Accruals Flag in Cost Items

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If a cost item with the flag accrual is ‘ticked’ it means that the budgeted cost is transferred to an external financial system via an accrual record. Also it means that you have to process an incoming invoice in Agiblocks with the actual cost on the invoice.

The usage of the accrual flag in the cost lines has two impacts:

At execution, a transaction will be sent to the finance system for the accrued cost. When the invoice of these costs are received, the invoice has to be booked in Agiblocks. When booking the invoice, the accrued amount will be reversed and a booking will be made for the cost of the invoice. Accrued costs are part of the goods value on stock in both Agiblocks as in a financial system.

All cost lines are included in the calculation of the Mark to Market screen. However when the goods are received in stock, only the accrued value will be part of the stock value. The reason for this is that lines without a the accrual flag ticket are completely processed in a financial system. When the invoice is received the cost will be booked directly in P&L.

When the sales takes place the value of the goods is taken as COG to the financial system. And the COG is also booked in the P&L of the financial system.

If the goods value would be calculated including the cost lines with the accrual flag un-ticked, these costs would be received double in the P&L in the financial system.

The accrual flag is irrelevant when it comes to the cost calculation in the Mark to Market screen.