This
document is designed to provide clarifications about the receipt accruals and
the common best practices to manage these accruals in fusion.
Receipt
Accounting plays a critical role in bridging the gap between Procurement,
Payables, and the General Ledger (GL). Whenever goods or services are received
with inventory or expense destinations, the accrual entries are generated to
recognize the liability even before the supplier invoice arrives.
Match
Receipt Accruals
•
Processing
"Match Receipt Accruals" with appropriate parameters [especially
Business Unit, "From Date" and "To Date"] is a
pre-requisite for "Accrual Reconciliation Report".
•
Ensure
that Match Receipt Accruals is executed with correct date parameters.
•
The
date range passed as parameter running the match receipt accrual process, will
be used to consider all the receipt accounting events accounted during this
range and system then identify the corresponding invoices, Receipts and POs
data to perform the matching.
Accrual
Reconciliation Report
•
Run
the “Accrual Reconciliation Report” with correct date parameters especially in
To Transaction Date.
•
The
transaction date here means the accounting date.
•
Ensure
that all the GRNs are done within the same period of actual receipts of the
goods and AP invoices are matched with GRNs.
•
Important
Point is that the amounts you see in GL balances is the actual representation
of the accruals if all the transactions are final accounted in receipt
accounting and payables.
•
The
Accrual Reconciliation Report data is driven by specific input parameters which
we enter while executing the report. Hence, we need to be very cautious with
reference to these parameters so that we generate the correct report output
that matches the GL balances.
Few Important Points:
1. Ensure
that Match Accrual Process is always up to date.
2. The
account combination used for Accruals should not have been mapped to any
other event/accounting class
3. There
should not have been any manual journals for the accrual accounts -
which will not be part of Accrual Reconciliation report
4. The
parameters used for the reports should be appropriate [ex: Date/Period, etc.]
5. Clear
the negligible accruals which are within the tolerance limits like -10 To 10.
6. This
can be done manually or creating the rules for automatic clearing.
7. Such
accruals clearing will help to ensure that the Accrual Reconciliation Report
output is not overloaded with unnecessary details, and we see critical
records in the report output that needs our immediate attention.
