A/P Accrual and Closed PO

(0) Share

Report

Posted on by Community Member

Hi, we have A/P accrued at $900K and many of these POs are closed from the Edit PO Window inappropriately. Even many of these are in history. How to deal with this scenario if I want to get rid of this huge A/P accruals. Should I open the PO from the history and try deleting the remaining items and if so what could be the repercussions? Also, what tables I have to deal if I am going to open these POs. I know it is not advised but I need to find a solution. I have the list of all the POs. Please suggest ....

*This post is locked for comments

I have the same question (0)

All responses (4)

Answers (0)

Suggested answer

babubaskaran@outloo... 12 on at

Like (0)

Report

RE: A/P Accrual and Closed PO

Hi John,

If the POs are closed already you cant open them again. If you have AP invoice which is not a valid anymore you may book a return transaction entry if you have booked original entry through Purchasing-receiving transaction entry. If this has been booked directly on AP entry you may book credit note in order to remove it from the open AP.

Was this reply helpful? Yes No
Suggested answer

Heather Roggeveen 9,146 on at

Like (0)

Report

RE: A/P Accrual and Closed PO

Hi John

I seem to be coming across this similar issue with a number of my clients at the moment. It generally has stemmed from the purchasing process not being maintained correctly (not criticising, just seems to be the case most often).

This issue led me to write this blog about the overall processes for maintaining purchase orders that you may find helpful once you solve the issue:

www.olympic.co.nz/purchase-order-maintenance

Overall, the balance in the accruals should match the results on the Goods Received Not Invoiced report (details of how to run in the blog).

If it was me doing it, I would start with the current GRNI report. Validate what is on there and clear everything that shouldn't be (see the blog). Get a balance that you are happy with. I would then set up a separate GL account for non-GRNI accruals - these accounts could be combined for reporting purposes. Journal the balance difference between the GRNI report and your accruals account to this new account. That means you immediately have a starting point to ensure that you can balance from now on.

If you have a list of the purchase orders that you believe make up the rest of the balance, I would bring them back from history - just investigate what has happened. Try to find out what actually happened to the final invoice - has it been processed in AP directly to the expense account? If that is the case, you would journal the value from accruals back to the expense account because it would have hit there twice.

If you want to be accurate with it, then you investigate document by document. For some companies $900K would be massive - for others, a drop in the bucket. You may find that depending on the materiality, that just clearing the balance may be fine.

Hope that helps get you on the right path. And once clean, definitely easier to keep it clean!

Good Luck

Heather

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report

RE: A/P Accrual and Closed PO

Hi Heather. We have an issue in GP where a PO can be closed after shipment/receipting but prior to invoice matching. This is causing trouble with an accrued purchases sub-ledger to GL discrepancy. Is there a setting in GP to prevent PO's being closed prematurely please? It seems if they are closed we cannot reopen them to complete the matching. Thank you

Was this reply helpful? Yes No
L Vail 65,271 on at

Like (0)

Report

RE: A/P Accrual and Closed PO

Hi Stu,

I'm not aware of a way that you can prevent this without some custom code. For GP2015, you can warn the payables folks that enter the invoices if they try to enter an invoice for a vendor that has outstanding POs. You might try Field level security to keep select users from closing POs.

Kind regards,

Leslie

Was this reply helpful? Yes No