Explain the journal entries occured in Purchsing

[surya.oracle]

any one please expalin WHAT ARE THE JOURNAL ENTRIES RAISED IN PURCHSING FOR THE FOLLOWING CASES

WHEN RAISING THE PO???

WHEN RECEIVING THE GOODS???

WHEN GOODS SENT TO SUB INVENTORIES???

PLEASE HELP ME THIS..........

SURYA.ORACLE

[anu_uma]

Hi,

Enter the Below given Account details in the required screens...

Invoice Price Variance Account : Where to define --> Define in Organization Parameters

Inventory AP Accrual Account : Where to define --> Define in Organization Parameters

Expense AP Accrual Account : Define in Purchasing Options

Purchase Price Variance Account is used for Standard Cost and PPV is not used for Average Costing...
The same should be defined in : Define Organization Parameters

<font color="blue"><b>Purchase Order receipt to the Receiving Inspection Location. When the goods are received into Inspection Location.
</b></font id="blue">

Receiving inspection account Dr.
Inventory A/P Accrual account Cr.
(@ PO price )
(for receiving Inventory Items)

Receiving inspection account Dr.
Expense A/P Accrual account Cr.
(@ PO price )
(for receiving expense items)

<b>Delivery from Receiving Inspection Under Std Costing
If the standard cost is greater than purchase order price then the PPV is favorable and Apps records this expense as a credit (negative expense)</b>
Sub-inventory accounts Dr.
Receiving Inspection account Cr.
Purchase Price Variance Account (Negative Expense)Cr.

<b>If the standard cost is less than the PO price then the variance is unfavorable and Apps record this as a debit (positive expense) </b>


Sub-inventory accounts Dr.
Purchase Price Variance Account (Positive Expense) Dr.
Receiving Inspection account Cr.

Return to Vendor from Receiving Inspection at Standard Cost.
For Returning Inventory Items....

Inventory A/P Accrual account Dr.
Receiving inspection account Cr.

Invoice Booking at Standard Costing

Inventory AP Accrual account Dr.
AP liability account Cr

Payment of the Invoices booked

AP liability account Dr.
Bank account Cr.

Any Corrections Please Let me know for the accounting entries......

TIA

[Arjunn]

Hi,

Can you plz clear this, when the Inventory AP Accrual account will nill balanced

[admin]

<b>Inventory</b>
1> Receiving Area

Goods Inspection Account Dr.
Inventory AP Accrual account Cr.

2> Delivery to Inventory

Material valuation account Dr.
Goods Inspection Account CR.

<b>Accounts Payables</b>

3> Invoice

Inventory AP Accrual account Dr.
Creditor Control Account Cr.

4> Payment

Creditor Control Account Dr.
Bank/Cash Cr.

<b>Net Entry</b>

Material valuation account Dr.
Bank/Cash Cr.