhaveacategoryof'Accrual'
journalscreatedforonlineaccrualswithhaveacategoryof'Receiving'.
Hereissometechnicaltablelevelinformationthatmayprovideassistance:
Table:GL_INTERFACE
Column:USER_JE_SOURCE_NAME=PurchasingColumn:USER_JE_CATEGORY_NAME=Accrual(forperiodend
accruals)ORUSER_JE_CATEGORY_NAME=Receiving(foronlineaccruals)
Table:GL_JE_HEADERS
Column:JE_SOURCE=PurchasingJE_CATEGORY=Accrual(forperiodendaccruals)ORJE_CATEGORY=
Receiving(foronlineaccruals)

DoestheprocessofreversingjournalsforperiodendaccrualsoccurautomaticallyinGL?
Theprocessofreversingtheaccrualjournalsdoesnotoccurautomaticallytheymustbemanuallyreversedinthe
generalledger.

InUninvoicedReceiptsReport,whatisthepurposeoftheparameter'AccruedReceipts'?
https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=kmedqsh7r_390&id=106583.1

2/4

1/31/2015

Document106583.1

A:Thisparametershouldbesetto'No'toseeonlytheuninvoicedreceiptswhichhavenotyetbeenaccruedbyrunning
theReceiptAccrualsPeriodEndprocess.
Thisparametershouldbesetto'Yes'toseeuninvoicedreceiptswhichhavealreadybeenaccruedbyrunningthe
ReceiptAccrualsPeriodEndProcess.

RecordsareappearingontheUninvoicedReceiptsreportforexpenseitemswhichhavebeenreceived
butnotinvoiced.Howcantheserecordsberemovedfromthereportandkeptfromaccruingeach
month?
Thereareacoupleofmethodsthatcanbeusedtoremoverecordsfromthereportandtokeepthemfromaccruing
eachmonth:
A)Closethepurchaseordershipmentline.ClosingthepurchaseorderattheHeaderorLinelevelwillalsohavethe
sameeffect.OnthePurchaseOrderSummaryform,selectSpecial>Control,then'Close'.
NOTE:Selecting'Cancel'willnotkeepreceiptsfromaccruingeachmonth.Refertoquestion/answer#10belowforan
explanationofthis.Also,thissolutiononlyappliestoPOshipmentswhicharesettoaccrueatPeriodEnd.Itwillnot
removePOshipmentswhicharesettoAccrueOnReceipt("onlineaccruals").
B)CreateaninvoiceinAPandmatchittothepurchaseorderfortheentirereceivedquantity.Someuserschooseto
createa'dummy'invoicefor$0.00inthiscase.

Apurchaseordershipmentwasreceivedagainst,thencanceled.ItnowappearsontheUninvoiced
ReceiptsreportandaccrueseachmonthwhenrunningtheReceiptAccrualsPeriodEndprocess.Why
isthishappening?
Whenapurchaseorderiscanceled(whetherattheheader,line,orshipmentlevel),onlytheunreceivedquantityis
actuallycanceled.Cancellationdoesnoteffectquantitiesalreadyreceived,asanobligationstillremainsforthese
receipts.
Ifthequantityreceivedisequaltothequantityinvoiced(billed),orifnoreceiptshavebeenenteredagainstthe
purchaseordershipment,thencancellationsetstheCanceledflagoftheshipmentto'Yes'andtheClosureStatusto
'Closed'.Inthiscase,noaccrualtransactionwillbegenerated.
Ifthequantityreceivedisnotequaltothequantityinvoiced,thencancellationsetstheCanceledflagoftheshipmentto
'Yes'andtheClosureStatusremainsinitscurrentstatus(i.e.,not'Closed').Thedifferencebetweenquantityreceived
andquantityinvoicedwillappearontheUninvoicedReceiptsreport,andwillcontinuetoaccrueeachmonthuntilan
invoiceismatchedfortheentirereceivedquantity.

WhatisthedifferencebetweentheAccrualReconciliationReportandtheAccrualRebuild
ReconciliationReport?
Thereportisavailableastwo(2)separateconcurrentprograms:theAccrualReconciliationReportandtheAccrual
RebuildReconciliationReport.Bothreportsrunusingthesamereportdefinitionfile:POXACREC.rdf.
WhentheAccrualRebuildReconciliationReportisselected,thefollowingeventsoccur:
TheprogramwilldeleteallrecordscurrentlystoredinthePO_ACCRUAL_RECONCILE_TEMP_ALLtable
Accountingentriesareselectedfromtheappropriatesources(subledgers)basedontheparametersenteredatthe
timeofreportsubmission
ThetemporarytablePO_ACCRUAL_RECONCILE_TEMP_ALLisrepopulatedwiththeseaccountingentries
Reportoutputisgeneratedbasedonthisinformation
WhentheAccrualReconciliationReportisrun,thereportdoesnotreselecttheinformationfromthesubledgers
instead,itreportsonlyonthedatacurrentlystoredinthePO_ACCRUAL_RECONCILE_TEMP_ALLtable.Thisfeature
savestimeanddecreasestheperformanceimpactonthesystem,becausetheaccrualinformationdoesnothavetobe
https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=kmedqsh7r_390&id=106583.1

3/4

1/31/2015

Document106583.1

regeneratedfromtheoriginalsourceseverytimethereportissubmitted.
Typically,theAccrualRebuildReconciliationReportisrunattheendoftheperiod,andtheAccrualReconciliation
Reportisusedforinterimreporting.NotethatthetitleshowingonthereportoutputremainstheAccrualReconciliation
Reportregardlessofwhichprocessisactuallysubmitted.

Howdotransactionswhichhavesubtotalsof$0.00getremovedfromtheAccrualReconciliation
Report?
Whensubmittingthereport,settingthefollowingparametersasshownwillallowforthesetransactionstonotshowon
thereportoutput:
IncludeAllTransactions=No
TransactionAmountTolerance=0(orhigher)

SeveraltransactionsappearontheAccrualReconciliationReportwhichwerechargedtotheaccrual
accountinerror.ManualjournalentrieshavealreadybeencreatedinGLtocorrectthesetransactions.
Howdothesetransactionsnowgetremovedfromthereport?
InOraclePurchasing,gototheAccrualWriteOffsform.
Responsibility:PurchasingSuperUser
Navigation:Accounting/AccrualWriteOffs
Selectthelinesthatneedtoberemovedfromthereportandsave.
Then,runtheAccrualReconciliationReportagain,settingtheparameter'IncludeWrittenOffTransactions'toNo.The
writtenofftransactionswillnolongerbeincludedinthereport.
NOTE:YoucanruntheAccrualWriteOffReporttoreviewthetransactionsthatwerewrittenoffthiscanbeusedto
supportthemanualjournalentrycreatedinthegeneralledger.

**Additi0onalSearchtermsused:PO/REQControl,CancelPurchaseorderallowed

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrlstate=kmedqsh7r_390&id=106583.1

4/4