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The PO Accrual Reports needs to include all activity that affect the PO Accrual account.  The existing PO Accrual Reports only take into account the traditional Receipt of Goods into Inventory and Receipt of those Vendor Bills.  There is no way to audit this account if a customer uses Sales Order Drop-shipments.

In the Drop-shipment process, a Receipt of Goods and Bill is entered when the vendor notifies the Acumatica user that their Drop-ship PO has been fulfilled.  When this type of Receipt is entered and released, a G/L Transaction creates a Debit to the PO Accrual and a Credit to Accounts Payable.

Once the Sales Order Line that is flagged as Drop-shipped is invoiced and released, the system will create a G/L Transaction (via an Inventory Issue) that will Credit the PO Accrual Account and Debit a Cost of Sales Account.

If there is timing differences between the Vendor Bill and the Customer invoice, this Debit Balance will sit in the PO Accrual and the existing PO Accrual Reports do not take this into account.  The existing PO Accrual report do not match the PO Accrual balances and are useless in auditing this account.

Please provide a PO Accrual report that is accurate and takes into account the Drop-ship Feature.

Hi @jeffrose90 

Let us know the version and build of Acumatica your test instance is on. We will check further. 

Regards,

20.107.0026 is the specific version; I haven’t looked at other versions

@jeffrose90 , this is a product limitation. The Purchase Accrual Details report ‘considers’ accrual account to be debited when a purchase receipt was released. In the case of drop shipments, the release or receipt does not create GL entries and, yes, updates only accrual report, which leads to this temporary inconsistency.

Depending on the process/requiments, I see two possible solutions:

  1. Use the Order Based billing for purchase order. This will allow to create AP Bills before PO Receipts and release PO receipts only immediately before Customer invoice. This will allow avoiding this discrepancy
  2. Set up a separate accrual account for drop shipments (possible by means of a customization or a separate warehouse for drop shipment). This will allow to reconcile a ‘real purchase’ accrual account with Purchase Accrual reports (where it should be reconcilable) and reconcile ‘billed but not invoiced’ drop ship accuals via different GI/report which can be built by the customer

A few other suggestions for dealing with the miss matched reporting that doesn’t suggest massive undertaking within Acumatica:

 

The PO Accrual Details report is much more helpful when looking for discrepancies.

Have the g/l, PO Accrual Details report and PO Accrual Summary report run every day for comparison.  Ideally, scheduled to automatically run after hours, but I am manually running them before I leave every night while we get the automation ironed out.  If you are starting from a reconciled balance, the daily viewing makes it completely possible to research all discrepancies.

I have a customization request into Acumatica on this and will also be reviewing with Product Mgt team.  The issue is that the Drop Ship Accrual debit does not occur until AR Invoice is created.  When in reality it should occur at the time the Drop Ship is “Received.” 

Hi @jeffrose90 @gpolsky53 

I would like to do a deeper dive on this topic.  

Please let me know if you would like to participate.  If so, i can send out a meeting invite with proposed date/times for discussion.

-Dana

The customer that uses Drop-shipping extensively, has accepted how Acumatica does the drop ship PO Accrual process. The new Purchase Accrual Balance by Period Inquiry screen has provided them enough information to audit and balance the PO Accrual/Clearing Account.  I have time tomorrow or Friday to spend 15 - 30 minutes to discuss; I am in the eastern time zone.

Hi @jeffrose90

Thank you for your response.  I have sent you some proposed times to meet this Friday. - Dana

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