accounting entries for Procure to pay

[jyothi]

Hi,

Can any body please forward procure to pay life cycle stages with accouting entries?.

my mail id: jyothi.kurra@gmail.com







Regards,

[arun1203]

Hi Jyothi,

There are many scenarios which will various in accounting entries in Procure to Pay Life Cycle.

Can you be more specific what exactly your looking for so that it can be explained well.

Waiting for your reply.

<font color="blue"><b>Best Regards & Thanks,
Arun Reddy[:)]</b></font id="blue">

[luckykiriti]

Hi,
Hope this helps you.

When you receive the Material
DR Receiving Material a/c
CR AP Inventory Accrual a/c

After Inspection
DR Inventory a/c
CR Receiving Material a/c

On PO matching
DR AP Inventory Accrual a/c
CR Supplier Liability a/c

Expenses Items accrue Period End
PO Charge Account DR
Expense AP Accrual CR

No Accounting event on creation,receipt & delivery of items
At the time of PR approval
Dr PO Charge A/c
Cr Reserve for Encumbrance (Coming from GL Set of Books)

At the time PR coverted to PO and PO is approved
reverses the above which in turn releases the fund blocked for commitment
Dr Reserve for Encumbrance (Coming from GL Set of Books)
Cr PO Charge A/c

For PO approval it creates an Obligation entry
Dr PO charge A/c
Cr Reserve for Encumbrance A/c

When an Invoice is created and matched in AP
PO Reversal entry
Dr Reserve for Encumbrance A/c
Cr PO charge A/c

If you have Budgeting in GL, Encumbrance entries will be

Encunbrance Entries
No Accounting event on creation,receipt & delivery of items
At the time of PR approval
Dr PO Charge A/c
Cr Reserve for Encumbrance (Coming from GL Set of Books)

At the time PR coverted to PO and PO is approved
reverses the above which in turn releases the fund blocked for commitment
Dr Reserve for Encumbrance (Coming from GL Set of Books)
Cr PO Charge A/c

For PO approval it creates an Obligation entry
Dr PO charge A/c
Cr Reserve for Encumbrance A/c

When an Invoice is created and matched in AP
PO Reversal entry
Dr Reserve for Encumbrance A/c
Cr PO charge A/c

Encumbrance invoice entry
Dr PO Charge a/c Dr
Cr Reserve for Encumbrance

When the invoice is approved and Accounted
Encumbrance invoice entry reversal
Dr Reserve for Encumbrance
Cr PO Charge a/c Dr

For actual Invoice
Dr PO Charge A/c
Cr Liability A/c

Hope this will work for you.

Thanks & Regards,
Kiriti Vutukuri