7 Replies Latest reply on Sep 15, 2008 9:27 AM by 628428

    Accounting queries

      a)From where does the Charge and Accrual a/c get populated in a PO in case of inventory and expense items? If it is an expense item, the accrual a/c does not come from the Expense Accrual Account defined in Purchasing options.
      b) Where is the Receiving inspection a/c(the a/c used to offset the accrual account during inspection) defined?
      c) Where is the Inventory A/P accrual a/c defined? (the account used while an inventory item is received)

        • 1. Re: Accounting queries
          Guess it is the Purchasing options form!!
          • 2. Re: Accounting queries
            Also could depend on any customizations to PO Account Generator Workflow.
            Accounting DFF segments could come from e.g. Employee Expense account on Employee record.

            • 3. Re: Accounting queries

              Please find the answer in the same sequence as questions are

              a) All these information populated from Organization parameter, purchasing options setup. as expense accrual account gets defined in purchasing option and rest in organization parameter.

              b) Recvg inventory account is defined in the receiving option, where as inspection account gets defined in the quality module.

              c) Inventory accrual accounts are defined in the organization parameter while defining the organization.
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              • 4. Re: Accounting queries
                Thanks. I would like to know where exactly the receiving inspection a/c is defined. You mentioned Quality module, however, I would like to know the navigation.
                • 5. Re: Accounting queries
                  Receiving Account is defined in the Receiving Parameters of the organization. Setup-->Options-->Receing Options.

                  • 6. Re: Accounting queries
                    But that is the Receiving Inventory a/c. Is it the same as Receiving inspection a/c?. If so, then why is it mandatory? Coz if we have a direct delivery, then this a/c will not be used in the first place.
                    • 7. Re: Accounting queries
                      Yes, they are same (Receiving and Receving Inspection are used interchangeably).

                      It is mandatory becuase, for inventory purchases, you need to accrue your purchases till you pay. If a company has a long inspection periods before the goods are put in inventory, you need a way to record these purchases in accounting books. As explained by someone earlier, the account entry is between Reciving account and Accrual Account.

                      So irrespective of the fact you have long lead times between receiving and Delivery or not, this account is used for this account entry.

                      Whether you have standard delivery or direct delivery or inspection is required, you need this account.