Expense at Voucher Match
In a commercial, cost-reimbursable, project-related environment, the assumption is that an expense is included on the next invoice to the client as soon as an expense is posted to the project. 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 posts the amounts to the expense accounts on the purchase order.
If Expense At Voucher 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 monetary 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.
When you perform two- or three-way match, you use purchase order receipts to perform a physical receipt of the service line or item on the order. The PO Receipts program does not update the expense or received not vouchered (RNV) accounts.
The Expense At Voucher option is not related to the Procurement Receipt Required option. If Expense At Voucher is selected and Procurement Receipt Required is cleared on the Line Type Constants Revisions form, then you may or may not create a receipt. If the receipt process is performed, then expensing is postponed until voucher match. Thus, receipts do not create any journal entries. If the receipt process is not performed, then the standard two-way voucher match occurs.
After you receive the invoice from the supplier, you perform voucher match, which updates the expense and AP Trade accounts. The system does not create an RNV entry (AAI 4320) for this line during voucher match. The system performs commitment relief as well as the following calculations:
(Expense) = (Debit Receipt Amount)
(Variance (or Expense)) = (Debit Variance Amount)
(AP Trade) = (Voucher Amount)
When you are performing voucher match on a purchase order line, the receipt amount is booked to the expense account. Based on the Voucher Match Variance Account setting in Line Type Constants, the variance (if any) is booked either to the expense accounts on the purchase order or to the variance accounts (AAIs 4330 and 4340). The AP Trade account is credited with the voucher amount.
When landed cost is enabled during the purchase order receipt process, landed cost writes general ledger records. The use of service units for A/P matching does not change the landed cost functionality.
See Order Line Types.