Uninvoiced Receipts in Oracle

Whenever a Purchase Order is approved then the supplier has to provide the invoice for the list of goods in the Purchase Order to the Customer and then the payment will be made for the Invoice in Accounts Payable. Now the goods will be shipped to the customer and then the Receiving is done by entering the 'Receipts' and the accounting entries will hit General Ledger. The Journal Source for these entries will be 'Purchasing'.

Sometimes the supplier ships the goods to the customer without any invoice and the customer receives from his end. This process is called Uninvoiced Receipts. Now when these transactions are entered in GL, there should be a way by which we can identify that these entries are coming from Oracle Purchasing and are Uninvocied. The way to identify that these are coming from Oracle Purchasing is with the Journal Source and to identify the accounting entry as Uninvoiced Receipt, the journal category will be given as 'Accrual'. Let me explain with an example.

You have raised a PO worth of 10000$ and you have received the goods worth of 500$ without any invoice. This clearly means your accrual amount for the PO is 500$. When Accounting Entry happens for this Uninvoiced Receipt in GL, Journal category should be 'Accrual' and the Journal Source should be 'Purchasing'.

Receiving Transactions
Receipts Accruals-Period End

Account	Debit	Credit
PO charge account @ Uninvoiced Quantity * PO Price	XX
Expense A/P accrual account @ Uninvoiced Quantity * PO price		XX

Account	Debit	Credit
Expense A/P accrual account @ Uninvoiced Quantity * PO price	XX
PO charge account @ Uninvoiced Quantity * PO Price		XX

Match, Approve, and Post an Invoice

Account	Debit	Credit
PO Distribution Charge Account @ Invoice Quantity * PO Price	XX
PO Distribution Variance Account @ Invoice Quantity * (Invoice Price - PO Price)	XX
A/P Liability @ (Invoice price * Invoice Quantity)		XX

Purchasing does not record any accounting entries for expense during a receiving transaction if you use period-end accruals. You record all of your un invoiced liabilities at month end using the Receipt Accruals - Period-End process.

Use the Receipt Accruals - Period End process to create period-end accruals for your un invoiced receipts for expense distributions. Purchasing creates an accrual journal entry in your general ledger for each un invoiced receipt you choose using this form. If you use encumbrance or budgetary control, Purchasing reverses your encumbrance entry when creating the corresponding accrual entry.

Purchasing never accrues an un invoiced receipt twice. Each time you create accrual entries for a specific un invoiced receipt, Purchasing marks this receipt as accrued and ignores it the next time you run the Receipt Accrual - Period-End process. Purchasing creates accrual entries only up to the quantity the supplier did not invoice for partially invoiced receipts.

Purchasing creates the following accounting entries for each distribution you accrue using the Receipt Accruals - Period-End process:

As soon as you open the next period, Purchasing reverses the accrual entries using the following accounting entries:

When you enter an invoice in Payables, you match each invoice line to a specific purchase order shipment in Purchasing. You can set up Payables to ensure that you pay only for the quantity you received. If you accrue your uninvoiced receipts at period-end, Payables records the expense transactions part of the accounting transactions:

Attention: Normally, you charge the original expense account for any invoice price variances, so your PO distribution variance account is the same as the PO distribution charge account. You do not record invoice price variances for expense purchases. Purchasing uses the Account Generator to set your purchase order distribution variance account to be the same as your purchase order charge account. If you want to record your invoice price variances to a separate account, use the Account Generator to define the business rules you use to determine the correct invoice price variance account.