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How to Setup, Use and Balance How to Setup, Use and Balance
Your A/P Accrual AccountsYour A/P Accrual Accounts
Douglas A. Volz Douglas A. Volz
KPMG
June 1998
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Update for May 2007 Update for May 2007 In Release 1 2 there are sig n ifican t e n ha n ceme n ts:In Release 1 2 there are sig n ifican t e n ha n ceme n ts:
y ou fi n all y have the abilit y to do mass A/P accrual writey ou fi n all y have the abilit y to do mass A/P accrual write- -offsoffsthe sta n dard Accrual Reco n ciliation Report will ha n dle bla nk et the sta n dard Accrual Reco n ciliation Report will ha n dle bla nk et
purchase orders purchase orders
Prior to Release 1 2 the A/P accruals desig n a n d features isPrior to Release 1 2 the A/P accruals desig n a n d features isesse n tiall y un cha n ged si n ce 1990, whe n first desig n ed b y Doug esse n tiall y un cha n ged si n ce 1990, whe n first desig n ed b y Doug Volz for Release 9 a n d subseque n tl y upgraded for Release 10.Volz for Release 9 a n d subseque n tl y upgraded for Release 10.
Doug Volz wrote this prese n tatio n while at Price Waterhouse, i n Doug Volz wrote this prese n tatio n while at Price Waterhouse, i n 1996.1996.
Doug has helped clie n ts with A/P Accruals si n ce 1996, starti n g Doug has helped clie n ts with A/P Accruals si n ce 1996, starti n g with Cisco S y stems, a n d eve n i n Release 11i, co n ti n ues towith Cisco S y stems, a n d eve n i n Release 11i, co n ti n ues toassist clie n ts with similar issues.assist clie n ts with similar issues.
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I ntroduction I ntroduction
Lear n about the Oracle Release 10 Lear n about the Oracle Release 10 accrual processesaccrual processes
Fi n d out wh y these accrual processesFi n d out wh y these accrual processesare so importa n t are so importa n t How ma n y of y ou have difficulties withHow ma n y of y ou have difficulties with
y our accrual processes?y our accrual processes?Solve curre n t problems y ou ma y haveSolve curre n t problems y ou ma y have
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Agenda Agenda
Why are these accrual processes soWhy are these accrual processes soimporta n t?importa n t?
What are these accrual accou n ts?What are these accrual accou n ts?Periodic vs perpetual accrualsPeriodic vs perpetual accrualsBasic accou n ti n g e n tries for the A/P Basic accou n ti n g e n tries for the A/P accrualsaccrualsSetup steps for the accrual processesSetup steps for the accrual processesUsi n g the Accrual Reco n ciliation Report Usi n g the Accrual Reco n ciliation Report
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Agenda Agenda
Usi n g the expe n se accrual processesUsi n g the expe n se accrual processesT y pical problems a n d issues withT y pical problems a n d issues withaccrualsaccrualsI mpleme n tatio n a n d co n versio n issuesI mpleme n tatio n a n d co n versio n issuesCurre n t bug fixesCurre n t bug fixesE n ha n ceme n ts to co n sider E n ha n ceme n ts to co n sider Co n clusio n sCo n clusio n s
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Wh y Are T h ese Accrual Wh y Are T h ese Accrual Processes so Im portant? Processes so Im portant?
Valuable i n tegratio n co n trol Valuable i n tegratio n co n trol Mon itors accurac y of receivi n g a n d Mon itors accurac y of receivi n g a n d
pa y ables processes pa y ables processesProvides a vital barometer over theseProvides a vital barometer over theseactivitiesactivities
Helps to e n sure accurate i n ve n tor y Helps to e n sure accurate i n ve n tor y cou n tscou n ts
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Wh at Are T h eseWh at Are T h ese Accrual Accounts? Accrual Accounts?
Pri n ciple of accrual accou n ti n g Pri n ciple of accrual accou n ti n g
Timi n g differe n ce betwee n receivi n g Timi n g differe n ce betwee n receivi n g a n d i n voici n g a n d i n voici n g
Represe n ts the accrued liabilit y fromReprese n ts the accrued liabilit y fromy our ve n dorsy our ve n dors
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Periodic Versus Periodic Versus Perpetual Accruals Perpetual Accruals
Periodic accruals occurs at mo n thPeriodic accruals occurs at mo n th--e n d e n d
With computers came perpetual With computers came perpetual accrualsaccruals
Perpetual accruals e n sure that valued Perpetual accruals e n sure that valued qua n tities equals accou n ti n g e n triesqua n tities equals accou n ti n g e n tries
Don t accrue expe n ses upo n receipt Don t accrue expe n ses upo n receipt
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Wh y Not Use Perpetual Wh y Not Use Perpetual Accruals for Expenses? Accruals for Expenses?
Receivi n g i n spectio n the n i n cludes bothReceivi n g i n spectio n the n i n cludes bothassets a n d expe n sesassets a n d expe n ses
Have to reclass bala n cesHave to reclass bala n cesDouble the accrual e n tries that y ouDouble the accrual e n tries that y oun eed to reco n cilen eed to reco n cile
Sig n ifican tl y more e n tries to review,Sig n ifican tl y more e n tries to review,research, a n d correct research, a n d correct In creased ru n time for the Accrual In creased ru n time for the Accrual
Reco n ciliation Report Reco n ciliation Report
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Background I nfor m ation Background I nfor m ation for A/P Accruals for A/P Accruals
May have multiple li n es per POMay have multiple li n es per PO
May have multiple PO distributio n s per May have multiple PO distributio n s per li n eli n e
Four stored accou n ts per POFour stored accou n ts per POdistributio ndistributio n
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More Background I nfor m ation More Background I nfor m ation
Charge Accou n t Charge Accou n t
Accrual Accou n t Accrual Accou n t
Varia n ce ( I PV) Accou n t Varia n ce ( I PV) Accou n t
Budget Accou n t Budget Accou n t
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Accrual Accounting Entries Accrual Accounting Entries
Purchase order receipt Purchase order receipt In voice matchIn voice matchRetur n to ve n dor Retur n to ve n dor In voice correctio nIn voice correctio n
Receipt deliver y Receipt deliver y Expe n se accrual Expe n se accrual
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Accounting Entries Accounting Entries for a PO Receipt for a PO Receipt
Receive o n e item @ $100 PO u n it priceReceive o n e item @ $100 PO u n it price
Accou n t Accou n t Debit Debit Credit Credit Receivi n g Accou n t Receivi n g Accou n t 100 100
A/P Accrual Accou n t A/P Accrual Accou n t 100 100
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Accounting Entries Accounting Entries for an I nvoice Matc h for an I nvoice Matc h
Same item, $ 8 0 i n voice u n it price, $100 Same item, $ 8 0 i n voice u n it price, $100 PO u n it pricePO u n it price
Accou n t Accou n t Debit Debit Credit Credit A/P Accrual Accou n t A/P Accrual Accou n t 100 100
A/P Trade Pa y ables A/P Trade Pa y ables 8 0 8 0 In voice Price Varia n ceIn voice Price Varia n ce 2 0 2 0
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Accounting Entries Accounting Entries for a PO Return to Vendor for a PO Return to Vendor
Same item, $100 PO u n it priceSame item, $100 PO u n it price
Accou n t Accou n t Debit Debit Credit Credit A/P Accrual Accou n t A/P Accrual Accou n t 100 100
Receivi n g Accou n t Receivi n g Accou n t 100 100
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Accounting Entries Accounting Entries for an I nvoice Correction for an I nvoice Correction
Same item, $ 8 0 i n voice u n it priceSame item, $ 8 0 i n voice u n it price
Accou n t Accou n t Debit Debit Credit Credit New Charge Accou n t New Charge Accou n t 8 0 8 0
Old Charge Accou n t Old Charge Accou n t 8 0 8 0
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CautionCaution
Y ou ca nn ot cha n ge a n i n voiceY ou ca nn ot cha n ge a n i n voicedistributio n from the A/P Accrual distributio n from the A/P Accrual
Accou n t to a n other accou n t Accou n t to a n other accou n t
However, y our A/P staff ca n code theHowever, y our A/P staff ca n code the
i n voice to the A/P Accrual Accou n t by i n voice to the A/P Accrual Accou n t by mista k emista k e
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Accounting Entries Accounting Entries for Receipt Deliveries for Receipt Deliveries
Accou n t Accou n t Debit Debit Credit Credit Delivery to stock inventory Delivery to stock inventory Subi n ve n tor y Accou n t Subi n ve n tor y Accou n t XXX XXX
Receivi n g Accou n t Receivi n g Accou n t XXX XXX
Delivery to WIP inventory Delivery to WIP inventory Job OSP Accou n t Job OSP Accou n t XXX XXX
Receivi n g Accou n t Receivi n g Accou n t XXX XXX
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Mont h Mont h-- End Period Accruals End Period Accruals
For expe n ses o n l y For expe n ses o n l y
Accou n t Accou n t Debit Debit Credit Credit Charge Accou n t Charge Accou n t XXX XXX
Expe n se A/P Accrual Accou n t Expe n se A/P Accrual Accou n t XXX XXX
In Oracle Ge n eral Ledger, reverse theIn Oracle Ge n eral Ledger, reverse theaccrual e n tr y i n the followi n g mo n thaccrual e n tr y i n the followi n g mo n th
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Wh ere You SetupWh ere You Setupt h e Accrual Processest h e Accrual Processes
Setup i n Oracle Purchasi n g Setup i n Oracle Purchasi n g
Setup i n Oracle In ve n tor y Setup i n Oracle In ve n tor y
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Setup in Oracle Purc h asing Setup in Oracle Purc h asing
Use the Defi n e Purchasi n g Optio n sUse the Defi n e Purchasi n g Optio n sFormForm
Set Accrue Expe n se I tems toSet Accrue Expe n se I tems to Period Period End End Set the Expe n se A/P Accrual Accou n t Set the Expe n se A/P Accrual Accou n t
Use the Defi n e Receivi n g Optio n s formUse the Defi n e Receivi n g Optio n s formSet the Receivi n g Accou n t for eachSet the Receivi n g Accou n t for each
i n
ven
tor y organ
ization
i n
ven
tor y organ
ization
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Wh en Defining Purc h ase OrdersWh en Defining Purc h ase Orders
Never ma n uall y set the Accrue o n Never ma n uall y set the Accrue o n Receipt Flag Receipt Flag
For expe n se desti n atio n s, the flag For expe n se desti n atio n s, the flag should beshould be N oN o
For i n ve n tor y a n d shop floor (OSP)For i n ve n tor y a n d shop floor (OSP)desti n atio n s, the field should bedesti n atio n s, the field should be Y esY es
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Setup in Oracle I nventorySetup in Oracle I nventory
Use the Defi n e Orga n izatio n Use the Defi n e Orga n izatio n Parameters FormParameters Form
Set the In ve n tor y A/P Accrual Set the In ve n tor y A/P Accrual Accou n t Accou n t
Use the same In ve n tor y A/P Accrual Use the same In ve n tor y A/P Accrual Accou n t for all orga n izatio n s Accou n t for all orga n izatio n s
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CautionCaution
Use separate accou n ts for each t y pe of Use separate accou n ts for each t y pe of s y stem accou n t:s y stem accou n t:
Expe n se A/P Accrual Accou n t Expe n se A/P Accrual Accou n t In ve n tor y A/P Accrual Accou n t In ve n tor y A/P Accrual Accou n t Receivi n g Accou n t(s)Receivi n g Accou n t(s)Expe n se Purchase Order ChargeExpe n se Purchase Order Charge
Accou n ts Accou n tsOther i n ve n tor y , W I P a n d priceOther i n ve n tor y , W I P a n d price
varia n ce accou n tsvaria n ce accou n ts
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CautionCaution
Release 10. 7 SmartClie n t/NCA has aRelease 10. 7 SmartClie n t/NCA has ai n correct field n ame for the receivi n g i n correct field n ame for the receivi n g
optio n s:optio n s:In character it is the Receivi n g In character it is the Receivi n g
Accou n t, but the GU I scree n s Accou n t, but the GU I scree n s
i n
correctl y used Receivi n
g Accrual i n
correctl y used Receivi n
g Accrual Accou n t Accou n t E n ter y our receivi n g valuatio n E n ter y our receivi n g valuatio n accou n t, a n asset accou n t! accou n t, a n asset accou n t!
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CautionCaution
Release 10. 7 SmartClie n t/NCA has aRelease 10. 7 SmartClie n t/NCA has ai n correct field n ame for the receivi n g i n correct field n ame for the receivi n g
optio n s, co n ti n ued:optio n s, co n ti n ued:Usi n g the In ve n tor y A/P Accrual Usi n g the In ve n tor y A/P Accrual
Accou n t for the Receivi n g Accrual Accou n t for the Receivi n g Accrual
Accoun
t will completel y i n
validate Accoun
t will completel y i n
validatey our receivi n g accou n ti n g results, a n d y our receivi n g accou n ti n g results, a n d ma k e the Accrual Reco n ciliation ma k e the Accrual Reco n ciliation Report completel y un usable!! Report completel y un usable!!
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Purpose for t h e Accrual Purpose for t h e Accrual Reconciliation Report Reconciliation Report
Report all perpetual accrual accou n t Report all perpetual accrual accou n t tra n sactio n stra n sactio n s
Provide a subsidiar y ledger for theProvide a subsidiar y ledger for thege n eral ledger bala n cesge n eral ledger bala n ces
Provide a tool to ma n age the perpetual Provide a tool to ma n age the perpetual accrual accou n t accrual accou n t
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Background I nfor m ation Background I nfor m ation
Two wa y s to ru n it Two wa y s to ru n it With rebuildi n g the temporar y tableWith rebuildi n g the temporar y tableReporti n g existi n g i n formatio n i n theReporti n g existi n g i n formatio n i n thetemporar y tabletemporar y table
Need perpetual accruals to ru n it Need perpetual accruals to ru n it All amou n ts reported i n base curre n c y All amou n ts reported i n base curre n c y Multiple orga n izatio n s reported Multiple orga n izatio n s reported Note: this report uses 1 8 0 colum n sNote: this report uses 1 8 0 colum n s
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How t h e Accrual Rebuild W orks How t h e Accrual Rebuild W orks
Determi n es the i n stall statusDetermi n es the i n stall statusSelect valid accrual accou n tsSelect valid accrual accou n tsFi n ds all accrual e n tries a n d i n sertsFi n ds all accrual e n tries a n d i n sertsi n to a temporar y tablei n to a temporar y tableMatches i n voices to receiptsMatches i n voices to receiptsDetermi n es the writeDetermi n es the write- -off co n ditionoff co n ditionCalculates PO li n e co n trol totalsCalculates PO li n e co n trol totalsCalculates I PV for Release 9 e n triesCalculates I PV for Release 9 e n triesPri n ts the re ort Pri n ts the re ort
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Major Accrual Reconciliation Major Accrual Reconciliation Report Colu m ns Report Colu m ns
Accrual Tra n sactio n Colum n Accrual Tra n sactio n Colum n
Tra n sactio n Amou n t Colum nTra n sactio n Amou n t Colum n
In voice Price Varia n ceIn voice Price Varia n ce
Net Accrual Bala n ceNet Accrual Bala n ce
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Payables Accrual Transactions Payables Accrual Transactions
A/P Li n e Match A/P Li n e Match A/P PO Match A/P PO Match
A/P I tem Match A/P I tem Match A/P No Match A/P No Match A/P No I tem A/P No I tem A/P No PO A/P No POIn voice Price Varia n ceIn voice Price Varia n ceExcha n ge Rate Varia n ceExcha n ge Rate Varia n ce
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Purc h asing Purc h asing Accrual Transactions Accrual Transactions
Oracle Purchasi n g tra n sactio n sOracle Purchasi n g tra n sactio n sReceiveReceiveDeliver Deliver MatchMatchRetur n to Ve n dor Retur n to Ve n dor
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Ot h er Accrual TransactionsOt h er Accrual Transactions
Oracle In ve n tor y tra n sactio n sOracle In ve n tor y tra n sactio n sRelease 9 PO receipts or retur n sRelease 9 PO receipts or retur n s
An y other accrual accou n t tra n sactio n An y other accrual accou n t tra n sactio n
Oracle Wor k i n Process tra n sactio n sOracle Wor k i n Process tra n sactio n s
Release 9 outside processi n g Release 9 outside processi n g receipts or retur n sreceipts or retur n s
An y other accrual accou n t tra n sactio n An y other accrual accou n t tra n sactio n
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Transaction A m ount Colu m nTransaction A m ount Colu m n
The debit or credit from the subledger The debit or credit from the subledger
I f n o e n tries are scree n ed out, the report I f n o e n tries are scree n ed out, the report total equals y our subledgerstotal equals y our subledgers
However, y ou usuall y use the Report However, y ou usuall y use the Report Summar y by Source a n d Accrual Summar y by Source a n d Accrual Tra n sactio n to tie bac k to y our Tra n sactio n to tie bac k to y our subledgerssubledgers
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I nvoice Price Variance Colu m n I nvoice Price Variance Colu m n
Primaril y for reporti n g Release 9 I PV Primaril y for reporti n g Release 9 I PV
Also reports i n correct tra n sactio n s, such Also reports i n correct tra n sactio n s, suchas:as:
A/P No PO A/P No PO
A/P No I tem A/P No I temR10 In voice Price Varia n ceR10 In voice Price Varia n ceR10 Excha n ge Rate Varia n ceR10 Excha n ge Rate Varia n ce
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Net Accrual Balance Colu m n Net Accrual Balance Colu m n
Equals the Tra n sactio n Amou n t less theEquals the Tra n sactio n Amou n t less theIn voice Price Varia n ce colum nIn voice Price Varia n ce colum n
This colum n is a carr y over fromThis colum n is a carr y over fromRelease 9Release 9
I f Release 9 was n ot used, ig n ore thisI f Release 9 was n ot used, ig n ore thiscolum ncolum n
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Accrual Reconciliation Report Accrual Reconciliation Report Screening Para m etersScreening Para m eters
New R10.6.1 scree n i n g parametersNew R10.6.1 scree n i n g parametersIn clude All Tra n sactio n sIn clude All Tra n sactio n sTra n sactio n Amou n t Tolera n ceTra n sactio n Amou n t Tolera n ceTra n sactio n Qua n tit y Tolera n ceTra n sactio n Qua n tit y Tolera n ce
Other scree n i n g parametersOther scree n i n g parametersIn clude Writte n Off Tra n sactio n s,In clude Writte n Off Tra n sactio n s,
Agi n g Number of Da y s Agi n g Number of Da y sI tem Ve n dor a n d G/ L Date ra n esI tem Ve n dor a n d G/ L Date ra n es
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I nclude All Transactions I nclude All Transactions
Y esY es disables the Tra n sactio n Amou n t disables the Tra n sactio n Amou n t a n d Tra n sactio n Qua n tit y parametersa n d Tra n sactio n Qua n tit y parameters
N oN o e n ables the Tra n sactio n Amou n t e n ables the Tra n sactio n Amou n t a n d Tra n sactio n Qua n tit y parametersa n d Tra n sactio n Qua n tit y parameters
Replaces the In clude Zero Bala n ceReplaces the In clude Zero Bala n ceSubtotals parameter Subtotals parameter
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Transaction A m ount and Transaction A m ount and Quantity Tolerance Para m etersQuantity Tolerance Para m eters
Used to limit reported i n formatio nUsed to limit reported i n formatio n
Y ou ca n n ow scree n out small PO li n eY ou ca n n ow scree n out small PO li n ediffere n cesdiffere n ces
Both parameters have to be met Both parameters have to be met
Specif y absolute amou n t a n d qua n tit y Specif y absolute amou n t a n d qua n tit y
tolera n cestolera n ces
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Para m eter Exa m ple Para m eter Exa m ple
Report parameters set to:Report parameters set to:In clude all tra n sactio n s set toIn clude all tra n sactio n s set to N oN oTra n sactio n Amou n t parameter = 2 5 Tra n sactio n Amou n t parameter = 2 5 Tra n sactio n Qua n tit y parameter = 3Tra n sactio n Qua n tit y parameter = 3
For a give n PO li n e o n the report:For a give n PO li n e o n the report:PO li n e n et amou n t = 2 5 PO li n e n et amou n t = 2 5 PO li n e n et qua n tit y = 5 PO li n e n et qua n tit y = 5
This purchase order li n e would still This purchase order li n e would still a ear o n the Re ort a ear o n the Re ort
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Process Proble m s for Receiving Process Proble m s for Receiving
Why receipts do n ot equal i n voicesWhy receipts do n ot equal i n voicesWro n g receipt qua n titiesWro n g receipt qua n titiesReceivi n g goods to the wro n g PO li n eReceivi n g goods to the wro n g PO li n eor POor POTr y i n g to receive or retur n goodsTr y i n g to receive or retur n goods
usi n g miscella n eous i n ve n tor y usi n g miscella n eous i n ve n tor y tra n sactio n stra n sactio n sRouti n e over receipts with correct Routi n e over receipts with correct
i n voice qua n titiesi n voice qua n tities
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Process Proble m s for Payables Process Proble m s for Payables
Why i n voices do n ot equal receiptsWhy i n voices do n ot equal receiptsIn correct i n voice qua n titiesIn correct i n voice qua n titiesPa y ables n ot processi n g debit Pa y ables n ot processi n g debit memos correctl y memos correctl y Expe n ses, i n voice price or excha n geExpe n ses, i n voice price or excha n ge
rate varia n ces miscoded rate varia n ces miscoded Pa y ables matchi n g the i n voice to thePa y ables matchi n g the i n voice to thewron g PO li n e or POwron g PO li n e or PO
Not matchi n g i n voices to POsNot matchi n g i n voices to POs
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Process Proble m s Process Proble m s for Purc h asing for Purc h asing
Why i n voices ma y n ot be processed Why i n voices ma y n ot be processed correctl y correctl y
Purchase orders prematurel y closed Purchase orders prematurel y closed or fi n al closed or fi n al closed Purged purchase ordersPurged purchase orders
In correct purchase order u n it pricesIn correct purchase order u n it pricesLate or n o purchase orders created for Late or n o purchase orders created for the receipt the receipt
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How to Balance t h e How to Balance t h e Accrual Reconciliation Report Accrual Reconciliation Report
On l y pic k s up tra n sactio n s available toOn l y pic k s up tra n sactio n s available tothe ge n eral ledger the ge n eral ledger
Use the Report Summar y by SourceUse the Report Summar y by Sourcea n d Accrual Tra n sactio n to bala n ce toa n d Accrual Tra n sactio n to bala n ce to
the gen
eral ledger the gen
eral ledger
The Report Summar y Total colum n The Report Summar y Total colum n must agree to y our subledgersmust agree to y our subledgers
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Subledger Reports for Balancing Subledger Reports for Balancing
Receivi n g Accou n t Distributio n Report Receivi n g Accou n t Distributio n Report
Pa y ables Expe n se Detail Report Pa y ables Expe n se Detail Report
Material Distributio n Summar y Report Material Distributio n Summar y Report
W I P Accou n t Summar y Report W I P Accou n t Summar y Report
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Wh at to C h eck I f t h e Perpetual Wh at to C h eck I f t h e Perpetual Accruals do Not Balance Accruals do Not Balance
Latest versio n for the A/P a n d POLatest versio n for the A/P a n d POsubledger reportssubledger reports
Latest versio n for the Accrual Latest versio n for the Accrual Reco n ciliation Report Reco n ciliation Report I f y ou have applied the cumulativeI f y ou have applied the cumulative
accrual patch bug # 337 2 57 (pre 10. 7 )accrual patch bug # 337 2 57 (pre 10. 7 )May be missi n g two PO loo k up codesMay be missi n g two PO loo k up codes
Chec k for a n y co n versio n issuesChec k for a n y co n versio n issues
Chec k for ma n ual G/ L jour n al e n triesChec k for ma n ual G/ L jour n al e n tries
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How to Balance t h e Receipt How to Balance t h e Receipt Accrual Accrual -- Period End Process Period End Process
Ru n the U n i n voiced Receipts Report b y Ru n the U n i n voiced Receipts Report b y specif y i n g Accrued Receipts:specif y i n g Accrued Receipts: N oN o
(before ru nn i n g the mo n th(before ru nn i n g the mo n th--e n d e n d process), process), Y esY es (after ru nn i n g the mo n th(after ru nn i n g the mo n th--e n d process),e n d process), In clude O nIn clude O n --li n e accruals:li n e accruals:nono , the desired Period Name, a n d the, the desired Period Name, a n d thedesired sort selectio n (purchasi n g desired sort selectio n (purchasi n g Categor y or Ve n dor)Categor y or Ve n dor)
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How to Balance t h e Receipt How to Balance t h e Receipt Accrual Accrual -- Period End Process Period End Process
Use careful cut Use careful cut- -off co n trols for receipt off co n trols for receipt a n d i n voice tra n sactio n sa n d i n voice tra n sactio n s
Close purchase orders a n d li n esClose purchase orders a n d li n es af ter af ter y ou have reco n ciled the Expe n se A/P y ou have reco n ciled the Expe n se A/P
Accrual Accou n t Accrual Accou n t
Get bug patch # 48 988 0 (or later) for theGet bug patch # 48 988 0 (or later) for theReceipt Accrual Receipt Accrual - - Period E n d processPeriod E n d process
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I f t h e Accrual Reconciliation I f t h e Accrual Reconciliation Report Does Not Co m plete Report Does Not Co m plete
Chec k for ide n tical s y stem accou n tsChec k for ide n tical s y stem accou n ts As k y our database admi n istrator if there As k y our database admi n istrator if there
is e n ough shared memor y (or SGA)is e n ough shared memor y (or SGA)Mak e sure y ou have the latest versio n Mak e sure y ou have the latest versio n for the Accrual Reco n ciliation Report for the Accrual Reco n ciliation Report
Major process problems with Receivi n g Major process problems with Receivi n g a n d Pa y ablesa n d Pa y ables
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I f t h e Accrual Reconcilation I f t h e Accrual Reconcilation Report I s Too Large Report I s Too Large
Chec k for ide n tical s y stem accou n tsChec k for ide n tical s y stem accou n tsY ou ma y have too ma n y cumulativeY ou ma y have too ma n y cumulative
accrual tra n sactio n saccrual tra n sactio n sUse the amou n t a n d qua n tit y Use the amou n t a n d qua n tit y
parameters parameters
Use the G/ L Date From a n d ToUse the G/ L Date From a n d To parameters to reduce the report parameters to reduce the report
Cautio n : n onCautio n : n on --cumulative G/ L Datescumulative G/ L Dates
ra n ges ma y omit n eeded tra n sactio n sra n ges ma y omit n eeded tra n sactio n s
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Im ple m entation I ssues (Mistakes Im ple m entation I ssues (MistakesYou Dont W ant to Make)You Dont W ant to Make)
Shari n g s y stem accou n tsShari n g s y stem accou n tsBadl y defi n ed receivi n g a n d pa y ablesBadl y defi n ed receivi n g a n d pa y ables
processes processesLittle or n o s y stem testi n g for y our Little or n o s y stem testi n g for y our accrual processesaccrual processes
After go live, late review for the first After go live, late review for the first Accrual Reco n ciliation Report Accrual Reco n ciliation Report
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Conversion I ssues (MoreConversion I ssues (More Mistakes You Dont W ant) Mistakes You Dont W ant)
Not correctl y matchi n g i n voices toNot correctl y matchi n g i n voices toreceiptsreceipts
Need a valid PO_D I STR I BUT I ON_ I DNeed a valid PO_D I STR I BUT I ON_ I Di n i n AP_ I NVOI CE_D I STR I BUT I ONS_A LL AP_ I NVOI CE_D I STR I BUT I ONS_A LL
In correct cumulative values for PO li n eIn correct cumulative values for PO li n e
qua n tit y received, retur n ed, i n spected,qua n tit y received, retur n ed, i n spected,a n d billed a n d billed Not setti n g the receipt o n accrual flag Not setti n g the receipt o n accrual flag correctl y i n PO_D I STR I BUT I ONS_A LLcorrectl y i n PO_D I STR I BUT I ONS_A LL
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Conversion I ssues (Continued)Conversion I ssues (Continued)
In correct foreig n k e y relatio n shipsIn correct foreig n k e y relatio n shipsbetwee n PO_HEADERS, PO_ LI NES,betwee n PO_HEADERS, PO_ LI NES,
PO_ LI NE_ LOCAT I ONS, a n d PO_ LI NE_ LOCAT I ONS, a n d PO_D I STR I BUT I ONS_A LLPO_D I STR I BUT I ONS_A LL
Alson
ote that REFERENCE 3 i n
Alson
ote that REFERENCE 3 i n
RCV_RECE I V I NG_SUB_ LEDGER RCV_RECE I V I NG_SUB_ LEDGER must joi n to PO_D I STR I BUT I ON_ I Dmust joi n to PO_D I STR I BUT I ON_ I Dcolum n i n PO_D I STR I BUT I ONS_A LLcolum n i n PO_D I STR I BUT I ONS_A LL
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Current Bug Fixes for Current Bug Fixes for Accrual and Related Processes Accrual and Related Processes
Release 10. 7 or earlier Release 10. 7 or earlier Bug # 48 988 0 or later, fixes the Receipt Bug # 48 988 0 or later, fixes the Receipt
Accrual Accrual -- Period E n d process to use thePeriod E n d process to use thePO_ LI NE_ LOCAT I ONS_A LL PO_ LI NE_ LOCAT I ONS_A LL C LOSE_DATE, i n stead of theC LOSE_DATE, i n stead of thePO_ LI NES_A LL C LOSE_DATE, thereb y PO_ LI NES_A LL C LOSE_DATE, thereb y
causi n g the Receipt Accrual causi n g the Receipt Accrual - - Period E n d Period E n d process to agree with the U n i n voiced process to agree with the U n i n voiced Receipts Report Receipts Report
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Current Bug Fixes for Current Bug Fixes for Accrual and Related Processes Accrual and Related Processes
Release 10. 7 or earlier Release 10. 7 or earlier Curre n t bug patch for the Accrual Curre n t bug patch for the Accrual
Reco n ciliation Report, co n tact OracleReco n ciliation Report, co n tact OracleWorldWide Support WorldWide Support (cautio n : bug patch 483453 brea k s the(cautio n : bug patch 483453 brea k s thePO.PO_V I EW, the ODF files are i n valid)PO.PO_V I EW, the ODF files are i n valid)
ff
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Current Bug Fixes for Current Bug Fixes for Accrual and Related Processes Accrual and Related Processes
Release 10.6.1 or earlier Release 10.6.1 or earlier ReRe--register the Receipt Accrual register the Receipt Accrual - -
Period E n d process for n o pri n ti n g Period E n d process for n o pri n ti n g --gives a n erro n eous war n i n g messagegives a n erro n eous war n i n g message
Release 10. 5 or earlier Release 10. 5 or earlier
Appl y the most curre n t cumulative Appl y the most curre n t cumulativeaccrual patch to get the latest accrual patch to get the latest accou n ti n g a n d accruals code for accou n ti n g a n d accruals code for both PO a n d A/P both PO a n d A/P
f lf l
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Current Bug Fixes for ReleaseCurrent Bug Fixes for Release10.4.2 or Earlier 10.4.2 or Earlier
For outside processi n g, the import For outside processi n g, the import requisitio n process assig n ed therequisitio n process assig n ed the
receivi n g accou n t to the PO distributio n receivi n g accou n t to the PO distributio n A/P Accrual Accou n t. A/P Accrual Accou n t.Repair historical accou n ti n g e n triesRepair historical accou n ti n g e n tries
with bug No.2
35 2
88 with bug No.2
35 2
88 Get the most curre n t patch for theGet the most curre n t patch for theI mport Requisitio n processI mport Requisitio n process
C i f lC i f l
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Current Bug Fixes for ReleaseCurrent Bug Fixes for Release10.4.2 or Earlier (Continued)10.4.2 or Earlier (Continued)
In correct I PV stored i n theIn correct I PV stored i n the AP_ I NVOI CE_D I STR I BUT I ONS table AP_ I NVOI CE_D I STR I BUT I ONS table
Causes the latest Accrual Causes the latest Accrual Reco n cilatio n Report to n ot bala n ceReco n cilatio n Report to n ot bala n ceto older versio n s of the Pa y ablesto older versio n s of the Pa y ables
Expen
se Detail Report Expen
se Detail Report Request bug No. 319 2 58 to obtai n aRequest bug No. 319 2 58 to obtai n aselect o n l y SQ L* P LUS script select o n l y SQ L* P LUS script However, the I PV i n the G/ L is correct However, the I PV i n the G/ L is correct
C B Fi f R lC B Fi f R l
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Current Bug Fixes for ReleaseCurrent Bug Fixes for Release10.4.2 or Earlier (Continued)10.4.2 or Earlier (Continued)
In correctl y set Receipt o n Accrual Flag In correctl y set Receipt o n Accrual Flag Request the latest E n ter PurchaseRequest the latest E n ter Purchase
Orders FormOrders FormIn correct e n cumbra n ce flag set i n In correct e n cumbra n ce flag set i n
AP_ I NVOI CE_D I STR I BUT I ONS AP_ I NVOI CE_D I STR I BUT I ONS
Request a bug fix for PO ReleasesRequest a bug fix for PO ReleasesCauses the latest Accrual Causes the latest Accrual Reco n cilatio n Report to miss A/P Reco n cilatio n Report to miss A/P
en
triesen
tries
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Desired En h ance m ents Desired En h ance m ents
Have the abilit y to either exclude closed Have the abilit y to either exclude closed purchase orders a n d PO li n es purchase orders a n d PO li n es or or on l y on l y
report closed POs a n d li n es o n thereport closed POs a n d li n es o n the Accrual Reco n ciliation Report Accrual Reco n ciliation Report
Sort b y distribution
accoun
t on
theSort b y distribution
accoun
t on
theU n i n voiced Receipts Report U n i n voiced Receipts Report
D i d E hD i d E h
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Desired En h ance m ents Desired En h ance m ents(Continued)(Continued)
Write off accrual tra n sactio n s directl y toWrite off accrual tra n sactio n s directl y tothe ge n eral ledger, a n d store thesethe ge n eral ledger, a n d store these
writewrite--offs i n the AP_ I NVOI CE_offs i n the AP_ I NVOI CE_DI STR I BUT I ONS_A LL tableDI STR I BUT I ONS_A LL table
Create the abilit y to do mass accrual Create the abilit y to do mass accrual writewrite--offsoffs
D i d E hD i d E h
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Desired En h ance m ents Desired En h ance m ents(Continued)(Continued)
Write off accrual discrepa n cies o n a n et Write off accrual discrepa n cies o n a n et basisbasis
Store n et PO li n e amou n ts i n theStore n et PO li n e amou n ts i n thePO_ LI NE_ LOCAT I ONS_A LL tablePO_ LI NE_ LOCAT I ONS_A LL tableWrite off n et PO li n e amou n ts whe n Write off n et PO li n e amou n ts whe n
the PO li n e or purchase order isthe PO li n e or purchase order isclosed closed Actuall y match i n voices to specific Actuall y match i n voices to specific receiptsreceipts
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ConclusionsConclusions
These accrual processes are ver y These accrual processes are ver y importa n t to co n trol y our busi n essimporta n t to co n trol y our busi n ess
activit y activit y Proper impleme n tatio n a n d dataProper impleme n tatio n a n d dataco n versio n is esse n tial co n versio n is esse n tial
Major code bugs are resolved Major code bugs are resolved Please vote wisel y on e n ha n ceme n t Please vote wisel y on e n ha n ceme n t requestsrequests
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Wh ere to get m ore infor m ationWh ere to get m ore infor m ation
The OAUG paper that this prese n tatio n The OAUG paper that this prese n tatio n is based upo nis based upo n
Oracle Purchasi n g Refere n ce Ma n ual Oracle Purchasi n g Refere n ce Ma n ual Accrual Reco n ciliation Report Accrual Reco n ciliation Report
Accrual Write Accrual Write- -Off FormOff Form Accrual Write Accrual Write- -Off Report Off Report Receipt Accruals Topical Essa y Receipt Accruals Topical Essa y
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T h ank You for Your AttendanceT h ank You for Your Attendanceand Participationand Participation
Douglas A. Volz Douglas A. Volz