Link between AP & AR

[venkat]

Hi everyone,

Can any body give the suggestion for the following issue.

<b>?A? is the Supplier in AP Module.
Created prepayment Invoice for 10,000 and passed the payment.</b>

<u>Creation of Invoice:</u>

Pre-Payment A/C Dr. 10,000
AP Liability A/C Cr. 10,000

<u>Payment of Invoice:</u>

AP Liability A/C Dr. 10,000
Bank A/C Cr. 10,000

<b>He has given the clarification for 9,000 for that we have created Standard/ Expense report and matched.</b>
<u>Standard Invoice:</u>

Exp. A/C Dr. 9,000
AP Liability A/C Cr. 9,000

<u>Standard Invoice Match with Prepayment Invoice</u>

AP Liability A/C Dr. 9,000
????????? Dr. 1,000
Pre-Payment A/C Cr. 10,000

<b>For remaining 1,000 he returned it back for that we can create.</b>

<u>Receipt Entry in AR:</u>

Bank/Cash A/C Dr. 1,000
???????????? Cr. 1,000

<i><u>Need Clarification:</u></i>


1.Please fill ?????????? place in the above question

2.How can we match the AR receipt with prepayment Invoice in AP? Either this functional will available in 11.5.10.2 or not? If it is available can please share your views.

3.Is there any place we can see ?A? supplier total receipt and payment details?

Expecting soon reply !!!!!!

Regards,

VENKAT

[anu_uma]

HI Venkat,


you can do that with Mixed type of Invoice


Mixed Type for REFUND

create a mixed memo with negative amount
Don't give distribution
and apply the prepayment to the mixed memo
and use pay in full option
if u use pay in full from invoice work bench it will automatically take you to payment work bench with type Refund


Rgds,
Uma

[anu_uma]

Hi,

you can track the same in AP itself......

you dont need any Link between AR and AP.

When your supplier is also a customer , you want to deduct some money for your suppliers purchase from you then you need the link between AP and AR


Uma

[anu_uma]

Hi

Entered a prepayment invoice, validated and create accounting it, made the payment for that for Rs.12,500.00 and create accounting also.

Enterer a std Invoice of Rs.10000, create accounting and apply with the prepayment....

now the Prepayment invoice balance is Rs.2500

Supplier need to return it to us. to receive refund in AP

any one can share their knowledge on this issue...........



For a Debit Balance of Rs.2,500/- in Supplier A/c a Credit Note/ Credit Memo needs to be raised and payment received from supplier needs to be adjusted against this credit note. Please follow as under :

1) Raise Credit Note : Payables >>>>Invoice>>>>>Entry>>>>Invoice
(This will be for amount of payment received from supplier)
2) Approve Credit Memo : Invoice >>>>Approval
3) Record Refund : Invoice >>>>>Actions>>>>Pay in full >>>>Save

Accounting entry's will be as under :

Supplier Payables A/c Dr.
Charge A/c Cr.

And on receipt of cheque from supplier :

Bank A/c Dr.
Supplier Payable A/c Cr.

Hope my reply will help you to solve your doubts.



There is one more solution for your case:

just raise a standard invoice and in the distributions enter the cash clearing/cash account and approve that invoice.so the accounting will be

cash/cash clearing a/c dr
ap liability a/c cr.


and adjust this invoice with the prepayment the the accounting entry will be


ap liability a/c dr

prepayment a/c cr


finally the accounting will be


cash/cash clearing a/c dr
prepayment ac/ cr.

[venkat]

Hi Uma,

Thank you for immediate response.

Uma I am trying with your all suggestions. I am checking which one is more comparable and shortest solution.

Let me find out comfortable solution and I will get back to you.

Once again Thanks

Regards,

VENKAT

[vijayasarathyr]

Hi Venkat,
When u apply 9000 standard invoice to a 10000 prepayment, then supplier balance remains as sundry crs for 1000. As per your way if u record it in AR, then the same supplier has to be in as Customer also(Name shud be exactly matching). Then when u do the receipt, the supplier/customer netting report will solve ur problem. It never gets into any account as such.

In other way, you can record this transaction in AP itself. Same scenario. You create a credit memo for 1000 on the same supplier and go on to make payment. Oracle automatically brings you REFUND as payment type in the payment screen. The entry is upside down. Its cash a/c dr to liability a/c cr. This way the receipt of the balance 1000 is recorded and accounted perfectly for audit purpose also. Try this and let me know.

Contact me at vijayasarathyr@gmail.com for any queries. I will try my best.

[venkat]

Hi Vijayasarathy,

Thanks a lot ???? Now I got exact solution

I have tried as per your second suggestion and I have got exact solution.

My issue is most similar to your fist case. Now as per my requirement we should create a receipt in AR module and we have to do the Netting as per your suggestion. But in this case how to do the netting I don?t know could you please give the steps for doing this.

Regards,

VENKAT

[anu_uma]

Hi Venkat,

There is no need to go for Netting Program when you are using only One module. whenever you take chances to record the entries in both AR and AP of Customer who is also a supplier then you have to go for the Customer/Supplier Netting.......


TIA

[muzaffarnaim]

<font color="blue">Vijay what about prepayment remaining balance?...in this case its still showing 1000 advance that can be applied in the future which is wrong.

What i suggest is use some intermediate account at the time of entering std invoice (9000 exp + 1000 intermediate acc=10000 as a whole) then fully apply with the 10000 prepayment invoice. To record refund and adjust accounting, enter 1000 credit memo with the same intermediate account that will make it zero and pay this with refund payment method.

Accounting:

Prepayment Invoice:

Pre-Payment A/C Dr. 10,000
AP Liability A/C Cr. 10,000

Payment of Invoice:

AP Liability A/C Dr. 10,000
Bank A/C Cr. 10,000

Standard Invoice:

Exp. A/C Dr. 9,000
Intermediate A/C Dr.1000
AP Liability A/C Cr. 10,000

Standard Invoice Match with Prepayment Invoice

AP Liability A/C Dr. 10,000
Pre-Payment A/C Cr. 10,000

For remaining 1,000 enter Credit Memo:

Intermediate A/C Dr.1000
Bank A/C Cr. 1000</font id="blue">

[quote]Hi Venkat,
When u apply 9000 standard invoice to a 10000 prepayment, then supplier balance remains as sundry crs for 1000. As per your way if u record it in AR, then the same supplier has to be in as Customer also(Name shud be exactly matching). Then when u do the receipt, the supplier/customer netting report will solve ur problem. It never gets into any account as such.

In other way, you can record this transaction in AP itself. Same scenario. You create a credit memo for 1000 on the same supplier and go on to make payment. Oracle automatically brings you REFUND as payment type in the payment screen. The entry is upside down. Its cash a/c dr to liability a/c cr. This way the receipt of the balance 1000 is recorded and accounted perfectly for audit purpose also. Try this and let me know.

Contact me at vijayasarathyr@gmail.com for any queries. I will try my best.

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

[venkat]

Hi Uma,

In my client requirement he will create one receipt in AR (Rs.1,000 )and he will create one standard invoice in AP(Rs. 9,000) in that case how we will do the netting? What is the account implication? Do that customer/supplier netting program will create any accounting entries or that is just for reporting purpose? If it will create accounting entries could you please share the entries?


Regards,

VENKAT

[anu_uma]

Is that Supplier a Customer to your Client.

See as per the functionality, you receive the money in AR and that is considered as Revenue. All the income must be taken place through AR, but This is a refund of prepayment invoice which can be dealt in AP itself as we have the facility to receive money in AP as Refund Payment type.

Where as a refund of prepayment can be done in AP as explained earlier with a credit note.

u can reduce the payment of a supplier when ur supplier is also a customer to you.

Customer/Supplier Netting will not generate any accounting informations but it will show you the details of the purchases and sales of that Particular Supplier/Customer

The Supplier Customer Netting report will show a transaction listing and total balance for Receivables and Payables where the transactions are in the selected currency and for the selected range of customers or suppliers. The report will calculate a net amount owed where a customer and supplier exist with exactly the same name. This amount will be calculated as Receivables minus Payables.

Hope u r clarified now.