po-Ap reconcialation

[segu_tulasi55]

how to reconcile with PO to Ap at period end can anyone pls help me?

[mpdhas@gmail.com]

<b>PERIOD END RECONCILIATION OF PO TO AP</b>

The following steps are to be followed for reconciling PO to AP during the period end.

1)<b>Reconciling A/P Accrual Accounts Balance</b>


At any given time, the balance of the A/P accrual accounts can account for the
following transactions:

#61656; Uninvoiced Receipts

#61656; Over-invoiced Receipts

#61656; Invoice Price Variance (for transactions created using Release 9)

#61656; Errors (Invoices or inventory transactions charged to this Account by
mistake)

You need to analyze the balance of the A/P accrual accounts, distinguish accrued
receipts from invoice price variances, and identify errors.

<b>2)Analyzing the A/P Accrual Account Balance</b>

You need to monitor potential problems with purchasing and receiving activities
that can affect the accuracy of your A/P accrual accounts. You can use the
Accrual Reconciliation Report to identify the following problems in receiving,
purchasing, inventory, work in process, or accounts payable transactions:

#61656; Quantities differ between receipts and invoices

#61656; Incorrect purchase order or invoice unit prices (previous releases
only)

#61656; Discrepancies in supplier billing

#61656; Invoice matched to wrong purchase order or wrong purchase order line

#61656; Received against the wrong purchase order or order line

#61656; Miscellaneous inventory or work in process transactions that do not
belong to the accrual accounts

#61656; Payables entries for sales tax and freight that do not belong to the
accrual accounts

<b>3)Using the Accrual Reconciliation Report</b>

Use the Accrual Reconciliation Report to analyze the balance of the Accounts
Payable (A/P) accrual accounts. To submit this report, you must have Purchasing
and Payables installed. In Release 10, you can accrue both expense and inventory
purchases as you receive them. When this happens, you temporarily record an
accounts payable liability to your Expense or Inventory A/P accrual accounts.
When Payables matches and approves the invoice, Payables clears the A/P accrual
accounts and records the liability from the supplier site.

Typically, you run this report at month end. After you have entered your receipt
transactions and matched your invoices, you can run the Accrual Reconciliation
Report for any transaction date range and identify any differences between your
PO Receipts and A/P Invoices. This report also displays any miscellaneous
transactions recorded in error to your accrual accounts. These miscellaneous
transactions or transactions unrelated to purchase order receipts may be from
Payables, Inventory, or Work in Process (depending on your installation). After
you have researched the reported accrual balances, you can use the Accrual
Write-Off form to indicate which entries you wish to remove and write off from
this report. And, after you have written off these entries, you can use the
Accrual Write-Off Report as supporting detail for your manual journal entry.

<b>4)Resolving Quantity Differences</b>

The Accrual Reconciliation Report lets you easily identify quantity differences
i.e., when the quantity received for a purchase order shipment is smaller than
the quantity invoiced). Such differences leave residual balances that never
clear from the A/P accrual accounts. You should investigate the cause of these
differences and take corrective actions before closing your period.

Common causes of quantity differences include late inventory receipts, incorrect
receipt quantities, and supplier overbilling. To correct late receipts, ensure
that receivers enter all receipts into inventory. To correct receipt quantities,
enter receipt corrections. To correct overbilling errors, follow your standard
procedure for supplier debit memos to clear the difference.

<b>5)Resolving Price Differences</b>

The Accrual Reconciliation Report lets you determine how much you should have
paid and whether the PO or invoice is correct. Such differences leave residual
balances that never clear from the A/P accrual accounts. You should investigate
the cause of these differences and take corrective actions before closing your
period.


Hope you are clear now.

Regards,
Dhas

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