T-Accounting Workshop
Processes that create transactions
The following processes create transactions. These processes are performed in the Purchase Order,
Invoice Matching, and Accounts Payable applications.

Receive goods; create and release receiving documents (PO30, MA531, or web receiving)

Perform inspection; create and release inspection document (PO34)

Adjust receiving; create and release adjustment document (PO33)

Return to vendor; create, authorize, and ship return document (PO31)

Match invoices; create and match invoice (AP20.1-3, MA530, MA540)

Record estimated liability

Pay invoice (AP150, and AP155 or AP160, or AP161 and AP170)

Void payments and reinstate invoices (AP190)

Pay employee and release expenses (EE20, EE35, EE135)

Recognize currency gains and losses (AP191)

Reconcile unmatched invoices (MA60.1-3)

Archive receipts (MA180)

Write off receipts (MA180)

Matched, not received (PO136)

Post invoice distributions (AP175)

Accrue payment discounts (AP176)

Enter invoices (AP20.1-3)
Transaction Source Code
The following transaction source codes are used to identify the transactions created in the Purchase
Order and Invoice Matching applications. This table does not include transaction source codes created in
the Inventory Control application, such as Receipts (IC20.1), Issues (IC21.1), and Transfers (IC22.1).
Code
Description
PO
Purchase order receipt
RA
Receiving adjustment
RJ
Rejected inspection
VR
Vendor return
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VA
Vendor return adjustment/cancellation
CA
Inventory cost adjustment from invoice match
Posting Programs
The following programs are used to post transactions to the general ledger.
General Ledger Interface (IC130)
Posts transactions processed in the Inventory Control, Purchase Order, Requisitions, and Warehouse
applications to the general ledger.
Received, Not Invoiced Report (PO135)
Posts transactions to the general ledger for non-inventory purchase order receipts and adjustments. This
program is an as-of or estimate program that records your liability for the period. This program creates
auto reversal transactions. Some situations where goods are received but not invoiced are returns,
substitutions, invoices not being sent, or data entry errors during invoice entry.
Matched, Not Received (PO136)
Matched, Not Received (PO136) prints a report of invoice details that were processed without a received
quantity. It also lists the orders for which the approved quantity for the purchase order line is greater than
the received quantity. When you run PO136 in Update mode, the program posts written-off invoice details
to the general ledger.
Standard Cost Calculation (PO139)
Calculates and creates a reversing journal entry for the difference between the standard cost and
purchase order cost for purchase order lines with a matched not received or received not invoiced
quantity greater than zero. Available for inventory items and standard cost companies.
Open Receipt Archive (MA180)
Posts written off and archived receipt transactions to the general ledger. Written off receipts are still
available in the match process. Archived receipts are no longer available in the match process.
Payment Closing (AP170)
Completes a cash payment cycle for a pay group. Once you close the cash payment cycle, you cannot
reprint bad payment forms or recreate a payment tape or electronic payment file. Creates and posts
transactions to the general ledger for cash, discount, reportable income withholding, currency gain and
loss, and payment accrual transactions.
Invoice Distribution Closing (AP175)
Posts transactions for released invoice distributions to the general ledger.You must run AP175 at least
once in an accounting period; however, you can run it any time after you release an invoice.
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Match Discount Accrual (AP176)
Posts accrued payment discounts that were created during the match process. If your match company is
defined to recognize discounts during matching, you must run this program at least once per accounting
period, but you can run it as often as you need. It is recommended that you run this program at the same
time you run Invoice Distribution Closing (AP175). This program debits the Accounts Payable Liability
account using the accrual code on the invoice and credits the Discount Accrual account defined on the
Invoice Matching Company.
Invoice Reinstatement (AP190)
Reinstates invoices associated with payments voided in the Cash Management application. Depending
on the reason for voiding the payment, you can reschedule, maintain, or cancel a reinstated invoice.
Creates and posts transactions to the general ledger for cash, discounts, reportable income withholding,
currency gain and loss, and payment accrual transactions.
Unrealized Gain/Loss (AP191)
For companies that pay non-base currency invoices, this program is used to calculate, create, and post
unrealized gain and loss transactions, for released invoices.
Company Expense Posting (EE175)
Interfaces released company-paid expense distributions to the General Ledger application. You must run
EE175 at least once in an accounting period, however, you can run this report any time after you release
an expense.
Transaction Accounts
The table below lists the accounts, their use in transactions, and where they are set up.
Account
Use
Set Up
PO Receipt Accrual
Used as a temporary holding
account to track the amount of
inventory that has been received
but not yet paid for (received, not
invoiced).
This is a temporary holding
account that is used to offset a
cost difference between the
invoice unit cost and receipt unit
cost for an inventory item. This
transaction is passed to the
Inventory Control application for
posting. Used in detail matching.
Company (MA01.1), Process
Level (AP00.5)
Item Cost Variance Suspense
Company (MA01.1), Process
Level (AP00.5)
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Invoice Tolerance
Tolerance Offset
Receipt Write-off
Match Write-off
Matched Not Received
AOC Differences
Match Prepay Differences
Underbill Write-off
Returns Suspense
Inspection Hold
Freight
Handling
Scrap
Used to offset a cost difference
between the invoice goods
amount and the receipt goods
amount that is within or outside
of tolerance. Used for invoice
level or line invoice level
matching.
Used to offset a cost difference
between the invoice goods
amount and the receipt goods
amount that is within tolerance.
Used a whole invoice level.
Used to write off old receipts that
cannot be matched.
Used to write off the amount you
have paid for goods that you do
not expect to receive or goods
written off when receipts are
adjusted.
This temporary holding account
is used to post amounts you
have paid for goods but not yet
received (invoiced, not received).
Used for inventory items.
This temporary holding account
is used to post add-on charge
differences.
This temporary holding account
is used to post match
prepayment differences.
This temporary holding account
is used when the invoice amount
is less than the receipt amount.
Used as a temporary holding
account to post inventory items
being returned to vendors.
Used as a temporary holding
account to track inventory items
received and waiting for
inspection.
Used when freight charges are
applied against vendor returns.
Used when handling charges are
applied against vendor returns.
Used when inventory items are
canceled off vendor returns or
inventory items are rejected at
Company (MA01.1). Process
Level (AP00.5)
Company (MA01), Process Level
(AP00.5)
Company (MA01.1), Process
Level (AP00.5)
Company (MA01.1), Process
Level (AP00.5)
Company (MA01.1), Process
Level (AP00.5)
Company (MA01.1), Process
Level (AP00.5)
Company (MA01.1)
Company (MA01.1), Process
Level (AP00.5)
Location (IC02.1)
Location (IC02.1)
Location (IC02.1)
Location (IC02.1)
Location (IC02.1)
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Inventory
Cost Variance / Adjustment
Expense
AP Accrual
Discount Accrual
Discount Earnings
inspection and written off.
Used when inventory items are
received.
Used when cost variances
cannot be posted to the inventory
account because no stock exists,
or transactions costs are different
than default unit costs.
Used when non-inventory,
special order, and services type
items are received and when
invoices are processed for these
items.
The liability account invoices are
posted to when matched.
Used to accrue payment
discounts prior to processing
payment.
Used to post payment discounts
taken during Payment Closing
(AP170).
General Ledger Category
(IC04.1)
General Ledger Category
(IC04.1)
Entry forms (PO20, RQ10,
AP20).
Company (AP00.4), Process
Level (AP00.5), Vendor
(AP10.1),
Company Vendor (AP10.5),
Invoice Entry (AP20s)
Company (MA01.1)
Company (AP00.4), Process
Level (AP00.5), Vendor
(AP10.1), Company Vendor
(AP10.5), Invoice Entry (AP20s)
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Transaction Scenarios
The following section shows transaction scenarios by process and the programs that interface the
transactions to the general ledger.
For example, in the transaction scenario shown below, inventory items are received in the Purchase
Order application.
1. When the receiving document for these items is released, the transaction created is a debit to
Inventory and a credit to PO Receipt Accrual. General Ledger Interface (IC130) interfaces this
transaction to the general ledger.
2. When an invoice for these items is matched to the receipt records, the transaction created is a
debit to PO Receipt Accrual and a credit to the AP Accrual. Invoice Distribution Closing (AP175)
interfaces this transaction to the general ledger.
3. When the invoice is paid, the transaction created is a debit to AP Accrual and a credit to the Cash
account. AP170 interfaces this transaction to be the general ledger.
The net result in the general ledger is a debit to Inventory and a credit to Cash.
For more information on processing programs, interface programs, and transaction accounts, refer to the
introductory sections in this document.
Invoice Matching Transaction Scenarios:
Match Invoice, Inventory, No Cost Discrepancy
Process
1) Interface released receiver to General
Ledger.
2) Match invoice and post distributions to
General Ledger.
Account Description
debit
1) Inventory
100
1) PO Receipt Accrual
2) PO Receipt Accrual
2) AP Accrual
Interface to GL
IC130
AP175
credit
100
100
100
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Match Invoice, Non-Inventory or Special Order, No Cost Discrepancy
Process
1) Release receiving document for noninventory or special order type items.
Services are not received.
2) Match invoice
Account Description
2) Expense
2) AP Accrual
Interface to GL
N/A
AP175
debit
100
credit
100
Invoice Match with Cost Variance, Inventory Items (without Chargeback,
Invoice Matching company (MA01.1) PO Cost field is set to Yes)
Process
1) Release receiving document, 1 @ 10.00
2) Invoice match, 1 @ 12.00
PO cost is adjusted to 10.00 in Purchase Order
Cost Review Message (MA66.3)
Account Description
1) Inventory
1) PO Receipt Accrual
2) PO Receipt Accrual
2) Invoice Tolerance
2) AP Accrual
Interface to GL
IC130
AP175
debit
10
credit
10
10
2
12
Detail Match with Cost Variance, Inventory Items (without Chargeback)
Process
1) Release receiving document, 1 @ 10.00
2) Detail match invoice, 1 @ 12.00
(assumes Invoice Matching company (MA01.1)
PO Cost field is set to No)
Interface to GL
IC130
AP175
2a) with cost variance.
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3) Update Inventory accounts
3a) if inventory exists.
3b) if inventory does not exist.
Account Description
1) Inventory
1) PO Receipt Accrual
2) PO Receipt Accrual
2) Item Cost Variance
Suspension
2) AP Accrual
3a) Inventory
3a) Item Cost Variance
Suspension
3b) Inventory Cost Variance
3b) Item Cost Variance
Suspension
IC130
debit
10
credit
10
10
2
12
2
2
2
2
Drop Ship, Non-Inventory
Process
1) Enter and match invoice.
No receipt required.
Invoice line detail required.
Account Description
1) Expense
1) AP Accrual
Interface to GL
AP175
debit
100
credit
100
Service Invoice
Process
1) Enter and match invoice.
No receipt required.
Service detail amount or cost required.
Account Description
1) Expense
2) AP Accrual
debit
100
Interface to GL
AP175
credit
100
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Force Match, Invoice Detail Exceeds Receipt
Process
1) Release receiving document,
10@ 1.00 = 10 .
Should have received 100 @ 1.00 = 100.
2) Enter invoice for $100 and force match
(assuming goods to be received).
3) Release adjustment document,
90 @ 1.00 = 90.
This scenario assumes that the received
quantities have not been used.
Account Description
1) Inventory
1) PO Receipt Accrual
2) PO Receipt Accrual
2) Match Write Off (assumes
Invoice Matching company or
Accounts Payable process
level “Invoice Detail Exceeds
Receipt” field is set to Match
Write Off.
2) AP Accrual
3) Inventory
3) Match Write Off
Interface to GL
IC130
AP175
IC130
debit
10
credit
10
10
90
100
90
90
Invoice with No Receipts (write off match with no receipt at a later date)
Process
1) Enter invoice
2) Approve invoice (MA61 with Write-Off
Quantities field is set to No).
3) Pay invoice
4) Write off match with no receipt
Account Description
2) Match not Received
2) AP Accrual
3) AP Accrual
debit
10
Interface to GL
AP175
AP 170
PO136
credit
10
10
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3) Cash
4) Match Write Off
4) Match Not Received
10
10
10
Invoice with No Receipts (write off match with no receipt immediately)
Process
1) Enter invoice
2) Approve invoice (MA61 with Write-Off
Quantities field is set to Yes).
3) Pay invoice
Interface to GL
AP175
AP 170
Note: The postings indicated are for inventory items.
Account Description
2) Match Write-Off
2) AP Accrual
3) AP Accrual
3) Cash
debit
10
credit
10
10
10
Discount at Match
Process
1) Release receiving document
2) Match invoice with 2% discount.
2a) Post discounts.
3) Pay invoice and take discounts.
Account Description
1) Inventory
1) PO Receipt Accrual
2) PO Receipt Accrual
2) AP Accrual
2a) AP Accrual
2a) Discount Accrual
3) AP Accrual
3) Discount Accrual
3) Discount Taken
3) Cash
Interface to GL
IC130
AP175, AP 176
AP 176
AP 170
debit
10
credit
10
10
10
2
2
8
2
2
8
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Void Payment
Process
1) Release receiving document.
2) Match invoice.
3) Pay invoice.
4) Void payment.
Account Description
1) Inventory
1) PO Receipt Accrual
2) PO Receipt Accrual
2) AP Accrual
3) AP Accrual
3) Cash
4) Cash
4) AP Accrual
Interface to GL
IC130
AP175
AP170
AP190
debit
10
credit
10
10
10
10
10
10
10
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Inventory Control Transaction Scenarios:
Inventory, No Inspection
Process
1) Release receiving document.
2) Match invoice.
3) Pay invoice.
debit
1) 10
Inventory
Interface to GL
IC130
AP175
AP170
credit
debit
2) 10
PO Accrual
credit
1) 10
debit
3) 10
AP Accrual
credit
2) 10
debit
Cash
credit
3) 10
debit
Cash
credit
10
Net Effect
debit
10
Inventory
credit
Inventory with Inspection Accepted
Process
1) Release receiving document.
2) Release inspection acceptance document.
3) Match invoice.
4) Pay invoice.
Interface to GL
IC130
IC130
AP175
AP170
debit
1) 10
Inspect Hold
credit
2) 10
debit
3) 10
PO Accrual
credit
1) 10
debit
2) 10
Inventory
credit
debit
4) 10
AP Accrual
credit
3) 10
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debit
Cash
credit
4) 10
debit
Cash
credit
10
Net Effect
debit
10
Inventory
credit
Inventory with Inspection Rejected
Process
1) Release receiving document,
500 @ 3.00 = 1,500.
2) Reject 2 @ 3.00 = 6.00,
Accept 498 @ 3.00 = 1,494.
The Reject Options selected are:
Claim Type = Chargeback, Replacement PO =
No. When the inspection document is released
the application creates a return.
3) Authorize and ship vendor return
3a) debit Returns Suspense and credit
Inspection Hold
3b) debit AP Accrual and credit Returns
Suspense
4) Match invoice
5) Pay invoices (both charge invoice and
chargeback)
Interface to GL
IC130
IC130
IC130
AP175
AP175
AP170
debit
1) 1500
Inspect Hold
credit
2) 1494
3a) 6
debit
3) 1500
PO Accrual
credit
1) 1500
debit
2) 1494
Inventory
credit
debit
3a) 6
AP Accrual
credit
3b) 6
debit
3b) 6
5) 1494
AP Accrual
credit
4) 1500
debit
Cash
credit
5) 1494
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Net Effect
debit
1494
Inventory
credit
debit
Cash
credit
1494
Downward Adjustment with Match Write Off
Process
1) Release receiving document,
180 @ 1.00 = 180
2) Match invoice
3) Pay invoice
4) Release adjustment document,
-3 @ 1.00 = 3.00 This scenario assumes
that the receive quantities have not been
used.
Interface to GL
IC130
AP175
IC130
debit
1) 180
Inventory
credit
3) 3
debit
2) 180
PO Accrual
credit
1) 180
debit
3) 3
Ma Write Off
credit
debit
AP Accrual
credit
2) 180
xxxxxxx
credit
debit
Cash
credit
180
debit
3) 3
Ma Write Off
credit
Net Effect
debit
177
Upward Adjustment with Match
Process
1) Release receiving document,
10 @ 1.00 = 10 Should have received,
100 @ 1.00 = 100.
Interface to GL
IC130
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2) Match invoice (assuming goods to be
received)
3) Release adjustment document,
90 @ 1.00 = 90 This scenario assumes that
the receive quantities have not been used.
4) Pay invoice
AP175
IC130
debit
1) 10
3) 90
Inventory
credit
debit
2) 10
PO Accrual
credit
1) 10
debit
2) 90
Ma Write Off
credit
3) 90
debit
4) 100
AP Accrual
credit
2) 100
debit
Cash
credit
4) 100
debit
Cash
credit
100
PO Accrual
credit
1) 10
Net Effect
debit
100
Inventory
credit
Detail Match Cost Variance, No Goods In Stock
Process
1) Release receiving document,
1 @ 10.00 = 10
2) Detail match invoice, 1 @ 12.00
2a) with cost variance
3) Update Inventory Accounts
3a) if inventory exists
3b) if inventory does not exist
4) Pay invoice
debit
1) 10
2
Inventory
3a)
Interface to GL
IC130
AP175
IC130
AP 170
credit
debit
2) 10
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debit
Item Cost
Variance
Suspense
credit
debit
3a/b) 2
4) 12
IC Cost Variance
credit
debit
Cash
credit
4) 12
Inventory
credit
debit
Cash
credit
12
debit
Cash
credit
12
2a) 2
debit
3b) 2
AP Accrual
credit
2) 12
Net Effect
If inventory exists:
debit
12
If inventory does not exist:
debit
10
Inventory
credit
debit
2
IC Cost Variance
credit
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