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Acccounting entry in Ebuy to Pay [message #209667] Sat, 16 December 2006 09:14 Go to next message
venkatesan_vs
Messages: 29
Registered: December 2006
Location: CHENNAI
Junior Member

Hi

Can anyone help me in knowing the accounting entries
from Procure to Pay.

thanks
venkatesan
Re: Acccounting entry in Ebuy to Pay [message #209798 is a reply to message #209667] Sun, 17 December 2006 21:18 Go to previous messageGo to next message
shashidhar.k
Messages: 127
Registered: January 2006
Location: India
Senior Member
Hi Venkat..Here with iam sending the information which you asked about P2P....Actually in P2P application will generate Journal entries from the point of 'Receiving Goods'..Before tht one it won't create JV...

Note : if anything worng in the following information ..plz correct me...

I) Receiving Accounting
a).for Inventory Item

Receiving Accrual Dr
Cr Inventory AP Accrual A/c.

b).For Expenses Item

Receiving Accrual A/c Dr
Cr Accrued Expense A/c

Delivery Accounting
a).for Inventory Item
Raw Material A/c Dr
Cr Receiving Accrual A/c

b). for Expense Item
Accrued Expense A/c Dr
Cr Receiving Accrual A/c

================================================================
The reserve for encumbrance account is used when encumbrance accounting is enabled for SOB. When a Requisition or PO is created then in Oracle Financial there is no accounting entries. But when you have enabled your encumbrance accounting then system creates encumbrances accounting enties for PO as well as for Req.

When requisition is created system creates accounting entries as follows :-

Req Charge Account Dr XXXX

This enrty is not balanced. When this entries is posted in GL then it is autiomatically balanced by reserve for encumbrance account given in SOB...

The entry after posting will be as follows:-

Req Charge Account Dr XXXX
To Reserve for Encumbrance Account Cr XXXX

When a PO is auto created with this requisition then REQ encumbrances will be reversed and PO Encumbrance will be generated. (PO and REQ Encumbrances will be defined in Financial Option- Encumbrance TAB in Accounts Payable / Oracle Purchasing TAB).....

The entry will be :-

Generation of PO Encumbrance:-

PO Charge Account Dr XXXX
To Reserve for Encumbrance Account Cr XXXX

Reversal of Req Encumbrance:-

Reserve for Encumbrance Account Dr XXXX
To Req Charge Account Cr XXXX

An when PO is matched to Invoice the PO encumbrance is released because it has now become actual...

If we enter any unmatched invoice in AP then the following entry is created:-

INV Charge Account Dr XXXX
To Reserve to Encumbrance Cr XXXX

These encumbrance entries are reversed when PO or REQ is cancelled...

These entries generating in PO module are not automaticaly imported to GL we have to import these journal entries by running the following Program -- Program - Create Journals in General Ledger.

Encumbrance entries in AP are automatically transfered when payable transfer to GL is run.


===============================================================


II) For Invoice and Payment
a) On entering an invoice

Expense A/c Dr
Tax A/c Dr
Cr AP Liability A/c

b) On making a payment

AP Liability A/c Dr
Cr Cash A/c.

c) On making a payment when cash Clearing account is used

AP Liability A/c Dr
Cr Cash Clearing A/c




d) On reconciling the payment.

Cash Clearing A/c Dr
Cr Cash A/c.

e) on entering Prepayment Invoice

Prepayment A/c Dr
Cr AP Liability A/c

When prepayment applied to any standard invoice

AP Liability A/c Dr
Cr Prepayment A/c

f). On entering any Debit /Credit Memo

AP Liability A/c Dr
Cr Expense A/c

g).on Creating With Holding tax Invoice in Payables

With Holding Tax A/c Dr
Cr AP Liability A/c



Thanks
Shashidhar K

Re: Acccounting entry in Ebuy to Pay [message #210107 is a reply to message #209798] Tue, 19 December 2006 06:56 Go to previous message
venkatesan_vs
Messages: 29
Registered: December 2006
Location: CHENNAI
Junior Member

Hi

thank you veru much.

venkateasan
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