Accounting Entries

 Accounting Entries

A - Sales order creation – No entries

Pick release:

Inventory Stage A/c.....................Debit

Inventory Finished goods a/c........Credit

Ship confirm:

Cogs A/c .................................Debit

Inventory Organization a/c.........Credit

Receviable:

Receviable A/c...........................Debit

Revenue A/c...........................Credit

Tax .........................................Credit

Freight.....................................Credit

Cash:

Cash A/c Dr..............................Debit

Receivable A/c............................Credit

B - Oracle P2P Accounting entries

In Oracle purchasing 3 different events occur

1. Enter Purchase Order:

No accounting takes place

2. Enter a Receipt:

Go to Cost Management module and run Create Accounting concurrent program and that will

generate the accounting of receivings & Issuances.

For Inventory, Asset and Expense Items Receivings accounting entry is:

Dr: Inventory Receiving A/c

Cr: Accrual A/c

* Cost Management SLA module is used to create inventory accounting entries generation.

For Inventory, Asset and Expense Items Issuances the accounting entry is:

Inventory Item:

Dr: Inventory Valuation A/c

Cr: Inventory Receiving A/c

Expense Item:

Dr: Expense A/c

Cr: Inventory Receiving A/c

Asset Item:

Dr: Asset Clearing A/c

Cr: Inventory Receiving A/c

C - Oracle Payable:

In payable 3 events occur

1. Enter Invoice:

Dr: Accrual A/c

Cr: Liability A/c

2.Payment against Invoice:

Dr: Liability A/c

Cr: Bank clearing A/c

3.Clearing (Cash Management):

Dr: Bank clearing A/c

Cr: Bank A/c

Oracle P2P Accounting entries

Incase below type of items one more accounting entry happens in Oracle

Inventory Item: Item issued to Dept.

Dr: Expense A/c

Cr: Inventory valuation

Asset Item: Asset is capitalized

Dr: Asset A/c

Cr: Asset clearing A/c