P 2 P ENTRIES

1) First entry comes when we receive material at staging area

Receiving inventory a/c Dr

To inventory AP Accrual a/c

2) Second entry comes in moving item to Sub Inventory

Inventory a/c Dr
To receiving inventory a/c

3) Third entry comes in PO Invoice-AP module

AP accrual a/c Dr
To liability a/c
To tax a/c
To Freight a/c

4) Fourth entry comes in receiving(Payment)

Liability a/c Dr
To Cash clearing a/c

5) Fifth entry comes in Payment clearing

Cash clearing a/c
To cash

Purchase price variance Entry

Material a/c Dr
To Receiving a/c Cr
To PO price Variance a/c Cr

If standard price is less than PO price

Material a/c Dr
To PO price variance a/c Cr
To Receiving a/c Cr

IPV---.>Entry
PO price is more than Invoice price
Accural A/C--->DR42000
Liability A/C--> CR 30000
IPV A/C--> CR12000

PO price is less than Invoice price

Accural A/C DR 10000
IPV A/C DR 2000
Liability A/C CR 12000

Prepayment Entry
Prepaid a/c Dr
To AP liability a/c Cr
Paid the Amount Against Prepayment
AP liability a/c Dr
To Cash a/c Cr

Adjustment of prepayment against Invoice

AP liability a/c Dr
To prepayment a/c Cr

Credit memo or debit memo entry

AP liability a/c Dr
To charge a/c or Inv AP accrual a/c

With holding Tax Entry

AP liability a/c Dr
To Withholding Tax a/c Cr

Releasing Withholding Tax

Withholding Tax a/c Dr
To AP Liability a/c

Purchase price variance Entry

Material a/c Dr
To Receiving a/c Cr
To PO price Variance a/c Cr

If standard price is less than PO price

Material a/c Dr
To PO price variance a/c Cr
To Receiving a/c Cr

Currency Gain Entry

AP liability a/c Dr
To realized gain a/c Cr
To Cash a/c Cr
Currency Loss
AP liability a/c Dr
Realized Loss a/c Dr
To Cash a/c Cr

For future dated Payment

AP liability a/c Dr
To Future dated payment a/c Cr

At payment Maturity
Future Payment a/c Dr
To cash a/c Cr

Discount taken
AP Liability a/c Dr
To System discount a/c Cr
To cash a/c Cr

ORDER TO CASH ENTRIES (O2C)

1) Pick Release (sending items subinv to staging area)

Inventory stage a/c Dr
To Inventory finished goods

2) Ship confirm(Loadding goods and send to Customer)

Cost of goods sold a/c Dr
To Inventory organization a/c

3) Transaction
Receivables a/c Dr
 To Revenue a/c

4) Receipt
Confirmed cash a/c Dr
To Receivables

5) Remittance
Remittance a/c Dr
To confirmed cash a/c

6) Reconciliation
Cash a/c Dr
To Remittance a/c
7) Reconciliation (Direct cash)
Cash a/c Dr
To confirmed cash

ENTRIES IN ACCOUNT RECEIVABLES

1) Transaction:

Receivables a/c- Dr
To Revenue

2) Receipt

Confirmed cash a/c Dr

To Receivables

3) Check send to bank for clearance

Cash clearing a/c Dr

To Receivables
 4) Check get cleared

Cash a/c Dr
To cash confirmed

Oracle Accounts Receivable - Accounting Entries

1.Sales Invoices

Receivables A/c…Dr $ 5000

Revenue A/c……..Cr $ 5000

2.Sales Invoice with Tax & Freight

Receivables A/c…..Dr $ 6000

Tax A/c….….……....Cr $ 300
Freight A/c.….…….Cr $ 200
Revenue A/c…….…Cr $ 5500

3.Debit Memo

Receivables A/c….Dr $ 1000

Revenue A/c……...Cr $ 1000

4.Credit Memo

Revenue A/c…….....Dr $ 2000

Receivables A/c.... Cr $ 2000

5.Deposit

Receivables A/c……….....Dr $ 10000

Unearned Revenue A/c…Cr $ 10000

When we apply deposit against Invoice

Unearned Revenue…....…Dr $ 10000

Receivables (Invoice)…..Cr $ 10000

6.Guarantee
Unbilled Receivables A/c..…Dr $ 5000
Unearned Revenue A/c.……Cr $ 5000

When we apply invoice against Guarantee

Unearned Revenue A/c…...….Dr $ 5000

Unbilled Receivables A/c…....Cr $ 5000

7.Charge Back

Charge back adjustment A/c….Dr $ 2000

Receivables A/c……………….....…Cr $ 2000

Receipts

8.When you create & apply the Receipt on (Open Transaction)

Cash A/c……….....….Dr $ 50000

Receivables A/c…...Cr $ 50000

Receipt Accounting Entries Based on Receipt Status

9.When Receipt Status is Unapplied

Conform Cash A/c…..…….Dr $ 10000

Unapplied cashA/c…..Cr $ 10000

When Receipt Status is Unidentified

Conform Cash A/c……….......Dr $ 10000

Unidentified A/c.….Cr $ 10000

When we adjust amount to On-Account

Conform Cash A/c…….....……Dr $ 10000

Receivable A/C.............................Cr 9900
On-Account A/c….........................Cr 100

Receipt-write off-
Conform Cash Dr.............. 13000
To Receivable...............Cr 12500
To Write off..................Cr 500

Miscellaneous Receipt-
Conformed Cash DR 100
 To Miscellaneous Cash 100

When the receipt includes discount amount

Receivables A/c......…Dr $ 1000

Revenue A/c….….......Cr $ 1000
Cash A/c………........…Dr $ 1000
Receivables A/c…......Cr $ 1000

Earned/Unearned Discount A/c..…Dr $ 1000

Receivables A/c……………......………Cr $ 1000

Remittance

When you enter such a receipt

Confirmation A/c.....Dr $ 20000

Receivables A/c… …Cr $ 20000

When receipt is remitted to Bank

Remittance A/c……..Dr $ 20000

Confirmation A/c…..Cr $ 20000

When you clear the receipt

Cash A/c……….....Dr 20000

Remittance A/c….Cr 20000

Fixed Schedule Accounting Rule

Revenue reorganization Invoice with rules (in 1st period of rule)

Revenue Reorganization Bills in Advance Invoice Rules (in 1st period of
rule)
Receivables A/c……………….Dr $ 100000
Unearned Revenue A/c………..Cr $ 95000
Tax A/c………………………..Cr $ 2500
Freight A/c………….………....Cr $ 2500

In Each Period When Revenue is recognized

Unearned Revenue Account A/c…..Dr $ 100000
Revenue A/c………………………..Cr $ 100000
Define Variable Schedule Accounting Rule

Accounting Entries
Revenue Reorganization Bill in Arrears Invoice Rules (in 1st period of rule)
Unbilled Receivables A/c……………….Dr $ 100000
Revenue A/c…………………………...Cr $ 95000
Tax A/c…………………………..……..Cr $ 2500
Freight A/c …………………….……..Cr $ 2500

In Each Period When Revenue is recognized

Receivables A/c…………………..Dr $ 100000
Unbilled Receivables A/…….…..Cr $ 100000

Oracle Fixed Assets – Accounting Entries

When we record Asset Invoice in Payable

Asset Clearing A/c……......Dr $ 25000

Liability A/c (Payable)….…Cr $ 25000

When we create Fixed Asset in FA

Asset cost A/c…………..Dr $ 25000

Asset clearing A/c…….…Cr $ 25000

Final entry
Asset cost A/c…………..Dr $ 25000
Liability A/c (Payable)….…Cr $ 25000

When we add CIP (Construction –In- Process) Asset

CIP Cost A/c…....Dr $ 50000

CIP Clearing A/c…Cr $ 50000

When you Capitalize the CIP Asset

Asset Cost A/c……Dr $ 10000
CIP clearing A/c….Cr $ 10000

When Depreciation is calculated

Depreciation Expense A/c......…Dr $ 1000

Accumulated Depreciation A/c…Cr $ 1000

When we retire the asset with removable cost

Accounts Receivable A/c…….......Dr $ 5000

Proceeds of Sale Clearing A/c…...Cr $ 5000

Cost of Removal Clearing A/c…....Dr $ 1000

Accounts Payable A/c………....…...Cr $ 1000

When we retire the asset

Accumulated Depreciation A/c…...Dr $ 2500

Proceeds of Sale clearing A/c…....Dr $ 2000
Revaluation Reserve A/c……….......Dr $ 600
Asset Cost A/c………………….......…Cr $ 4000
Cost of removal clearing A/c…...…Cr $ 500
Gain/Loss A/c…………………….........Cr $ 600