in procure to pay cycle what are the entries

[harikumarc1981@rediffmail]

in procure to pay process what are the entries will come if it is a inventory item and what are the entries if it is a expense item.
can anybody help me


thanks

[prabhanandan]

Hi
Here are the accounting entries

Receiving
Dr. Receiving Account Cr. Accrual (which is on the PO distribution)

Delivery into Inventory
Dr. Material / Inventory Account Cr. Receiving Account

Invoicing
Dr. Accrual Cr. Supplier Liability

Payment
Dr. Supplier Liability Cr. Bank / Cash

So the final entry would be
Dr. Material / Inventory Account Cr.Bank / Cash

[harikumarc1981@rediffmail]

[quote]Hi
Here are the accounting entries

Receiving
Dr. Receiving Account Cr. Accrual (which is on the PO distribution)

Delivery into Inventory
Dr. Material / Inventory Account Cr. Receiving Account

Invoicing
Dr. Accrual Cr. Supplier Liability

Payment
Dr. Supplier Liability Cr. Bank / Cash

So the final entry would be
Dr. Material / Inventory Account Cr.Bank / Cash


<i><div align="right">Originally posted by prabhanandan