3/31/2024
PBC
Purpose
To reconcile GLA #2010 - Accrued Expenses in accordance with ASC 405 Liabilitiesand reason
vouchered or invoiced.
Common Items to Consider
1) Receive SOA from outside counsel & review ongoing legal estimates with General Counsel
2) Freight: Inbound for distribution warehouses / Outbound for third party shipments
3) Review exposure detail from contract manufacturers with Dir. Supply Chain. No exposure
4) Inquire with department heads regarding one-time, significant estimates for unvouchered
5) Items evidenced with an invoice s/b booked to AP-Manual, not Accrued Expenses
6) Confirm reasonableness of outstanding service periods by cross refering to invoices poste
PO # Vendor
Legal
3425 Baker & McKenzie
2365 DLA Piper
4365 Latham & Watkins
Freight
4123 UPS Supply Chain
2477 Agility Warehouse
2855 DB Schenker Logistics
Contract Manufacturers
2855 Flextronics (CM #1)
3235 Sanmina-SCI (CM #2)
Misc. Items
4027 CIGNA
2365 OneX
2946 FloQast
4255 Armanino
Tickmarks
A - See tab 2 for invoices. GC confirmed L&W will invoice upon resolution of case.
B - Exposure related to forecasted build schedule on RL product lines. Demand from distributi
expected to increase 3X in 2HFY as a result of educational spend. We've also factored this int
the inventory reserve calculation to remain consistent. All support on tab 4.
dance with ASC 405 Liabilitiesand reasonably estimate cost implications for goods delivered and/or ser
ng legal estimates with General Counsel. WIP & Fixed Fees s/b included.
bound for third party shipments
ers with Dir. Supply Chain. No exposure needed on EOL products.
e, significant estimates for unvouchered items
Manual, not Accrued Expenses
riods by cross refering to invoices posted in AP
Description Dept.
General legal services (Feb & March) Legal
Review of proxy filing (March) Legal
Patent & trademark legal services (Jan, Feb & March) Legal
Equipment shipped for internal Q&A testing in Taiwan Operations
Inbound, storage, receipt scan, unloading (Feb & Marc COGS-Ops
Marketing automation software Operations
Exposure on RL-4BD56 & RL-897UB products COGS-Ops
Exposure on AS-52322 & AS-9940T products COGS-Ops
Healthcare annual premium PLM
OneX software development Engineering-HW
Development fee- World's Greatest Closing Software Finance
382 R&D tax study Finance
oice upon resolution of case.
RL product lines. Demand from distribution
ional spend. We've also factored this into
t. All support on tab 4.
delivered and/or services rendered within the current period, but not
Estimated Invoice
Cost Center Expense GL
Amount
460 6155 $ 22,500
460 6504 $ 14,500
460 6310 $ 24,600
990 6610 $ 10,000
520 5600 $ 30,000
990 6100 $ 14,350
520 5850 $ 135,000
520 5850 $ 64,500
670 6932 $ 69,850
710 6326 $ 11,500
110 6362 $ 5,000
110 6540 $ 62,365
$ (464,165)
A
A
A
B
#fq-2010
Notes from FloQast:
1 By centralizing all support related to the legal accrual on this tab, management will conta
2 As an example, you can insert PDF copies of invoices or email attachments as objects wit
management will contain all of the necessary information required to complete their review.
chments as objects within this tab. The goal here is to centralize everything needed to perform the rev
eir review.
ed to perform the review without searching in various places for the support.
Notes from FloQast:
1 More often than not, vendor statement of accounts (SOAs) are requested to determine an
2 As a best practice measure, we also recommend centralizing the SOA support on this tab
3 As a reviewer, ask yourself the question: Is everything I need to review all included on thi
uested to determine an estimated accrual as part of the close process.
OA support on this tab by inserting emails and/or PDFs as objects herein.
view all included on this one excel file? If not, there's no point in searching for various places on the ne
ious places on the network for the support, when you can easily centralize it and drive efficiency.
drive efficiency.
Notes from FloQast:
1 In this example, CM Exposure is referring to the liability held at our contract manufacturer
2 We wanted to continue showing various examples of different accrued expenses and how
3 In reality, this tab would contain the support required to produce the accrual (excel data o
r contract manufacturer's based on customer demand and our predetermined build schedule with the f
ued expenses and how you can centralize support regardless of the nature of that accrual.
he accrual (excel data on products, std. cost estimates by product, etc.)
ld schedule with the factories.
t accrual.
Notes from FloQast:
1 Purpose of this tab? To capture any other ad-hoc or miscelleanous support behind the acc
2 An example here may be a one-time accrual management has informed you on because a
support behind the accruals summarized on Tab 1.
ormed you on because a month of service has already been rendered, but you haven't yet been invoice
ven't yet been invoiced.
