1. Mukesh kumar
  2. Oracle - All Others
  3. Sunday, 08 September 2019
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The business case is - its a project based business and supplier has done some work and the project owes the cost due to supplier however supplier has not submitted the invoices yet. but the business wants to account for the expenses, is there anyway to manage this project cost? 1 way i think of is accrue at receipt check box which interface the cost to project on receiving however in this case this being the service procurement most of the time , its not even received as its not fully delivered.

Please let me know what are the different ways to handle this scenario.

Thanks,
Mukesh
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Hello Mukesh
Let me check and revert back to you at the earliest.
Regards
Kabeer Khan
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  1. more than a month ago
  2. Oracle - All Others
  3. # 1
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Hello Mukesh
One workaround has come to my mind and thought of sharing it with you (while I am searching for other potential workarounds).

You may consider using Complex Services PO in integration with Oracle Projects. And all you have to do is to refer the Project# under this PO. The advantage of is that you can divide task into multiple milestones, and the Supplier could submit work confirmation upon its completion.

So even if the task is not fully completed, then work confirmation can be submitted. And the system could be setup such that an AP invoice could be generated automatically based on Work Confirmation acceptance from the buying organization (the invoice could as well be viewed by Supplier under Oracle iSupplier Portal).

This way the business can account for expenses by creating Invoice Accounting, and possibly accruing the costs, and deferring the payment at the later date. You can interface AP Invoice and associated costs to the original Project as well.

As such I am looking for other workarounds and will update it whenever I find them.
Regards
Kabeer Khan
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  1. more than a month ago
  2. Oracle - All Others
  3. # 2
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Hi Kabeer,

Thanks for your response, however there are mutiple issues with this owrkaround:
1. Customer do not have complex services PO module
2. they dont want to have automated AP invoices, its just they want to factor in the cost booked on project as they have this POC method of revenue recognition.

hope to get some other workaround, i was just thinking of using the pre approved expenditures batches (class - supplier cost) to book on cost and then reverse it when the actual invoice will come, will it be correct ?also from accounting stand point?

Regards,
Mukesh
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  1. more than a month ago
  2. Oracle - All Others
  3. # 3
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Hi Mukesh
Pre-approved expenditure batches could be one workaround but it requires further analysis. However I would suggest you to take the customer through the list of workarounds we are talking about, and let them decide which one fits into their business model.

During this time you can as well rope in their Payables / Accounting staff to comment on its accounting implications.

Good luck!
Regards
Kabeer Khan
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  1. more than a month ago
  2. Oracle - All Others
  3. # 4
Accepted Answer Pending Moderation
Hi Kabeer,

Any further thoughts on this, as i said they don't have procurement contracts so can't put that option to them. Anything else that you suggest or the issues /concerns or limitation of the pre - approved batch?

Regards,
Mukesh
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  1. more than a month ago
  2. Oracle - All Others
  3. # 5
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