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in procure to pay cycle what are the entries
Posted: Mon Dec 15, 2008 9:46 am
by 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
Posted: Mon Dec 15, 2008 4:43 pm
by 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
Posted: Wed Dec 17, 2008 8:49 am
by 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