FLOW OF ACCOUNTING ENTRIES (This is not an exhaustive document) Sr.No. Transaction 1 Receipt of Material Accounting Entries Dr.

Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Vat Interim Receivable A/c. Cr. AP Accrual A/c. 2 PO Inspection No Entries

3 On Claiming CENVAT

Dr. Cenvat Receivable A/c. Dr. Cess On Cenvat Receivable A/c. Dr. S&HE Cess On Cenvat Rece. A/c. Cr. Receiving Inventory A/c. Dr. Material Inventory A/c. Cr. Receiving Inventory A/c. Dr. Vat Receivable A/c. Cr. Vat Interim Receivable A/c. Dr. AP Accrual A/c. Cr. AP Liability A/c. Cr./Dr.Invoice Price Varience A/c. Dr. Receiving Inventory A/c. Cr. Inventory Valuation A/c. Cr. Input Tax Dr. AP Accrual A/c. Cr. Receiving Inventory A/c. Dr. AP Liability A/c. Cr. Bank A/c. Dr. Inventory Valuation A/c. Cr. User Specified A/c. Dr. User Specified A/c. Cr. Inventory Valuation A/c. Dr./Cr. Inventory Valuation A/c. Cr./Dr. Inventory Adjustment A/c. Dr. WIP Inventory A/c.

4 Material Delivery to Inventory

5 Claim Vat

6 Receipt of Vendor's Invoice

7 Return to Receiving Point from Inventory

8 Return to Vendor from Receiving Point

9 Payment Made to Vendor

10 Misc. Receipt

11 Misc. Issue

12 Inventory Adjustment (Physical/Cycle Count)

13 Issue to Job from Inventory

Cr. Inventory Valuation A/c. 14 Component Return to Inventory Dr. Inventory Valuation A/c. Cr. WIP Inventory A/c. Dr. WIP Resource A/c. Cr. Resource Absorption A/c. Dr. WIP Resource A/c. Cr. Resource Absorption A/c. Dr. WIP Overhead A/c. Cr. Overhead Absorption A/c. Dr. WIP OSP Charges A/c. Cr. OSP Absorption A/c. Dr. Inventory Valuation A/c. Cr. WIP Inventory A/c. Cr. WIP Resource A/c. Cr. WIP Overhead A/c. Cr. WIP OSP Charges A/c. Dr. WIP Inventory A/c. Dr. WIP Resource A/c. Dr. Overhead Absorption A/c. Dr. WIP OSP Charges A/c. Cr. Inventory Valuation A/c. Dr. Scrap A/c. Cr. WIP Inventory A/c. Cr. WIP Resource A/c. Cr. WIP Overhead A/c. Cr. WIP OSP Charges A/c. Dr. Cost Of Goods Sold A/c. Cr. Inventory Valuation A/c. Dr. Inventory Valuation A/c. Cr. Cost Of Goods Sold A/c. Dr. Receivables A/c Cr. Revenue A/c. Dr. Bank A/c. Cr. Receivable A/c.

15 Charge Labour Resource to Job

16 Charge Non Labour Resource to Job

17 Charge Overhead to Job

18 Charge OSP Charges to Job

15 Completion of Job

16 Completed Job Return to Shop Floor

17 Scrap of Job From Shop floor

18 Sales oreder Shipment

19 Return From Customer (RMA)

20 Invoice Raised on Customer

21 Payment Received From Customer

At what value PO Rate * Qty Excise Duty Amt. Cess Amt. S&HE Cess Amt. Vat Amt. Rate*Qty+All Taxes

Exicise Duty Cess S&HE Cess Total Of Above PO Rate * Qty PO Rate * Qty Vat Amt. Vat Amt. PO Price Invoice Price (PO Price - Inv. Price) PO Price PO Price PO Price PO Price Amount Paid

User Input Value

User Input Value

Procure to Pay Cycle FLOW OF ACCOUNTING ENTRIES Sr.No. Transaction 1 Receipt of Material Accounting Entries Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Vat Interim Receivable A/c. Cr. AP Accrual A/c. 2 PO Inspection No Entries

3 On Claiming CENVAT

Dr. Cenvat Receivable A/c. Dr. Cess On Cenvat Receivable A/c. Dr. S&HE Cess On Cenvat Rece. A/c. Cr. Receiving Inventory A/c. Dr. Material Inventory A/c. Cr. Receiving Inventory A/c. Dr. Vat Receivable A/c. Cr. Vat Interim Receivable A/c. Dr. AP Accrual A/c. Cr. AP Liability A/c. Cr./Dr.Invoice Price Varience A/c. Dr. AP Liability A/c. Cr. Bank A/c.

4 Material Delivery to Inventory

5 Claim Vat

6 Receipt of Vendor's Invoice

7 Payment Made to Vendor

At what value PO Rate * Qty Excise Duty Amt. Cess Amt. S&HE Cess Amt. Vat Amt. Rate*Qty+All Taxes

Exicise Duty Cess S&HE Cess Total Of Above PO Rate * Qty PO Rate * Qty Vat Amt. Vat Amt. PO Price Invoice Price (PO Price - Inv. Price) Amount Paid