Finance

Reconcile purchases at their original accrual

Independently accepted receipts recognize standard inventory, receipt accrual and applicable purchase variance. Supplier bills consume their allocated posted acceptance tranches and clear that original accrual. The bill’s price or rate difference remains identifiable without another full inventory debit.

Accountant matches the supply evidence; Finance Manager reviews mismatches and non-PO exceptions. Recoverable and nonrecoverable purchase tax follow their configured treatment. Missing evidence cannot be replaced by a zero tax rate or a fabricated goods receipt.

Supplier credits retain their original bill, return and commercial basis. Current stock carrying value may differ from the commercial credit after standard revaluation, so the difference needs its explicit financial treatment.

Release payments against confirmed outcomes

Accountant prepares the payment run and its exact supplier, bill allocations and protected beneficiary version. An independent Finance Manager releases the run within current authority, including the required separation from preparation and underlying bill exceptions.

A submitted or acknowledged instruction does not mark a bill paid. Authoritative settlement posts bank, payable and applicable currency effects once. Pre-settlement rejection releases reservations after reconciliation; uncertainty retains them until execution is known.

A returned payment compensates its original cash and allocation effects through reviewed correction. A retry cannot turn an uncertain instruction into a second payment. Beneficiary changes invalidate affected unsent authorization.

Explain currency, credits and refunds

Settlement releases the current carrying value, including prior revaluation. The new exchange difference and reclassification of prior unrealized exchange are distinct, preventing another net gain from an amount already recognized. Bank disposal has its own carrying basis, separate from the payable being settled.

Every refund needs independent Finance Manager authority and exactly one eligible funding source. A customer-credit refund cannot also reduce the original cash receipt; an unapplied-cash refund consumes only that remaining cash source. Supplier prepayments clear into AP without another bank payment. Supplier-credit collections retain source and bank evidence.

Close on reconciled production and financial balances

Finished output enters stock at the released standard. Each completion relieves allocated actual WIP and posts its independently approved nonzero variance immediately; close cannot post that difference again. Accountant reconciles remaining WIP, stock, bank, AR, AP, accrual, tax, credits and interfaces at cutoff. Revaluation uses each remaining monetary source once; its subledger detail and control total are not both revalued.

Finance Manager reviews required exceptions and closes the entity period only with current evidence. Changed source populations invalidate stale completion. Migration follows one opening ledger with nonposting detail, preserving prior quantities and settlements without replaying their financial effects.