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1) When sales order is entered, the status of sales order will be entered and no

accounting entries will be created.

2) When sales order is booked, and then status will be booked and no accounting

entries will be created.

3) When item is picked from inventory then status will be picked.

4) When item is shipped then status will be shipped and accounting entries will becreated like :

Cost of goods sold A/C

TO Inventory Material A/C

5) We need to run Workflow Back Ground process to update the status of sales

order from shipped to close.

6) From Receivable run Auto Invoice Master Program. This will create Invoice for

the sales order in Receivable in Transaction window with status of Complete.

7) When Invoice is created in Receivable , the accounting entries will be:

Receivable A/C

To Revenue A/C

To Tax A/C

To Freight A/C

8) When receipt is entered :

Cash A/C

To Unidentified A/C

Unidentified A/CTo Unapplied A/C

Unapplied A/C

To Applied A/C

Applied A/C

To Receivable A/C

Accounting entries transferred to GL are:

Cash A/C

To Revenue A/C

To Tax A/C

To Freight A/C

Note: - In R12 from View Accounting page we can drill-down to transaction level.

9) Transfer to GL


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Accounting Entries for Invoicing Rules/ Accounting Rules

When Bills in Advance Accounting entries are as follow:

Accounting entries for Bills in Advance:

Receivable A/C

To Unearned Revenue A/C

Unearned Revenue A/C

To Revenue A/C

Final Entries are:

Receivable A/CTo Revenue A/C

When Bills in Arrear Accounting entries are as follow:

Unbilled Receivable A/C

To Revenue A/C

Receivable A/C

TO Unbilled Receivable A/C

Final Entries are:

Receivable A/C

To Revenue A/C

Accounting entries in Receivables

A quick re-cap of accounting entries generated in Oracle Receivables:

Invoices:When you enter a regular invoice through the Transactions window, Receivables
http://realworldoracleapps.blogspot.com/2008/05/accounting-entries-in-receivables.htmlhttp://realworldoracleapps.blogspot.com/2008/05/accounting-entries-in-receivables.htmlhttp://realworldoracleapps.blogspot.com/2008/05/accounting-entries-in-receivables.html


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creates the following journal entry:DR ReceivablesCR RevenueCR 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 fixedduration accounting rule, Receivables creates the following journal entries:In the first period of the rule:DR Unbilled ReceivablesCR Revenue

In the second period of the rule:DR Unbilled ReceivablesCR Revenue

In the third and final period of the rule:DR Unbilled ReceivablesCR Revenue

DR ReceivablesCR Unbilled ReceivablesCR 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 thefollowing journal entries:

In the first period of the rule:DR ReceivablesCR Unearned RevenueCR Tax (if you charge tax)CR Freight (if you charge freight)

DR Unearned RevenueCR Revenue

In all periods of the rule for the portion that is recognized.

DR Unearned RevenueCR Revenue

Credit Memos:When you credit an invoice, debit memo, or chargeback through the CreditTransactions window, Receivables creates the following journal entry:DR RevenueDR Tax (if you credit tax)


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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 RevenueCR Receivables

When you enter a credit memo against an installment, Receivables lets you choosebetween the following methods: LIFO, FIFO, and Prorate. When you enter a creditmemo against an invoice with invoicing and accounting rules, Receivables lets youchoose 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 isset to No, Receivables uses AutoAccounting to determine the Freight, Receivables,Revenue, and Tax accounts. Receivables uses the account information for on-accountcredits that you specified in your AutoAccounting structure to create your journalentries.

Receivables lets you update accounting information for your credit memo after it hasposted to your general ledger. Receivables keeps the original accounting informationas an 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 howReceivables derives the Offset Account to credit for this deposit.

When you enter an invoice against this deposit, Receivables creates the followingjournal 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 adjustmentagainst the invoice. Receivables uses the account information that you specified in


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your AutoAccounting structure to create these entries.

When cash is received against this deposit, Receivables creates the following journalentry:DR Cash

CR Receivables (Deposit)

When you enter a guarantee, Receivables creates the following journal entry:DR ReceivablesCR Revenue

Receivables uses the Receivable Account and Revenue Account fields on thisguarantee's transaction type to obtain the accounting flexfields for the UnbilledReceivables and Unearned Revenue accounts, respectively.

When you enter an invoice against this guarantee, Receivables creates the following

journal entry:DR Receivables (Invoice)CR RevenueCR Tax (if you charge tax)CR Freight (if you charge freight)

DR RevenueCR Receivables

When you apply an invoice to a guarantee, Receivables creates a receivableadjustment against the guarantee. Receivables uses the account information you

specified in your AutoAccounting structure to create these entries.

When cash is received against this guarantee, Receivables creates the followingjournal entry:DR CashCR Receivables (Invoice)

Receipts:When you enter a receipt, Receivables creates the following journal entries:DR CashCR Receivables

When you fully apply a receipt to an invoice, Receivables creates the followingjournal entry:DR CashDR Unapplied CashCR Unapplied CashCR Receivables


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Note: These examples assume that the receipt has a Remittance Method of NoRemittance and a Clearance Method of Directly.

When you enter an unidentified receipt, Receivables creates the following journalentry:

DR CashCR Unidentified

When you enter an on-account receipt, Receivables creates the following journalentry:DR CashCR Unapplied

DR UnappliedCR On-Account

When your receipt includes a discount, Receivables creates the following journalentry:DR ReceivablesCR Revenue

DR CashCR Receivables

DR Earned/Unearned DiscountCR Receivables

Receivables uses the default Cash, Unapplied, Unidentified, On-Account, Unearned,and Earned accounts that you specified in the Remittance Banks window for thisreceipt class.

When you enter a receipt and combine it with an on-account credit (which increasesthe balance of the receipt), Receivables creates the following journal entry:DR CashCR Unapplied Cash

To close the receivable on the credit memo and increase the unapplied cash balance,Receivables creates the following journal entry:

DR ReceivablesCR Unapplied Cash

When you enter a receipt and combine it with a negative adjustment, Receivablescreates the following journal entries:DR CashCR Receivables (Invoice)


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DR Write-OffCR Receivables (Invoice)

You set up a Write-Off account when defining your Receivables Activity.

When you enter a receipt and combine it with a positive adjustment, Receivablescreates the following journal entries:DR CashCR Receivables (Invoice)

DR Receivables (Invoice)CR Write-Off

When you enter a receipt and combine it with a Chargeback, Receivables creates thefollowing 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 debitsthe Confirmation account instead of Cash. An example of a receipt requiringremittance would be a check before it was cashed. Receivables creates the followingjournal entry when you enter such a receipt:DR ConfirmationCR Receivables

You can then remit the receipt to your remittance bank using one of the tworemittance methods: Standard or Factoring. If you remit your receipt using thestandard method of remittance, Receivables creates the following journal entry:DR Remittance

CR Confirmation

When you clear the receipt, Receivables creates the following journal entry:DR CashDR Bank ChargesCR Remittance

If you remit your receipt using the factoring remittance method, Receivables creates


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the following journal entry:DR FactorCR 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 thematurity date, and assumes that you are liable for the receipt amount until thecustomer pays the balance on the maturity date. When you receive payment,Receivables creates the following journal entry:DR CashDR Bank ChargesCR Short-Term Debt

On the maturity date, Receivables reverses the short term liability and creates thefollowing journal entry:DR Short-Term Debt

CR Factor

Adjustments:When you enter a negative adjustment against an invoice, Receivables creates thefollowing journal entry:DR Write-OffCR Receivables (Invoice)

When you enter a positive adjustment against an invoice, Receivables creates thefollowing journal entry:DR Receivables (Invoice)

CR Write-Off

Debit Memos:When you enter a debit memo in the Transactions window, Receivables creates thefollowing journal entries:DR ReceivablesCR Revenue (if you enter line amounts)CR Tax (if you charge tax)CR Freight (if you charge freight)

DR Receivables

CR Finance Charges

On-Account Credits:When you enter an on-account credit in the Applications window, Receivables createsthe following journal entry:DR Revenue (if you credit line amounts)DR Tax (if you credit tax)DR Freight (if you credit freight)


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CR Receivables (On-account Credit)

Receivables uses the Freight, Receivable, Revenue, and Tax accounts that youspecified in your AutoAccounting structure to create these entries.

Once the on-account credit is applied to an invoice, the following journal entry iscreated:DR Receivables (On-account Credit)CR Receivables (Invoice)

P2P Cycle

SR.NO PARTICULARS DR CR SPL NOTES

ACCOUNT ISPULLED FROM SPECIFIC

1Creation ofRequisition

No Accounting

2Creation ofPurchase Order

No Accounting

3 Receipt

Receiving A/c 100 At PO PriceReceiving OptionSetup ORG

AP Accrual A/c 100 At PO Price Inventory Org Setup ORG

4 DevliveryRaw Material SubInventory A/c 80

At StandardCost

Sub-inventory MaterialA/c Setup SUB-INV

PPV A/c 20Diff betweenPO - Stnd Inventory Org Setup ORG

Receiving A/c 100 At PO Price Receiving OptionSetup ORG

5Invoice matchingwith POAP Accrual LiabilityA/c 100 At PO Price

Receiving OptionSetup ORG

Invoice PriceVariance A/c 10

Diff betweenInvoice - PO Inventory Org Setup ORG


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AP Liability A/c 110 AT INV PriceFinancialOptions/Supplier Site

6 On making Payment

Liability A/c 110At InvoicePrice

FinancialOptions/Supplier Site

Cash 110At InvoicePrice Bank A/c Setup

If we have reconcilation with Cash Management then we have one more entry as follows:Step 6:Dr Liability A/CCr . Cash Clearing A/c ( Receipt Method)

Step 7:DR Cash Clearing A/CCR Cash

STANDARD INVOICE:

DEBIT CREDIT

Expense / Item Expense / Misc. Expense 100

Supplier / Liability 100

PAYMENT:Supplier / Liability 100

Bank / Cash / Cash Clearing 100

TOTAL 200 200

PREPAYMENTS / ADVANCES:

DEBIT CREDIT

Prepaid Expense / Advance Paid 70


PAYMENT:



STANDARD INVOICE:


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PREPAYMENT APPLIED TO STANDARD

INVOICE:


Prepaid Expense / Advance Paid 70TOTAL 310 310

INVOICE with WITHHOLDING TAX (say 6%):

DEBIT CREDIT


Supplier / Liability 100Payment with Withholding Tax :



Withhodling Tax 6

WITHHOLDING TAX INVOICE (Usually Auto Generated)

WHT Expense 6

WHT Payables (NBP or SBP) 6

TOTAL 106 106

Expense Item Accounting Entries

1) In PO module there is no Accounting Entries2) When Invoice is generated accounting entries are

Expense Item A/CTo Expense AP Accrual

Expense AP Accrual A/CTo Cash Clearing

Cash Clearing A/CTo Cash/Bank

Final Entry:Expense Item A/C


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To Cash/ Bank

Foreign Invoice Accounting Entries

1) When Invoice is created for 1000/- (1$ = 40/-) and while doing invoice payment 1$ =42/-. For this accounting entries are:

Foreign FunctionalCharge A/C 1000 1000 * 40

To AP Liability 1000 1000 * 40

AP Liability A/C 1000 1000 * 42Realized Loss A/C 1000 * 2

To Cash Clearing 1000 42000

2) When Invoice is created for 1000/- (1$ = 40/-) and while doing invoice payment 1$ =38/-. For this accounting entries are:

Charge A/C 1000 1000 * 40

To AP Liability 1000 1000 * 40

AP Liability 1000 1000 * 40

To Realized Gain 2000

To Cash Clearing 1000 * 38

P 2 P Cycle Accounting Entries

1) Requisition2) RFQ3) Receiving Requisition4) Analyzing Requisition5) Purchase Order6) Receiving Goods (Direct Receiving)

Inventory Material A/C


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To Inventory AP Accrual

Standard ReceivingReceiving Control A/C

To Inventory AP Accrual

Inventory Material A/CTo AP Liability

AP Liability A/CTo Cash Clearing

Cash Clearing A/CTo Cash / Bank

Future Dated Payment

When Payment is in issue status, accounting entries are:

AP Liability A/C

To Future Dated Payment

Future dated Payment A/C

To Cash/ Bank

When advance is applied to invoice then accounting entries are:

AP Liability A/C

To Prepayment


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What is the 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 thougha check is voided we can reissue the same check since it is a computer

generated payment.

for quick payments only interest invoices are generated, but not for

manual payments

The FA accounting entries are as below.

1. when asset has been added

Asset a/c Dr.

To Asset clearing a/c

2. For depreciation

Depreciation a/c Dr.

To accumulated depreciation a/c

3. When asset retired

Accumulated Depreciation a/c Dr.

Cost of removal of asset a/c Dr.Loss or gain on sale of asset Dr. (if loss)

Proceeds of sale a/c Dr.

To asset a/cTo Loss or gain on sale of asset (if gain)

accountingentries123$

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