Answer Posted / dj
Accounting for P2p can be classified into 3 types, accounting for Inventory items, accounting for Expenses, Accounting for Assets, below are the accounting entries.
1) For Inventory items
When you create a receipt
Receiving inventory account Debit
To Accrual account credit
When you run the receiving transaction processor job
Inventory Valuation account Debit
To Receiving inventory account
When invoice is matched to PO
Accrual/Ap accrual account Debit
To Liability account credit
When Payment is issued
Liability account Debit
Cash/Bank Clearing credit
When payment is cleared (reconcilation)
Cash/Bank clearing account Debit
To Bank/Cash account
When items are transferred from inventory to the department requesting the items
Expense account Debit
To Inventory valuation account
Here after all the account getting knocked off, what remains is
Expense account Debit
To Cash/Bank Account Credit
2) Accounting for Expenses
When creating a receipt
Receiving inventory account Debit
To Accrual/Ap accrual account credit
When the receiving transaction processor job is run
Expense Account Debit
To Receiving inventory account
When Invoice is matched to PO
Accrual/Ap accrual account debit
To Liability account credit
When Payment is issued (clearing)
Liability account Debit
Cash/Bank Account clearing credit
When Cleared from Bank (reconcilation)
Cash/Bank account clearing
Cash/Bank account
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
What is the Invoicing System in Oracle R12
How do write a discoverer report to identify zero dollar suppliers/invoices where the supplier is on hold?
Can I do a payment of 50 bills on a post date. If yes, then how?
I am working on PPR process to print checks. Currently the checks are printing for each supplier, supplier site and payment method group. My requirement is the invoice level one DFF is available (like A and B are the input values). Please let me know how include this DFF at invoice grouping level.
what is the use of hr: security profile, while configure multiorg?
Explain Customization process?
What do you mean by controlling buyers workload?
how service tax work.
how we can stop the transaction for not transfer to the reporting ledger at the time of entering the transaction in pl
I am currently working in reputed Org as a Oracle apps end user (AR). Learned R12 functional course, but no real time exp as in support or implementation project.Please guide. thank you.
please explain with examples the below mentioned "Creating the end to end business scenarios and executing the scenarios to perform the regression testing".
What is the db number of a particular customer TCA?
how to do customization while doing oracle implementation. what is the role of functional consultant in customization?
There is employee X and employee Y (who is supervisor of X); when Y submits expenses how will the system ensures that this should not go to X even if he has the approval authority.
How will account an advance of Rs.10000/- which is a permanent prepayment, can I make payment for this?
