PAYABLES
NOTE: We don’t have Accounting Entries for PO & Requisition
P2P ENTIRES:
When
we receive the Goods in the staging area the accounting entry would be (GRN):
Receiving Inventory --- Dr-----It
will pick from receiving options.
Ap Accrual --- Cr---It will pick from
Purchasing Options.
When
we are moving the Goods from Staging area to Sub-Inv (Recv Trans):
Material A/C --- Dr-----It will pick
from Inventory Options
Receiving Inv --- Cr----It will pick
from Receiving Options
While
Creating Invoice:
Ap Accrual --- Dr
Liability ---- Cr-----It will pick
from supplier Liability
While
Making Payment:
Liability – Dr
Cash Clearing – Cr-----It will pick
from Bank
Reconciliation:
Cash Clearing --- Dr
Cash – Cr
tandard Invoice Entry :
Ap Accrual --- Dr
Liability ---- Cr
Debit and Credit Memo
Entries:
Liability --- Dr
Ap Accrual --- Cr
Prepayment Entries:
While
Creating Prepayment Invoice:
Prepayment --- Dr----It will pick
from supplier
Liability – Cr----It will pick from
supplier
While
Making Payment to Prepayment:
Liability – Dr
Cash – Cr
While
applying Prepayment on Standard Invoice:
Liability --- Dr
Prepayment – Cr
INTEREST INVOICE ENTRY
WHILE MAKING PAYMENT :
Interest
expenses –- Dr-----It will pick from Financial options
Liability
---------------- Dr
Cash
---------------------Cr
EXPENSE REPORT ENTRY :
Item Expense A/C --- Dr
Liability --- Cr
PAYMENT REQUEST INVOICE
ENTRY :
Item Expense --- Dr
Liability – Cr
FUTURE DATED PAYMENT ENTRY
:
When
Bills Issued:
Item
Expense – Dr
Bills
Payable --- Cr
When
Maturity Date Confirmed:
Bills Payable – Dr---It will pick
from Supplier or Financial options
Liability – Cr
WITH HOLDING TAX ENTRY :
When
Withholding tax applied on standard Invoice:
Item Expense --- Dr
Liability --- Cr
Withholding --- Cr-----It will pick
from WHT codes
Auto Generated WHT Entry:
Item Expense – Dr
Liability --- Cr
RETAINAGE RELEASE ACCOUNTING
ENTRY:
When
Invoice matched with PO accounting entry would be:
Accrual
------ Dr
Liability
---- Cr
Retainage
---Cr----It will pick from financial options
While
making payment to the invoice matched with PO:
Liability
---- Dr
Cash
--------Cr
When
Retainage Release Invoice Matched with PO accounting entry would be:
Retainage
--------Dr
Liability
----------- Cr
While
making Payment to Retainage Release:
Liability
---Dr
Cash
-------Cr
RECEIVABLES
O2C ENTRIES:
Pick
Release:
Receiving Inventory ---- Dr
Item Expense/Material ac ---- Cr
Ship
Confirmation:
COGS ---- Dr----It will pick from Inv
Information
Receiving Inv (Sub-Inv) ---- Cr
While
Creating Transaction:
Receivable ---- Dr
Revenue ------- Cr
Freight --------Cr
Tax -------------Cr
While
Recording Receipt: WHEN STATE IS CONFIRMED
Confirmed Cash--------------Dr
Receivables ----Cr
When
Remitted: WHEN STATE IS REMITTED
Remitted Cash ---- Dr
Confirmed Cash--------Cr
When
Reconciled: WHEN STATE IS CLEARED
Cash -------Dr
Remitted Cash --- Cr
DEPOSIT ACCOUNTING ENTRY:
When
we create DEPOSIT invoice the accounting entry would be:
Receivable --- Dr
Accrual (Unearned Revenue) --------
Cr
When
we create Sales Invoice:
Receivable---Dr
Revenue----- Cr
When
Deposit adjusts with actual transaction invoice the entry would be:
Unearned Rev (Accrual) -----Dr
Receivables-------Cr
GAURANTEE ACCOUNTING ENTRY:
When
we crate Guarantee transaction:
Unbilled receivable----Dr
Unearned Revenue ---Cr
When
we create sales Invoice:
Receivable ----Dr
Revenue -------Cr
When
Guarantee transaction adjusts with sales invoice:
Unearned Revenue ---Dr
Unbilled Receivable—Cr
REVENUE RECOGNISATION:
INVOICE
ADVANCE:
When
we create sales invoice and set invoicing rule as INADVANCE(FIXED SCH):
Receivables ---- Dr
Unearned Revenue -------- Cr
Once
we recognize the Revenue the accounting entry would be:
Unearned Revenue ---- Dr
Revenue------------------Cr
And
the final entry would be:
Receivable ------Dr
Revenue ---------Cr
INVOICE
ARREARS:
REVENUE
RECOGNISATION using Invoice Arrears Schedule:
Unbilled Receivables—Dr
Revenue-----------------Cr
Once
we have billed the customer
Receivables---------------Dr
Unbilled Receivables--Cr
ONACCOUNT ACCOUNTING ENTRY:
When
we created the Receipt and applied to OnAccount :
Cash ---Dr
Receivables ----CR, ONACCOUNT -----Cr
CUSTOMER REFUND ACCOUNTING
ENTRY :
When we release the On account and
Refund the Amount:
Cash ----Dr
Receivables----Cr
On Account Cash ---Cr
Unapplied Cash -----Dr
Refund----------------Cr
Assets:
Asset Addition :
The process
of adding a Fixed Asset either through detailed, quick or mass addition is
called asset addition. Detail and quick addition are carried out only in Oracle
Assets.
The journal entry in Oracle Assets during detailed or quick
addition is
Dr. Asset Cost
Cr. Asset clearing
account
Asset
clearing account is used to reconcile the transactions between Oracle Payables
and Oracle Assets. When an asset is added through detailed or quick additions,
the credit goes to the asset clearing account. Also for mass addition process,
oracle assets use Asset Clearing account for reconciliation.
In Oracle
Assets the journal entry remains the same
Dr. Asset Cost
Cr. Asset clearing account
In AP
Dr Asset Clearing
Account
Cr
Accounts Paya
Changes:
Changes refer to change in Asset Cost or Depreciation method
or Depreciation rate for one or more assets. Oracle Assets would use the new
cost or depreciation method or rate from the period of change to arrive at the
depreciation amount. Also it recalculates the depreciation that should have
been calculated so far, compares with the actual depreciation and passes an
adjusting entry.
If the transaction results in addition to the cost of asset, then the
journal entry created is
Dr. Asset Cost
Cr.
Asset Clearing
Hence
an adjusting entry to incorporate depreciation as per the new cost of the asset
should be incorporated. Also due to change in method or rate the new
depreciation calculated may be lower or greater than the depreciation
calculated so far.
If the accumulated depreciation recalculated is lower than
the accumulated depreciation calculated until now,
Dr. Accumulated
Depreciation
Cr.
Depreciation Expense (Adjustment)
If it is
greater than the Accumulated depreciation until now,
Dr. Depreciation Expense
(Adjustment)
Cr.
Accumulated Depreciation
Transfers
Transfers refer to change in Location, expense account, and
employee assignment. If there is a change in expense account, for e.g. If an
asset is transferred from department 001 to department 002,
The journal
entry for accounting the asset cost is
Dr. Asset Cost (002)
Cr.
Asset Cost (001)
The journal
entry for accounting the accumulated depreciation is
Dr. Accumulated
Depreciation (001)
Cr. Accumulated
Depreciation (002)
Revaluation
Revaluation is a process so as to reflect current market
price of the Asset. The journal entry created by revaluing a fixed asset is as
follows:
Revalue
Accumulated Depreciation is enabled at the Book Controls level:
The amount of revaluation would be credited to Accumulated
Depreciation and Revaluation reserve in the same proportion as the existing
Accumulates Depreciation and Net Book value.
Dr. Asset Cost
Cr. Accumulated Depreciation
Cr. Revaluation Reserve
Revalue Accumulated Depreciation is disabled at the Book
Controls level:
To the extend of the revaluation amount, the following
journal entry would be passed.
Dr. Asset Cost
Cr. Revaluation Reserve
Also the existing depreciation reserve would also be
transferred to the Revaluation Reserve
Dr. Accumulated
Depreciation
Cr. Revaluation Reserve
Retirements
Oracle Assets passes the following journal entry for
retirement.
If the retirement transaction resulted in a Gain, the journal
entry passed would be.
Dr. Accumulated
Depreciation
Dr. Proceeds of sale
Cr.
Asset Cost
Cr.
Gain / Loss
If the retirement transaction resulted in a Loss, the journal
entry passed would be.
Dr. Accumulated Depreciation
Dr. Proceeds of sale
Dr. Gain / Loss
Cr. Asset Cost
Depreciation:
Running depreciation (as applicable to a particular asset)
during the period end would pass a journal entry
Dr. Depreciation Expense
Cr. Accumulated Depreciation
