Re: Three-Way Match Problem(s)
Cleaning up Received not Invoiced and the receiving accrual accounts is a task that happens all too often. Having "walked into" this mess, I would suggest the following:
1. Close all POs that are truely dead (received and paid). That will clean them off the Received Not Invoiced )RNI) report but does no journal entries.
2. Run the RNI report to get the total open receipts. Make sure Payables agrees they have not paid any of these. If so, you probably have some residual POs that cannot be closed because they are not yet received. Take the these already paid amounts and subtract them from the RNI balance.
3. Adjust the Receiving Accrual account to match the adjusted RNI balance.
4. If you had some prepaid invoices listed on the RNI, you won't match until the rest of the PO is received, invoiced properly, and then you manually close these POs. See if you can't close the POs and create new ones for outstanding shipments.
5. Make sure that accounting is properly and always matching. There should be a clear line about what to match and what not to match. For example, rent, electricity, water, etc is never matched. Anything physical, including copier paper, fixed assets, etc have POs issued and are received and matched. Work with purchasing and payables to define the line.
6. Check the RNI to GL balance weekly to make sure the numbers do not drift. If they do, go beat someone up!
We publish books on GP and have this process (and lots of others) well documented. Check out Understanding Purchase Order Processing or our Confessions book. For that matter, check out all of our books.
www.AccoladePublications.com
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