Accounting entries flow in AP & FA Module

[ramesh040671]

Hello Friends,

anyone can provide me the useful link from where i can find out the accounting entires flow in AP & FA from beggining.

Thanks in Advance
Ramesh[:)]

[durgesh3]

Hello Ramesh

I can tell u the entries in AP module, but I don't have any information regarding FA entries, if you get plz do let me know it.

Entries in AP module workflow

1.On Entry of PO - No accounting impact

2.Material Receipt - PO Module

Receiving Accural Dr
AP Accural Cr

3. On completion of Inspection - PO Module

Inventroy Dr
Receiving Accural Cr

4. On Entering in AP - AP Module

AP Accural Dr
Accounts Payable Cr

5. On payment - AP Module

Accounts Payable Dr
Cash/Bank Cr

[ramesh040671]

Thanx Durgesh..[:)]

[Dinesh]

Great Durgesh!!!

Mine background is Technical but now trying my luck on Functional side. I was wondering how to understand Oracle accounting structure.Do you have any recommendation or document ?

Cheers
Dinesh

[Mahesh Adiga]

Hi Ramesh,
The following is the entries to be made for AP and FA

The journal entries for PO is like follows:

1) When the item is received into inventory then

Dr. Receiving Inventory A/c
Cr. AP Payables Accrual a/c

2) When the invoice is delivered to the inventory (standard receipt)

Dr. Inventory a/c
Cr. Receiving a/c

3) When the invoice is matched

Dr. AP Payables Accrual A/c
Cr. Trade Creditors/AP Liability a/c

And if the Accrual Method is put to Period End, then the Expense/Charge account will be hit instead of hitting the AP Accrual Account while you create
your invoices in AP against matching a PO.

And For : if you are in Period End Process, the
mechanism is :
While Receipt Of Goods : no accounting entries
are created.
The Accounting Entries at the Corresponding period end is:

Dr. Expense Charge A/c
Cr. Expense AP Accrual Account

And at the Beginning of the Next Period:

Dr. Expense AP Accrual Account
Cr. Expense Charge Account

In AP, During Invoice Matching:

Dr. Expense Charge Account
Cr. AP Liability Account
------------------------------------------------------------------
Asset Entries

The drafted accounting entries are


1. When Asset Item is received:-

Receiving Inventory Account Dr
To Inventory A/P Accrual Account Cr

2. When Item is Delivered to Asset:-

Asset Clearing Account Dr
To Receiving Inventory Account Cr

3. When Invoice for Asset Item is created in Accounts Payable:-

Inventory A/P Accrual Account Dr
To Account Payable Liability Account Cr

4. When Invoice is paid in Accounts Payable:-

Account Payable Liability Account Dr
To Bank Account Cr