Professional Documents
Culture Documents
PO Accounting Flow
PO Accounting Flow
for
Purchase Orders, Receipts and Matched
Invoices in an Encumbrance Environment
AOR-Case 2:
Assumptions: Create, Approve, Reserve
Accrue on receipt = Y PO
Destination type = Expense Invoice Validation after
Item = expense Item matching
Create Accounting for
invoice
Sequence of actions: Receive and Deliver the
PO
Table in which
Action Accounting entries records exist Flag/nature of entry
1. PO is reserved Budget a/c DR @ PO price (base + NR tax) $$ GL_BC_PACKETS Encumbrance
2. Invoice Validation REC Tax and NR tax DR @ tax amount * GL_BC_PACKETS Encumbrance
AP Expense accrual a/c DR @ PO price
excluding tax and tax DR @ tax rate separately
+++ AP_AE_LINES_ALL Actual
3. Create Accounting
for invoice AP Liability a/c CR @ invoice price
AP_ENCUMBRANCE
Encumbrance
REC Tax and NR tax CR @ tax amount * _LINES_ALL
Receiving Inspection a/c DR @ PO price (base
+ NR tax) ^^^^ RRSL/GLI/GL_JE_
4. Receive the PO Actual
AP Expense accrual a/c CR @ PO price (base+ LINES
NR tax) +++
5. Deliver the PO Expense Charge a/c DR @ PO price (base + RRSL/GLI/GL_JE_ Actual
NR tax) LINES
Receiving Inspection a/c CR @ PO price (base
+ NR tax) ^^^^
Encumbrance
Budget a/c CR @ PO price (base + NR tax) $$
Note:
Corresponding offsetting accounts have same symbols
PO base price refers to received quantity * unit Price in PO lines
NR tax refers to Non Recoverable Tax calculated for the (received
quantity *PO line unit price)
REC tax refers to Recoverable Tax calculated for the (received
quantity *PO line unit price)
RRSL - RCV_RECEIVING_SUB_LEDGER
GLI – GL_INTERFACE
AOR-Case 3:
Assumptions: Sequence of actions:
Accrue on receipt = Y Create, Approve, Reserve PO
Destination type = Expense Receive and Deliver PO
Item = expense Item Create Invoice at higher unit
price than PO
Invoice Validation
Create Accounting
Table in which Flag/nature of
Action Accounting entries records exist entry
1. PO is reserved Budget a/c DR @ PO price (base + NR tax) ^^^^ GL_BC_PACKETS Encumbrance
Receiving Inventory a/c DR @ PO price (base + NR
tax) $$$ RRSL/GLI/GL_JE_
2. Receive the PO Actual
AP Expense accrual a/c CR @ PO price (base+ NR LINES
tax) **
Expense Charge a/c DR @ PO price (base + NR
tax)
Actual
Receiving Inventory a/c CR @ PO price (base + NR RRSL/GLI/GL_JE_
3. Deliver the PO tax) $$$ LINES
Encumbrance
Budget a/c CR @ PO price (base + NR tax) ^^^^
4. Invoice Validation at REC Tax and NR tax DR @ tax amount #
GL_BC_PACKETS Encumbrance
higher price
IPV a/c DB @ difference in price &
AP Expense accrual a/c DR @ PO price excluding
tax and tax DR @ tax rate separately **
AP_AE_LINES_ALL Actual
AP Liability a/c CR @ invoice price
5. Create Accounting for
Invoice IPV a/c DR @ difference in price
REC Tax and NR tax CR @ tax amount # AP_ENCUMBRANCE
Encumbrance
_LINES_ALL
IPV a/c CR @ difference in price &
Note:
Corresponding offsetting accounts have same symbols
PO base price refers to received quantity * unit Price in PO lines
NR tax refers to Non Recoverable Tax calculated for the (received
quantity * PO line unit price)
REC tax refers to Recoverable Tax calculated for the (received
quantity * PO line unit price)
RRSL - RCV_RECEIVING_SUB_LEDGER
GLI – GL_INTERFACE
AOR-Case 4:
Assumptions: Sequence of actions:
Accrue on receipt = Y Create, Approve, Reserve
Destination type = Expense PO
Item = expense Item Receive and Deliver PO
Create Invoice at higher
quantity than PO
Invoice Validation
Create Accounting
Table in which
Action Accounting entries records exist Flag/nature of entry
1. PO is reserved GL_BC_PACKETS Encumbrance
Budget a/c DR @ PO price (base + NR tax) &
Receiving Inspection a/c DR @ PO price
(base + NR tax) ## RRSL/GLI/GL_JE_
2. Receive the PO Actual
AP Expense accrual a/c CR @ PO price LINES
(base+ NR tax) ^^^
Expense Charge a/c DR @ PO price (base +
NR tax)
Actual
RRSL/GLI/GL_JE_
3. Deliver the PO Receiving Inspection a/c CR @ PO price
LINES
(base + NR tax) ##
Encumbrance
Budget a/c CR @ PO price (base+ NR tax) &
4. Invoice Validation
for higher quantity
GL_BC_PACKETS Encumbrance
*See additional info
below REC Tax and NR tax DR @ tax amount ****
AP Expense accrual a/c DR @ invoice price
excluding tax and tax DR @ tax rate
separately ^^^ AP_AE_LINES_ALL Actual
5. Create Accounting
AP Liability a/c CR @ invoice price
for Invoice
AP_ENCUMBRANCE
Encumbrance
_LINES_ALL
REC Tax and NR tax CR @ tax amount ****
Note:
Corresponding offsetting accounts have same symbols
PO base price refers to received quantity * unit Price in PO line
NR tax refers to Non Recoverable Tax calculated for the (received quantity *
PO line unit price)
REC tax refers to Recoverable Tax calculated for the (received quantity * PO
line unit price)
RRSL - RCV_RECEIVING_SUB_LEDGER
GLI – GL_INTERFACE
No separate accounting entry for Quantity Variation (#4) will be seen
here
AOR-Case 5:
Assumptions: Create, Approve, Reserve
Accrue on receipt = Y PO
Destination type = Inventory Receive and Deliver the PO
Item = Inventory Item Invoice Validation after
matching
Create Accounting for
Sequence of actions: invoice
Note:
Corresponding offsetting accounts have same symbols
PO base price refers to received quantity * unit Price in PO line
NR tax refers to Non Recoverable Tax calculated for the (received
quantity * PO line unit price)
REC tax refers to Recoverable Tax calculated for the (received
quantity * PO line unit price)
RRSL - RCV_RECEIVING_SUB_LEDGER
GLI – GL_INTERFACE
AOR-Case 6:
Assumptions: Create, Approve, Reserve
Accrue on receipt = Y PO
Destination type = Inventory Invoice Validation after
Item = Inventory Item matching
Create Accounting for
invoice
Sequence of actions: Receive and Deliver the PO
Note:
Corresponding offsetting accounts have same symbols
PO base price refers to received quantity * unit Price in PO line
NR tax refers to Non Recoverable Tax calculated for the (received
quantity * PO line unit price)
REC tax refers to Recoverable Tax calculated for the (received
quantity * PO line unit price)
RRSL - RCV_RECEIVING_SUB_LEDGER
GLI – GL_INTERFACE
Accrue at Period End
APE-Case 1:
Assumptions:
Accrue on receipt = N Sequence of actions:
Destination type = Expense Create, Approve, Reserve PO
Item = expense Item Receive and Deliver the PO
Purchase Encumbrance type and Invoice Validation after matching
Invoice Encumbrance type are Create Accounting for invoice
different Run the Period End Program
Note:
Corresponding offsetting accounts have same symbols
PO base price refers to received quantity * unit Price in PO line
NR tax refers to Non Recoverable Tax calculated for the (received
quantity * po line unit price)
REC tax refers to Recoverable Tax calculated for the (received
quantity * po line unit price)
APE-Case 2:
Assumptions:
Accrue on receipt = N Sequence of actions:
Destination type = Expense Create, Approve, Reserve PO
Item = expense Item Invoice Validation after matching
Purchase Encumbrance type and Create Accounting for invoice
Invoice Encumbrance type are Receive and Deliver the PO
different Run the Period end Program
Note:
Corresponding offsetting accounts have same symbols.
PO base price refers to received quantity * unit Price in PO line
NR tax refers to Non Recoverable Tax calculated for the (received
quantity * po line unit price)
REC tax refers to Recoverable Tax calculated for the (received
quantity * po line unit price)
RRSL – RCV_RECEIVING_SUB_LEDGER
GLI – GL_INTERFACE
APE-Case 4:
Assumptions: Create, Approve, Reserve
Accrue on receipt = N PO/Receive the PO and Run the
Destination type = Expense Period End Program
Purchase Encumbrance type and Deliver the PO and Run the
Invoice Encumbrance type are Period End Program
different Invoice Validation and Create
Accounting
Sequence of Actions:
Table in which records Flag/nature of
Action Accounting entries exist entry
1.PO is reserved Budget a/c DR @ PO price (base + NR tax) ^ GL_BC_PACKETS Encumbrance
2.Receive the PO No Accounting Transactions N/A N/A
Expense Charge a/c DR @ PO Price (base + NR
tax) +
3.Run the Period end Actual
AP Expense accrual a/c CR @ PO Price (base + RRSL/GLI
program
NR tax) &
Budget a/c CR @ PO price (base + NR tax) ^ Encumbrance
Expense Charge a/c CR @ PO Price (base + NR
4.Manual Reversal of tax) +
journal entry (Both actual AP Expense accrual a/c DR @ PO Price (base + GL_JE_LINES Actual
and encumbrance) NR tax) &
Budget a/c DR @ PO price (base + NR tax) *
5. Deliver the PO No Accounting Transactions N/A N/A
Expense Charge a/c DR @ PO Price (base + NR
tax) + Actual
6. Run the Period end
AP Expense accrual a/c CR @ PO Price (base + RRSL/GLI
program
NR tax) &
Budget a/c CR @ PO price (base + NR tax) * Encumbrance
Expense Charge a/c CR @ PO Price (base + NR
7.Manual Reversal of tax) +
journal entry (Both actual AP Expense accrual a/c DR @ PO Price (base + GL_JE_LINES Actual
and encumbrance) NR tax) &
Budget a/c DR @ PO price (base + NR tax) #
Budget a/c CR @ PO price (base + NR tax) #
Budget a/c DR @ invoice price excluding NR
8.Invoice Validation GL_BC_PACKETS Encumbrance
tax- INV Enc /////
REC Tax and NR tax DR @ tax amount \\\\
Expense charge a/c DR @ invoice price
excluding tax and tax DR @ tax rate
separately AP_AE_LINES_ALL Actual
9.Create Accounting for AP Liability a/c CR @ invoice price including
invoice NR tax
REC Tax and NR tax CR @ tax amount \\\\
AP_ENCUMBRANCE_
Budget a/c CR @ invoice price excluding NR Encumbrance
LINES_ALL
tax /////
APE-Case 5:
Assumptions: Sequence of actions:
Accrue on receipt = N Create, Approve, Reserve PO
Destination type = Expense Receive and Deliver the PO
Item = expense Item Create Invoice at higher price
Purchase Encumbrance type and than PO
Invoice Encumbrance type are Invoice Validation after matching
different Create Accounting for invoice
Run the Period End Program
Flag/nature of
Action Accounting entries Table in which records exist entry
Budget a/c DR @ PO price (base + NR tax)
1. PO is reserved GL_BC_PACKETS Encumbrance
$$
2. Receive the PO No Accounting Transactions N/A N/A
3. Deliver the PO No Accounting Transactions N/A N/A
Budget a/c CR @ PO price (base + NR tax)
$$
Budget a/c DR @ PO price excluding NR
4. Invoice Validation at tax ***
GL_BC_PACKETS Encumbrance
higher price
Budget a/c DR @ difference in invoice
price ***
REC Tax and NR tax DR @ tax amount &
Expense charge a/c DR @ invoice price
excluding tax and tax DR @ tax rate
separately AP_AE_LINES_ALL Actual
5. Create Accounting AP Liability a/c CR @ invoice price
for invoice including NR tax
REC Tax and NR tax CR @ tax amount &
AP_ENCUMBRANCE_LINES
Budget a/c CR @ invoice price excluding Encumbrance
_ALL
NR tax
6. Run the Period end
N/A N/A
program No Accounting Transactions
7. Manual Reversal of Not Required since there are no accrual
N/A N/A
journal entry entries
Note:
Corresponding offsetting accounts have same symbols.
PO base price refers to received quantity * unit Price in PO line
NR tax refers to Non Recoverable Tax calculated for the (received
quantity * po line unit price)
REC tax refers to Recoverable Tax calculated for the (received
quantity * po line unit price)
APE-Case 6:
Assumptions: Sequence of actions:
Accrue on receipt = N Create, Approve, Reserve PO
Destination type = Expense Receive and Deliver the PO
Item = expense Item Create Invoice at higher quantity
Purchase Encumbrance type and than PO
Invoice Encumbrance type are Invoice Validation after matching
different Create Accounting for invoice
Run the Period End Program
Important Notes:
3. For all these cases the account records from receiving will also be
inserted into GL_BC_PACKETS, along with the other subledger tables
mentioned above. These records in GL_BC_PACKETS can be viewed by
querying the max(packet_id), as there are no REFERENCE fields
populated for receiving records.
4. Liability a/c which is recorded at invoice price will also include the
recoverable and non-recoverable tax rates.
Oracle Corporation
World Headquarters
500 Oracle Parkway
Redwood Shores, CA 94065
U.S.A.
Worldwide Inquiries:
Phone: +1.650.506.7000
Fax: +1.650.506.7200
oracle.com
Copyright © 2006, Oracle. All rights reserved.
This document is provided for information purposes only and the
contents hereof are subject to change without notice.
This document is not warranted to be error-free, nor subject to any
other warranties or conditions, whether expressed orally or implied
in law, including implied warranties and conditions of merchantability
or fitness for a particular purpose. We specifically disclaim any
liability with respect to this document and no contractual obligations
are formed either directly or indirectly by this document. This document
may not be reproduced or transmitted in any form or by any means,
electronic or mechanical, for any purpose, without our prior written permission.
Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle
Corporation and/or its affiliates. Other names may be trademarks
of their respective owners.