PORCNMNU P/O and Receiving P/O Reconciliation Process 3
Posting Considerations P.O. 000039-00
Posting P.O. Receiving: DR Inventory $720.00
CR Rec Accrual 720.00
Posting A/P Voucher DR Rec Accrual $720.00
CR Accts Payable 720.00
If Invoice had come in at $750.00
Posting A/P Voucher DR Rec Accrual $720.00
DR PPV 30.00
CR Accts Payable 750.00
The Reporting Function is accessed from:
Elliot Main Menu à Distribution à Purchase Order & Receiving à Processing à Reconciliation Processing à Report
What makes this feature powerful is that it provides detailed reporting to reconcile the ending balance in the G/L receiving accrual account. This function gives you the option to print three reports: 1. Outstanding Report, 2. Date by Date Report, and 3. History Report.
1. Outstanding Report: This report should be run at the end of the accounting period. The report will list all Receivings that have not been invoiced and Invoices that have not been received, and compare the net balance to the GL Receiving Accrual Account. This report is generated from the A/P and P/O Account Reconciliation Files.
2. Date by Date Report: This report should be run when the Outstanding Report net balance does not match the GL Receiving Accrual Account balance. This report compares the subledger net changes with the G/L Accrual Account and isolates any discrepancies on a day by day basis.
If the net changes for a day match, that day will be skipped. If net changes do not match, the report will print the subledger detail and the G/L Accrual Account detail for that day. By isolating discrepancies to a day, it then becomes relatively easy to identify where the problems come from, e.g., someone updates the G/L Accrual Acct, but not from A/P or P/O. This report is generated from the A/P and P/O Reconciliation Files, and the GL Transaction File.
3. History Report: This is exactly like the Outstanding Report. The difference is that it is generated from the history files: APRCNHS and PORCNHS. These two history files are updated when you purge the A/P and the P/O Account Reconciliation files.
This report items from the AP Reconciliation File and the P/O Reconciliation File. At the time of printing, you have the option to report fully reconciled items. When you purge these files, only the reconciled items get purged by a cut-off date.
The report is in four sections:
1. Unapplied A/P
2. Outstanding P/O
3. Fully Applied P/O
4. Grand Total (Net Balance)
Section 1: Unapplied A/P
These are A/P invoices posted against prepaid Purchase Orders or those P/O’s or line items that have net been received yet. When the P/O lines are received, they will be reported as Outstanding P/O line items in Section 2. To reconcile the P/O line items just received against the Unapplied A/P’s, you must go to Reconciliation Processing Menu, Processing Sub Menu Re-apply. After this has been done, the posted voucher and posted line items will appear in Section 3, Fully Applied Purchase Order line items.
Section 2: Outstanding P/O Line Items
This reports items from the P/O Reconciliation file and these line items are P/O line items that have been received but not vouchered in A/P.
Section 3: Fully Applied P/O Line Items
This report lists the P/O line items matched up, (reconciled) to the corresponding A/P voucher. If one P/O line item had two receivings, it would appear twice and each with it’s corresponding A/P voucher. This is also the information, (reconciled items), that gets purged when you run the Purge function.
Section 4: Grand Total (Net Balance)
This is the last page of the Outstanding Report and reports the difference between Unapplied A/P transactions and outstanding P/O line items.
Grand Total: A Debit balance indicates there are more unapplied A/P transactions than P/O line item receivings. A Credit Balance indicates more posted receivings than posted vouchers for line items in A/P.
In addition to Prepaid Purchase Orders and line items posted before P/O Receiving, a Debit balance can also occur when you post an A/P voucher without processing it against the P.O. Receiving. This also another good reason why you should reconcile at Month End.
A zero balance will indicate that all the P/O receivings have been matched up to an A/P voucher and that there are no Unapplied A/P transactions.
P/O Receivings: DR Inventory CR Accrual Account
A/P Vouchers DR Accrual Account CR Accounts Payable
DR Purchase Price Variance (PPV)
Day By Day Report
This report groups and isolates all transactions on a Date By Date reporting basis, thus making it easier to find transactions that do not match up.