Accounting Under Various Scenarios

Sr No 1 2 3 4 5 6 7 8 9

Topic Procure to Pay -Basic Procure to Pay -with Standard Costing Procure to Pay -with Average Costing Procure to Pay -for Fixed Asset Procure to Pay-With Period End Procure to Pay-Cash Basis Accounting Debit Memo Prepayment-with Accrual Basis Accounting Prepayment-with Cash Basis Accounting

Sr No.Journal Entry 1 Reeipt Receiving A/c To AP Accrual A/c

Nature of Account

Assets Liability ( control account)

2 Delivery Inventory/Expense A/c To Receiving A/c Assets/Expense Assets

3 Invoice AP Accrual A/c To Liabilty A/c

Liability ( control account) Liability

4 Issue of Cheque Liability A/c To Cash Clearing A/c 5 Payment Cash Clearing A/c To Cash/Bank Assets Assets Liability Assets

Sr No.

Journal Entry ( Inventory Destination) 1 Reeipt Receiving A/c To Inventory AP Accrual A/c

Nature of Account

Assets Liability

2 Delivery Inventory A/c To Receiving A/c To Purchase Price Variance A/c(Gain) Assets Assets Income

3 Invoice Inventory AP Accrual A/c To Liabilty A/c

Liability Liability

4 Issue of Cheque Liability A/c To Cash Clearing A/c 5 Payment Cash Clearing A/c To Cash/Bank Assets Assets Liability Assets

From Where it is Default

Name of the Field

Receiving Options Organisation Parameters:Other Account

Receiving Inventory Avccount Inventory AP Accrula Account

Inventory Org : Costing Tab Receiving Options Organisation Parameters:other accounts

Material Receiving Inventory Avccount Purchase Price Variance

Organisation Parameters:Other Account Supplier Site

Inventory AP Accrula Account Liability Account

Supplier Site Manage Bank Account :A/c ctrl tab

Liability Account Cash Clearing

Bank Account/A/c ctrl tab

Cash Clearing

Journal Entry ( Expense Destination) Reeipt Receiving A/c To Expenses AP Accrual A/c

Nature of Account

Assets Liability

Delivery Expense A/c To Receiving A/c To Purchase Price Variance A/c(Gain) Expense Assets Income

Invoice Expenses AP Accrual A/c To Liabilty A/c

Liability Liability

Issue of Cheque Liability A/c To Cash Clearing A/c Payment Cash Clearing A/c To Cash/Bank Assets Assets Liability Assets

From Where it is Default

Name of the Field

Receiving Options Purchasing Option

Receiving Inventory Avccount Expense AP Accrual Account

Item Master : Purchasing Tab Receiving Options Organisation Parameters:other accounts

Expense Account Receiving Inventory Avccount Purchase Price Variance

Purchasing Option Supplier Site

Expense AP Accrual Account Liability Account

Supplier Site Manage Bank Account/A/c ctrl tab

Liability Account Cash Clearing

Bank Account/A/c ctrl tab

Cash Clearing

Name of Form

Test Case

Receiving Transaction Summary Receiving Transaction Summary

PO : 1156 Receipt : 8389

Inv.Org..Materail Transactions Inv.Org..Materail Transactions Inv.Org..Materail Transactions

Assumed that Purchase Price is less than Standard Price AND STD COSTING IS IMPLEMENTED.

Invoice-View Acc.Entry Invoice-View Acc.Entry

Invoice-View Acc.Entry Invoice-View Acc.Entry

Invoice-View Acc.Entry

Sr No.

Journal Entry (Inventory Destination) 1 Reeipt Receiving A/c To Inventory AP Accrual A/c

Nature of Account

Assets Liability

2 Delivery Inventory A/c To Receiving A/c Assets Assets

3 Invoice Inventory AP Accrual A/c To Liabilty A/c

Liability Liability

4 Issue of Cheque Liability A/c To Cash Clearing A/c 5 Payment Cash Clearing A/c To Cash/Bank Assets Assets Liability Assets

Note Only the difference between Average and Standard and average is Purchase Price Variance wi

From Where it is Default

Name of the Field

Receiving Options Organisation Parameters:Other Account

Receiving Inventory Avccount Inventory AP Accrula Account

Inventory Org : Costing Tab Receiving Options

Material Receiving Inventory Avccount

Organisation Parameters:Other Account Supplier Site

Inventory AP Accrula Account Liability Account

Supplier Site Manage Bank Account :A/c ctrl tab

Liability Account Cash Clearing

Bank Account/A/c ctrl tab

Cash Clearing

ard and average is Purchase Price Variance will not come in to picture in case of Average Costing Everything

Journal Entry ( Expense Destination) Reeipt Receiving A/c To Expenses AP Accrual A/c

Nature of Account

Assets Liability

Delivery Expense A/c To Receiving A/c Expense Assets

Invoice Expenses AP Accrual A/c To Liabilty A/c

Liability Liability

Issue of Cheque Liability A/c To Cash Clearing A/c Payment Cash Clearing A/c To Cash/Bank Assets Assets Liability Assets

in case of Average Costing Everything else will remain Same

From Where it is Default

Name of the Field

Receiving Options Purchasing Option

Receiving Inventory Avccount Expense AP Accrual Account

Item Master : Purchasing Tab Receiving Options

Expense Account Receiving Inventory Avccount

Purchasing Option Supplier Site

Expense AP Accrual Account Liability Account

Supplier Site Manage Bank Account/A/c ctrl tab

Liability Account Cash Clearing

Bank Account/A/c ctrl tab

Cash Clearing

Name of Form

Receiving Transaction Summary Receiving Transaction Summary

Inv.Org..Materail Transactions Inv.Org..Materail Transactions

Invoice-View Acc.Entry Invoice-View Acc.Entry

Invoice-View Acc.Entry Invoice-View Acc.Entry

Invoice-View Acc.Entry

Sr No.

Journal Entry ( Expense) 1 Reeipt Receiving A/c To Expenses AP Accrual A/c

Nature of Account

Assets Liability

2 Delivery Expense A/c To Receiving A/c Expense/Asset Assets

3 Invoice Expenses AP Accrual A/c To Liabilty A/c 4 Create Accounting from Oracle Asset after Running Post Mass Addition Programme Asset A/c Expense A/c 5 Issue of Cheque Liability A/c To Cash Clearing A/c 6 Payment Cash Clearing A/c To Cash/Bank

Liability Liability

Asset Expense/Asset

Liability Assets

Assets Assets

Note For tracking any item as Fixed Asset it is must that it should be expensed kind of item. In addition to tha Cycle. At the time of crerating item the expense account should be the asset clearing account. So at the after booking invoice we have to run a request for transferring this item to FA interface. And then from F entry will be generated.

The main Drawback is item will not go in FA untill the invoice has been bookedIn that case Mannual ad

From Where it is Default

Name of the Field

Receiving Options Purchasing Option

Receiving Inventory Avccount Expense AP Accrual Account

Item Master : Purchasing Tab Receiving Options

Expense Account Receiving Inventory Avccount

Purchasing Option Supplier Site

Expense AP Accrual Account Liability Account

Asset Category Item Master : Purchasing Tab

Asset Cost Account Expense Account

Supplier Site Manage Bank Account/A/c ctrl tab

Liability Account Cash Clearing

Bank Account/A/c ctrl tab

Cash Clearing

ould be expensed kind of item. In addition to that 1 more layer will be added in this cycle in compare to Normal P2P t should be the asset clearing account. So at the time of delivery instaed of charge accountg AC account will be hitted ferring this item to FA interface. And then from FA module post this item in particualr book at that time one more account

nvoice has been bookedIn that case Mannual addition can be done.

Name of Form

Receiving Transaction Summary Receiving Transaction Summary

Inv.Org..Materail Transactions Inv.Org..Materail Transactions

(Asset clearing Account)

Invoice-View Acc.Entry Invoice-View Acc.Entry

FA->inquiry->Transactions FA->inquiry->Transactions

(Asset clearing Account)

Invoice-View Acc.Entry Invoice-View Acc.Entry

Invoice-View Acc.Entry

in this cycle in compare to Normal P2P arge accountg AC account will be hitted articualr book at that time one more accounting

Inventory is to be accrue always at receipt. For accounting entry Refer it SHEET P2P Expense Two options are there for expenses items. a) Accrue at receipt For accounting entry Refer b) Accrue at period end. 1 Reeipt No entry 2 Delivery No Entry 3 Invoice Expenses item A/c To Liabilty A/c 4 Issue of Cheque Liability A/c To Cash Clearing A/c 5 Payment Cash Clearing A/c To Cash/Bank NOTE:( for the items accrue during that period )

SHEET P2P

Receipt for which invoices has not been received perticular request need to be run for charging those to perticular period end. This is just a memorandum entry. It means in next period this entry automa gets reversed. And finally when invoice will be received , expense account will be charged. Temporary Entry Expense A/c Dr To Expense AP Accrual Cr Reversal of Entry in Next period Expense AP Accrual A/c Dr To Expenses Cr

rue during that period )

d to be run for charging those receipts next period this entry automatically nt will be charged.

Sr No.

Journal Entry ( Goods) 1 Reeipt No Entry 2 Delivery NO Entry 3 Invoice No Entry 4 Issue of Cheque Expense/ Asset A/c To Cash 5 Clearance of Cheque Expense/ Asset A/c To Cash

Nature of Account

Expense/Asset Liability

Expense/Asset Liability

Remarks

If in Payabel Option Account when payment is issues is selected (This entry will get generated when Payment get posted)

If in Payabel Option Account when payment gets cleared is selected (This entry will get generated when Payment get posted)

1 By using Correction on Invoice form Liability A/c Dr To AP Accrual A/c In Case of Quantity Correction To Invoice Price Variance A/c In Case of Price Correction To Expense A/c In Case of Amount Correction 2 By Matching with PO or Receipt Liability A/c Dr To AP Accrual A/c 3 Mannual Entry Liability A/c Dr To A/c given in Distribution

4 For Pos Accruing at Period End Liabiliti A/c Dr To Expense A/c

Sr No

Journal Entry
1 Preparing Pre Payment Invoice Prepaid Expense A/c To Liability A/c Dr

Remarks

2 Payment of Prepayment Invoice Liability A/c Dr To Cash Clg/Cash A/c 3 Preparing Standard Invoice AP Accrual/Expense A/c To Liability A/c Dr

4 Application of Prepayment invoice to Standard Invoice Liability A/c Dr To Prepaid Expense A/c

Sr No

Journal Entry 1 Preparing Pre Payment Invoice No Entry 2 Payment of Prepayment Invoice Prepaid Expense A/c To Cash Clg/Cash A/c 3 Preparing Standard Invoice No Entry

Remarks

Dr

4 Application of Prepayment invoice to Standard Invoice Expense A/c Dr To Prepaid Expense A/c