P2P Accounting Entries for Fixed Asset Item

This forum is to discuss different features/issues of Oracle Financials modules ( GL - General Ledger, AP - Accounts Payable, AR - Accounts Receivable, FA - Fixed Assets & CM - Cash Management ).
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Anjireddy.r12
Posts: 67
Joined: Sun Dec 12, 2010 4:42 pm
Location: India
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P2P Accounting Entries for Fixed Asset Item

Post by Anjireddy.r12 »

Hi,

Fixed Asset Item - Only Purchasing Flag enabled for Item.
---- Assign Asset clearing Account in Expense tab.


We have two Accounting Options for Expense items Accrue at <b>Receipt or Period End</b>

If it is at the time of <b>Receipt :</b>

Receiving :

Receiving Inventory A/C Dr
Expense AP Accrual A/C Cr

Invoice Matching:

Expense AP Accrual A/C Dr
Liability A/c Cr

Here my doubt is Either System creates Accounting entries for Deliver or not?

<b>Deliver :

Asset Clearing A/C Dr
Receiving Inventory A/C Cr</b>


Please let me know your views.

Thanks & Regards,
Anjireddy
karthikeyanp1981
Posts: 463
Joined: Thu Nov 09, 2006 4:50 pm
Location: India
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Post by karthikeyanp1981 »

Yes Anji, system creates an accounting entry at Deliver Event ...else the accounting would never match ....

On Receipt
========
Receiving Inventory A/C Dr
Expense AP Accrual A/C Cr

On Deliver
=======
Asset Clearing A/C Dr
Receiving Inventory A/C Cr

On Invoice Matching
=============
Expense AP Accrual A/C Dr
Liability A/c Cr

On Invoice getting paid,
================
Liablity A/C Dr
Cash A/C Cr

On Asset getting Created / capitalized in FA Module.
==================================
Asset Cost A/C Dr
Asset Clearing A/C Cr

Therefore, Receiving Inventory, Expense AP Accrual, Asset Clearing Account, Liability Account, all nets nullified, the resultant accounting entry would be ...

Asset Cost A/C Dr
Cash A/C Cr

Which is correct ....

Regards,
Karthikeyan
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