This chapter contains the following topics:
When jobs are subcontracted out to U.S. federal government contract projects, it is assumed that an expense will be included on the next invoice to the government as soon as an expense is posted to the project. Per government regulations, this expense must also be paid to the vendor in a timely fashion. Because payments depend on the vendor invoice, not the receipt of the goods, the expense cannot be billed until the vendor invoice is received. When receipts are created, the amounts should not be posted to the expense account but must be postponed and then expensed at voucher match.
To postpone expensing until the time of voucher match, you select Expense At Voucher on the Line Type Constants Revisions form (W40205B) in the Line Type Constants program (P40205). You set this option for inventory interfaces A and B only. When this option is set, journal entries will not be created for the received goods or service during the purchase order receipts process. Only voucher match will post the amounts to the expense accounts on the purchase order.
If the Expense At Voucher option is selected in Line Type Constants (P40205), then you must also select A/P Interface. The A/P Interface is a code that indicates that the system reflects the dollar or unit value of any activity containing this order type in Accounts Payable.
You may also select Voucher Match Variance Account on the Line Type Constants Revisions form to indicate the account to which the system books a variance. This field is used in conjunction with an inventory interface of A or B only.
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