Accounting Entries

A - Sales order creation – No entries

    Pick release:
    Inventory Stage A/c…………………Debit
    Inventory Finished goods a/c……..Credit

    Ship confirm:
    Cogs A/c ……………………………Debit
    Inventory Organization a/c………Credit

    Receviable:
    Receviable A/c………………………Debit
    Revenue A/c………………………Credit
    Tax ………………..…………………Credit
    Freight…………..….……………….Credit

    Cash:
    Cash A/c Dr…………………………Debit
    Receivable A/c……………………….Credit

B - Oracle P2P Accounting entries

In Oracle purchasing 3 different events occur

1. Enter Purchase Order:
    No accounting takes place

2. Enter a Receipt:

    Go to Cost Management module and run Create Accounting concurrent program and that will generate the accounting of receivings & Issuances.

    For Inventory, Asset and Expense Items Receivings accounting entry is:
 
        Dr: Inventory Receiving A/c
              Cr: Accrual A/c

* Cost Management SLA module is used to create inventory accounting entries generation.

    For Inventory, Asset and Expense Items Issuances the accounting entry is:

   Inventory Item:
        Dr: Inventory Valuation A/c
              Cr: Inventory Receiving A/c
   Expense Item:
        Dr: Expense A/c
               Cr: Inventory Receiving A/c
   Asset Item:
        Dr: Asset Clearing A/c
               Cr: Inventory Receiving A/c

C - Oracle Payable:

 In payable 3 events occur
1. Enter Invoice:
        Dr: Accrual A/c
              Cr: Liability A/c

2.Payment against Invoice:
        Dr: Liability A/c
              Cr: Bank clearing A/c

3.Clearing (Cash Management):
        Dr: Bank clearing A/c
              Cr: Bank A/c

Oracle P2P Accounting entries

Incase below type of items one more accounting entry happens in Oracle

Inventory Item: Item issued to Dept.
       Dr: Expense A/c
       Cr: Inventory valuation

Asset Item: Asset is capitalized
       Dr: Asset A/c
       Cr: Asset clearing A/c