Procure to pay accounting event

[karthik]

Hi,

Can anyone post me the accounting event that happens during the procure to pay life cycle?

It will be much appreciated if anyone give me the reply soon.

[liz]

I am not sure if this iswhat u r looking for. Accounting is createdat the following stages in P2P cycle

? Receiving at Inspection Area

? Delivery from Receiving Inspection to Inventory

? Invoice Match

? Payment

? Bank Reconciliation

[karthik]

Hi,

I need journal entries that take place in P2P

[divakerp]

Karthik,

Entries are as follows:

Inventory Item
upon Receipt :
Debit - Receiving inventory account (inspection)
Credit - Inventory A/P Accrual
Upon Delivery:
Debit : Material account for inventory org. receiving goods
Credit: Receiving inventory account
Debit/credit : Purchase price variance

Upon Invoicing:
Debit : Inventory A/P Accrual
Credit: AP Liability account
Debit/Credit: Invoice price variance

Expense Item at Period End
Upon Receipt and delivery
-No accounting -

Upon Invoicing
Debit - Expense Account
Credit - AP Liability
Debit/Credit - Invoice Price vairance

Expense Item Acrrue on Receipt
Upon Receipt
Debit - Receiving Inventory Account (inspection)
Credit - Expense A/P Accrual

Upon Delivery
Debit - Expense account on Purchase Order
Credit - Receiving inventory account

Upon Invoicing
Debit - Expense A/P Accrual
Credit - A/P Liability

Let me know for further clarifications.

Thanks
Diwakar babu

[kommineni7]

Thanx for u r information. buti have one more dout on it.
In purchasing options>> Receipt accounting >> Accrue expense items is there how it will effect journal entries of p2p?

in same tab another option is there - Accrue inventory items- is any effect on p2p process/journals.

plz advise me

[divakerp]

Venkatesh,

As far as Purchasing options are concerned

We can accrue Expense Items either at period end or at Receipt as per the client requirement.

But we can acccrue Inventory items at Receipt only.

Please go through the entries in my last update (Entries given for accrue expense items at both period and receipt)

And let me know if it is not clear.

[anjan123]

Hi, could anybody send me the order to cash Accounting event.


Thanks