Recording Project-Related Receipt Accruals in Oracle Projects

This feature is for anyone using Oracle Purchasing, Payables and Projects 11i and beyond. I’ve been asked today to provide a solution for recording project-related receipt accruals in Oracle, and was very pleased when I found out this was a standard functionality. A summary of my research [from four different Oracle user guides] is available below.

Recording Project-Related Receipt Accruals

Oracle Purchasing records the received goods as delivered for your project when they are delivered and assigned to a project-related purchase order distribution line. When a purchase order line is flagged to accrue on receipt and the purchased goods are delivered to an expense destination, you can interface receipt accrual accounting entries from Oracle Purchasing to Oracle Projects as actual expenditure transactions. This allows you to recognize the cost to your project in the period in which it is incurred rather than in the period in which it is invoiced.

Interfacing Receipt Accruals to Projects

To interface receipt accruals from Oracle Purchasing to Oracle Projects, use the PRC: Interface Supplier Costs process in Oracle Projects. The process selects transactions based on the project-related values entered on PO distribution lines.

The process first retrieves all eligible accounted, project-related receipt accrual information, supplier invoice distributions (including non-recoverable tax lines) and all payment discounts that are distributed to project-related distributions. The process then interfaces the amounts to Oracle Projects.

The interfaced items are grouped into expenditure batches as follows:

  • All invoice distributions, excluding non-recoverable tax lines, are included in one batch.
  • Non-recoverable tax lines are grouped into a second batch
  • Payment Discounts are included in a third batch, and
  • Receipt accruals for project related items with a destination type of Expenses are grouped in the fourth batch.

Each time you run Interface Supplier Costs process, Oracle Projects generates reports you can use to track the interfaced supplier invoices distribution lines, receipt accruals, as well as those invoice lines and receipt accruals that are rejected during interface from Oracle Payables and Oracle Purchasing, respectively. The following reports show you the results of this process. These reports show amounts in the functional and transaction (AP invoice) currencies.

  • The Interface Project Costs from Payables Report. Lists all invoice distribution lines and receipt accrual transactions that were successfully interfaced to Oracle Projects. In addition, summary information is provided to display the total number and total costs of the interfaced transactions.
  • The Interface Project Costs from Payables Exception Report. Lists all invoice distribution lines and receipt accrual transactions that failed to interface to Oracle Projects during the process. For each transaction that fails to transfer, output reports list the rejection reason.

Submitting the Interface Supplier Costs Process

The PRC: Interface Supplier Costs process retrieves the following items and interfaces them from Oracle Purchasing and Oracle Payables to Oracle Projects:

  • All eligible accounted, project-related supplier invoice distributions
  • All eligible receipt accrual information from Oracle Purchasing
  • Tax lines for project-related intercompany invoices
  • All eligible accounted payment discounts that are distributed to project-related invoice distributions

The process first populates the Transaction Import Interface table, creating an expenditure item and cost distribution line for each invoice or payment distribution line, and an expenditure for each invoice. This process also checks for original items being adjusted when processing adjusting items from Oracle Payables, to ensure that every negative expenditure item adjusts a valid original expenditure item. If an original matching item is found, the process next checks to ensure that the original item is not already adjusted to have a net zero amount.

Select ‘Yes’ or ‘Accrued Cost Only’ in the Interface Supplier Invoices parameter if you want to interface supplier invoices. When this parameter is set to Yes or Accrued Cost Only, project–related supplier invoice costs are interfaced from Oracle Payables to Oracle Projects.

If an invoice distribution is matched to a purchase order line that is flagged to accrue on receipt and the receipt accrual information is interfaced to Projects, only additional invoice amounts are interfaced. These amounts can include tax or freight charges added during invoice entry, or price and exchange rate variances.

If Accrued Cost Only is selected, only additional invoice amounts are interfaced even when the receipt accrual information is not interfaced to projects. But if an invoice distribution is matched to a purchase order line that is flagged to accrue on receipt and fully interfaced to Projects, then for any invoice distribution matched to this purchase order line, the whole invoice amount will be interfaced to projects irrespective of the selected option.

Similarly, if an invoice distribution is matched to a purchase order line that is flagged to accrue on receipt and for which only additional amounts have been interfaced to projects, then for any invoice distribution matched to this purchase order line, only additional invoice amounts will be interfaced to projects irrespective of the selected option.

Select ‘Yes’ in the Interface Receipt Accruals parameter to interface receipt accruals. When this parameter is set to Yes, receipt accruals for project-related items with a destination type of Expense are interfaced from Oracle Purchasing to Oracle Projects.

Note: Receipt accrual entries are not interfaced if the received items are invoiced and the invoice amounts are interfaced to Projects.

Receipt Accrual Adjustments

You cannot adjust the expenditure item in Oracle Projects when the item is interfaced from Oracle Purchasing (i.e. receipt accrual).

If the invoice is matched to an accrue on receipt purchase order line and the invoice line (rather than the purchase order receipt) is interfaced, then the invoice line can be adjusted in Oracle Projects.

After you have made adjustments to supplier invoice items, you must send the adjustment information back to Oracle Payables so the Payables distribution lines match what is recorded in Oracle Projects. Oracle Payables will interface adjustments that affect the GL account number to Oracle General Ledger. You run the following processes in Oracle Projects for supplier invoice adjustments:

  • PRC: Distribute Supplier Invoice Adjustment Costs
  • PRC: Interface Supplier Invoice Adjustment Costs to Payables

If you need to change the invoice amount, supplier, or expenditure type, organization, or item date for a supplier invoice line, reverse the line and create a new line in Oracle Payables.

About Marian Crkon

Marian Crkon is a successful independent consultant offering consulting and professional services to Oracle eBusiness Suite clients in the Pacific Northwest and nationwide. Marian has been involved in Oracle consulting projects and IT management for over 18 years now. He established himself an an expert in Oracle Projects and Oracle Financials, and completed several successful implementations for clients in the US and Europe. Marian lives in Seattle with his wife and two children. When he does not work or travel, he spends time with his family.

4 Thoughts on “Recording Project-Related Receipt Accruals in Oracle Projects

  1. Hi, could you please give me more detail about this article, as below questions:-
    -Can we recognize cost when doing Goods Receipt as Actual? If yes, how can I investigate or review data step by step in Project Module or else (Form or Report)
    -Can we analyze data as Budget – PR, PO Encumbrance – GRN / Invoice (Actual) = Fund Available
    -How is Exchange Rate Management in Project Module?

    Thanks in Advance,
    nck, learner

  2. actually I tried this as well and it didn’t work out for me. but I’ll definitely give that another shot … well, lets see if there is a happy end for my project, too. I’ll keep you posted about the result.

  3. Note: Receipt accrual entries are not interfaced if the received items are invoiced and the invoice amounts are interfaced to Projects.

  4. Durga Prasad on April 3, 2013 at 10:49 pm said:

    We have an issue where a PO & related vendor invoice were cancelled and the chemical ordered on the PO had been coded to project 9834. The original PO amount of the chemical as well as a vendor freight charge and the credit for the freight charge are showing up in the expenditures for the project but the credit for the chemical is not. The credit for the chemical should also be showing up on the project, so can you please let me know if there’s some way to fix it?

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