Procure to Pay accounting entries

1. When we receive the goods in the staging area

Receiving inventory A/C Dr (taken from receiving options)

To AP accrual A/C Cr (taken from purchasing options)

2. When we are moving the goods from staging area to sub inventory

Material A/C Dr (taken from inventory)

To receiving inventory A/C Cr

3. When creating invoice

AP accrual A/C Dr
To Liability A/C Cr (taken from supplier)

4. When making a payment

Liability A/C Dr
To Cash clearing A/C Cr (taken from Bank)

5. When reconciliation

Cash clearing A/C Dr

To Cash A/C Cr (taken from Bank)

6. Standard invoice entry

AP accrual A/C Dr
To Liability A/C Cr

7. Debit and Credit Memo

Liability A/C Dr
To AP accrual A/C Cr

Payment Entries

8. Creating prepayment invoice

 Prepayment A/C Dr (taken from Supplier)
To Liability A/C Cr

9. Making payment for prepayment

Liability A/C Dr
To Cash A/C Cr

10. Apply prepayment on standard invoice

Liability A/C Dr
To Prepayment A/C Cr

11. Create Interest invoice while making payment

Interest expense A/C Dr

Liability A/C Dr
To Cash A/C Cr

12. Expense report entry

Item expense A/C Dr

To Liability A/C Cr

13. Payment request entry

Item expense A/C Dr

To Liability A/C Cr

14. Future dated payment

When Bill issued:

Items expense A/C Dr

To Bills Payables A/C Cr

When maturity date confirmed:

Bill payable A/C Dr (taken from Supplier)

To Liability A/C Cr

15. Withholding tax entry

Item expense A/C Dr

To Liability A/C Cr
To Withholding Tax A/C Cr
16. Generate withholding tax entry

Item expense A/C Dr

To Liability A/c Cr

17. Retainage release accounting entry

When matched with PO

AP accrual A/C Dr
To Liability A/C Cr
To Retainage A/C Cr (taken from financial options)

When making payment to the invoice matched with PO

Liability A/C Dr
To Cash A/C Cr

When Retainage invoice matched with PO

Retainage A/C Dr
To Liability A/C Cr

When making payment

Liability A/C Dr
To Cash A/C Cr

KEY REPORTS IN ACCOUNTS PAYABLES

1. Accounts payable trial balance

2. Bills payables maturity date report
3. Bank account listing
4. Credit memo matching report
5. Invoice register
6. Invoice aging report
7. Invoice history report
8. Open account balances listing
9. Payment register
10. Prepayment status report
11. Payables posted payment report
12. Supplier report
13. Supplier paid invoice history
Flex Fields for GL, AR, FA

For GL
1) GL Ledger flex field
2) Accounting Flex field
3) Accounting Attribute key flex field

For Accounts Receivables

1) Territory flex field

2) Sales Tax Location Flexi field

For Fixed Assets

1) Location Flex field

2) Category flex field
3) Asset key key flex field

Accounts Receivables Basic setups

1) Setup Om System Parameters

2) Configure System Options

3) Create Transactions Types

4) Create Transactions Sources

5) Create Auto Accounting

6) Create Payment Terms

7) Create Collectors

8) Create statement Cycles

9) Create Customer Profile Class

10) Create Customer & Site

11) Create Remit to Address

 12) Create Party Tax Profile for Operating Unit

13) Create Receivable Activities

14) Create Receipt Class & Receipt Methods

15) Create Receipt Source

16) Open AR Periods