P.O./Contract Accrual Report

This report can be generated to list re-rent and sales products with receiving, and billing information, that have been ordered on a Purchase Orders where the P.O. has been generated from or linked to a Contract as outlined in Contract/Purchase Order Link Overview.
The report calculates unbilled expenses up to a cut-off date and provides the option to create a self-reversing accrual journal, posted to the GL through Post Standard Journals.
The option to Generate Accrual Entries is useful for ongoing re-rentals where the A/P Invoice from the supplier is still pending.
By generating the accrual journal transactions each month end, the future liabilities on re-rents can be properly reflected in the G/L.

The prompts are:

REPORT CUT-OFF DATE

Accept today's date or enter a preferred cut-off date.

The cut-off is respected as follows:

• For Received items, the cut-off date is applied to warehouse receiving date.
• For open P.O. items, the cut-off respects the rerental start date for rentals, sales and services.

GENERATE ACCRUAL ENTRIES

Uncheck if this box to generate the spreadsheet but to skip the Journal transactions.

Check this box to create accrual transactions in the Standard Journals for the open balance owed to the Vendor for these products after the spreadsheet is accepted.
The journals will credit the Accrual Liability account and debit the Accrual Expense account assigned in the Product Classes and then will reverse these same postings back out as of the dates defined when the journals are posted in Post G/L Standard Journals.

Accrual Feature Setup:

To utilize the auto-create self reversing accrual postings to the G/L, an Accrued Journal Entry number must be set up in Standard Journals and assigned for 'P.O./Contract Accrual Reporting' in the Company Posting Parameters.
The P.O. Accrual Expense Account and the P.O. Accrual Liability Account must be defined in the associated Rental Product Classes and Sales Product Classes.

Note: Each time Accrual transactions are generated in Standard Journals from this utility, the previous Accrual journal is over-written.

Finished?

The report output is always to an Excel spreadsheet.
Click ACCEPT to generate the report, or CANCEL to abort.

Resulting Product Spreadsheet:
The spreadsheet output includes the following columns:

PO NUMBER

This is the Purchase Order number for the order.

DETAIL NUMBER

This is the sequence number of the product detail on the Purchase Order.
The associated Contract# is displayed in the expanded P.O. detail.

WAREHOUSE RECEIVING TRANSACTION #

This is the transaction number if the product has already been received in the Warehouse Receiving.
(INWR WRTRX)

QUANTITY

This is the quantity ordered on this product detail on the Purchase Order.

AMOUNT BILLED

This is the open amount from the P.O. that the Vendor will be billing, and will be the amount posted if Accrual transactions are generated.

DATE LAST BILLED

Re-Rentals ( Type E ):

This is the date of the last A/P Invoice for this re-rented product from the supplier.
It applies to Re-Rented Equipment that could be in use for an extended period and so may require multiple invoices from the supplier.
If the A/P Invoice has not been entered, the date of the start of the re-rent is displayed.
When the product is returned to the supplier, it will no longer be reflected on this report.

Sales and Services ( Type S & V ):

This field will be blank for Sales products or sales parts representing Services as they will only ever been invoiced once, and then will no longer be reflected on this report.

TYPE

The product types include:

S for Sales products
E for Re-Rented Equipment
V for sales parts representing Services ordered

PROD

The product number is displayed.
This is your firm's product number, not the supplier's product number.

DESCRIPTION

The product description is displayed.

CLASS

The Product Class associated with the product is displayed.
The G/L posting account numbers for the Accrual transaction are defined on each Rental Product Class or Sales Product Class.

Note: If no P.O. Accrual Expense & Liability Accounts are defined in the associated Product Classes, an error will occur and no Accrual transactions will be written.

CONTRACT #

The contract number associated with this P.O. is listed.

DIVISION

The Division associated with the P.O. is listed.

DIVISION NAME

The Division name is listed

Generate Accrual Entries Confirmation:

This pop-up is triggered if the Generate Accrual Entries option was selected.
Review the spreadsheet information and click YES to create the accrual journal transactions or click NO to exit to prevent new journal transactions from being created.

If Accrual transactions were created, they can be viewed in Standard Journals and posted to the General Ledger from Post G/L Standard Journals.
The Accrual transactions in Standard Journals are over-written the next time Accrual entries are generated regardless of whether they were posted.

Error Conditions:
Any errors preventing the accrual journals from being created are displayed in an Information Log.
Errors include:

• Invalid G/L Account numbers on the Product Classes for each failed product
• Error reading company parameters
• No accrual journal assigned in Company Posting Parameters
• Invalid accrual journal set up in Standard Journals
• There are too many details [xxxx]
• Posting standard journals already in progress
• Invalid G/L division

Warning Messages include:

• 'Journal total does not match report' is a warning to the operator to check the transactions written to the journal prior to posting.