Previous	Next		Contents	Index	Navigation	Glossary	Library

If you use the receipt accrual method, (also known as perpetual accrual), the system automatically records an accrual when you record an item as received in Oracle Purchasing. When you post the invoice, Payables reverses this accrual and records the AP liability. If you use period end accruals, you run the Accrual Process for Period End Accruals and enter a reversing manual journal entry for the AP accrual. When you post the invoice, Payables records the expense and the AP liability. For inventory items you must use the receipt accrual method. For expense items you select your Accrue Expense Items Purchasing option, either On Receipt or Period End.

Payables creates all variance distributions at invoice approval time.