How To Diagnose Inventory Accruals And Accrual Write Off Issues (Doc ID 866733.1)

Last updated on MARCH 06, 2023

Applies to:

Purpose

Accrual Write Off process identifies and writes off items that misstates the accrual balance on the Accrual Reconciliation Reports. Such transactions will also include non accrual transactions wrongly debited or credited to the Inventory AP  Accrual Account. The following are potential transaction candidates to be written off : Differences between receipts and invoices with no intention of future invoicing, Discrepancies in supplier billing, A/P No PO Transactions - Invoices not matched to PO or incorrect data conversion invoices, A/P No Match-Valid Invoice with no corresponding receipt, Invoices Matched to Wrong PO or Receipt, Miscellaneous inventory or work in process transactions that do not belong to Accrual Accounts, Payable Entries for Sales Tax and freight that do not belong to Accrual Accounts.

The Write Off process is different from R12 and R11i. We will cover both and highlight the differences. In R12 Accrual Write Off excludes the write off transaction from the AP and PO Report and dynamically post to GL and excluded from the Net Accrual balance. Therefore the risks and problems associated with Manual Journals are avoided

For relevant Notes relating to Inventory Accrual Reconciliation process please refer to
the following Notes:

<Note.1107953.1> - R12 Accrual Balance Mismatch Between Accrual Reconciliation Report -         Troubleshooting
<Note 728871.1> - R12 How To Diagnose And Reconcile Inventory AP Accrual Transactions Using Reconciliation Reports
<Note 824388.1> - R12 Account Requirements For Inventory Accrual Reconciliation

Troubleshooting Steps

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