Accrual Reversal

ERP Cloud

The Inventory Transaction Perpetual Record (ITPRClosed) type Accrual Reversal is used for transactions related to internal purchase orders with line types of Description and Capital Equipment.

You can update the picklist values for the ITPR object from the Feature Console.

When purchase order lines of type Description or Capital Equipment are received, an ITPR of type Received Purchased Material is created with two Inventory Transaction Financial Records (ITFRClosed), Expenses and Accrued Purchases. The liability is now created for these line types in preparation for the associated AP voucher matching.

Note:

The accrued liability is an assumed amount when the purchase order is created because the associated AP voucher price can have a different value from that on the original purchase order lines.

When the AP voucher is matched, an ITPR of type Accrual Reversal is created with two ITFRs, Accrued Purchases which cancels the liability, and Accounts Payable.