Borrowings

[rajib.banerjee]

Dear Friends,

I have a requirement as to treat Borrowings in Oracle Financials. THe requirement is that Cash will come in and payment to be made with Interest. Interest will be calculated manually. Please help

Thanks
Rajib

[Anjireddy.r12]

HI,

I think; in requirement you don't know the interest amount initially,

Eg:
<b>01-Jan-2012:</b>Borrowing amount from XYZ Co..is.....10000
<b>Create Invoice for XYZ Co.</b>

Borrowing Amount A/C Dr......10000
Supplier Liability A/c Cr..........10000

If you are Paying on <b>01-Feb-2012</b>; Then Interest Amount is 500; create <b>interest invoice for XYZ Co.</b>
(if you want different account for Interest Liability, you need to change default supplier liability account (Folder->Show field-> select Liability Account))

Interest Expense A/c Dr......500
Interest Liability A/c Cr.......500

Make Payment for these two Invoices from Payment workbench by selecting Invoices.

Supplier Liability A/c Dr..........10000
Interest Liability A/c Dr..............500
Cash A/c Cr..........................10500

Thanks & Regards,
Anjireddy