Accrual Determination Process

Accruals as defined by EHS: Accruals are dollar amounts for items received that do not yet have a matched voucher against them. The EHS system can be set up to use Invoice Date vs. Receipt Date or Invoice Posting Period vs. Receipt Fiscal Period to determine accruals.

Invoice Date vs. Receipt Date: If an item is received in one month and then invoiced in a later month that item’s cost will be included in the accrual for any month from date received on up to the month of the invoice.

Example 1:

Item ‘ABC’ has a quantity received on 11/30/04 of 5 units @ $10.00 per Unit. Total $50.00

An Invoice for Item ‘ABC’ comes in with an Invoice Date of 12/01/04 for all 5 units received for a total of $50.00. It is entered into the system on 12/02/04.

Item ‘ABC’ would count against the Accruals for November in the Amount of $50.00. It would come off the Accruals for December. This occurs whether the Fiscal month for November is opened or closed.

Example 2:

Item ‘ABC’ has a quantity received on 11/28/04 of 5 units @ $10.00 per Unit. Total $50.00

An Invoice for Item ‘ABC’ comes in with an Invoice Date of 11/30/04 for all 5 units received for a total of $50.00. It is entered into the system on 12/02/04.

Item ‘ABC’ would not count against the Accruals for November because even though it was entered in December the Invoice Date was a November Date. This occurs whether the Fiscal month for November is opened or closed.