Following Accounting entries will be generated for P2P:

 Purchase Requisition creation No entry

 Purchase Order creation no entry
 Inventory Receipt:
Inventory A/c…………….Debit
AP Accrual A/C………Credit(This A/c We are giving in Financial Option)
 At the time of Matching the Invoice with Purchase Order
AP Accrual A/c………….Debit
Supplier A/c…………..Credit
 At the time of making payment to supplier
Supplier A/C…………… Debit
Bank A/c…………….Credit

This is how the P2P and O2C cycle works, but this is not the only way, obviously there are many
other applications with different cycles.