Using Receipt Accrual

This chapter provides an overview of receipt accrual and discusses how to:

Click to jump to parent topicUnderstanding Receipt Accrual

The PeopleSoft Purchasing Receipt Accrual Application Engine process (PO_RECVACCR) can be run on demand and multiple times in the same accounting period. This aspect of the process involves backing out previous transactions before new transactions can be generated, so that you can create reversal transactions for the current and next periods.

Note. For the Receipt Accrual process to work as designed, both PeopleSoft Payables and PeopleSoft Purchasing must be installed, and you must use PeopleSoft Payables Matching to validate vouchers.

When you run the Receipt Accrual process, the receipt accrual liability account accrues, or in other words, is credited for the amount of unbilled receipts. Any associated expense accounts are debited for the amount of unbilled receipts. The encumbrance reclassifications are generated and thereby provide a more accurate picture of the operating budget. The Receipt Accrual process also generates reversal transactions for the next period. PeopleSoft Purchasing retrieves the expense account information from the associated purchase orders or non-purchase order receipts to give you an accurate forecast of the expense account balance, even if several receipts have not been billed yet.

For example, suppose that you received 20,000 USD in materials in a month, but were billed for only 5,000 USD. The Receipt Accrual process ensures that the expense accounts reflect the remaining 15,000 USD in upcoming debits. This helps reduce the impact of unexpected debits to the expense accounts. Without the Receipt Accrual process, this 15,000 USD is hidden until the debits bill and post to the expense accounts.

When you run the Receipt Accrual process, it reverses the entries of both the receipt accrual liability account and the expense accounts. This keeps you current with all the unbilled receipts, enabling you to manage the expense accounts closely.

If receipts remain unbilled when the Receipt Accrual process runs in the new period, the same process begins anew with credits to the receipt accrual liability account and debits to the expense.

Receipt accrual supports:

You can set up receipt accrual for one scenario, both scenarios, or neither.

Here is a more detailed description of the way in which the Receipt Accrual process works:

  1. Before creating the accounting entries for accrual, the process creates reversal transactions to back out all accrued receipts in the staging record (RECV_LN_ACCTG) in the current period.

    The accrued receipts must first have successfully run one of the following three processes: the Entry Event Generator, Comm Cntrl Budget Processor, or the Journal Generator.

  2. The original transactions for which reversals have just been created are identified as canceled.

  3. Next, the process generates new transactions for receipts that qualify for accrual and creates the following six transactions in the staging record for each receipt line:

    1. An expense in the current period and an expense reversal in the next period.

      ChartFields are inherited from the receipt distribution line. These transactions are budget-checked if commitment control is enabled. Entry events are generated if they are required on the Installation Options - Entry Event page. Journal Generator also processes the transactions.

    2. An accrual in the current period and an accrual reversal in the next period.

      This account uses ChartField inheritance defined by the user. The ChartFields are inherited according to user selections of inheritance options on the Chartfield Inheritance page. Values are:

      Always Inherit: Value comes from the receipt line distribution table RECV_LN_DISTRIB.

      Do Not Inherit: Value comes from Accounting Entry Template table DST_DFTL_CNTRL.

      Inherit Within Unit: Value comes from Accounting Entry Template table DST_DFTL_CNTRL.

      Use Unit Default: Value comes from Accounting Entry Template table DST_DFTL_CNTRL.

      These transactions are not budget-checked but are processed by Journal Generator, and the entry events are generated if they are required on the Installation Options - Entry Event Entry page.

    3. Encumbrance transactions are generated for the current period and reversal transactions are generated for the next period.

      ChartFields are inherited from the receipt distribution line. These transactions are budget-checked, and entry events are generated if they are required on the Entry Events page. Distributed appears by default as the general ledger distribution status, so that the Journal Generator process does not process them. N appears by default as the budget header status and budget line status. Accrual and encumbrance transactions look exactly the same in the staging record except for the account type (RAC or ENR), general ledger distribution status, and the ChartFields. Encumbrance transactions are not created if commitment control is not installed or for receipts that are not associated with purchase orders.

  4. Separate transactions are created to record miscellaneous charges that are derived from receipt landed cost transactions (RECV_LN_DIST_LC).

Multiple Currencies

If you use multiple currencies, the accounting entries post in both the transaction currency and the base currency. PeopleSoft Purchasing uses the conversion rate defined on the purchase order to calculate the base amount to accrue.

VAT and Miscellaneous Charges

If there are miscellaneous charges or landed cost charges associated with the purchase order, these charges accrue only if you select the Accrue Charge check box on the Misc Charge/Landed Cost Defn page and the Accrue PO Receipts check box on the Purchasing Definition - Business Unit Options page. In addition, only miscellaneous charge and landed cost transactions with these Accounting Entry Type definitions are eligible for accrual:

The Receipt Accrual process accrues the nonrecoverable portion of the value-added tax (VAT) on noninventory receipt lines if the Landed Cost accrual option (RECV_LN_DIST_LC) is selected for the corresponding miscellaneous charge code on the purchase order. This value flows from the purchase order to the receipt through the Process Receipts process. This is a VAT accrual for goods received but not invoiced.

These miscellaneous charges accrue along with the merchandise amounts only if the charges are to be paid to the same vendor designated on the purchase order.

See Also

Accruing Receipts

Understanding Entry Events in PeopleSoft Purchasing

Generating PeopleSoft Purchasing Entry Events

Using Interunit and Intraunit Accounting and ChartField Inheritance

Running Journal Generator Processing

Budget Checking Process

Click to jump to top of pageClick to jump to parent topicReceipt Accrual Criteria Description

The Receipt Accrual process does not accrue receipt amounts that have been paid or matched by PeopleSoft Payables. This section describes criteria that the Receipt Accrual process uses to determine which receipts should be billed in various situations.

Eligibility Requirements for Accrual

The following list provides eligibility requirements for accrual:

  1. For both purchase order and non-purchase order receipts:

    1. The receipt must not be fully matched and matching must be required.

    2. The receipt status must be Moved, Not Recv'd (not received), Open, or Received.

    3. If the receipt line is purchase order related then the purchase order line must have Receiving Required selected.

    4. The receipt distribution line must be non-inventory-related for the distribution to be accrued. The inventory-related distribution rows are still eligible for receipt accrual reporting.

  2. For purchase order receipts, the Accrue PO Receipts check box in the associated PeopleSoft Purchasing business unit must be selected.

  3. For non-purchase order receipts, the Accrue Non/PO Receipts check box in the associated PeopleSoft Purchasing business unit must be selected.

Inventory-Related Purchasing Transactions Accrual

The Receipt Accrual process is not designed for receipts that you acquire through inventory-related purchasing transactions. Receipt accrual for these receipts occurs in PeopleSoft Inventory and in PeopleSoft Cost Management.

The inventory business unit assignment on the requisition, purchase order, or receipt distribution determines whether the purchasing transaction is inventory-related. To ensure that the Receipt Accrual process works, verify that no inventory business unit appears by default on the requisition, purchase order, or receipt distribution for the receipt.

The Receipt Accrual process does accrue receipts for the purchase of items set up as inventory items, if the item is purchased in a non-inventory-related purchasing transaction, such as an expense transaction.

See Also

Defining Miscellaneous Charges and Landed Costs

Establishing PeopleSoft Purchasing Business Units

Running the Matching Process

Click to jump to top of pageClick to jump to parent topicReceipt Accrual Setup

To set up receipt accrual for a business unit:

  1. Select the Accrue PO Receipts check box or the Accrue Non/PO Receipts check box on the Purchasing Definition - Business Unit Options page.

    See Establishing PeopleSoft Purchasing Business Units.

  2. Select the Accrue Charge check box on the Misc Charge/Landed Cost Defn (miscellaneous charge or landed cost definition) page to accrue miscellaneous charges or landed cost charges.

    You cannot override this value on the purchase order; it flows to the receipt through the purchase order value adjustment.

    See Defining Miscellaneous Charges and Landed Costs.

  3. Select a journal template for receipt accrual on the Procurement Control - GL Templates page.

    Select the template that you want to use in the Receipt Accrual field. The standard template for receipt accrual is REC_ACCRUE.

    See Defining Procurement Controls for General Ledger Business Units.

  4. Select the journal source and journal date on the Journal Generator Template - Defaults page.

    When you set the journal source and date, you are ensuring that the accounting entries are reversed at the beginning of each subsequent period.

    See Using Journal Generator.

  5. Define the liability account for receipt accrual in the Expenses Accrual field on the Accounting Entry Template page.

    PeopleSoft Purchasing debits accrued receipt charges from the expense account designated on purchase order distributions. The alternate account designated on the Accounting Entry Template page applies only to the liability account defined here.

    See Creating Accounting Entry Templates.

  6. Select Do Not Generate Reversal as the reversal code on the Journal Generator Template REC_ACCRUE.

    The upgrade process should accomplish this step; you should not need to complete it independently of the upgrade.

  7. Open the Purchasing Definition on the Accounting Entry Definition page, and change the Record from RECV_LN_ACCTG to RECV_LNACCTG_VW.

    This record includes all receipt accruals that are budget-checked and ready to be journal generated. It excludes any receipt accrual with transactions that failed the budget process.

    The upgrade process should accomplish this step; you should not need to complete it independently of the upgrade.

  8. If any ChartFields are designated on the Detail Ledger Group - Chartfield page as Balanced, you need to select the Always Inherit rule for those ChartFields on the Chartfield Inheritance page.

  9. Set up ChartFields in the general ledger definition.

  10. Set up ChartFields for the accounting entry definition.

Click to jump to top of pageClick to jump to parent topicReceipt Accrual Implementation

Use the following process flow to use the Receipt Accrual process, the Entry Event Generator, and the Journal Generator process (FS_JGEN) to implement the receipt accrual business process:

  1. Run the Receipt Accrual process from the Accrue Receipts page.

    The Receipt Accrual process populates the RECV_LN_ACCTG table.

  2. If commitment control is enabled, budget-check the receipt accruals from the Budget Check Request page.

  3. Use the Receipt Accrual Accounting Entries to review Budget Exceptions and override them as necessary.

  4. If you are using entry events, run the Entry Event Generator process from the Entry Event Run Request page.

  5. Run the Journal Generator process from the Generate Journals Request page:

    1. On the Generate Journals Request page, select REC_ACCRUE in the Template field.

      The template that you select controls the accounting lines source and journal date.

      Note. Reversal entries are not generated because Do Not Generate Reversal was selected as the reversal code on the Journal Generator template REC_ACCRUE as part of the setup process.

    2. The Journal Generator process uses Receipt Accrual process entries in the RECV_LN_ACCTG_VW view as input to populate the PeopleSoft Journal Entry tables used by PeopleSoft General Ledger.

  6. After you've created the journal entries for PeopleSoft General Ledger with the Journal Generator process, use the Journal Drill Down inquiry page to view and navigate to the accounting entries or to navigate PeopleSoft General Ledger.

  7. Run the Receipt Accrual SQR Report process (PORC700) to review the totals for each expense account and the total accrued liability.

See Also

Accessing Receipt Accrual Journal Entries

Budget-Checking Receipt Accruals

Running the Receipt Accrual Process

Receipt Accrual Setup

PORC700 - Receipt Accrual

Using Entry Events

Running Journal Generator Processing

Click to jump to parent topicAccruing Receipts

This section discusses how to run the Receipt Accrual process.

Click to jump to top of pageClick to jump to parent topicPages Used to Accrue Receipts

Page Name

Definition Name

Navigation

Usage

Accrue Receipts

RCPT_RUN_CNTRL

Purchasing, Receipts, Accrue Receipts

Run the Receipt Accrual process.

Accrue Receipt

RUN_RECVACCR_OL

Purchasing, Receipts, Add/Update Receipts, Maintain Receipts - Receiving page

Click the Run PO Receipt Accrual button on the Maintain Receipts - Receiving page.

Run the Receipt Accrual process, the Miscellaneous Charges process, or both.

Click to jump to top of pageClick to jump to parent topicRunning the Receipt Accrual Process

Access the Accrue Receipts page (Purchasing, Receipts, Accrue Receipts).

Note. The reversal code of the Journal Generator template, REC_ACCRUE, must first be set to Do Not Generate Reversal on the Journal Generator Template - Defaults page.

If any ChartFields are designated on the Detail Ledger Group - Chartfield page as Balanced, you need to select the Always Inherit rule for those ChartFields on the Chartfield Inheritance page.

As of Date

Acctg Date (accounting date)

Select an accounting date to use for the period ending date. The current date appears by default. The system checks the accounting date against the open period date range specified on the Open Period Update page. Receipts dated after this accounting date do not accrue.

Process

All Business Units

Select this option to accrue qualifying receipts for all business units. If you select this processing option, the system validates that the accounting date is in an open period for all business units. If the validation fails for a business unit, the system creates an error message. You have to either correct the error before continuing the process or use the single business unit option.

Business Units

Select this option to accrue qualifying receipts for a specific business unit. If selected, enter a business unit in the Values group box.

Receiver

Select this option to accrue qualifying amounts for received items on a specific receipt. If selected, enter a business unit and receipt number in the Values group box.

Additional Setting

Default Entry Event Code

Select a default entry event.

For purchase order receipts with no entry event code on the purchase order distribution line, the value selected here populates the expense and accrual accounting lines, and the encumbrance line is blank.

If there is already an entry event code on the purchase order distribution line, it is not replaced by the value selected on this page, and the entry event code populates expense, accrual, and encumbrance accounting lines.

For non-purchase order receipts, the value selected here populates the expense and accrual accounting lines.

See Also

Using Entry Events

Running Journal Generator Processing

Using Interunit and Intraunit Accounting and ChartField Inheritance

Click to jump to parent topicPerforming Budget-Checking for Receipt Accruals

This section discusses how to budget-check receipt accruals.

Click to jump to top of pageClick to jump to parent topicPage Used to Perform Budget-Checking for Receipt Accruals

Page Name

Definition Name

Navigation

Usage

Budget Check

PO_KK_RACCHECK_REQ

Purchasing, Receipts, Budget Check

Perform budget-checking for receipt accruals by using the Comm. Cntrl. Budget Processor Application Engine process (FS_BP). This process is used to budget-check the expense and encumbrance reclassification transactions. You can choose to budget-check either type.

Click to jump to top of pageClick to jump to parent topicBudget-Checking Receipt Accruals

Access the Budget Check page (Purchasing, Receipts, Budget Check).

Budget-Check Request

Tran Type (transaction type)

Select the transaction type. Select from these source transactions:

PO_RAEXP (Receipt Accruals - Expense): Budget-check expense transactions and miscellaneous charges.

PO_RAENC (Receipt Accruals - Encumbrance): Budget-check encumbrance reclassifications and miscellaneous charges.

Process Frequency

Once

Select to run the request the next time the batch process runs. After the batch process runs, the process frequency is automatically set to Don't Run.

Always

Select to run the request every time the batch process runs.

Don't Run

Select to ignore the request when the batch process runs.

Process Options

Unit Option

The Receipt Option and Acctg Dt Optn criteria apply only to receipts that first meet the criteria defined here. Values are:

All: Budget-checks transaction type for all business units.

Value: Select to display the Unit field. Budget-checks transaction type for the business unit specified in the Unit field.

Receipt Option

Displays a receipt ID option. Values are:

All: Budget-checks all receipts.

Some: Select to display the From/To fields. Budget-checks all receipts that match the range specified in the From/To fields.

Value: Select to display the Receiver ID field. Budget-checks the receipt that matches the ID specified in the Receiver ID field.

Acctg Dt Optn (accounting date option)

Displays the accounting date option. Values are:

All: Budget-checks all receipt accruals.

Some: Displays the From/To fields. Budget-checks all receipt accruals for which budget dates fall within the dates specified in the From/To fields.

Value: Displays the Accounting Date field. Budget-checks receipt accruals for which budget dates match the date specified in the Accounting Date field.

See Also

Budget Checking Process

Click to jump to parent topicViewing Receipt Accrual Accounting Line Entries

This section discusses how to access receipt accrual accounting line entries.

If commitment control is enabled on the Installation Options - Products page, you can also view budget information and access the Commitment Control page from the Receipt Acctg Line page. Using the Commitment Control page you can view details about transactions such as, the source transaction type and the amount type for the journal, override budget-checking for the transaction, or run the Comm. Cntrl. Budget Processor process for the transaction.

Click to jump to top of pageClick to jump to parent topicPages Used to View Receipt Accrual Accounting Line Entries

Page Name

Definition Name

Navigation

Usage

Accrual Accounting Entry

RECV_LN_ACCTG_INQ

Purchasing, Receipts, Review Receipt Information, Accrual Accounting Entry

Access receipt accrual accounting entries.

Commitment Control

KK_EXCPTN_OVER_SEC

Click the Budget Options button on the Accrual Accounting Entry page.

View details about a commitment control transaction, such as the budget-checking status, the commitment control amount type, and commitment control transaction ID. You can also override budget-checking for the transaction or run the Comm. Cntrl. Budget Processor Application Engine process (FS_BP) for the transaction.

Click to jump to top of pageClick to jump to parent topicAccessing Receipt Accrual Accounting Entries

Access the Accrual Accounting Entry page (Purchasing, Receipts, Review Receipt Information, Accrual Accounting Entry).

Use the fields in the Search Criteria group box to filter transactions, and click the Search button to display the selections that match the search criteria in the Line Details group box.

Distribution Information

The following fields appear only if you enable commitment control for PeopleSoft Purchasing on the Installation Options - Products page:

Budget Date

Displays the budget date, which is the same as the accounting date for receipt accruals.

Budget Status

Displays the budget status. Values are: Error, Not Chk'd (not checked), or Valid.

Click the Budget Options button to access the Commitment Control page, where you can review transaction details and override budget-checking.

See Also

Setting Installation Options for PeopleSoft Applications

Understanding PeopleSoft ChartFields

Click to jump to parent topicViewing Receipt Accrual Journal Entries

The Receipt Accrual process loads receipt accrual data into staging tables for the Journal Generator process, which then creates journal entries based on the data.

This section discusses how to access receipt accrual journal entries.

Click to jump to top of pageClick to jump to parent topicPage Used to View Receipt Accrual Journal Entries

Page Name

Definition Name

Navigation

Usage

Journal Drill Down

PO_GL_DRILL

Purchasing, Receipts, Review Receipt Information, GL Journal Drill Down

View the PeopleSoft General Ledger or navigate to the PeopleSoft General Ledger accounting entries created by the Journal Generator process.

Click to jump to top of pageClick to jump to parent topicAccessing Receipt Accrual Journal Entries

Access the Journal Drill Down page (Purchasing, Receipts, Review Receipt Information, GL Journal Drill Down).

GL Journal (go to general ledger journal)

Click this link to access the Journal Lines inquiry page in PeopleSoft General Ledger.

Base Amount DR (base amount debit)

Displays the base debit amount for the journal, which is the amount expressed in the base currency. The base currency code also appears.

Base Amount CR (base amount credit)

Displays the base credit amount for the journal, which is the amount expressed in the base currency. The base currency code also appears.

Account Lines Tab

Acctg Date (accounting date)

Displays the journal accounting date, which designates the period ending date.

Other Amounts Tab

Select the Other Amounts tab.

Foreign DR Amt (foreign debit amount)

Displays the foreign debit amount for the associated receipt line, which is the amount expressed in the transaction currency. The transaction currency code also appears.

Foreign CR Amt (foreign credit amount)

Displays the foreign credit amount for the associated receipt line, which is the amount expressed in the transaction currency. The transaction currency code also appears.

Accounting Period Tab

Select the Accounting Period tab.

Distribution Line

Displays the distribution line number associated with the journal entry accounting period.