Refer to the policy on the Commercial Credit Card Payment Module for information on accruals for these purchases. The GBL shall be established as an accounts payable in the month the goods are shipped. As required by Section 5, obligations are to be recorded in the accounting system within two work-days of receipt. It is the CCM s responsibility to ensure the estimated obligations are accurate and based on the best data available. The straight-line method of estimating normally is not proper as historical data.
Experience is usually available from which to make accurate estimates.
Accruals for recurring and annual obligations are to be entered into OBL2 for the total amount of the obligation document. They shall be entered in undelivered orders and distributed across months, as the CCM determines. At the beginning of each month, the OBL2 will automatically transfer the monthly accrual from undelivered orders to accounts payable for all obligations established as recurring or annual. Additionally, the CCM must review and adjust these accruals monthly, if necessary. The CCM may adjust accrual distribution at any time by submitting the required adjustments in writing to the Controller.