Interested to Buy Any Domain ? << Click Here >> for more details...
When a liability to supplier create in oracle apps
- 3 Answers
- 11479 Views
- GTL, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / mahesh
Once the Invoice is Created and Validated in Payables , the
firm becomes liable to pay to the Supplier.
| Is This Answer Correct ? | 6 Yes | 2 No |
Answer / ph
I have different views that Mahesh. Liability to pay supplier, arises when the material is received in the factory or premises. In this case, we have full control over the material. Its irrelevant to book the liability in the books, as this is just a formality of accounting. For India, once the material is received in manufacturing organization, CENVAT can be claimed on the material received. Hence, by law, the liability to pay to supplier arises once the material is received. (SUBJECT TO FOB SHIPMENTS, WHEN THE LIABILITY STARTS WHEN THE MATERIAL IS DISPACTED BY THE SUPPLIER). Best judge is the Inventory AP Accrual Account, which is control account to analyse , whether the Payables Invoice is booked against the supplier or not.
Now its upot the shipment terms , when the liability occurs.
In oracle apps, the liability occurs when Invoice is validated, means, the liability account defined in vendor site is charged in sub ledger.
So, it doesn't mean that only if the invoice is validated, supplier liability is booked. Its basically at the time of receiving, when AP Accrual is accounted at the time of receiving in Purchasing module.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / tangudu arun kumar
The Liability to the supplier arises at the time of
Receiving since Invoice is not received we book the
liablity as ' APInventory Accrual Account'.Once the Invoice
is create then the Original liability may arise.
| Is This Answer Correct ? | 1 Yes | 2 No |
What is difference between security rule and cross-validation rule and what is difference between both of?
Hi all, I have setup my AP and created 3 invoice batches which as seen validated yet when i try to make payment i get the following error"APP-SQL - 10006: the date you entered is not an open accounting period." I have opened the calendar for that month yet it giving me this error. Any help will be appreciated.
How to do the analysis of discounts lost and fixing the root cause?
what is steps include after mapping in consolidation process?
"Testing Client Specific Business Rules" explain.
2. what is receipt method.
what is the difference between debit memo and credit memo on oracle AR
I have a requirement where during the consolidation into USD (from GBP books) I want use two different exchange rates for two consolidations. Child SOB is same but the Parent SOB's are different. How can this be done in Oracle Financials? Answers will be Appreciable. Thank You.
For which Business scenerio is the Multi Org setup Required ?
What is the Customization? Can any one tell me with examples in Real time scenarios?
how to set the interset for the supplier?
how to do customization while doing oracle implementation. what is the role of functional consultant in customization?
Oracle Apps Technical 
