Oracle P2P Accounting entries for Expense Item

In Oracle purchasing Expense Items

1.      Enter Purchase Order:     No accounting takes place

2.      Oracle Inventory Enter a Receipt:

Accounts	Debit	Credit
Inventory Receiving A/c	Dr
Accrual A/c		Cr

3.      Receiving Transaction

- For Expense Item direct receipt – delivered to inventory

Accounts	Debit	Credit
Expense A/c	Dr
Inventory Receiving A/c		Cr

- For Expense Item standard receipt – delivered to inventory

Accounts	Debit	Credit
Expense A/c	Dr
Inventory Valuation A/c		Cr

    

4.      Oracle Payable

a.      Regular payment

·         Enter Invoice

Accounts	Debit	Credit
Accrual A/c	Dr
Liability A/c		Cr

·         Payment against Invoice

Accounts	Debit	Credit
Liability A/c	Dr
Cash Clearing A/c		Cr

b.      Prepayment invoice

·         Enter Invoice

Accounts	Debit	Credit
Prepayment A/c	Dr
Liability A/c		Cr

·         Payment against Invoice

Accounts	Debit	Credit
Liability A/c	Dr
Cash Clearing A/c		Cr

·         Apply Prepayment to Invoice

Accounts	Debit	Credit
Accrual A/c	Dr
Prepayment A/c		Cr
Liability A/c		Cr

5.      Clearing (Cash Management)

Accounts	Debit	Credit
Cash Clearing A/c	Dr
Bank		Cr