Purchase Order Accrual

Requirements:

Company variable 2, 3 and 4 to be set after personal preference. (1) (2) (3) (see the references in the images below)
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System variable 701, set to automatic or enabled. (4)2_Easy-Resize.com

System variable 1021 set to either “Delivery date” or “Order date”. (5)3_Easy-Resize.com

Basic finance settings.
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The Purchase Order:

First step is to create and approve a purchase order (PO). With system variable 701 set to automatic, approving the PO, will automatically create the accrual, as seen in the images below.

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In case system variable 701 is set to “Enabled” then you will have to manually create the accrual, by going in to the finance module, in silverlight, and in the “Monthly”-section find “Purchase order management”, as seen in the image below. On the left side there will be a button named “make vouchers from the selected purchase orders”, which is used to create the accrual voucher.
This is the only difference between the two settings on system variable 701, they both follow the same logic and process hereafter.

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The voucher:

After creating the PO, you can create a voucher and link it to the PO. (7) This will partially eliminate the voucher amount from the PO, and deduct the voucher amount from the accrued amount.
When posting the accrual voucher to a journal, through project posting, the flow will follow the posting konfiguration for vouchers.
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Company variable 2 (first image (1)), as mentioned above, dictates when the voucher amount will be deducted from the accrued amount, based on the status of the voucher.

Company variable 3 decides when to settle the PO, based on how big a percentage share of the original PO amount, is remaining. (2)

Company variable 4 does the same thing, but here you can select a specific amount instead of percentage. (3)

 

System variable 1021:

Delivery date:

The accrual will show in the chosen delivery date month, in the summary, but will not show in reports unless the specific date is within the chosen time-period

Process:

  1. Create a PO.
  2. Set delivery and order date.
  3. Approve the PO.
  4. An accrual voucher is now created on delivery date (order date if no delivery date is chosen).
  5. Settle the PO, partial or full, with or without vouchers.
  6. A settle voucher is now created on delivery date (order date if no delivery date is chosen).
  7. If the accounting period for delivery/order date is not open, the system will use the first day of the next open month, up to and including today.

 

Order date:

  1. Create PO
  2. Set order date
  3. Approve
  4. Accrual voucher is now created on order date.
  5. Scenarios:
    1. Settling without a voucher creates the settle voucher dated “today”, no matter what order date.
    2. Settling with a voucher, will register the settled voucher with the date registered on the voucher the user settled the PO with.
  6. If the accounting period for delivery/order date is not open, the system will use the first day of the next open month, up to and including today.

Cancelling the PO:

 

When cancelling a PO, the remaining accrual amount will be settled on the original accrual voucher date. (This feature will be available in September, until then the voucher date will be “current date”.)

If you create a voucher for partial elimination on the wrong PO, you can reverse said voucher, and this will create a new reversal voucher “minus” and an addition voucher, to balance the removed sum.

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