The Unimarket General Ledger module is designed to integrate Unimarket directly with the general ledger of your finance system. This means orders and receipts can remain in Unimarket but the finance system still accurately reflects Commitment and Accrual information.
How it Works
Each time an order is created in Unimarket, the GL module sends a ledger entry via integration to your finance system so the GL is updated. When buyers receipt items in Unimarket, another ledger entry is sent to the finance system which creates an accrual. Finally, when an invoice is matched in Unimarket the accrual is reversed and the AP invoice is entered into the finance system for payment. This process happens in real-time so the finance system is always accurate.
Viewing the Ledger
The GL module provides screens to allow the administrator to view and search all the ledger transactions by GL account. This provides visibility of what transactions have taken place between Unimarket and the finance system. When viewing an order the administrator can also choose to view the related ledger entries created for the order, receipt and invoice.
GRNI Accrual Reconciliation Report
The GRNI report has been designed to provide a summary of the accruals in Unimarket so that they can be easily compared to those in the finance system. This process is typically done at month-end as an audit check. The GRNI Accrual Reconciliation report is designed to work in the same way as the GL Module so the results are the consistent.
Scenarios
Below are some scenarios and how they are handled by the GL module.
- Standard scenario
Order: 1 x $10.50 ($10.50 committed)
Receive: 1 x $10.50 ($10.50 accrued)
Invoice: 1 x $10.25 ($10.25 invoiced and the entire accrual of $10.50 is backed out as it is based on QTY)
- Part receipt
Order: 2 x $10.50 ($21 committed)
Receive: 1 x $10.50 (10.50 remains committed, 10.50 accrued)
Invoice: 1 x $10.50 ($10.50 invoiced, accrual of $10.50 is backed out. Qty of 1 remaining to be received and invoiced)
- Invoice amount greater but the quantity is the same
Order: 1 x $10.50 ($10.50 committed)
Receive: 1 x $10.50 ($10.50 accrued)
Invoice: 1 x $18 ($18 invoiced and the entire accrual of $10.50 is backed out as it is based on QTY)
Note: This case would only occur if there was a Force Match in Unimarket. |
- Invoice quantity is less than the received quantity (but the amount is greater)
Order: 20 x $2 ($40 committed)
Receive: 20 x $2 ($40 accrued)
Invoice: 1 x $47
In this case $47 is invoiced for 1 item but the amount is greater than the total accrual of $40 for 20 items. The accrual is then backed out to the total accrued value ($40) - it is not placed in negative. An example of when this might happen is when the person ordering does not know the correct unit of measure to order in e.g. they order 20 litres of Oil @ $2 per litre ($40). The supplier invoices 1 x 20l Drum @ $47. The total accrual of $40 is backed out but there are 19 items remaining to be invoiced on the order.
In this case the user can Close the order in Unimarket (see below) which ensures no further invoices can be processed against the remaining 19 items.
- Invoice quantity is less than the received quantity (and its the last invoice)
Order: 20 x $2 ($40 committed)
Receive: 20 x $2 ($40 accrued)
Invoice: 1 x $32
In this case $32 is invoiced for 1 item and the amount is less than the total accrual of $40 for 20 items. The accrual is then backed out to the invoiced value ($32) - leaving $6 accrued. As above, an example of when this might happen is when the person ordering does not know the correct unit of measure to order in e.g. they order 20 litres of Oil @ $2 per litre ($40). The supplier invoices 1 x 20l Drum @ $36. This leaves 19 items that could be invoiced, and $6 still accrued.
In this case the supplier has submitted their final invoice so the user can Close the order in Unimarket (see below) which ensures no further invoices can be processed against the remaining 19 items and it releases the remaining $6 accrual.
- Closing Orders
The GL module provides administrators with the ability to Close any outstanding orders where no further invoices are expected. This process stops any further invoicing against the order and releases any remaining accrual. Closed orders can also be reopened if needed.
Integration and Technical Information
For technical details of the GL integration see Accounting Transaction Request (General Ledger Integration)