Accounting Entries for P2P

Transaction Point Debit Credit

PO Creation
Gate Receive Inventory Receiving a/c Accrual a/c
Inspection
MRR Inventory Valuation a/c Inventory Receiving a/c
Payable Invoice when Match to Accrual a/c Liability a/c
PO
Payment Made to Vendor Liability a/c Cash Clearing a/c
When Cleared in Bank Cash clearing a/c Bank a/c
Inventory Issue to Dept Inventory /Expanse a/c Inventory Valuation a/c

Expense Item

Transaction Point Debit Credit

PO Creation
Create Receipt Inventory Receiving a/c Accrual a/c
Inspection
Receiving Transactions Expense a/c Inventory Receiving a/c
Payables Invoice when match to Accrual a/c Liability a/c
PO
Vendor Payment Liability a/c Bank clearing a/c
When cleared in Bank Bank clearing a/c Bank a/c

Assets Item
Transaction Point Debit Credit
Create Receipt Inventory Receiving a/c Accrual a/c
Inspection
Receiving Transactions Assets Clearing a/c Inventory Receiving a/c
Payables Invoice when match to Accrual a/c Liability a/c
PO
Vendor Payment Liability a/c Bank clearing a/c
When cleared in Bank Bank clearing a/c Bank a/c
When Asset Addition done and Asset a/c Asset Clearing a/c
Capitalized in FA module