Overview:

Generating Purchase Order (PO) Accruals is an optional step that can be done on a period basis as needed. Only approved Purchase Orders will be accrued using this process.

PO accruals are not yet job costs, just postings to GL in the Financial System, so there are no corresponding Job Transactions, but if generated there will be a line in the Month End tab of the Job Enquiry for PO accruals. Keep in mind that WIP codes consider PO accruals as a cost when calculating the % complete.

Note that there is an automatic reversal of the accrual posted in the following month. 

Screen Guide:

Initial Screen:

Open

• Current Control Period shows the current period from Period End Maintenance.

• Financial Company is the Financial Company that the accrual filters for.

• Accrue up to Date is the date you want to cut off accruals at. The accrual will include transactions before and equal to this date, but ignore those after.

• PO Accrual Basis is determined by the Control Parameter "PO Accrual by Receipts":

  • When set to Yes, the Purchase Order Accruals values are generated ONLY for Purchase Order Lines which have been Receipted but not AP Invoiced. Any non-receipted POs will NOT be included. To use this Control Parameter, the [Auto Receipt with AP Invoice] Control Parameter must also be set to Yes to ensure that Receipt transactions are always created.

• Accrual Period is the month and year that WIP accruals are being generated for. This defaults to the current year/period in Period End Maintenance and determines what appears in the Batch list.

• Batch is the batch number that you want to generate accruals into. The list is filtered by the Accrual Period selected. If there are no batches, create a New Batch using the button at the bottom.

• New Batch is used to create a new batch to accrue into. Batches are period based and will need to be created for each month and each Financial Company.

• Generate creates PO Accruals based on the filter options selected, populating the selected Batch with the accruals.

New Batch:

Open

PO Accrual Batch

• Choose a Batch Date within the desired Period, and give it a Reference and Financial Company that it relates to. Create Batch once finished, and select the newly created batch number from the Batch list.

Next Steps:

Once the PO Accruals have been generated, the batch can be exported to your financial product in Export Control.

If you Generate WIP Accruals and your WIP Codes are set to include PO Accruals, they will be automatically included in the calculation in WIP Adjustments.