Answer / mahesh

Once the Invoice is Created and Validated in Payables , the
firm becomes liable to pay to the Supplier.

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.

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.

i am trying to raise transaction in AR , item is not select this work bench, i am trying to different supplier, i am face that again same problem . pls send me my problem.

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HI, once we create the standard invoice then we can get journal entry item expense a/c-dr to liability a.c then item it will reflect through inventory, but liability a/c . it will reflect from GL , it is possible .

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