P 2 P ENTRIES
1) First entry comes when we receive material at staging area
Receiving inventory a/c Dr
To inventory AP Accrual a/c
2) Second entry comes in moving item to Sub Inventory
Inventory a/c Dr
To receiving inventory a/c
3) Third entry comes in PO Invoice-AP module
AP accrual a/c Dr
To liability a/c
To tax a/c
To Freight a/c
4) Fourth entry comes in receiving(Payment)
Liability a/c Dr
To Cash clearing a/c
5) Fifth entry comes in Payment clearing
Cash clearing a/c
To cash
Purchase price variance Entry
Material a/c Dr
To Receiving a/c Cr
To PO price Variance a/c Cr
If standard price is less than PO price
Material a/c Dr
To PO price variance a/c Cr
To Receiving a/c Cr
IPV---.>Entry
PO price is more than Invoice price
Accural A/C--->DR42000
Liability A/C--> CR 30000
IPV A/C--> CR12000
PO price is less than Invoice price
Accural A/C DR 10000
IPV A/C DR 2000
Liability A/C CR 12000
Prepayment Entry
Prepaid a/c Dr
To AP liability a/c Cr
Paid the Amount Against Prepayment
AP liability a/c Dr
To Cash a/c Cr
Adjustment of prepayment against Invoice
AP liability a/c Dr
To prepayment a/c Cr
Credit memo or debit memo entry
AP liability a/c Dr
To charge a/c or Inv AP accrual a/c
With holding Tax Entry
AP liability a/c Dr
To Withholding Tax a/c Cr
Releasing Withholding Tax
Withholding Tax a/c Dr
To AP Liability a/c
Purchase price variance Entry
Material a/c Dr
To Receiving a/c Cr
To PO price Variance a/c Cr
If standard price is less than PO price
Material a/c Dr
To PO price variance a/c Cr
To Receiving a/c Cr
Currency Gain Entry
AP liability a/c Dr
To realized gain a/c Cr
To Cash a/c Cr
Currency Loss
AP liability a/c Dr
Realized Loss a/c Dr
To Cash a/c Cr
For future dated Payment
AP liability a/c Dr
To Future dated payment a/c Cr
At payment Maturity
Future Payment a/c Dr
To cash a/c Cr
Discount taken
AP Liability a/c Dr
To System discount a/c Cr
To cash a/c Cr
ORDER TO CASH ENTRIES (O2C)
1) Pick Release (sending items subinv to staging area)
Inventory stage a/c Dr
To Inventory finished goods
2) Ship confirm(Loadding goods and send to Customer)
Cost of goods sold a/c Dr
To Inventory organization a/c
3) Transaction
Receivables a/c Dr
To Revenue a/c
4) Receipt
Confirmed cash a/c Dr
To Receivables
5) Remittance
Remittance a/c Dr
To confirmed cash a/c
6) Reconciliation
Cash a/c Dr
To Remittance a/c
7) Reconciliation (Direct cash)
Cash a/c Dr
To confirmed cash
ENTRIES IN ACCOUNT RECEIVABLES
1) Transaction:
Receivables a/c- Dr
To Revenue
2) Receipt
Confirmed cash a/c Dr
To Receivables
3) Check send to bank for clearance
Cash clearing a/c Dr
To Receivables
4) Check get cleared
Cash a/c Dr
To cash confirmed
Oracle Accounts Receivable - Accounting Entries
1.Sales Invoices
Receivables A/c…Dr $ 5000
Revenue A/c……..Cr $ 5000
2.Sales Invoice with Tax & Freight
Receivables A/c…..Dr $ 6000
Tax A/c….….……....Cr $ 300
Freight A/c.….…….Cr $ 200
Revenue A/c…….…Cr $ 5500
3.Debit Memo
Receivables A/c….Dr $ 1000
Revenue A/c……...Cr $ 1000
4.Credit Memo
Revenue A/c…….....Dr $ 2000
Receivables A/c.... Cr $ 2000
5.Deposit
Receivables A/c……….....Dr $ 10000
Unearned Revenue A/c…Cr $ 10000
When we apply deposit against Invoice
Unearned Revenue…....…Dr $ 10000
Receivables (Invoice)…..Cr $ 10000
6.Guarantee
Unbilled Receivables A/c..…Dr $ 5000
Unearned Revenue A/c.……Cr $ 5000
When we apply invoice against Guarantee
Unearned Revenue A/c…...….Dr $ 5000
Unbilled Receivables A/c…....Cr $ 5000
7.Charge Back
Charge back adjustment A/c….Dr $ 2000
Receivables A/c……………….....…Cr $ 2000
Receipts
8.When you create & apply the Receipt on (Open Transaction)
Cash A/c……….....….Dr $ 50000
Receivables A/c…...Cr $ 50000
Receipt Accounting Entries Based on Receipt Status
9.When Receipt Status is Unapplied
Conform Cash A/c…..…….Dr $ 10000
Unapplied cashA/c…..Cr $ 10000
When Receipt Status is Unidentified
Conform Cash A/c……….......Dr $ 10000
Unidentified A/c.….Cr $ 10000
When we adjust amount to On-Account
Conform Cash A/c…….....……Dr $ 10000
Receivable A/C.............................Cr 9900
On-Account A/c….........................Cr 100
Receipt-write off-
Conform Cash Dr.............. 13000
To Receivable...............Cr 12500
To Write off..................Cr 500
Miscellaneous Receipt-
Conformed Cash DR 100
To Miscellaneous Cash 100
When the receipt includes discount amount
Receivables A/c......…Dr $ 1000
Revenue A/c….….......Cr $ 1000
Cash A/c………........…Dr $ 1000
Receivables A/c…......Cr $ 1000
Earned/Unearned Discount A/c..…Dr $ 1000
Receivables A/c……………......………Cr $ 1000
Remittance
When you enter such a receipt
Confirmation A/c.....Dr $ 20000
Receivables A/c… …Cr $ 20000
When receipt is remitted to Bank
Remittance A/c……..Dr $ 20000
Confirmation A/c…..Cr $ 20000
When you clear the receipt
Cash A/c……….....Dr 20000
Remittance A/c….Cr 20000
Fixed Schedule Accounting Rule
Revenue reorganization Invoice with rules (in 1st period of rule)
Revenue Reorganization Bills in Advance Invoice Rules (in 1st period of
rule)
Receivables A/c……………….Dr $ 100000
Unearned Revenue A/c………..Cr $ 95000
Tax A/c………………………..Cr $ 2500
Freight A/c………….………....Cr $ 2500
In Each Period When Revenue is recognized
Unearned Revenue Account A/c…..Dr $ 100000
Revenue A/c………………………..Cr $ 100000
Define Variable Schedule Accounting Rule
Accounting Entries
Revenue Reorganization Bill in Arrears Invoice Rules (in 1st period of rule)
Unbilled Receivables A/c……………….Dr $ 100000
Revenue A/c…………………………...Cr $ 95000
Tax A/c…………………………..……..Cr $ 2500
Freight A/c …………………….……..Cr $ 2500
In Each Period When Revenue is recognized
Receivables A/c…………………..Dr $ 100000
Unbilled Receivables A/…….…..Cr $ 100000
Oracle Fixed Assets – Accounting Entries
When we record Asset Invoice in Payable
Asset Clearing A/c……......Dr $ 25000
Liability A/c (Payable)….…Cr $ 25000
When we create Fixed Asset in FA
Asset cost A/c…………..Dr $ 25000
Asset clearing A/c…….…Cr $ 25000
Final entry
Asset cost A/c…………..Dr $ 25000
Liability A/c (Payable)….…Cr $ 25000
When we add CIP (Construction –In- Process) Asset
CIP Cost A/c…....Dr $ 50000
CIP Clearing A/c…Cr $ 50000
When you Capitalize the CIP Asset
Asset Cost A/c……Dr $ 10000
CIP clearing A/c….Cr $ 10000
When Depreciation is calculated
Depreciation Expense A/c......…Dr $ 1000
Accumulated Depreciation A/c…Cr $ 1000
When we retire the asset with removable cost
Accounts Receivable A/c…….......Dr $ 5000
Proceeds of Sale Clearing A/c…...Cr $ 5000
Cost of Removal Clearing A/c…....Dr $ 1000
Accounts Payable A/c………....…...Cr $ 1000
When we retire the asset
Accumulated Depreciation A/c…...Dr $ 2500
Proceeds of Sale clearing A/c…....Dr $ 2000
Revaluation Reserve A/c……….......Dr $ 600
Asset Cost A/c………………….......…Cr $ 4000
Cost of removal clearing A/c…...…Cr $ 500
Gain/Loss A/c…………………….........Cr $ 600
