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Supplier debit balances need to be reviewed to ensure

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Supplier debit balances need to be reviewed to ensure they are recovered timely (e.g. netted against future receipts or refunded by the vendor). After the investigation steps have been completed, amounts aged >180 days and >$2,500 that cannot be substantiated will be released pending review and approval by the Global Business Controller (GBC) or their designee, pursuant to the requirements of section 3.4 of this SOP. oThe amount of work needed to necessitate a release will often be a judgment call. If an aged balance cannot be substantiated after several attempts at validation, then the B2P team should include it in the review with the Business GBC. oEntries to release aged GRNI liabilities should be consistent with the original GRNI accrual entry. For example, indirect spend will generally reverse to the P&L, while purchase of inventory may require research on whether the reversing entry is to inventory or as a P&L write-off. 3.4Aged GRNI Release Process: The B2P team should host either a monthly or quarterly review with the Business GBC or their designee. Frequency will be based on the volume of aged GRNI items. GRNI liabilities may be released under the following:
Standard Operating Procedure GRNI Liabilities Page 4 of 6 Supplier agrees that goods were not delivered so no liability exists to the supplier. GRNI liability aged over 180 days and > $2,500 and the B2P team has made at least three attempts to contact the supplier to obtain an invoice or there is written confirmation from the business that, to the best of its knowledge, payment will not be requested. The Business has confirmed that the GRNI was recorded in error (e.g. payment has already occurred or the receipt was a duplicate). The B2P team must consider local legal and tax implications which may prohibit the GRNI release. This may give rise to Stat-GAAP differences. Consultation with the statutory teams and/or controller functions may be necessary. Releases will be processed/coordinated by the B2P team in a timely manner after appropriate approval has been obtained (per Section 3.3). Releases should be processed via the ERP subledger transactions whenever possible to avoid manual journal entries. Normally, releases of aged GRNI liabilities will require a write-off to the P&L. However, in some instances, research may be required to confirm the write-off should not be to an asset account (e.g., inventory). 3.5 Roles and Responsibilities The thresholds/timing described in this SOP also apply to businesses that have not yet migrated their GRNI activities to Global Operations. However, the roles and responsibilities described below would be conducted in the business. The GRNI aging review process is a cross-functional process that will involve active participation by the accounting, B2P and sourcing teams within Global Ops and the Businesses. The Global Ops B2P team will have overall responsibility for the GRNI aging review process. The B2P team

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Term
Fall
Professor
N/A
Tags
Balance Sheet, invoice, standard operating procedure, GRNI

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