5 Replies Latest reply on Nov 23, 2010 12:14 PM by David Spencer

    Accrual processes in P2P?

    David Spencer Novice

      Hi, All,

       

      I'm new to the Financial Services group, and have a Procure-to-Pay deployment question that I wanted to float out for feedback.  Have any of you used the new 10s2 Financial Data Extract feature for transferring accruals to your ERP systems, and if so, what was your experience?

       

      David

        • Re: Accrual processes in P2P?
          Russ Stebbins Master

          We abandoned the Financial extract for accruals after about 2 months.  The accountants liked the concept but not the execution.

           

          The report's usefulness depends on two factors.  Receipt accuracy and timely invoice resolution.  That may be possible in a goods oriented company but for a Financial Services firm, where the bulk of the spend is services rather than goods, it is a challenge.  I won't argue that we should not have accurate receipts or that invoices shouldn't be reconciled in a timely manner; but it is easier to do with goods.  The concept of receipts for services was introduced for the first time when we went live.  Our clever users figured out that they could receive the whole PO at once and never have to do it again.  They also discovered shortly thereafter that they wouldn't see the invoice either if it was fully received. Accruing those receipts was upsetting to our accountants.  We found that receipts were rarely made without the invoice, so they were of little value for accruals.  We have made significant progress in the 18 months to get more accurate and timely but we still won't use that report.  The potential inaccuracies introduced by the over receipts are more significant than the omision of the valid receipts.

          1 of 1 people found this helpful
            • Re: Accrual processes in P2P?
              Srini Varadarajan Master

              We did away with receipts for services. The invoices are routed to the requestor or verifiers instead. There's invoice escalations in place to ensure invoices get processed in time.

               

              We do not do accruals through Ariba yet.

               

              Srini

              • Re: Accrual processes in P2P?
                Beth Bigger Journeyman

                I work in Solutions Management at Ariba and am aware of the Financial Extract that was introduced in the 10s1 release.  It's an extract of all the data necessary to perform accruals accounting, but as Russ mentioned, the execution was not well received.

                 

                Just about a year ago, we delivered another report for accruals accounting. It has been well received across the board by all customers. It's a pre-packaged Purchasing report titled RNI Report (Received Not Invoiced).  I would encourage you to try this report for your accruals accounting.  If you have any questions, you can contact me at bbigger@ariba.com

                1 of 1 people found this helpful
              • Re: Accrual processes in P2P?
                David Spencer Novice

                Thanks to all of you for providing your experiences and guidance on the matter.  As it stands right now, we're going forward with the RNI report, albeit somewhat begrudgingly.  We do want to automate this process, but were struggling to identify all of the potential scenarios and resulting entries that would occur as a result.  Hopefully this will be improved in future versions.

                 

                Thanks again,

                David