I would like to print off a report that matches the above account. Where is this report located and is thare an option that I can pick and choose which month and year? The logic for this account is similar to AR and AP outstanding balance reports that it should tell us which PO has not been received at of certain date.
Thanks

Hi Kitty

The report is called the Outstanding Receipt Invoice List under PO Reports. It is date sensitive.

What you want is not a report that shows which POs have not been received. What you want is a report that shows Receipts that have not been invoiced. That is what makes up the balance of the PO Receipts Clearing account.

Steve

I just printed off this OS Receipt Invoices report and selected the date range from the date our system installed i.e. Jan. 1, 2011 to Dec. 31, 2011. It appears there is a huge discrepancy between the balance as shown in GL vs. to this report. How do I reconcile them and make appropriate corrections accordingly? This is our first year-end and it has not been fun.

Thanks, Kitty

The first thing to do is review the report and make sure it's accurate. Often there are receipts on there for which the invoice has arrived, but they never got matched up in PO. If the invoice was instead entered directly in AP, then that needs to be rectified. You need to get such completed receipts off the report, and one way to do it is to invoice them for $0.

Once the report is accurate, and you are sure that there is nothing else flowing to the PO Receipts Clearing account, you will need to make a journal entry to adjust the balance to the report total. The offset is likely the purchases or cost of sales account.

In the future, you should be reconciling this GL account to the report monthly.

Steve

Kitty:

You should always print this report to include all outstanding receipts and you cannot back date the cut off as the report is not date sensitive in this way.

When was this last reconciled? There is a long list of possible issues, too many to cover in this forum. You may be better off working dorectly with your Adagio consultant.

If we invoice those that have been invoiced directly and shouldn't be on the OS list for $0, will it affect the inventory qty. at all?

What do you mean by "cannot back date the cut off"? What date range should I select for each month in order to obtain the correct data that matches the GL as of that date? Please clarify.

Hi Kitty

Actually what you should do is invoice it for the amount received (ie. accept the default invoice amount), and then delete the invoices from the AP invoice batch that are created after dayend processing. This way it won't affect the inventory costs. No matter what amount you invoice for, it won't affect inventory quantities.

When running the report, use today's date as the ending date and leave the beginning date blank. Doug is saying that if you use an earlier date as the ending date, the report will not be accurate. I never knew that to be the case, but I never tried back-dating the report either.

Steve

Hi Steve,

We cleared some of the OS Receipts that should not be on the list by using the two methods you described and when I retrieved the batches from PO to GL, they showed the following entries:

1. Invoiced them with $0 - Total of invoice before tax : Dr. PO Receipts Clearing account and Cr. Inventory account (no entry for HST)
2. Invoiced them for the amount received (default amount) - HST only : Dr. HST account and Dr. PO Receipts Clearning (no entry for invoice amount)

By looking at the above entries, it appears the first method will affect the inventory account with the same cost of the PO invoice. Using the second method is going to affect the HST account only. Although both methods will clear those OS PO Receipts from the system but which method is the one we should use.

Please advise.

Kitty

Hi Kitty

Method 2 is the one to use, and then delete the invoices that flow to Payables after PO dayend processing.

Steve

If we use method 2, how comes the HST portion of those cleared PO Receipts did not get deleted at the time we deleted the invoices after PO dayend processing? Is there another step we miss?

Please confirm, thanks Kitty

Sorry, we Americans don't know the answer to any question that has the letters HST in it. Maybe someone else knows the answer?

Steve

HST stands for harmonized sale tax for Canada. For us in Ontario is 13% on most purchases. I believe you will have a similar sale tax system too. I know I pay sale tax each time I buy something from the States.

I just need to know how comes the tax part of the invoice still remain in a batch when we delete the whole invoice out from the payables after Dayending as per recommended procedures. Do we have to zero out the tax manually when doing the deletion?

Kitty

Kitty:

Without seeing your exact PO setup my guess is this happened becasue you are posting taxes when the receipt is posted, not when the invoice is posted.

In Steve's part of the world they only have sales tax which is only charge on items purchased for internal consumption. So for most USA based PO users they are not concerned about tax and if they were it would go to the same debit account as the goods purchased, whereas here in Canada we can recover the tax so it goes to a different account.

At this point you may want to work with your Adagio consultant to review the setup and changes that could be made.

Hi,
We'll contact Kitty to review the situation.

The taxes are calculated and distributed from Purchase Orders (Invoices/Adjustments), and posted through a clearing account into Payables. So deleting an invoice in Payables only deletes the Receipt Clearing entry and not the tax portion that was calculated and distributed to the GL with the PO End of Day processing.

Normally, the practice is to credit the invoice in Purchase Orders and not delete the Invoice in Payables.

Best,
Brian