Clear Receipt Accrual Balances

Use the Clear Receipt Accrual Balances process to automatically clear receipt accruals based on the rules defined in Manage Accrual Clearing Rules.

The receipt accrual account is credited by Receipt Accounting when purchase orders set to accrue at receipt are received and the same receipt accrual account is debited when Accounts Payable processes a supplier invoice. Ideally, the credit for the estimated monetary amounts for receipts is offset by the debits created by Accounts Payable for the invoice amount plus invoice price variances. A balance in a receipt accrual account can occur when the accounts payable invoice quantity is different than the receipt quantity, pre-payments, partial receipts of match to PO purchase orders, and purchase orders received but not yet invoiced.

Some balances in the receipt accrual account represent a legitimate liability that must appear on the financial statements, while other balances could require manual clearing. For example, a receipt of 99lbs and an accounts payable invoice processed as 100lbs leaves a balance in the accrual account for the estimated cost of the 1lb remainder. In this situation, the system is in an ambiguous state waiting for you to provide instructions. You may resolve the remainder in several ways:

• Correct the receipt quantity

• Process additional accounts payable invoices for the remaining quantity

• Use Match Receipt Accrual to submit a clearing entry

• Use Manage Accrual Clearing Rules to define when to automatically clear accrual remainders when the differences are insignificant enough that human investigation is unnecessary. You can use the Clear Receipt Accrual Balances process to automatically apply the clearing rules you defined and generate the accounting distributions to clear receipt accrual balances.

When to Use

You are encouraged to run this process on a daily cadence, sometimes more than once per day, depending on the volume of transactions. Staying current with the receipt accrual clearing accounts will avoid a buildup of unexplained balances or period end surprises.

Privileges Required

• Match Receipt Accruals (CMR_MATCH_RECEIPT_ACCRUALS)

Specifications

Review the following before setting up this process:

Specification	Description
Job Type	Ad hoc job. Scheduled.
Frequency	You are encouraged to schedule the process to run at least once per day.
Time of Day	Any time. You may choose a time of day, such as at the end of the workday, prior to a new workday, after the end of shifts, after peak transaction activity, or after batches of supplier invoices are processed through to accounting in accounts payable.
Duration	Runtime of this process will vary based on the number of receipt and accounts payable invoice transactions.
Compatibility	There are no incompatibilities.

The clear receipt accrual task is part of a holistic process flow which includes:

• Purchase order creation, change orders.

• Receiving

• Accounts payable

• Transfer transactions from Receiving to Costing

• Transfer Costs to Cost Management

• Match Receipt Accruals

• Receipt accounting accrual clearing and reconciliation

• Create Receipt Accounting Distributions

• Create Accounting

You can create process sets to ensure all transactions from source systems are interfaced to Costing before running this process.

Parameters

Parameter	Optional or Required	Description	Parameter Value	Special Combinations Required	Notes
Bill to Business Unit	Required	You can run this process for a specific business unit or for all business units. If you don't have data access to the selected business unit, the process ends with a Warning status. If you schedule the process without selecting a Bill to Business Unit, the application intelligently processes the data for only those profit center business units of the Bill to Business Unit to which you have data access.	Bill to Business Unit Name	N/A	N/A

Troubleshooting Information

• You can view the status of the process in the Scheduled Processes work area.

• Error and warning messages encountered while running the process are displayed in the process log file.

• When the process is submitted, you can Resubmit, Put on Hold, Cancel Process, Release Process as provided by the Scheduled Processes work area.

• To run the process, you must have data access to the appropriate Business Unit and Inventory Organizations.

• For best results be sure to perform all the upstream and downstream tasks as noted in the Specifications section.

• Accounts payable invoices must be successfully accounted before the information is transferred to Costing.