1
Currently, when an invoice that correspond to multiple PO's is posted, the combined value of the multiple PO receipts are reversed from the Purchase, accrual in a single line in the General Ledger (G/L).
Example: Invoice 123 paying PO001 for $ 500 and PO002 for $ 1000
DR Purchase, accrual $ 1,500
CR Cost of purchased materials received $ 1,500
This makes reconciliation of the G/L to the sub-ledger difficult as it is difficult to determine PO and value being reversed. We then need to drill into the transaction detail to determine which PO's and corresponding balances.
We are proposing that when the PO accrual is reversed, the values are not combined into a single line, but are reversed by the corresponding PO values (i.e. each PO gets reversed as a single line).
Example: Invoice 123 paying PO001 for $ 500 and PO002 for $ 1000
DR Purchase, accrual - PO0001 $ 500
DR Purchase, accrual - PO0002 $ 1,500
CR Cost of purchased materials received $ 1,500
Example: Invoice 123 paying PO001 for $ 500 and PO002 for $ 1000
DR Purchase, accrual $ 1,500
CR Cost of purchased materials received $ 1,500
This makes reconciliation of the G/L to the sub-ledger difficult as it is difficult to determine PO and value being reversed. We then need to drill into the transaction detail to determine which PO's and corresponding balances.
We are proposing that when the PO accrual is reversed, the values are not combined into a single line, but are reversed by the corresponding PO values (i.e. each PO gets reversed as a single line).
Example: Invoice 123 paying PO001 for $ 500 and PO002 for $ 1000
DR Purchase, accrual - PO0001 $ 500
DR Purchase, accrual - PO0002 $ 1,500
CR Cost of purchased materials received $ 1,500
STATUS DETAILS
Inactive