Financials closing – purchase accruals (GRNI)

The Invoice Receivables function is optionally used at month end to generate temporary GRNI accruals for purchase receipts that haven’t yet been invoiced.

• Purchase Accruals – Financials > Closing Processing > Invoice Receivables (FUNPTH)

This is optionally used to generate accruals for purchase order receipts that have not yet been invoiced.

Please note: Stock accrual postings are usually generated automatically by the stock accounting interface for managed products so this process is generally only used for non-managed products.

The generation creates two journals for each supplier:

• One into the current period which DR Accruals and CR P&L account for the receipt value not invoiced.
• One journal into the next period to reverse out the journal created above.

The reversal must be posted onto the next period so it will be necessary to make sure that the next period is open prior to the accrual generation.

The criteria screen looks like this:

• To create the accrual, select the Company and then enter the period end date into the “Until” box.
• To create a normal journal, select “Actual” and “Temporary” under the generation section.
• Enter your Document type and Journal code and in the document date, enter the date the first journal will be created and also the date the second journal will be reversed.

Please note: It is not possible to delete the journals once created so great care should be taken when running the generation – especially around the date values being entered.

To assist with this it is possible to create a simulation posting to review the results of the posting prior to creating the actual journal. Where this option has been selected the financials function to convert “Active Simulation” journals to “Actual” journals should not be used, instead the generation of accruals should be run again in “Actual” mode. This will then delete the simulation entries and recreate them as actual journals.

In the products to be processed section, carefully select the right radio button, as stock receipts are usually posted automatically through the stock accounting interface, this function is usually only run for “Products not managed”.

When all the details have been checked and are correct click ok. Review the log file as this will show you for each supplier which journals have been created and which receipts were considered as part of the calculation.

An accruals journal usually prefixed “ITR” (invoices to receive) is created for each supplier along with the reversal entry for the next period. The journals can be reviewed in Financials > Journal Entry. If Commitment accounting is in use additional commitment journals are created to reverse to ensure that the receipt is not reported both as a commitment and as an accrual.

The receipts in question will now be ‘stamped’ as having been accrued up until 28/02/23 so if you were to run the process again with the same criteria as above then nothing would be produced as the system knows it has already been run.