Which event reverses an accrual for an item set to accrue on receipt?

In Oracle E-Business Suite, when an item is configured to "Accrue on Receipt" (typically inventory items), the system credits the Accounts Payable (A/P) Accrual account and debits the Receiving Inspection account at the time of receipt. The event that reverses this accrual is matching the supplier's invoice to the purchase order or receipt in Oracle Payables. During this matching process, Payables generates an accounting entry that debits (reverses) the A/P Accrual account and credits the Accounts Payable liability account. This effectively clears the temporary accrual and establishes the actual payable liability.

A. Paying an invoice debits the Accounts Payable liability account and credits the Cash account; it does not interact with or reverse the A/P Accrual account.
B. Delivering goods transfers the financial value from the Receiving Inspection account to the Inventory or Expense account, leaving the A/P Accrual account completely untouched.
C. The Receipt Accruals – Period-End process is exclusively used for items configured to "Accrue at Period End" (usually expenses), not for items set to accrue on receipt.

1. Oracle Corporation. (2010). Oracle Cost Management User's Guide, Release 12.1 (Part No. E13620-04). Chapter 9: Receipt Accounting, Section: "Accrue On Receipt" and "Inventory Accruals".

2. Oracle Corporation. (2010). Oracle Purchasing User's Guide, Release 12.1 (Part No. E13796-04). Chapter 7: Receiving, Section: "Receiving Accounting" and "Accrual Process for Perpetual Accruals".