Understanding Payables Accrual Entries

This section discusses:

Commitment Control entries for accruals.

If budget checking is enabled at the Installation Options level for payables and on the Procurement Options page for period end accruals, create the expense and encumbrance reversal entries as needed. The high level rules are:

  • If the voucher is created from a PO, and the voucher has not been budget checked, create an encumbrance relief and encumbrance relief reversal entry. The encumbrance entries will derive their ChartField values from the commitment control activity log entry for the PO. Create an expense and an expense reversal entry.

  • If the voucher is created from a PO, and the voucher has been budget checked, do not create commitment control expense and encumbrance entries.

  • If the voucher has not been created from a PO, and the voucher has been budget checked, do not create the commitment control expense entries.

  • If the voucher has not been created from a PO, and the voucher has not been budget checked, create the commitment control expense and expense reversal entries.

Encumbrance Relief

The voucher, originating from a PO, will have an encumbrance entry in the commitment control activity record. The chartfield information found on the commitment control activity log for the encumbrance will be used to create the encumbrance relief entry.

Accounting entry rules:

  • The accounting entry type or DST_ACCT_TYPE will be set to ENR.

  • This accounting entry will not be journal generated to the General Ledger.

  • The accounting date will be set to the accounting date on the run control record.

  • The accounting entry will include the required fields to perform budget checking.

  • The budget date will be determined by the Default Budget Date option in commitment control installation options.

    The options are Accounting Date Default or Predecessor Document Date Default. Where Accounting Date default has been setup, use the accounting date on the run control. For Predecessor Document Date Default use the Budget Date on the PO. The budget date is found on the PO distribution line.

Encumbrance Relief Reversal

The encumbrance relief reversal will be a copy of the encumbrance relief with the following exceptions:

  • The amounts will be reversed.

  • Accounting date will be derived by taking the accounting date from the run control, find the period that the run control falls in and then get the first day of the next period for the general ledger business unit default ledger.

  • Budget date will be the same as the encumbrance relief entry.

  • The accounting period will be the accounting period where the derived accounting date falls.

See Accounting Entries for Period End Accruals.