Receipt Accruals - Period-End Process

Use the Receipt Accruals - Period-End process to create period-end accruals for
your uninvoiced receipts for Expense distributions. Purchasing creates an accrual
journal entry in your general ledger for each uninvoiced receipt you choose using
this form. If you use encumbrance or budgetary control, Purchasing reverses your
encumbrance entry when creating the corresponding accrual entry.
Attention: When using Cash Basis Accounting, you should use the Purchasing
Options window to set the Accrue Expense Items flag to Period End, but you will
not normally run the Receipt Accrual - Period-End process. See:Defining Accrual
Options.

Purchasing provides you with complete flexibility and control for your period-end
accruals. You can use the Uninvoiced Receipts Report to analyze your uninvoiced
receipts before you accrue them. You can then run the Receipt Accruals - Period-
End process as many times as you want to generate accruals entries for the receipts
you choose. Purchasing does not accrue receipts for purchase orders on or before
the last date of the Accrual Period.

You create accruals for a specific purchasing period. Purchasing automatically

accrues all uninvoiced receipts you entered up to the end of the accrual period you
specify. Each time you run the Receipt Accruals - Period-End process, Purchasing
creates an unposted journal entries batch in your general ledger for your receipt
accruals. If you are using encumbrance or budgetary control, Purchasing creates
another journal entries batch in your general ledger corresponding to the
encumbrance reversal entries for the uninvoiced receipts you accrued.

Each time you create accrual entries for a specific uninvoiced receipt, Purchasing
marks this receipt as accrued and ignores it the next time you run the Receipt
Accrual - Period-End process. Purchasing creates accrual entries only up to the
quantity the supplier did not invoice for partially invoiced receipts.

Follow the steps listed below:

o Identify the purchasing period for your receipt accrual entries.

Purchasing creates receipt accruals for all receipts you entered up to
the end of this period. To prevent any period-end disruption,
Purchasing lets you provide a receipt date that is different from the
date you enter the receipts. You never have to enter all the receipts for
a period before the end of this period. You can enter these receipts
later. You simply need to backdate the receipt date. Of course, you
should make sure you entered all receipts for a specific period before
you create receipt accruals for that period.
 o Enter and match all invoices you received during the period for your
receipt accrual entries.

o Close the accounts payable period corresponding to the purchasing

period for your receipts accrual entries.

o Run the Uninvoiced Receipts Report and analyze your uninvoiced

receipts that are accrued at period end.

o Run the Receipt Accrual - Period-End process as many times as you

need. You can use the search criteria to choose what you want to
accrue and accrue your receipts step by step. This process creates
accounting accrual entries using the journal source 'Purchasing' and
the journal category 'Accrual'.

o Perform all the steps you need to close your accounting period and
generate period-end reports and financial statements in your general
ledger.

o Run the Accrual Reconciliation Report after period close to analyze

your receipts accrued on receipt.

o Use your general ledger system to reverse all the receipt accrual and
encumbrance reversal batches for your period-end accruals.

o Close the purchasing period for your receipt accruals. When you
close a purchasing period, Purchasing automatically un-marks all the
receipts you previously accrued to make sure you can accrue these
receipts again if they are still uninvoiced in the next period.

o After you have opened your next period in General Ledger and have
either closed the previous general ledger period or have completed all
previous month receipt accruals, you can reverse the previous month's
receipt accruals in the new month. You perform this by reversing
each general ledger journal batch in General Ledger.

   To run the Receipt Accruals - Period End process:

1. Navigate to the Submit Requests window.

2. Select Requests in the first field.
3. Select Receipt Accruals - Period-End in the Name field.
4. Enter the Extended Value. The default is 0.
5. Enter the Supplier to restrict period-end receipt accruals to a single
supplier.
6. Enter the item Category to restrict period-end receipt accruals to a single
category.
7. Enter the Period for which you want to perform period-end receipt
accruals. Purchasing automatically provides you with a list of acceptable
accrual periods. This list contains periods that you closed in your accounts
payable system and either opened or did not use in your general ledger
system.
8. Save your work to begin the process.