R12:How To Reconcile Accruals Generated By Period End Accruals Process - Reconciliation Steps And Troubleshooting (Doc ID 1302634.1)

Last updated on FEBRUARY 19, 2024

Applies to:

Purpose

This document helps in reconciling the accruals generated by Period end accrual process for a particular period and lists the troubleshooting steps to be followed if any discrepancy is found.
For online accrual balance reconciliation, refer to <Note 1138043.1> section ' R12 - Accrual Reconciliation process and reports'

Accrual reconciliation for period end accruals consists of two steps:

Step 1- Verify the Accrual Amounts on the Uninvoiced Receipt Report.
Step 2- Verify that the accrual amounts displayed on the report are correctly accounted in the subledger by the Receipt Accrual period end program and transferred to GL.

The reconciliation of the period end accrual balance and diagnosing any mismatch in the balance between either the Uninvoiced Receipt Report or the Receiving Subledger or the GL depends on the following assumptions being correct:

1. The Accrual account used in Online accruals is different from the accrual account used for the period end accruals. Without this, differentiating between the GL account balance reports for online and period end accruals becomes difficult.
2. The Uninvoiced Receipts Report is run with parameters :
     Include Online accruals = No
     Include Closed POs = No
     Period Name = <Period for which the period end program is submitted and the period for which GL accrual account balance is being verified.>
     Include accrued POs = Needs appropriate value passed based on when the Uninvoiced receipt report is submitted  (before or after the receipt accrual period end program run )
3. Make sure that same accrual account is not used across multiple Operating Units.

Points to Note:
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Uninvoiced Receipts Report is Operating Unit specific not at Ledger level.
Receipt Accruals - Period-End program is also Operating Unit specific not at Ledger level.
So it is advised that the accrual accounts be different for each Operating Unit in your enterprise.
Purchase Orders with Expense Distributions - The Expense Accrual Account defined in Purchasing Options defaults on the PO Distributions Accrual Account field which is used in accounting.

Troubleshooting Steps

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