Hello Friends,
anyone can provide me the useful link from where i can find out the accounting entires flow in AP & FA from beggining.
Thanks in Advance
Ramesh[:)]
Accounting entries flow in AP & FA Module
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- Posts: 11
- Joined: Mon Nov 27, 2006 5:03 am
- Location: India
Hello Ramesh
I can tell u the entries in AP module, but I don't have any information regarding FA entries, if you get plz do let me know it.
Entries in AP module workflow
1.On Entry of PO - No accounting impact
2.Material Receipt - PO Module
Receiving Accural Dr
AP Accural Cr
3. On completion of Inspection - PO Module
Inventroy Dr
Receiving Accural Cr
4. On Entering in AP - AP Module
AP Accural Dr
Accounts Payable Cr
5. On payment - AP Module
Accounts Payable Dr
Cash/Bank Cr
I can tell u the entries in AP module, but I don't have any information regarding FA entries, if you get plz do let me know it.
Entries in AP module workflow
1.On Entry of PO - No accounting impact
2.Material Receipt - PO Module
Receiving Accural Dr
AP Accural Cr
3. On completion of Inspection - PO Module
Inventroy Dr
Receiving Accural Cr
4. On Entering in AP - AP Module
AP Accural Dr
Accounts Payable Cr
5. On payment - AP Module
Accounts Payable Dr
Cash/Bank Cr
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- Posts: 3
- Joined: Tue Dec 05, 2006 3:16 am
- Location: India
Hi Ramesh,
The following is the entries to be made for AP and FA
The journal entries for PO is like follows:
1) When the item is received into inventory then
Dr. Receiving Inventory A/c
Cr. AP Payables Accrual a/c
2) When the invoice is delivered to the inventory (standard receipt)
Dr. Inventory a/c
Cr. Receiving a/c
3) When the invoice is matched
Dr. AP Payables Accrual A/c
Cr. Trade Creditors/AP Liability a/c
And if the Accrual Method is put to Period End, then the Expense/Charge account will be hit instead of hitting the AP Accrual Account while you create
your invoices in AP against matching a PO.
And For : if you are in Period End Process, the
mechanism is :
While Receipt Of Goods : no accounting entries
are created.
The Accounting Entries at the Corresponding period end is:
Dr. Expense Charge A/c
Cr. Expense AP Accrual Account
And at the Beginning of the Next Period:
Dr. Expense AP Accrual Account
Cr. Expense Charge Account
In AP, During Invoice Matching:
Dr. Expense Charge Account
Cr. AP Liability Account
------------------------------------------------------------------
Asset Entries
The drafted accounting entries are
1. When Asset Item is received:-
Receiving Inventory Account Dr
To Inventory A/P Accrual Account Cr
2. When Item is Delivered to Asset:-
Asset Clearing Account Dr
To Receiving Inventory Account Cr
3. When Invoice for Asset Item is created in Accounts Payable:-
Inventory A/P Accrual Account Dr
To Account Payable Liability Account Cr
4. When Invoice is paid in Accounts Payable:-
Account Payable Liability Account Dr
To Bank Account Cr
The following is the entries to be made for AP and FA
The journal entries for PO is like follows:
1) When the item is received into inventory then
Dr. Receiving Inventory A/c
Cr. AP Payables Accrual a/c
2) When the invoice is delivered to the inventory (standard receipt)
Dr. Inventory a/c
Cr. Receiving a/c
3) When the invoice is matched
Dr. AP Payables Accrual A/c
Cr. Trade Creditors/AP Liability a/c
And if the Accrual Method is put to Period End, then the Expense/Charge account will be hit instead of hitting the AP Accrual Account while you create
your invoices in AP against matching a PO.
And For : if you are in Period End Process, the
mechanism is :
While Receipt Of Goods : no accounting entries
are created.
The Accounting Entries at the Corresponding period end is:
Dr. Expense Charge A/c
Cr. Expense AP Accrual Account
And at the Beginning of the Next Period:
Dr. Expense AP Accrual Account
Cr. Expense Charge Account
In AP, During Invoice Matching:
Dr. Expense Charge Account
Cr. AP Liability Account
------------------------------------------------------------------
Asset Entries
The drafted accounting entries are
1. When Asset Item is received:-
Receiving Inventory Account Dr
To Inventory A/P Accrual Account Cr
2. When Item is Delivered to Asset:-
Asset Clearing Account Dr
To Receiving Inventory Account Cr
3. When Invoice for Asset Item is created in Accounts Payable:-
Inventory A/P Accrual Account Dr
To Account Payable Liability Account Cr
4. When Invoice is paid in Accounts Payable:-
Account Payable Liability Account Dr
To Bank Account Cr
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