Create Purchase Order Accruals

Use this screen to create purchase order accrual journal entries so you can post purchase order amounts to the general ledger before the actual payable is posted by voucher distribution.

This process generates a self-reversing journal entry from the summary purchase order commitments calculated for the period-end date that coincides with the selected accrual period. This enables you to show your purchased and received amounts on your financial statements without waiting for the entire payables process to complete. This also makes it possible to progress-bill customers for the purchased items.

On the Configure Purchase Order Accruals screen, you specify which commitment amounts to accrue and select the period for which these amounts are accumulated. Costpoint posts the accrual journal entry to the proper project/account/organization and reverses it when the next Reversal Adjusting posting for the next subperiod or the first subperiod of the next accounting period occurs.

Before you create purchase order accruals for the first time:

• Identify the purchase order commitment amounts that must be accrued, on the Configure Purchase Order Accruals screen, and
• Calculate purchase order commitments, on the Compute/Print Purchasing Commitments screen.

Run the Create Purchase Order Accruals process whenever you need to create purchase order accruals. You can run the accrual process multiple times in a given period or subperiod. Multiple accrual journal entry transactions across periods or subperiods can be open at the same time.

Only one user at a time can run this process.