3 Replies Latest reply: Jun 9, 2011 11:05 AM by Dina Rotem RSS

    Accruals

    Usul
      Is there any way an invoice entered in Payables, matched against a PO ( with 3-way matching enabled) can be transferred to Projects as costs or accruals ( rather than have it remain as a purely balance sheet txn) ? We are trying to get the system to change commits to cost when either a receipt is entered in the system or an invoice is entered and matched..
        • 1. Re: Accruals
          Dina Rotem
          Hi

          In Purchasing setup the Accrual Method from "Period Date" to "On Receipt".
          Doing that any receiving transaction you create for a PO will generate accounting to debit charge account and credit supplier accruals.
          When supplier invoice is matched to the PO and receiving transactions, the system will debit the supplier accruals and credit supplier liability.

          When you run the process PRC: Interface Supplier Cost to Projects, you will see several parameters -
          Interface Receipt Accruals - set to YES
          Interface Supplier Invoices - set to Accrue Cost Only

          This way the cost of PO receipts will charge the project as actual costs, and reduce commitments.
          The Supplier invoice itself will not be interfaced to Projects, unless there are additional charges, on top of the receipt transaction cost. Those could be miscellaneous, freight, price variance or exchange rate variance.

          Dina
          • 2. Re: Accruals
            Usul
            I am looking to get the cost to projects though.

            How do I get cost transferred to Projects when there is no receiving transaction entered in the system but we do have an invoice entered and matched to the PO (when 3-Way matching is in place)?
            • 3. Re: Accruals
              Dina Rotem
              Hi

              If PO is set as 3-way matching system should compare the quantity invoiced with the quantity ordered and quantity received.
              You are saying the invoice is entered. I assume you get an exception and cannot approve the invoice.

              If you want to have the cost on the project, you could run the process PRC: Interface Supplier Costs to Projects.
              However, look at the parameter Interface Supplier Invoice, and set it to YES.
              That way system will interface supplier invoice to PA, and will not interface the PO receipt transaction when it will be available.

              Dina