Accounts: Principles

The entry amounts generally do not include tax. An overall setting, however, can provide an amount including tax.

Mechanisms of funding accounts and posting costs

At the beginning of a period, you allocate the purchase budget with budget allowances.
Thereafter, with each purchase the amount spent is posted to the corresponding budget.

Allowance → BUDGETS → PR and if Inventory PR → Inventory

At the beginning of a period, you plan expenses with cost center allowances.
Next, for each expense the cost is posted to the corresponding cost center.

Allowance → COST CENTERS → Work order: PR, Labor, Contracts

→ Uses: Measurement readings

→ Inventory withdrawals and miscellaneous tasks

Status of entries

While the planned expense has a status of proposal:

PR or Work order "In preparation,"

→ No posting entry is generated.

Committed

As soon as the expense is confirmed:

PR "to be processed,"
"Validated" work order or contract period,

→ The amount is committed, an entry is generated. The posting date is the validation date.

Completed

When the expense is made:

Receipt of an item or service,
Performance of work order operation,
Labor entry,
Instalment over a validated Contract period,
De-stocking performed,

→ The amount is incurred and an entry is generated. The posting date is the implementation date.
→ The amount that had been committed is un-committed: a negative commitment entry is generated and its date is the validation date.

invoiced

This only relates to budgets when the invoicing is managed in CARL Source.
Upon closing a PO, if the PO is invoiced:

→ The amount is invoiced and an entry is generated. The date is the PO closing date (or another date specified in the invoice).
→ The amounts incurred on the PO are canceled by negative incurred amount entries.