Considerations for Accrual Settings

The key policy decision that you need to make for receipt accounting is whether or not you want to accrue at receipt.

This table outlines the points to consider for each accrual option.

Accrual Setting	Points to Consider
Accrue at Receipt	Purchases are accrued at receipt. An accrued liability account is credited when the goods are received. Optional for expense destination purchases, and mandatory for inventory purchases. More accounting and more reconciliation than when accruing at period end. The receipt accounting application provides tools to help reconcile the accrued liability clearing account. Accounting is more timely than when accruing at period end.
Accrue at Period End	The accounts payable account is credited when the supplier invoice is processed in accounts payable. Receipt accounting has a function to accrue uninvoiced receipts at period end. Less accounting and less reconciliation than when accruing at receipt. Accounting may be less timely than when accrued at receipt, but will be accrued by period end.

The accrual options are configured in the Procurement offering. For more information on configuring the accrual options, see the related topics section.