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May 27, 2020

5/27/2020 12:34:00 AM

Transaction Account Type

Transaction Account Types are elements which represent each transaction account on procurement transactions. There are five such transaction account types for five different accounts exposed on procurement transactions.. 

They are
  • Charge Account: The account against which the money spent is finally withdrawn or charged
  • Variance Account: Certain situations call for variances to be recorded for certain kind of spending. An entry is created against this account for all such variances. For example price variance between PO and invoice
  • Accrual Account: An intermediary account which records money spent for goods or services that have been consumed or taken ownership of and that is yet to be invoiced. An entry against this account is reversed once the money is physically spent, for example, check cashed/invoice paid.
  •  Destination Charge Account: The charge account belonging to the destination organization 

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