Accruals - open receivers

When the company I work for converted from their previous system, they brought in a significant amount of data and apparently no one was aware of how to clean up. Basically, when I ran my first “Reconcile AP to G/L” report I found that I had items on it dating back to the year 2000. After investigating this, I found that no one had any clue as to what an “open receiver” report was and thus had never “worked” it. So now I am cleaning up and trying to show them that this “mess” could have and may already have cost them hundereds of thousands of dollars in duplicate expenses. I have been told however that they turned off the ability of Navision to generate the entries for system accruals due the enormous amount of garbage in the system. I have absolutely no clue as to how they have been accounting for the legitimate accruals and no one seems to be able to tell me - but I do know that they have designed their own financial statements that they set up to retrieve data from specified accounts that they wanted used. Also, whomever shut off the capability to accrue is no longer with the company and I can’t find anything on this in the G/L manual, and no one seems to have any idea where the CD’s we should have are. I have read the manuals from the A/P and G/L modules front to back and while I am able to find answers to most of my questions I haven’t been able to find out how to turn this back on when I get this mess cleaned up. I have been able to unravel the mess of what lines of the open receiver report have actually already been paid for, but I am also concerned as to what to do about our inventory items. The expense lines aren’t a problem to “fix” but how do I make corrections for inventory items that we’ve paid for? I also handle the internal parts shipments and invoicing but the way they have it set up, I ship and invoice at a zero dollar value and then someone goes in and assigns the value to it. I get the feeling that this issue is escalating further and further as I get into it.[:(] My company is not open to getting someone to come in and provide much needed assistance and since I have been able to find so many valuable answers here I figured I would ask. Thank you so much for whomever offers any assistance.

As much as you don’t want to, it might be time for an expert to come in and clean up your data. It sounds like you loaded bad data and thus will have to do a bunch of analysis to figure out what exactly can be done to fix things. If you don’t get your data cleaned up, then you will never be able to move forward. Having said that, let’s try to point you in the right direction… What version are you running? Assuming it is 3.10 (Possibly 3.01) or later, There is a flag on the Inventory Setup…Expected Cost posting. This will post your inventory accruals (assuming these are the accruals you are referring to) for items not invoiced. It sounds like if you are mentioning the “Reconcile AP to GL” Report (10101?), that most of the issues you are investigating are to do with Purchases not invoiced. Another report which might help is the Inventory to G/L Reconcile Report. I’m not really sure if the inventory is the issue or the open Purchase Orders. You don’t necessarily want to invoice the P/O’s at 0, unless you are using the revaluation journal to change the value of the item. Just posting a transaction to the Inventory accounts will not help here. Hopefully this starts you in the right direction.

Yes, the version is 3.10, the issue is actually both, I figured that all we’d have to do is set a flag for inventory - now is there also one for the open purchase order receivers with expensed items on them? I wasn’t around when they first converted - I’m just trying to get the mess fixed so we can use the system appropriately and generate financially accurate reports - as it stands I hesitate to back up any report produced by the system. They didn’t load bad data I don’t think - because I am able to track down what happened - basically they were new to the system and apparently the previous personnel did not think about the effects that they were having and future problems they were creating when they took shortcuts. From what I’ve seen, the majority of what I’m currently working to clean up was caused by people entering an invoice and inputting the lines manually instead of taking the time to look for a purchase order or receipt of one - thus in essense duplicating the expenses. Inventory is controllable to a point - the expenses that were potentially duplicated (that I’ve found and documented) are already into the hundreds of thousands. There really is no way that anyone can just come in and clean up because as I said, they converted almost three years ago and no one has paid attention to the fact that the mess isn’t going away - and proper procedures haven’t been instituted to correct these problems so they have perpetuated - which is what I want to fix.