Understanding the CM/AP Reconciliation Tool Set
Purchase order receipts to inventory can yield many inventory putaways. Each inventory putaway can yield many accounting entries, which generally debit an inventory asset account and credit the accrued liability account as specified on the purchase order receipt.
On the PeopleSoft Payables side, vouchers are entered to set up payment for supplier invoices. Each purchase order receipt to inventory can yield many vouchers from many suppliers for the material and its landed cost charges. Each of those vouchers generally triggers a debit to accrued liability (as specified on the purchase order receipt) and a credit to accounts payable.
The CM/AP Reconciliation tool set helps with the task of ensuring that for each purchase order receipt, the entries to accrued liability from PeopleSoft Cost Management are reconciled with the entries from PeopleSoft Payables. These entries should offset, netting to zero. In practice, there are a number of situations where the accounting entries from the two sources do not offset:
Receipts are not yet put away.
Putaways and adjustments are not costed.
Putaways and adjustments are costed but accounting entries are not yet created.
Putaways and adjustments are costed and accounting entries are created, but are not picked up by the Journal Generator.
Receipts are not vouchered.
Receipts are vouchered but are not posted to voucher accounting lines.
Wait for final cost is in effect (select the Hold for Final Cost check box on the cost profile so that no costing of transactions occurs until the voucher is matched) if you run in midperiod mode (to minimize adjustments). In regular mode, the purchase order amounts post if the voucher is not yet processed.
Voucher amounts are different than the purchase order receipt amounts, and those matched cost adjustments are not yet processed through PeopleSoft Cost Management and passed on to the general ledger.
User-created journal entry to manually account for a difference.