Receipt Accruals - Period-End Process
Use the Receipt Accruals - Period-End process to create period-end accruals for your uninvoiced receipts for Expense distributions. Purchasing creates an accrual journal entry in your general ledger for each uninvoiced receipt you choose using this form. If you use encumbrance or budgetary control, Purchasing reverses your encumbrance entry when creating the corresponding accrual entry.
Attention: When using Cash Basis Accounting, you should use the Purchasing Options window to set the Accrue Expense Items flag to Period End, but you will not normally run the Receipt Accrual - Period-End process. See: Defining Accrual Options.
Purchasing provides you with complete flexibility and control for your period-end accruals. You can use the Uninvoiced Receipts Report to analyze your uninvoiced receipts before you accrue them. You can then run the Receipt Accruals - Period-End process as many times as you want to generate accruals entries for the receipts you choose. Purchasing does not accrue receipts for purchase orders on or before the last date of the Accrual Period.
You create accruals for a specific purchasing period. Purchasing automatically accrues all uninvoiced receipts you entered up to the end of the accrual period you specify. Each time you run the Receipt Accruals - Period-End process, Purchasing creates an unposted journal entries batch in your general ledger for your receipt accruals. If you are using encumbrance or budgetary control, Purchasing creates another journal entries batch in your general ledger corresponding to the encumbrance reversal entries for the uninvoiced receipts you accrued.
Each time you create accrual entries for a specific uninvoiced receipt, Purchasing marks this receipt as accrued and ignores it the next time you run the Receipt Accrual - Period-End process. Purchasing creates accrual entries only up to the quantity the supplier did not invoice for partially invoiced receipts.
Follow the steps listed below:
- Identify the purchasing period for your receipt accrual entries. Purchasing creates receipt accruals for all receipts you entered up to the end of this period. To prevent any period-end disruption, Purchasing lets you provide a receipt date that is different from the date you enter the receipts. You never have to enter all the receipts for a period before the end of this period. You can enter these receipts later. You simply need to backdate the receipt date. Of course, you should make sure you entered all receipts for a specific period before you create receipt accruals for that period.
- Enter and match all invoices you received during the period for your receipt accrual entries.
- Close the accounts payable period corresponding to the purchasing period for your receipts accrual entries.
- Run the Uninvoiced Receipts Report and analyze your uninvoiced receipts that are accrued at period end.
- Run the Receipt Accrual - Period-End process as many times as you need. You can use the search criteria to choose what you want to accrue and accrue your receipts step by step. This process creates accounting accrual entries using the journal source 'Purchasing' and the journal category 'Accrual'.
- Perform all the steps you need to close your accounting period and generate period-end reports and financial statements in your general ledger.
- Run the Accrual Reconciliation Report after period close to analyze your receipts accrued on receipt.
- Use your general ledger system to reverse all the receipt accrual and encumbrance reversal batches for your period-end accruals.
- Close the purchasing period for your receipt accruals. When you close a purchasing period, Purchasing automatically un-marks all the receipts you previously accrued to make sure you can accrue these receipts again if they are still uninvoiced in the next period.
- After you have opened your next period in General Ledger and have either closed the previous general ledger period or have completed all previous month receipt accruals, you can reverse the previous month's receipt accruals in the new month. You perform this by reversing each general ledger journal batch in General Ledger.
To run the Receipt Accruals - Period End process:
1. Navigate to the Submit Requests window.
2. Select Requests in the first field.
3. Select Receipt Accruals - Period-End in the Name field.
4. Enter the Extended Value. The default is 0.
5. Enter the Supplier to restrict period-end receipt accruals to a single supplier.
6. Enter the item Category to restrict period-end receipt accruals to a single category.
7. Enter the Period for which you want to perform period-end receipt accruals. Purchasing automatically provides you with a list of acceptable accrual periods. This list contains periods that you closed in your accounts payable system and either opened or did not use in your general ledger system.
8. Save your work to begin the process.
Submitting a Request