PORCNMNU P/O and Receiving P/O Reconciliation Process 1

P/O Reconciliation Process

Difference between On-Line Receiving and Batch Receiving

 

Before we talk about the purpose of this feature, we have to understand the difference between On-Line and Batch receiving.  The following table outlines the difference between these two receiving methods:

 

 

 

On-Line Receiving

Batch Receiving

P/O & I/M transactions

Once a transaction is entered, the inventory is update immediately.  Easy to use and less control.

Once transaction is entered, you can review and edit the data.  You will need to post transactions to update inventory.

Inventory Trx. Audit Trail Report

Show in audit trail format.

Show in inventory ledger format for all transactions that affect inventory quantity balance.  Great report!

I/M Distribution

No impact on I/M distribution

Dr. Inventory Account

Cr. Receiving Accrual Account

A/P vouchering when received a PO invoice

Cr. Accounts Payable

Dr. Inventory

Cr. Accounts Payable

Dr. Receiving Accrual Account

Month End Reconciliation

G/L Inventory balance will not match I/M Stock Status Report.  Therefore, you need to find all the receiving not invoice, or invoice not receiving transaction to reconcile G/L and Inventory sub-ledger.  This is a manual process and can be time consuming.

G/L Inventory balance should match I/M Stock Status Report.  However, there will be value in Receiving Accrual Account to reconcile at month end.  If you do not enable “Receiving Accrual Account Reconciliation” feature, there’s no easy way to reconcile.

G/L Financial Statement

G/L Inventory does not reflect your true inventory value.

Add “Receiving Accrual Account” to your Balance Sheet as a temporary liability account.

 

 

Application Overview

 

If you are using batch receiving in Purchase Order, posting PO receiving updates the General Ledger (via the GL Inventory Interface) by debiting inventory and crediting the receiving accrual account as a temporary liability account.  Without enabling this feature, there are no sub-ledger detail reports that could be used reconcile the ending balance in the G/L receiving accrual account.

 

The purpose of this feature is to provide a means of reconciliation for the P/O receiving accrual account.  For data accuracy and integrity, the Reconciliation Process should be done prior to your End of Month Reporting.  As a bonus, this feature will also speed up A/P voucher processing. 

 

If you are using on-line receiving method, there’s no need to enable this feature because there’s no such a concept as “Receiving Accrual Account” in on-line receiving process.  However, we do recommend most users to use batch receiving instead of on-line for the additional features and benefits of batch receiving process.

 

 

NOTE:  This use of this feature is controlled, (turned off and on), in Accounts Payable Global Setup.


Additional Files Used by This Feature:

 

Accounts Payable

 

1.   APRCNFIL - Receiving Account Reconciliation File. This file will be updated when posting AP Transactions.  Two reports will be generated from this file:  The Outstanding Report (similar to A/P Open Items), and The Date by Date Report.  We will discuss the purpose of these reports later in this document.   

2. APRCNHIS - Receiving Reconciliation History File.  This file    will be updated when you purge the APRCNFIL file.  The purpose of this file is to provide history information.  You can generate an Outstanding Report from this file. 

Purchase Order

 

1.   PORCNFIL - Receiving Account Reconciliation File.  This file will be updated after posting Receiving Transactions in P/O.  Two reports will be generated from this file: The Outstanding Report, and The Date by Date Report.

 

2.   PORCNHIS - Receiving Reconciliation History File.  This file will be updated when you purge the PORCNFIL file.  The purpose of this file is to provide history information.  You can generate an Outstanding Report from this file.

 

Setting Receiving Accrual Account in P/O Setup

 

Before we can begin using this feature, you will need to setup the Receivings Accrual Account.  Figure 2A.4 shows how to do this.  Field 16 under P/O setup is where you define the account.  In our example, we set this account to 02165-10000-00000.

 

 

     

 

Figure 2A.4 P/O Setup

 

 


Purchase Order

  1. Why Receiving Non-Inventory Items in PO Will Cause General Ledger Inventory Account Out of Balance?
  2. Order Has Been Printed But Not Posted
  3. When does the Purchase Line History data get updated?
  4. Can I Edit the Ship Date Field in PO Line Item Screen?
  5. Getting PO Lock File Problem During PO Printing
  6. Feature - Notes Tracking from PO Warehouse Receiving to Inventory Transfer Management to Inventory Transaction
  7. Feature - Prevent MM Item from Purchasing
  8. Feature - Include Or Exclude UDC in Buyer's Desk
  9. Feature - Item Number Verification After Serial Number Scan
  10. PO05S1 Purchase Order and Receiving Receivings Audit Trail Report
  11. PO05S2 Purchase Order and Receiving Drop Shipment Receivings Report
  12. PO0104 Purchase Order and Receiving Release Blanket Orders
  13. PO0105 Purchase Order and Receiving Purge Closed Purchase Orders
  14. PO0200 Purchase Order and Receiving Print Purchase Orders
  15. PO0300 Purchase Order and Receiving Purchase Order Inquiry
  16. PO0400 Purchase Order and Receiving Scheduled Receipts Reports
  17. PO0600 Purchase Order and Receiving Purchase Line History Report
  18. PO0700 Purchase Order and Receiving Cash Requirements Projection Report
  19. PO0800 Purchase Order and Receiving Commodity Code Vendor Report
  20. PO0900M Purchase Order and Receiving Vendor Performance Analysis Report
  21. PO1000 Purchase Order and Receiving P/O Setup
  22. PO1101 Purchase Order and Receiving Buyer Code File Maintenance
  23. PO1201 Purchase Order and Receiving Comment Code File Maintenance
  24. PO1301 Purchase Order and Receiving Reject Reason Code File Maintenance
  25. PO1401 Purchase Order and Receiving Ship-To File Maintenance
  26. PO1501 Purchase Order and Receiving Item Vendor File Maintenance
  27. PO1502 Purchase Order and Receiving Purge Item Vendor File Maintenance
  28. PO1601 Purchase Order and Receiving Vendor Service Address
  29. PO1700 Purchase Order and Receiving Clear Year-to-Date Statistics
  30. PO1800 Purchase Order and Receiving Open Purchase Orders Reports
  31. POCLSMNU Purchase Order and Receiving PO Close Processing
  32. POIMPMNU Purchase Order and Receiving Purchase Order Import
  33. POINVMNU Purchase Order and Receiving Invoice Processing
  34. POORDEXS Purchase Order and Receiving Purchase Order Export
  35. POEQMNT Purchase Order and Receiving Purchase Order Requisition
  36. POEQPST Purchase Order and Receiving Post Requisitions
  37. PORSTSCN Purchase Order and Receiving Reset P/O Rec/Inv Qty
  38. POUPDSTA Purchase Order and Receiving Update Vendor Statistics
  39. POWHRMNT Purchase Order and Receiving Warehouse Recovery Process
  40. POWRIMNT Purchase Order and Receiving Warehouse Receiving Import
  41. Feature -- PO Ship-to File Maintenance Determine Drop Ship Location by State/Zip Code Tables
  42. Feature - Warehouse Receiving Serial Number Validation
  43. Feature - Buyer's Desk Inventory Class Selection Criteria
  44. Feature - PO Ship-To File Received to Transit Location
  45. Purchase Order Line Item Add or Change Event
  46. PO0000 Purchase Order and Receiving Overview 1
  47. PO0000 Purchase Order and Receiving Overview 2
  48. PO0000 Purchase Order and Receiving Overview 3
  49. PO0000 Purchase Order and Receiving Overview 4
  50. PO0000 Purchase Order and Receiving Overview 5
  51. PO0000 Purchase Order and Receiving Overview : Index
  52. PO0100 P/O and Receiving Purchase Order Processing 1
  53. PO0100 P/O and Receiving Purchase Order Processing 2
  54. PO0100 P/O and Receiving Purchase Order Processing 3
  55. PO0100 P/O and Receiving Purchase Order Processing 4
  56. PO0100 P/O and Receiving Purchase Order Processing 5
  57. PO0100 P/O and Receiving Purchase Order Processing: Index
  58. PO2000 P/O and Receiving Receivings Processing 1
  59. PO2000 P/O and Receiving Receivings Processing 2
  60. PO2000 P/O and Receiving Receivings Processing 3
  61. PO2000 P/O and Receiving Receivings Processing 4
  62. PO2000 P/O and Receiving Receivings Processing 5
  63. PO2000 P/O and Receiving Receivings Processing 6
  64. PO2000 P/O and Receiving Receivings Processing 7
  65. PO2000 P/O and Receiving Receivings Processing 8
  66. PO2000 P/O and Receiving Receivings Processing 9
  67. PO2000 P/O and Receiving Receivings Processing: Index
  68. POFRMMNT P/O and Receiving P/O Form Setup 1
  69. POFRMMNT P/O and Receiving P/O Form Setup 2
  70. POFRMMNT P/O and Receiving P/O Form Setup 3
  71. POFRMMNT P/O and Receiving P/O Form Setup 4
  72. POFRMMNT P/O and Receiving P/O Form Setup 5
  73. POFRMMNT P/O and Receiving P/O Form Setup: Index
  74. PORCNMNU P/O and Receiving P/O Reconciliation Process 1
  75. PORCNMNU P/O and Receiving P/O Reconciliation Process 2
  76. PORCNMNU P/O and Receiving P/O Reconciliation Process 3
  77. PORCNMNU P/O and Receiving P/O Reconciliation Process: Index
  78. How to Retrieve Open Purchase Orders Through SQL SELECT Statement
  79. Feature - Receivings Processing Mass Receiving Changes
  80. Feature - Warehouse Receiving Mass Receiving

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