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FAQ: Accrual Accounting - Online & Period end Accruals in R11.5.10 (Doc ID 1371054.1)

Last updated on FEBRUARY 13, 2019

Applies to:

Oracle Purchasing - Version 11.5.10 to 11.5.10.4 [Release 11.5]
Oracle Cost Management - Version 11.5.10.0 to 11.5.10.3 [Release 11.5]
Information in this document applies to any platform.
POXPORRA.rdf
POXACREC.rdf


Purpose

The two Accrual methods in oracle are On Line Accruals and Period end Accruals.

This document answers commonly asked questions relating to these two Accrual Methods and processes and reports involved. The document will benefit users, consultants and engineers.

For more such FAQs in other problem categories under Purchasing Accounting (Receipt and Encumbrance) refer to the Master Note matrix,
Note 1138043.1 Master Note For Oracle EBS Procurement Suite - Encumbrance And Receipt Accounting

The questions in the document are divided into the below list of sections:
Queries specific to,

1) Both Online Accruals (accrue at receipt) and Period end Accruals (accrue at period end)
2) Online Accruals (Accrue at receipt)
3) Period end accruals (Accrue at Period end)
4) Accounting in MRC environment
5) Accrual Reconciliation and Accrual Write-offs


Questions and Answers

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In this Document
Purpose
Questions and Answers
 Accrual Accounting - Queries generic to Online Accruals (accrue at receipt) and Period end Accruals (accrue at period end)
 1. What is the difference between 'Accrue On Receipt' and 'Accrue at Period End'?
 2. What is the recommended accrual method for expense items, Period end or Online?
 3. Does Oracle Purchasing allow you to change from Online to period end for accruals and vice versa for expense items? And what are the implications?
 4. How to determine a default value for "Accrue On Receipt" flag in the Purchase Order Shipments entry form?
 5. Why does the purchase order for expense items show accrue on receipt flag unchecked when the Purchasing Options has the set up as "Accrue expense items at Receipt"?
 6. What are the accounting entries that get created for Online and Period end accruals when the purchase order is received,delivered and billed?
 7. How does the accounting data flow in 11i Online & Period end Accrual Accounting?
 8. How to view the accounting entries that get generated when the purchase order is received and delivered?
 9. View Accounting from Receiving Transaction Summary is grayed out. How to view the accounting entries created for purchase order receipts?
 10. How can one tell whether each journal in the general ledger is for period- end or on Online accruals?
 11. What reference columns in GL_JE_LINES are populated for the accounting entries created from Purchasing/Receiving?
 12. Why does the invoice distribution show accrual account instead of showing the PO charge account when the invoice is matched to the purchase order or receipt?
 13. How to get the balancing segment of PO Charge account for Accrual account while creating the accounting entries for purchase order receipts?
 14. How do you transfer the accounting entries created in Receiving subledger to General Ledger?
 15. What are the conditions that need to be satisfied for the Uninvoiced Receipt Report to show a PO receipt ?
 16. What is the impact/effect of Finally closing an uninvoiced PO on Accrual - after PO has been fully or partly received ?
 Accrual Accounting - Queries specific to Online Accruals (Accrue at receipt)
 1.Why does the View Accounting from Receiving Transaction Summary for DELIVER transaction not showing any accounting entries?
 2. What is the impact of Retroactive Pricing on Receipt Accounting process?
 3. How does the accounting happen when a purchase order for a consigned item is received?
 4. Receiving Inspection account (or Receiving Inventory account) shows a balance in GL for purchase orders with OSP items set to Shop floor destination. Why does it happen?
 5. Receipt against dropship PO hits the Clearing account instead of Receiving Inventory account (or Receiving Inspection account). Why does it happen?
 6. How does one include receipts into process enabled OPM inventory organization on Accrual Reconciliation Report?
 Accrual Accounting - Period end accruals (Accrue at Period end)
 1. What are the basic steps involved in Period end Accrual process to generate the accruals for Purchase Order receipts?
 2. What are the conditions that need to be satisfied for the Receipt Accrual-Period end program to generate the accrual entries?
 3. After entering receipts or running the Receipt Accruals - Period-End Process, the new journals do not appear in the General Ledger. Should the transactions automatically appear in GL after performing these steps?
 4. How do you transfer the accounting entries created in Receiving subledger to General Ledger for the receiving transactions created against POs set to accrue at period end?
 5. Can you automatically reverse Period End Accruals in GL for the new Period?
 6. A Purchase Order Shipment was partially received and canceled. It now appears on the Uninvoiced Receipts report (URR) and accrues each month when running the Receipt Accruals - Period-End process. Why is this happening?
 7. How to avoid the Purchase Orders getting accrued every month and being shown in URR which are received and canceled?
 8. Under what scenario, Uninvoiced Receipts Report shows the Purchase Order which is already closed or finally closed?
  
 Accounting in MRC environment
 1. What set ups are required to enable MRC (Multiple Reporting Currency) so that accounting entries will get created in Reporting ledger for the transactions happening in Purchasing/Receiving subledger?
 2. Journals for Purchasing source do not get created in GL_interface for Reporting SOB inspite of running the program 'MRC Purchasing setup Upgrade'. How do you transfer the entries from subledger to GL for Reporting SOB?
 3. How do you transfer the accounting entries created in Receiving subledger to General Ledger for Reporting SOB?
 Accrual Reconciliation and Accrual Write-offs
 1. What are the designated Reports used for On Line Accrual reconciliation?
 2. What determines whether a Transaction does not appear on the Accrual Reconciliation Report?
 3. Which Purchasing report should be used to review and reconcile period-end accruals with GL?
 4. Should the balance of Uninvoiced Receipt Report and Accrual Reconciliation Report tie?
 5. Several transactions appear on the Accrual Reconciliation Report which were charged to the accrual account in error. Manual journal entries have already been created in GL to correct these transactions. How do these transactions now get removed from the report?
 6. How do transactions which have subtotals of $0.00 get removed from the Accrual Reconciliation Report?
 7. Is it possible to do a mass accrual write-off in Purchasing?The Accrual Reconciliation Report can have over 1,000 pages without having ever been reconciled. Does any function like a Mass Accrual Write-Off exist?
 8. How to perform Accrual Write off for transactions shown with accrual balance in Uninvoiced Receipts Report?
References

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