CM Accruals 2007

8/8/2019 CM Accruals 2007

1/65

11

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


2/65

2 2

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.


3/65

33

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


4/65

44

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


5/65

5 5

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


6/65

6 6

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


7/65

7 7

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


8/65

8 8

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


9/65

99

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


10/65

10 10

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


11/65

1111

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


12/65

12 12

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


13/65

1313

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


14/65

1414

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


15/65

15 15

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


16/65

16 16

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


17/65

17 17

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


18/65

18 18

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


19/65

1919

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


20/65

2 0 2 0

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


21/65

2 12 1

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


22/65

22 22

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


23/65

2 32 3

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


24/65

2 42 4

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


25/65

2 5 2 5

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!


26/65

2 6 2 6

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!!


27/65

2 7 2 7

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


28/65

2 8 2 8

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


29/65

2 92 9

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


30/65

30 30

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


31/65

3131

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


32/65

32 32

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


33/65

3333

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


34/65

3434

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


35/65

35 35

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


36/65

36 36

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


37/65

37 37

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


38/65

38 38

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


39/65

3939

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


40/65

40 40

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


41/65

4141

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


42/65

42 42

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


43/65

4343

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


44/65

4444

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


45/65

45 45

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


46/65

46 46

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


47/65

47 47

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)


48/65

48 48

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


49/65

4949

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


50/65

5 0 5 0

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


51/65

5 15 1

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


52/65

5 2 5 2

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


53/65

5353

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


54/65

5454

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


55/65

55 55


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


56/65

5 6 5 6


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


57/65

57 57

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


58/65

58 58

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


59/65

5 95 9

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


60/65

60 60

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


61/65

6161

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


62/65

6 2 6 2

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


63/65

6 36 3

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


64/65

6 46 4

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


65/65

T h ank You for Your AttendanceT h ank You for Your Attendanceand Participationand Participation

Douglas A. Volz Douglas A. Volz

Documents

CM Accruals 2007