Accounting Entries in Oracle Apps Modules.

Procure to Pay Cycle

On Raising and Purchase Order

Inventory Receiving Account Dr (Set in Receiving Options of Org)

AP Accrual Account CR (Set in Org Parameters)

On Receiving Material – Final Destination as Delivered

Inventory/Material Account Dr (Set in Org Parameters)

Inventory Receiving Account Cr (Set in Receiving Options of Org)
(Value shall be based on PO Rate and Currency)

On Applying Invoice against Material Receipt.

AP Accrual Account Dr (Set in Org Parameters)

AP Liability Account Cr (This is supplier control account)

On Prepayments

Prepayment Account Dr (Set at Supplier Def)

AP liability Account Cr (Set at Supplier Def)

On Prepayment Matching.

AP Liability Account Dr (Set in Supplier Def)

Prepayment Account Cr ( Set in Supplier Def)
Order to Cash Cycle

Order Booking.

No Entries passed.

On Picking

Inventory Account Dr (With Subinventory as Staging)

Inventory Account CR (With Subinventory as Stores)

On Ship Confirm

Cost of Sales Account Dr (Set in each Item Level or taken from Org)
Inventory Account Cr (Set in Organization Parameters)

On Auto Invoice Run

Receivables Account Dr (Set Up in Transaction Types)

Revenue Account Cr (Set up in Transaction Type or Item Level based
on Type of Auto Accounting Rules Set.)

On Stand Alone Invoices

These entries would be based on the Transaction types defined but governed by the Auto
Accounting Rules – If it is Standard Lines then the revenue account shall be from the
item definition. If it is Transaction types then it is from the Receivables Transaction
Types.

However for non inventory items the account code for Revenue has to be plugged in by
the user or we can create new transaction types for the same.
Fixed Assets

On Purchase of Fixed Assets

Asset Account Dr (Set up in Asset Categories)

Asset Clearing Account CR (Set up in Asset Categories)

On Retirement/Disposal

Accum Dep Account Dr (With Value of Acc Dep till date)

Bank Account Dr (With Sale Value)
Asset Account Cr (With Actual Cost of Purchase)
Profit/Loss on Sale Dr/Cr (With Value Diff between above three
accounts – Cr If it is a Profit and Dr if it is a Loss)
Other Inventory Entries

For Miscellaneous Receipts

Inventory Account Dr (Set up in Org Parameters)

Account Specified Cr (To be Entered at the time of Transaction)

For Miscellaneous Issues

Account Specified Dr (To be Entered at the time of Transaction)

Inventory Account Cr (Set up in Org Parameters)

For Subinventory Transfers

Inventory Account Dr (With To SubInventory Specified)

Inventory Account Cr (With From Subinventory Specified)

For Expense Subinventories

Account Specified Dr (Set up at Subinventory Definition Level)

Inventory Account Cr (With From Subinventory Specified)

Return Sales Orders

Inventory Account Dr (Set up in Org Parameters)

Cost of Sales Account Cr (Set up at Item level or taken from Org level)

Returns to Supplier

Account Liability Account Dr (Set Up at Supplier Def level)

Inventory Account Cr (Set up at Org Level)

Additional Charges (Customization for Add Cost)

Inventory Account Dr (Set in Org Level)

Additional Charges Account Cr (Set in Concurrent Program – picking from Org
Parameters)