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Download Oracle Purchasing User's Guide
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• You reverse accrual journal entries manually at the start of the new accounting period. • If you are using encumbrance accounting, purchase order encumbrance is relieved when the invoice(s) matched to the purchase order are posted to the general ledger. Receiving Transactions Purchasing does not record any accounting entries for expense during a receiving transaction if you use period–end accruals. You record all of your uninvoiced liabilities at month end using the Receipt Accruals – Period–End process. See: Receipt Accruals – Period End Process: page 9 – 127. Receipts Accruals–Period End 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. Purchasing never accrues an uninvoiced receipt twice. 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. Purchasing creates the following accounting entries for each distribution you accrue using the Receipt Accruals – Period–End process: Account PO charge account @ Uninvoiced Quantity x PO unit Price Expense A/P accrual account @ Uninvoiced Quantity x PO price Debit XX Credit XX As soon as you open the next period, Purchasing reverses the accrual entries using the following accounting entries: 7 – 122 Oracle Purchasing User’s Guide
