Can someone tell me if I understand the process behind the entries created by the following events? A purchase order is created and lines are entered - nothing hits G/L yet but the lines are coded to the appropriate expense/balance sheet accounts. An item shipment is received complete - When a line is completely received the purchase order line is closed and those lines are transferred to the receipt in an open status. If a line is received in part, it is the same as the above process except that the line on the PO remains open as long as there is remaining items to be received. When all purchase order lines are closed - so is the PO. As long as there are open lines, the PO remains open. Open purchase order lines are not accrued for a company that follows the theory that a purchase is recognized when the invoice or the items are “received” - correct? Any open (un-invoiced) receiver lines are on the A/P to G/L report which also summarizes the accruals. Do you have to run anything to post the A/P to G/L accruals? Will Navision automatically back out an accrual entry when the invoice is paid? What do you do - if anything if a receiver was on the A/P report for the previous month and is paid the following month? When the open receiver lines are transferred onto an invoice , the receipt lines are changed to a closed status when the quantity received = quantity invoiced. The lines on the invoice are credited to the appropriate G/L account and changed to a closed status, and the A/P payable account is debited. When all receipt lines have been closed the receiver closes also, leaving the open invoice/payable. If the lines on the PO are inventory - items, when they are received the inventory account is debited and the a/p is credited, When the invoice is paid, the a/p payable is credited and cash debited and the invoice closes to open a payment. The payment is then closed when the check is reconciled. Basically the way I see the system is that one thing closes to open another. Do I understand the process correctly? I want to make certain that I’m understanding the flow of this system correctly before I attempt to explain it to the owner of the company I work for, because the way our IT department explained it makes no sense - they assume that all of the verification is done manually and not via the system (I have no other way to explain their reasoning - it makes no sense to me.) They had no idea that Navision even could record accruals or that the lines sitting out there as open receivers could potentially get paid again or could be set up to automatically generate the accrual journal entries. They also believed that you couldn’t put in an invoice without pulling the matching receiver until I did it. Thank you for any assistance.