25 Reconciliation
This chapter contains these topics:
You can view receipt and voucher documents associated to a purchase order line using an online inquiry or report format. You can reconcile open receipt information in the Procurement system to current valuations in the General Ledger.
25.1 Working with Reconciliation Inquiries
From Procurement (G43), choose Stock Based
From Stock Based Procurement (G43A), choose Procurement Inquiries
From Procurement Inquiries (G43A112), choose Order Reconciliation
From Reconciliation Reports & Inquiries (G43A1111), choose PO/Receipt/Voucher Summary
You can inquire on a specific purchase order line and find the corresponding receipt and voucher documents. The Purchase Order Receipt/Voucher Inquiry (P43260) enables you to view all associated receipt and voucher documents for which journal entries exist. This includes documents created in receipt routing and landed cost documents. The screen also provides easy access to specific information relating to each document, including journal entries and item ledger records.
To work with reconciliation inquires
On PO/Receipt/Voucher Summary, locate and review your purchase order.
Figure 25-1 PO/Receipt/Voucher Summary screen
Description of "Figure 25-1 PO/Receipt/Voucher Summary screen"
25.2 Working with Reconciliation Reports
From Procurement (G43), choose Stock Based
From Stock Based Procurement (G43A), choose Procurement Reports
From Procurement Reports (G43A111), choose Reconciliation Reports
You want to verify that open receipt information in your purchasing system corresponds to open receipt valuations in the general ledger, on a regular basis.
When you receive an order using the Enter Receipts program (P4312), the system debits an inventory or expense account, and credits the Received Not Vouchered (RNV) account. The RNV account is then debited (or relieved) for the same amount when you create a voucher for the receipt using the Voucher Match program (P4314).
The P4312 writes a receipt record (match type 1) to the Purchase Order Receiver file (F43121) at receipt time. The record contains information pertaining to the receipt, including the RNV account, the amount open to voucher, and the document number and type (usually OV) that correspond to the journal entries.
The P4314 writes a voucher record (match type 2) to the F43121 when a voucher is created for the receipt. This record contains information pertaining to the voucher, including the RNV account, the amount paid to date, and the document number and type (usually PV) that correspond to the voucher and journal entries.
The PO Receiver history file (F43121H) is, for the most part, a scaled down version of the F43121, and contains only those field values the system needs to perform reconciliations between purchasing and the G/L.
You can choose from three reports to perform reconciliations between open receipt information in the Purchase Order Receiver files (F43121 and F43121H) and corresponding journal entries in the Account Ledger file (F0911). The three reports to perform reconciliation are:
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Voucher Reconciliation
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RNV to G/L Reconciliation
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RNV - G/L As Of Reconciliation
25.3 Voucher Reconciliation
The Voucher Reconciliation report (P43450) displays open receipt information by Received Not Vouchered (RNV) account. It lists each order number and line number received against the account, as well as the quantity and amount currently open to voucher. The item or expense account for each line also displays.
The information on the Voucher Reconciliation report comes directly from the Purchase Order Receiver file (F43121).
This report is intended to display open receipt information as it exists in the Purchasing system. It does not display the corresponding journal entry information maintained in the Account Ledger file (F0911). You can create a World Writer report that extracts information from the F0911 to compare directly to the information on this report, or you can run one of the integrity reports that make these comparisons for you, such as the P43451 or P43452, discussed later in this section.
Figure 25-2 Received Not Vouchered Reconciliation report
Description of "Figure 25-2 Received Not Vouchered Reconciliation report"
25.4 RNV to G/L Reconciliation
The Received Not Vouchered to G/L Reconciliation report (P43451) displays open receipt amounts in the Purchase Order Receiver file (F43121) in comparison with the corresponding RNV journal entries in the Account Ledger file (F0911). You choose the RNV account you want to reconcile in processing option 1 behind P43451.
For each purchase order line number, the report displays: 1) the open receipt amount 2) the RNV journal entries associated with the receipt, and 3) any discrepancy that might exist between the two. For example, say you receive an order line for 100.00 and you voucher 75.00. The open receipt amount column shows 25.00, the G/L amount column displays two journal entries, one for -100 and another for 75, and nothing displays in the Discrepancy column since the other two columns are equal.
The P43451 identifies match type 1 records in the F43121 containing the same RNV account you specified in processing option 1, and also a value in the open amount field (PRAOPN). It then looks for associated match type 2 records to determine whether any portion of the receipt has been vouchered. The document numbers and types on the match type 1 and 2 records serve to link to the journal entries in the Account Ledger file (F0911).
This report reflects all open receipts at the time you run the report. It will not print only those open receipts with discrepancies; however, a total is provided at the end of the report to indicate whether any variances might exist.
Caution:
This report is not reliable if you summarize journal entries at the time of receipt and voucher match. You use processing option 37 behind P4312 and processing option 22 behind Voucher Match (P4314) to designate whether journal entries are summarized.Do not change data sequencing for this report, as you may incur unpredictable results.
Figure 25-3 RNV to G/L Reconciliation report
Description of "Figure 25-3 RNV to G/L Reconciliation report"
25.4.1 What You Should Know About
| Topic | Description |
|---|---|
| Landed costs and taxes | You cannot use this report to reconcile taxes or landed costs, as the Purchase Order Receiver file (F43121) does not maintain RNV accounts for these types of costs. |
| Currency | Amounts on this report always display in the base currency of the company to which the account belongs. Foreign amounts will not display. |
| Receipt Routing | When an item goes through a receipt route, the P4312 creates a match type 1 record in the F43121 upon receipt into the route. An irrelevant OV document number is written to the match type 1 record at that time. When the item becomes payable, the system creates journal entries with the valid OV document number. The system does not overwrite the existing document number in the match type 1 record; therefore, the document numbers in the F43121 and F0911 will not match. The valid OV document number for items that go through receipt routing is maintained in the Receipt Routing Ledger file (F43099) instead of the F43121. |
25.5 RNV - G/L As Of Reconciliation
The RNV - G/L As Of Reconciliation report (P43452) serves to compare receipt and voucher amounts for individual order lines to the journal entries that correspond to the transactions. Unlike the other reports that only display open receipt information, this reports allows you to review RNV information for a specific period of time.
The P43452 is designed to look for journal entries in the Account Ledger file (F0911) for the RNV account you designate in Data Selection. You also specify from and through G/L dates in Data Selection. The program then links each journal entry it finds to the corresponding receipt or voucher record in the PO Receiver History file (F43121H). You can only run the report for one RNV account at a time.
The PO Receiver History file is a scaled down version of the Purchase Order Receiver file (F43121), containing only the primary fields necessary to perform reconciliations to the general ledger. The file does, however, contain a field for the Tax RNV Account (PBTRNV), which does not exist in the F43121.
This report displays and totals reconciliation information by order and line number or G/L document number, depending on the version you run. For each order line or G/L document, the report lists all receipt and voucher transactions affecting the designated RNV account. For each transaction the report displays the amount written to the G/L, the amount recorded in the purchasing system (F43121H), and any discrepancy that might exist between the two.
You can reconcile the standard RNV account (maintained in AAI table 4320), or the tax RNV account (maintained in AAI table 4355). You specify which in processing option 1. The report assumes that the RNV Account comes from AAI 4320 and the Tax RNV Account comes from AAI 4355.
You use processing option 2 to specify that you want to see only those receipts with discrepancies between the purchasing system and the G/L.
Figure 25-4 RNV to G/L As Of Reconciliation report
Description of "Figure 25-4 RNV to G/L As Of Reconciliation report"
Caution:
If you summarize journal entries you must run a version of the report set to sequence by G/L document number. Versions XJDE0003 and XJDE0004 are set as such. You use processing option 37 behind P4312 and processing option 22 behind Voucher Match (P4314) to designate whether journal entries are summarized.Do not change data sequencing for this report as you may incur unpredictable results.
25.5.1 What You Should Know About
| Topic | Description |
|---|---|
| Landed costs | You cannot use this report to reconcile landed costs, as the PO Receiver History file (F43121H) does not maintain an RNV account for landed costs |
| Currency | Amounts on this report always display in the base currency of the company to which the account belongs. Foreign amounts will not display. |
| PO Receiver History file (F43121) | The F43121H differs from the F43121 in that existing records in the F43121H are not updated. For example, say you enter and receive a purchase order for $100. The P4312 writes a match type 1 record to the F43121 and F43121H with an amount open to voucher (AOPN) of $100.00. If you voucher $25 of the receipt, the P4314 writes a match type 2 record to both files; however, the system updates the amount open to $75 in the F43121 match type 1 record. The open amount remains the same in the F43121H.
The system writes records to the F43121H file when journal entries are created. These records are then preserved to reflect the transactions as they were originally created. Match type 3 and 4 records (reversals) are only written to the F43121H if the batch created for the original transaction was posted. For example, if you receive and voucher an order for $100, the system writes match type 1 and 2 records to the F43121H. If the voucher is reversed and the batch was not posted, the system deletes the match type 2 record in the F43121H, as the journal entry batch was also deleted. In this case there's nothing to reconcile. If the batch was posted, a match type 3 record is written to the F43121H, because the original batch was not deleted. Instead, reversing journal entries were added to the batch, which will be reconciled against the match type 3 record. |
| Receipt routing | When an item goes through receipt routing, a match type 1 record is not written to the F43121H until the item becomes payable; therefore, the F43121H match type 1 records should contain the correct OV document number for items that have been through a receipt route. |
25.6 PO/Receipt/Voucher Summary Report
From Procurement (G43), choose Stock Based
From Stock Based Procurement (G43A), choose Procurement Reports
From Procurement Reports (G43A111), choose Reconciliation Reports
From Order Reconciliation (G43A1111) and Reconciliation Reports, choose PO/Receipt/Voucher Summary
The PO/Receipt/Voucher Summary Report (P43560) allows you to view a purchase order line as well as the corresponding receipt and voucher documents for which journal entries exist, including documents created in receipt routing and landed cost documents. When invalid data selection occurs expect to see details such as error number and short description on the report.
To view the PO/Receipt/Voucher Summary report
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Create a single line Purchase Order, receive order in full, and voucher match.
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Run the report for your purchase order number.
Figure 25-5 Purchase Order/Receipt/Voucher Inquiry report
Description of "Figure 25-5 Purchase Order/Receipt/Voucher Inquiry report"