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Accounting entries flow in AP & FA Module

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Topic:

Topic author: ramesh040671

Subject: Accounting entries flow in AP & FA Module
Posted on: Nov 27 2006 09:29:46 AM
Message:

Hello Friends,

anyone can provide me the useful link from where i can find out the accounting entires flow in AP & FA from beggining.

Thanks in Advance
Ramesh

Replies:

Reply author: durgesh3

Replied on: Nov 28 2006 12:19:16 AM
Message:

Hello Ramesh

I can tell u the entries in AP module, but I don't have any information regarding FA entries, if you get plz do let me know it.

Entries in AP module workflow

1.On Entry of PO - No accounting impact

2.Material Receipt - PO Module

Receiving Accural Dr
AP Accural Cr

3. On completion of Inspection - PO Module

Inventroy Dr
Receiving Accural Cr

4. On Entering in AP - AP Module

AP Accural Dr
Accounts Payable Cr

5. On payment - AP Module

Accounts Payable Dr
Cash/Bank Cr

Reply author: ramesh040671

Replied on: Nov 28 2006 08:42:12 AM
Message:

Thanx Durgesh..

Reply author: Dinesh

Replied on: Nov 29 2006 09:35:51 AM
Message:

Great Durgesh!!!

Mine background is Technical but now trying my luck on Functional side. I was wondering how to understand Oracle accounting structure.Do you have
any recommendation or document ?

Cheers
Dinesh

Reply author: Mahesh Adiga

Replied on: Dec 04 2006 10:27:16 PM
Message:

Hi Ramesh,
The following is the entries to be made for AP and FA

The journal entries for PO is like follows:

1) When the item is received into inventory then

Dr. Receiving Inventory A/c
Cr. AP Payables Accrual a/c

2) When the invoice is delivered to the inventory (standard receipt)

Dr. Inventory a/c

Cr. Receiving a/c

3) When the invoice is matched

Dr. AP Payables Accrual A/c

Cr. Trade Creditors/AP Liability a/c

And if the Accrual Method is put to Period End, then the Expense/Charge account will be hit instead of hitting the AP Accrual Account while you create
your invoices in AP against matching a PO.

And For : if you are in Period End Process, the

mechanism is :
While Receipt Of Goods : no accounting entries
are created.
The Accounting Entries at the Corresponding period end is:

Dr. Expense Charge A/c

Cr. Expense AP Accrual Account

And at the Beginning of the Next Period:

Dr. Expense AP Accrual Account

Cr. Expense Charge Account

In AP, During Invoice Matching:

Dr. Expense Charge Account

Cr. AP Liability Account
------------------------------------------------------------------
Asset Entries

The drafted accounting entries are

1. When Asset Item is received:-

Receiving Inventory Account Dr

To Inventory A/P Accrual Account Cr

2. When Item is Delivered to Asset:-

Asset Clearing Account Dr

To Receiving Inventory Account Cr

3. When Invoice for Asset Item is created in Accounts Payable:-

Inventory A/P Accrual Account Dr

To Account Payable Liability Account Cr

4. When Invoice is paid in Accounts Payable:-

Account Payable Liability Account Dr

To Bank Account Cr

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