Accrual Recognition

Recognize Accrual (inside a PLM Lease)

(PLM Lease > PLM Accruals > Recognition)

The Recognition page allows users to recognize any existing expense accruals they may have. To recognize a period:

1. Go to PLM Leases.

2. Add a New Lease.

3. Set up the Lease Header information.

4. Set up the PLM Charge(s) (this can be Accrual Charge or Non-Component Charge).

   1. If it is a Non-Component Charge: The Accrued Expense field must be turned on and an Accrued Expense Account must be set up.

   2. If it is an Accrual Charge: no extra setup is needed and you can proceed to the next step.

5. Click Recognize.

6. Select one or multiple period(s).

7. Click Process.

Recognition Process

Once the period is recognized:

1. The recognized period is marked as True in the Recognition Date and Recognition Journal. The Journal Template and Journal Batch are stored to Accrual Lines.

2. When the process is run, the Charge Expense account is debited while the charge Expense Accrual account is credited as per the charge set up for the amount defined on each lease/charge.

3. All dimensions from the PLM Lease Charge are passed to the Journal Entries.

4. On the Recognition of the Accrual Line, the following entries are created:

   db. Charge Expense 1,000

   cr. Accrued Expense 1,000

5. The Total Amount on the PLM accrual page should match the Total Amount for all periods on the Charge Details page.

For more information about the set of terms used to define the accrual period start and end dates from the billing period start and end dates, refer to Rule 15.

For more information about reporting, refer to PLM Accrual Expense Report.