Interested to Buy Any Domain ? << Click Here >> for more details...
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
encumbrence set ups?
Re: what are the Issue that we face in Gl,PO and AP while Supporting
Please post the setups required to approve the payable invoice in AP.
Define the activities of the Configuration Manager (AP,GL,FA) in the team. Give examples
Substitute receipts and Unordered Receipts
difference between 11i&r12
What do you mean by Category Set ? and what is its Relevance ?
Provide an overview of AR cash receipt processing.
What kind of necessary ap information you gather from the client?
How do you adjust receivables?
Explain Customer Creation and Maintenance Process. Provide samples of customer master records with Payment Terms.
In Subinventories Form, how to enable the Locator Control. A message displayed when changing the drop down list "FRM-40200: Field is protected against update.
What is the use of operating unit, while configure multiorg?
what is the use of hr: security profile, while configure multiorg?
What is Reporting of financial data in a project.
