Account entries Payables Action Receive the material Account entries Receiveing a/c AP Accrual a/c X X X X X X

X X

Debit X

Credit X Real a/c

Inspect / Approve Material a/c (& PPV) the material Receiveing a/c AP Accrual a/c ( & IPV) (If material Invoice
Accrual, If money, discount Charge)

Nominal a/c

Personal a/c

Payment
Total

AP liablity AP liablity Payment a/c or supplier a/c

Material + PPV + IPV Supplier a/c

Receivables Action Complete DJ Ship confirm Account Entries Inventory a/c WIP a/c COGS a/c Inventory a/c Receivable a/c Revenue a/c Retained earnigs COGS a/c Cash clearing a/c Receivable a/c Cash a/c Cash clearing a/c
Total Shipped Value ( ext. price) Outstanding from customer Revenue COGS

Debit X X

Credit X X

X X X X X X X X

Invoice

Receiving Reliazing
Revenue a/c Receivable Retained earnings

WIP Accounts Debit Credit Action WIP material valuation a/c X Receive Inventory a/c (Material) X material to DJ WIP resource valuation a/c X Resource Resource absorbtion a/c X transaction Resourceratevarianceaccount(Debitwhenactualrateisgreaterthanthestandardrate.Credit
whentheactualrateislessthanthestandardrate.)

OSP

WIP OSP valuation a/c

Receiving a/c ( org) X Purchasepricevarianceaccount(Debitwhentheactualrateisgreaterthanthestandardrate. Creditwhentheactualrateislessthanthestandardrate.) WIP overhead valuation a/c Overhead absorbtion a/c Scrap a/c WIP valuation a/c @ Scrap value Inventory a/c (Material,resource,receiving, overhead absor) WIP valuation a/c ( material, resource, OSP, Overhead) WIP Variance a/c s WIP valuation a/c s X X X X X X X X

Over head (If Scrap)

Complete DJ

Closing

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Account entries

What comes in is debit What goes out is credit Debit all losses, Credit all profit, liablity

Debit the receiver Credit the giver

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