2) When sales order is entered, the status of sales order willbe ‘entered’ anéino accountingentrieswill becreated. 2), When sales order is booked, and then status will be ‘booked’ and no accounting ‘entries will be crested 3) When items picked from inventory then stats wills ‘picked? 4) When emis shpped then staus willbe ‘Shipped’ andaccounting entries will be created lke Cost of goods sold A/C TO inventory Material A/C 5) We need torun ‘Workflow Back Ground process’ to update the satus of sales ‘order fram ‘shipped! to ‘close’ 6) From Receivable run ‘Auto Invoice Mater Program’. Thicwill create Invoice for the sales order in Receivable in Transaction window with status of Complete’ 7) When imiceiscreated in Recehable, the accountingentries will be: Recetvable NC ToReverue A/C Tote To Freight Vc 8) When receistis entered cashayc To Unidentified A/C Unidentified A/C To Unapplied A/C Unappiied A'C To Applied AC Applied A/C “To Receivable A/C ‘Accounting entries transferredto GL are. Gash A/C ToRevenve A/c ToTaxA/C To Freight A/C Note: In RL2 from “View Accounting” page we can il-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 Blls in Advance: Receivable A/C ‘To Uneamed Revenus MC Unearned Revenue A/C To Revenue A/C Final Entries are: Receivable A/c To Revenue A/C When Bills in Arrear Accounting entries are as follo Unbilled Receivable A/C To Revenue NC Receivable WC TO Unbilled Receivable A/C Final Eaties are: Recevable A/C To Revenue A/c ‘A.quick re-cap of accounting entries generated in Oracle Receivables: Invoices: ‘When you enter a ragular 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 treight) Ifyou enter an invoice with a Bill in Arrears invoicing rule with a three manth fixed ‘duration accounting rule, Recelvables creates the following journal entries: In the first period of the rule: DR Unbilled Recetvabies CR Revenue In the second period of the rule: DR Unbilled Receivables 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) Ifyou enter an invoice with a Bill in Advance invoichg rule, Receivables creates the following journal entries: In the first period of the rule: DR Receivables ‘CR Unearned Revenue CR Tak (if you charge tax) CR Freight (it you charge freight) DR Unearned Revenue CR Revenue Inall periods of the rule for the portion that 's recognized, DR Unearned Revenue CR Revenue Credit Memes: ‘When you credit an invoice, debit memo, er 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 Mema) DR Receivables (Credit memo) CR Receivables (invoice) When you cradit a commitment, Receivables craates the following journal entries: DR Revenue CR Receivables ‘When you enter a credit memo against an installment, Receivables lets you choose between the following methods: LIFO, FIFO, and Prorate. When you enter a credit ‘memo against an invoice with irveicing and 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 AuteAccounting to determine the Freight, Racelvables, Revenue, and Tax accounts. Receivables uses the account inforrration for on-account 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 pasted to your general ledger. Receivables keeps the orginal accaunting information ‘asan audit trail while it creates an offsetting entry and the new entry. ‘Commitments: ‘When you enter a deposit, Receivables creates the following journal entry: DR Receivables (Deposit) CR Offset Account Use the AR: Deposit Offset Account Source profile option to determine how Receivables derives the Offset Account to credit for this depasit. ‘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 accaunt information that you specified in‘your AutoAccounting structure to create these entries, When cash is received against this deposit, Receivables creates the following journal enuy: 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’ transaction type to obtain the accounting flextielde for the Unbilled Receivables and Unearned Revenue accounts, respectively. ‘When you enter an invoice against this guarantee, Receivables creates the following Journal entry: 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. Recelvables 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 cash CR Receivables (invoice) Receipts: When you enter a receipt, Receivables creates the following journal entries: DR Cash CR Recewvables When you fuly apply a receipt to aninvcce, Receivables creates the following Journal entry: DR cash 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 Methad of Directly, ‘When you enter an unidentified receipt, Receivables creates the following journal entry: DR Cash CR Unidentified When you enter an on-account receipt, Receivables creates the following jeumal enuy: DR Cash CR Unapplied DR Unapplicd CR OmAccount ‘When your receipt includes a discount, Receivables creates the following journa, entry: DR Receivables CR Revenue DR Cash 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 balance of the receipt), Receivables creates the following journal entry: DR Cash CR Linapplied Cash To close the receivable on the credit meme and increase the unapptied cash balance, Receivables creates the following joumal entry: DR Receivables CR Unapplied Cash When you enter a receipt 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 accourt when defining your Receivables Activity. ‘When you enter a receipt and combine it with 2 positive adjustment, Receivables creates the following journal entri DR Cash CR Receivables (invoice) DR Receivables (Invoice) CR Write-Off When you enter a receipt and combine it with a Chargeback, Receivables creates the fallowing journal entries: DR Cash 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. Remittances: ‘When you create a receipt that requires remittance to your bank, Receivables debits ‘the Confirmation account instead of Cash. An example of a receipt requiring remittance would be a check before it wae cashed. Receivables creates the following Journal entry when youenter such a receipt: DR Confirmation CR Receivables ‘You can then remit the receipt to your remittance hank using one of the two remittance methods: Standaré or Factoring. I you remit your receipt using the standard method of remittance, Receivables creates the following journal entry: DR Remittance ‘CR Confirmation ‘When you clear the receipt, Raceivables creates the following journal entry: DR Cash DR Bank Charges CR Remittance Ifyou remit your receipt using the factoring remittance method, Receivables createstthe 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 let 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 following journal entry: DR Short-Term Debt CR Factor Adjustments: When you enter a negative adjustment against an invoice, Receivables creates the {following journal entry: DR Wnte-Off CR Receivables (invoice) ‘When you enter a positive adjustment against an invoice, Receivables creates the fallowing journal entry: DR Receivables (Invoice) CR Write-Off Dabit Memos: ‘When you enter a debit memo in the Transactions window, Receivables creates the fallowing journal entries: DR Receivables CR Revente (if you enter line amounts} CR Tax (if you charge tax) CR Freight (i you charge freight) DR Receivables CR Finance Charges ‘On-Account Credits: ‘When yeu enter an on-account credit in the Applicatiens window, Receivables creates the following journal entry: DR Revenve [if youcredit tine amounts) DR Tax (if you credit tax) DR Freight (if you credit freight)CR Receivables (On-accoint Credit) Receivables uses the Freight, Receivable, Revenue, and Tax accounts that you ‘specified in your AutoAcCounting structure to create these entries. Once the an-account credit applied to an invoice, the fllowingjourral entry is DR Receivables (On-account Credit) CR Receivables (Invoice) P2P Cycle SR “ACCOUNT IS: T NO parnicuars [or [cr _|seunoves [PULLED FROM | spEciFC Sguation | 1_ Requisition + No Accouning t ‘Catal Nesecantng t | sist Races Oe Pecsiving Ab 100| | apo ice _| Sau ona. AP Ari A 760 [AIPO Fri | iventay Org Setup [OF t = Dewar t Fan Nate SUE ‘ASandad | Sibawene7 Nawal Inventory A a Cost Ais Sotup | sua. Di bane |[pevac 2| [Poss [inienay ogsoup | os Rocaving 100|atPo Prin | ons. ‘voles machina snp" BP hora Lily eceivng Onion a vo] [apo mn |Back [ore trv Pics Bi bates Vivanee A 10] _|imaze"® [ivertoy orgsoup | onFaareal AP Uabity Ale +10 LATIN Price | Options Supa Ste making Payment "miles | Franca Latiy Ne 110 Pree pliens Supplier Sito ‘Ranaze cach s10 | Pree Bonk Ne Soup we have recondition with Ca2h Maragamaat han we have one move ant as totes Sep6 Dr Laity AC Gr. Gash Clearing Ale ( Recopt Method) ‘Sie07: DRCash Gesting AC ORCash STANDARD INVOICE: DERE ‘CREDIT ‘Expeme (lem Expense /Mise, Expense 100 Supplier /Liabilay 100) PAYMENT: Supple Liability 100 ‘Bank / Cash / Cash Clearing 100 TOTAL 200 20 PREPAYMENTS/ ADVANCES: Prepaid Expense / Advance Paid 70 | DEBIr CREDIT ‘Supplier Lisi 70 PAYMENT: Supplier (Liability 70 “Hank / Cash / Cash Clearing. 70se Mse. Expense (00 Sapper ing PREPAYMENT APPLIED TOSTANDARD INVOICE! ‘Supplier / Liabilay 30. peta tpases Koa Fal 7 TOTAL 30 10 ANYOICE with WITHHOLDING TAX (say 6%): ‘Expense /iem Expense Mise. Expense - Supplier Liability ——_ 100) Payment with Withholding Tax Supplier (Liabii 100 Bank / Cash / Cash Clearing a Withhoding Tax 6 WITHHOLDING TAX INVOICE (Usually Auto Generated) WHTExpse Sd WAT Payables WBPorSBP) 6 TOTAL 106 106 Expense item Accounting Entries 1) In PO nodule theres no Ascounting Eawies 2) When lnvoice is generated accouating entries are Expense ftan AC "To Expanse AP Accrual Expense AP Accrual AC ToCssh Clearing Cash Clearing AC "To CasivfBank Final Entry: Expense ftem AC‘To Casi/ Bank Foreign Invoice Accounting Entries 1) When Invoice is created for 1000/- (15 =40/-) and wile doing inveice payanent 44/- For this accounting enttes are: Foreign Functional Charge AIC 1000 1000 #20, To AP Liability 1000 1000 + 40 “AP Lisbuity A/C 1000 1000 + 2 Realized Loss AIC 100 "2 ‘To Cash Clearing 1000 2000 2) When Invoice is created for 1000/- (15 = 40/-) and whi doing inv ice payment 18 = 38 Forthis accounting enti ae: Charge 1000 3000" 40 To AP Uabiliy 1000 1000 40 ‘0 vabity 1000 1000+ a0 ToReated Gain 2000 ToCash Clearing 1000" 38 Entries y Requistion Dv RFO 3) Receiving Requisition a ‘Analyzing Requisition 3) Purchase Order 6 Receiving Goods (Direct Receiving) Inventory Material AIC‘To Inventory AP Accrual ‘Standard Receiving Revelving Convol Arc To Inventory AP Accrual Inventory Material AIC ToAP Lishility AP Lisbitity ae ToCash Clearing Cash Clearing AIC ‘To Cash / Bank Future Dated Payment When Payment is in ssue status, accounting entules are: AP Laity VC ToFuture Dated Payment ature dated Payment a/c To Cash/ Bank When advance s applied to invoice then accounting entriesare: ‘AP Liability AIC To Prepayment‘What isthe difference between Manual Payment and Quick Payment? ‘manual payments are meant to record manual check peyments, ‘quick payment are computer generated payments. we can stop quick payments only ence thay are lormatted. for quick payments even though A check is voided ne.can retsaue the same check since is a computer ‘generated payment ‘or quick payments only interest invoices are generated, tut not for manual payments ‘TheFA accounting entiles areas below. 4. when asset has been added ‘Asset a/e Br To asset clearing a/c 2, For deprecation Depredazien a/e UF. ‘To accumulated deprecation a/c 3. When asset rated ‘Accumulated Depredation a/c Dr ‘Cost of removal of asset 3/¢ Dr Loss or gain on sale of asset Or. (If loss) Proceeds of sale a/c Dr To asset a/c To Loss or gain on sale of asset (if aain)