2) When sales order is entered, the ststus of sales order willbe ‘entered’ anéino ‘accountingentrieswill be created 2), When sales order is booked, and then status will be booked’ and no accounting ‘entries will he crested 3) When items picked from inventory then stats willbe ‘picked! 4) When temis shpped then status willbe ‘shipped’ andaccounting entries will be created lke Cost of gous sold A/C TO inventory Material A/C 5) We need te run ‘Warlflaw Eack Ground process’ to update the satus of sales order from ‘shipoed’to ‘close! ©) From fecelvable un ‘Auto Invoice master Program’. This will create Involce for the sales order in Receivable in Transaction window with status of Complete. 7) When invoice created in Recahable, the accounting entries will ba: Aezehable A/C ToRevenve A/C ToTaxAye To freignt Yc 8) When receistis ertered cash ac To Unicentifed A/C Unidenttied a/c ‘To Urapplied A/C Unapplied AC ‘To Applied a/c Applied Ac “To Receivable A/C ‘Accounting entries transferredto GL are. ash A/c ToRevenue A/C To TaxA/C To Freight A/C Note: In R12 from ‘View Accounting’ page we can dil-down to transaction level. 9) TransfertoGtAccounting Entries for Invoicing Rules/ Accounting Rules When Bills in Advance Accounting entries are as follow: ‘Accounting entries for Bills in Advance: Receivable AC ‘To Uneamed Revenue A/C Unearned Revenue A/C To Revenue VC Final Entries are: Receivable a/¢ ‘To Revenue A/C When Bills in Arrear Accounting entries are as follo Unbilled Receivable A/C To Revenue NC Receivable A/C TO Unbilled Receivable A/C Final Enties are: Receivable VC ToRevenue AC A i feain.Reced A.quick re-cap of accounting entries generated in Oracle Receivables: Invoices: ‘When yout enter a regular invoice through the Transactions window, Receivables‘creates the following journal entry: DR Receivables CR Revenue CR Tax (if you charge tax) CR Freight (if you charge freight) If you enter an invoice with a Bill in Arrears invoicing rule with a three month fixed duration accounting rule, Receivables creates the following journal entries: Inthe first period of the rule: DR Unbilled Receivables CR Revenie In the second period of the rule: DR Unbilled Recetvabies CR Revenue Inthe third and final period of the rule: DR Unbilled Receivables CR Revenue DR Receivables CR Unbilled Receivables CR Tax (if you charge tax) CR Freight (if you charge freight) If you enter an invoice with a Bill in Advance invoicing rule, Receivables creates the fellowing journal entries: In the first period of the rule: DR Receivables ‘CR Unearned Revenue CR Tax (if you charge tax) CR Freight (i you charge freight) DR Unearned Revenue CR Revenue Inall periods of the rule for the portion that is recognized, DR Unearned Revenue CR Revenue it an invoice, debit memo, or chargeback through the Credit Transactions window, Receivables creates the following journal entry: DR Revenue DR Tax (if you credit tax)DR Freight (if you credit freight) CR Receivables (Credit Memo) DR Receivables (Credit Memo) CR Receivables (invoice) ‘When you credit a commitment, Receivables creates the following journal entries: DR Revenue CR Receivables When you enter a credit memo agairst an installment, Receivables lets you choose between the following methods: LIFO, FIFO, and Prorate. When you enter a credit memo against an irwcice with irvoicing ané accounting rules, Receivables lets you choose between the following methods: LIFO, Prorate, and Unit. If the profile option AR: Use Invoice Accounting for Credit Memos is set to Yes, Receivables credits the accounts of the original transaction. If this profile option is set tONo, Receivables uses AutoAccounting to determine the Freight, Receivables, Revenue, and Tax accounts. Recetvables uses the account information for on-accourt Ccre¢its that you specified in your AutoAccounting structure to create your journal entries, Receivables lets you update accounting information for your credit memo after it has Posted to your general ledger. Recetvables keeps the orginal accounting information ‘asan audit trail while it creates an offsetting entry and the new entry. Commitment ‘When you enter a deposit, Receivables creates the following journal entry: DR Receivables (Depcsit) CR Offset Account Use the AR: Depesit Offset Account Source profile option to determine how Receivables derives the Offset Account to credit for this deposit. ‘When you enter an invoice against this deposit, Receivables creates the following journal entries: DR Receivables (Invoice) CR Revenue CR Tax (if you charge tax) CR Freight (if you charge freight) DR Offset Account (such as Unearned Revenue) CR Receivables (invoice) ‘When you apply an invoice to a deposit, Receivables creates a receivable adjustment ‘against the invoice. Receivables uses the account information that you specified inYyour AutaAccounting structure to create these entries, When cash is received against this depasit, Receivables creates the following journal entry: DR Cash CR Receivables (Deposit) When you enter a guarantee, Receivables creates the following journal entry: DR Receivables CR Revenue Receivables uses the Receivable Account and Revenue Account fields on this guarantee’s transaction type to obtain the accounting flexfieids for the Unbilled Receivables and Unearned Revenue accounts, respectively. ‘When you enter an invaice against this guarantee, Receivables creates the following Journal ent DR Receivables (Invoice) CR Revenue CR Tax (if you charge tax) CR Freight (if you charge freight) DR Revenue CR Receivables ‘When you apply an invoice to a guarantee, Receivables creates a receivable adjustment against the guarantee. Receivables uses the account inforrration you specified in your AutoAccounting structure to create these entries. ‘When cash is received against this guarantee, Receivables creates the following Journal entry: DR Cach CR Receivables (invoice) Receipts: ‘When you enter a receipt, Receivables creates the following journal entries: DR Cach CR Receivables ‘When you fully apply a receipt to an invoice, Receivables creates the following Journal ent DR Cach DR Unapplied Cash ‘CR Unapplied Cash CR ReceivablesNote: These examples assume that the receipt has a Remittance Method of No Remittance and a Clearance Methed of Directly. ‘When you enter an unidentified receipt, Receivables creates the following journal entry: DR Cath CR Unidentified ‘When you enter an on-account receipt, Recetvables creates the following journal entry: DR Cath ‘CR Unapplied DR Unapplied CR On-Account ‘When your receipt includes a discount, Receivables creates the following journat entry: DR Receivables CR Revenue DR Cach CR Receivables DR Earned/Unearned Discount CR Receivables, Receivables uses the default Cash, Unapplied, Unidentified, On-Account, Unearned, ‘and Eamed accounts that you specified in the Remittance Banks window for this receipt class. ‘When you enter a receipt and combine itwith an on-account credit (which increases the bolance of the receipt), Receivables creates the following journal entry. DR Cash (CR Unapplied Cash To close the receivable on the credit meme and increase the unapplied cash balance, Receivables creates the following joumal entry: DR Receivables ‘CR Unapplied Cash ‘When you enter a racaipt and combine it with a negative adjustment, Receivables ‘creates the following journal entries: DR Cash CR Receivables (invoice)DR Write-off CR Receivables (invoice) ‘You set up a Write-Off account. when defining your Receivables Activity. ‘When you enter a racaipt and combine it with a positive adjustment, Receivables ‘creates the following journal entries: DR Cash CR Recetvables (invoice) DR Receivables (Invoice) CR Write-Off When you enter a receipt and combine it with a Chargeback, Receivables creates the allowing journal entries: DR Cach CR Receivables (invoice) DR Receivables (Chargeback) CR Chargeback (Activity) DR Chargeback (Activity) CR Receivables (invoice) ‘You set up a Chargeback account when defining your Receivables Activity. Romittanc ‘When you createa receipt that requires remittance te your bank, Receivables debits ‘the Confirmation account instead of Cash. An example af a receipt requiring remittance would be a check before itwas casted. Receivables creates the following Journal entry when you enter such a receipt: DR Confirmation CR Receivables ‘You can then remit the receipt to your remittance bank using one of the two remittance methods: Standard or Factoring. If you remit your receipt using the standard method of remittance, Racalvables creates the following journal entry: DR Remittance CR Confirmation ‘When you clear the receipt, Receivables creates the following journal entry: DR Cach DR Bank Charges CR Remittance If you remit your receipt using the factoring remittance method, Receivables creates‘the following journal entry: DR Factor CR Confirmation ‘When you clear the receipt, Receivables creates a short-term liability for receipts ‘that mature at a future date. The factoring process lat you receive cash before the rraturity date, and assumes that you are liable for the receipt amount until the ‘customer pays the balance on the maturity date. When you receive payment, Receivables creates the following joumal entry. DR Cash DR Bank Charges CR Short-Term Debt (On the maturity date, Receivables reverses the short term Liability and creates the allowing journal entry: DR Short-Term Debt CR Factor Adjustment ‘When you enter a negative adjustment against an invoice, Receivables creates the fellowing journal entry: DR Write. Off CR Receivables (invoice) ‘When you enter a positive adjustment against an invoice, Receivables createsthe allowing journal entry: DR Roceivables (Invoice) CR Write-Off Debit Memos: \Wher-ycu enter a debit memo in the Transactions window, Receivables creates the fallowing journal entries: DR Receivables (CR Revente if you enter ine amounts) CR Tax Qf you charge tax) CR Freight (if you charge freight) DR Receivables CR Finance Charges ‘On-Account Credits: ‘When you enter an on-account cradit in the Applications window, Receivables creates the follewing journal entry: DR Revenve (if you credit Line amounts) DR Tax (if you credit tax) DR Freight (if you credit freight)CR Receivables (On-account Credit) Receivables uses the Freight, Receivable, Revenue, and Tax accounts that you ‘specified in your AutoAccounting structure to create these entries. ‘Once the on-accaunt credit is applied to an invoice, the following journal entry is ‘created: DR Receivables (Onraccount Credit) CR Receivables (Invoice) P2P Cycle ‘KECOUNTIE parnourans | on |ca_|spinores |PULLED FRON PECIFIC ‘Creation ot Besgusition No Accounting ‘Graatwnot Purchase Orser No Accounting ‘Beceint { = Recevng Option Receiving Ae. 100 APO Prics_| Setup ons AB Accrual Ae TOE [APO Pres [Invantay Og Setup | ORS. Devive Pan Water 5 AiSiandad | Sibswerieq Naioial Invertory AS. 20 Gost Ale Soup Susy Di bata PPV Ac |_ 20 Po-sind | invertay Org Setup | ORS Feceivng Option oveiving AC 100 | apo res _| Setup ons 1 THVoeEaEHAG with PO. AP Real Webi ecevng Option Alc 100 Atpo Pris _| Setup ons TrVGSE PROS Dit batieee Variance Ae wo Invoice PO _| invortay Org Setup | OFSFaareal AP Labity Ale +10 ATINV Pre | Options Supair Sito ‘Ga making Payment “arlavaze | Franca Latay Ae a0 Pree Options Supplier Site ‘Allnvaee cash +10 | Pree Benk Ate Sep INwe have reconclation with Cash Naragernt hen we haveone move anty as folows: eps: Dr Liabity AC Gr. Cash Cloaring Ale ( RecopptMethad) ‘Sep 7: DRCash Cacting NC ORCash STANDARD INVOICE: DEBIT ‘CREDIT Expense / Hem Expense / Mise. Expense 100 ‘Supplier Liab 100) PAYMENT: Supplier Liability 100 Bank / Cash / Cosh Cleating 100 TOTAL 200. 200 PREPAYMENTS/ ADVANCES: Prepaid Expense / Advance Paid 70 ‘Supplier (Liability 0 PAYMENT: Supple /Lablty Bank /Cash/ Cosh rearing ee‘Expense Nem Expome/Mise. Expose ——=S~*~rSCSC*=<“~*sOSCdSSS Supplier “Liaitay PREPAYMENT APPLIED TO STANDARD INVOICE: Supplier Liabiliy—SCS~SSSC~SiOSSSS Prepaid Expense / Advance Paid TOTAL, 310 INVOICE with WITHHOLDING TAX (say 6): DEBIT ‘Expense [Tem Expense /Mise. Expense 100 100) WITHHOLDING TAX INVOICE (svally Auto Generated) WHT Expense WHIT Payables NBPor SBP) TOTAL 106 Expense tem Accounting Entries 1) In PO nodule theres no Accounting Eaties 2) When Invoice is generated accounting entries are Expense Item AC ‘ToExpanse AP Accrual Expense AP Acarual AC ToCssh Clearing Cash Clearing AC "To Cashak ‘inal Entry: Expense lem A/C"To Cash/ Rank Foreign Invoice Accounting Entries 1) When Invoice is rested for L000 (1S =4-) and wall doing invelee payment 1 44 For this accounting eaties are: Foreign Functional Charge AC 1000 1000 * 40 To APLabilly 1000 1000 * 0 AP Lisbility AC 1000 1000 + 42 Realized Lose AIC 1000 #2 ‘To Cash Clearing 1000 2000 2) When Invoice is created for 1000 (18 =4V-) and while doing invice payment 1 3W- Fortis accounting entries ae: charge 1000 1000 40 To AP aby 1000 1000 a0 AP Labity 1000 13000" 40 ToRealzed Gain 2000 ToCash leasing 1000 a8 y Requisition 2 REQ a Receiving Requisition 4 Analyzing Requisition 3) Purchase Order 6 Receiving Goosls (Direct Receiving) Inventory Material AICTo Inventory AP Accrual Standiad Receiving Receiving Contol A/C To Inventory AP Accrual Inventory Material AIC ToAP Lisbility AP Liability AC ToCssh Clearing Cash Clearing A/C To Cash / Bank Future Dated Payment When Payment is inissue status, accounting entries are: AP Latilny VC To Future bated Payment Future dated Payment A/C ‘Tocashy Bank ‘When advance is applied to invoice then accounting entries are: AP Liability AIC To Prepayment‘What isthe difference between Manual Payment and Quick Payment? manual payments are meant to record manual check payments, ‘quick payment are computer generated payments. we can stop quick payments only once they are formatted. for quick payments even though [a check is voided 1ve can release the eame check since tie a computer ‘generated payment. for quick payments only interest invoices are generated, but not for manual payments, ‘TheFA accounting entries areas below. 4. when asset has been added Asset a/e Dr ‘To Asst clearing a/e 2. For depraciation Dopraciation a/e Or. ‘To sccumulated deprecation a/e 23. When asset retired ‘Accumulated Depredation a/c Dr ‘Cost of removal of asset a/¢ Dr. Liss or galn on sale of asset DF. (If loss) Proceeds of sale a/e Dr. ‘To assat a/c ‘To Loss or gain on sale of asset (if gain)