Cost accruals on Pending Vendor Invoice in Microsoft Dynamics 365 FO
Accrued cost on pending vendor invoices by Cittros enables you to accrue cost on pending vendor invoices, using procurement categories. This functionality has been promised for a long time by Microsoft and is still not available.
Until Microsoft includes this functionality, you can use this new add-on, which can resolve the issue for your finance team. Please note that when the functionality becomes available in standard, Cittros will deprecate the add-on.
How does it work
- Navigate to Account payable -> Setup -> account payable parameters
- Go to Invoice a select a journal that is used for posting accruals.
- Navigate to General Ledger -> Journal Setup -> Accrual Schemes and add the accrual schemes you need. You can also use the same as you use for general journals.
- Navigate to Accounts Payable -> Invoices -> Pending vendor invoices and create your pending vendor invoice.
- Highlight the line you wish to preform accrual on, and press Financials -> Invoice accruals in the Lines Section.
- Choose the accrual scheme to use. If the scheme you want to use do not exist; right click Accrual identification and press View details. This will direct you to the accrual scheme page where you can add a new scheme. The amount is taken from Line net amount and start date is taken from posting date.
- To validate the accrual, select transactions. When validated select OK. If you want to preform accrual for multiple lines you will have to take one line at a time and preform step 7 for each line.
- Now the Invoice is ready to get posted/submitted. During the posting a journal is created to handle the accruals using the standard method from the GL journal.
Why is Accruals so important
Because correct allocation of cost over time is crucial for correct financial reporting.
What are the Benefits?
- No manual accruals after the posting of the invoice
- Avoid personal dependence.
- Uniformity in business
- Manage risk and compliance on accrual by managing on entry time.
- Save time and money.
Price for the accrual functionality is 100 EUR per month + taxes. It include one tenant.
Support for install and end-user support is charges by hours. Subscription is invoiced yearly.
When you choose CITTROS, you choose QUALITY, HONESTY, and INDUSTRY LEADERSHIP.