Receipt Accounting Tasks and Accounting Events

Use Receipt Accounting to:

• Create accruals for purchase order receipts that are expensed or shipped to inventory.

• Create accruals for intercompany trade flows.

• Create receipt inspection accounting for purchase order and interorganization receipt flows.

• Support budgetary control and encumbrance accounting

Receipt Accounting also has tools to help you reconcile the accrual clearing accounts as the accruals are offset by the accounts payable accounting when invoices are processed.

Receipt Accounting Tasks and Accounting Events

The following table describes the Receipt Accounting tasks and processes to support receipt, inventory, and manufacturing accounting, and the sequence in which the tasks should be executed.

Task	Navigation	Resulting Events
Transfer receipt transactions and tax determinants from Receiving to Receipt Accounting.	Scheduled Processes work area > Schedule New Process > Transfer Transactions from Receiving to Costing	All receiving transactions are transferred from the Receiving application to the Receipt Accounting application, along with the tax determinants and related information that's present on receipts. Receipt transactions are then ready in the Receipt Accounting application for further processing.
Transfer accounts payable transactions from Payables to Receipt Accounting.	Scheduled Processes work area > Schedule New Process > Transfer Costs to Cost Management	All payable invoices that are accounted are transferred from the Accounts Payable application to the Receipt Accounting application. Payable Invoices are then ready in the Receipt Accounting application for further processing.
Create accounting distributions for receipts of accrue at receipt purchase orders.	Receipt Accounting Work Area > Create Receipt Accounting Distributions	Accruals for all types of purchases Accrual accounting distributions at the time of receipt or return of goods and services Trade accrual distributions for global procurement, interorganization transfers, and cross-business unit shipments to customers Accounting distributions for expense destination deliveries of purchases marked for accrual at receipt. These purchases are typically for services procurement, one-time item purchases, and expense usage purchases. Accounting distributions for invoice variances for IPV, ERV, TRV, TERV, and TIPV Staging of variances into receiving inspection for subsequent wash by the inventory and expense revaluation processes Accounting distributions for inventory and expense revaluations Tax amounts are recalculated for all receipt transactions. Taxes are calculated by calling the Tax application programming interface. Tax accounting distributions Budgetary control and encumbrance accounting. You can enable and perform budgetary control, encumbrance accounting, or both. Budgetary control and encumbrance accounting are optional tasks, and are enabled in Financials.
Create period end uninvoiced receipt accruals.	Receipt Accounting work area > Create Uninvoiced Receipt Accruals	Provisional expense accruals for purchases not marked for accrual at receipt
Create subledger accounting.	Receipt Accounting work area > Create Accounting	Journal entries for receipt accounting distributions
Review accrual distributions and tax calculations.	Receipt Accounting work area > Review Receipt Accounting Distributions	Review accrual distributions and tax calculations.
Clear receipt accruals.	Receipt Accounting work area > Clear Receipt Accrual Balances	Automatic clearing of accrual balances based on predefined rules Staging of information for revaluation of inventory and expenses by cost accounting and receipt accounting processes
Generate and view reconciliation reports.	Scheduled Processes work area > Schedule New Process > Accrual Reconciliation report Scheduled Processes work area > Scheduled Processes > Accrual Clearing report	Accrual Reconciliation report Accrual Clearing report
Create receipt accounting distributions.	Receipt Accounting work area > Create Receipt Accounting Distributions	Accounting distributions for cleared accrual balances Revaluation and expense adjustment entries for invoice variances or accrual clearing events that modify acquisition costs for purchases
Review uncleared accrual balances and perform adjustments.	Receipt Accounting work area > Adjust Receipt Accrual Balances	Staging for manual intervention for exceptions of high material value Manual accrual clearing Manual adjustments and reversals of prior accrual clearing adjustments Automatic creation of accounting distributions for these adjustments
Match purchase order receipt accruals with invoices from payables.	Receipt Accounting work area > Match Receipt Accruals	Manual reconciliation of accrual balances Review and audit accrual balances that were final accounted.
Review accrual clearing balances.	Receipt Accounting work area > Audit Receipt Accrual Clearing Balances	Audit the General Ledger accounted accrual balances on a periodic basis.