ORACLE AR, FA AP Journal Entries

8/13/2019 ORACLE AR, FA AP Journal Entries

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AR Order to Cash LifecycleJournal entries

Order Management

No accounting entries generated in OM

Inventory

When you ship the Goods

Dr Cost of Goods sold (picked up from the Item)Cr Inventory (picked up from Subinventory)

Receivables

When you run the Auto invoice Program and create an Invoice

Dr ReceivablesCr Revenue

When you Receive Cash

Dr Cash/ Bank AccountCr Cash Clearing Account

When you receive the payment

Dr Cash Clearing AccountCr Receivables A/c

ENTRY 01:

When Goods / M ateri al Ar e I n-Transit Or When We Receive I nventor y, The F oll owingAccounti ng Entr y Wil l Be Generated.

Description Dr. Cr .

Receiving Inventory Account xxxxx

Inventory AP Accrual Account xxxxx

There are two inventory Organizations: Receiving Organization Inventory Organization

When the inventory is received at Receiving Organization then the above entry will begenerated. Receiving of Inventory can be made through Purchasing Responsibility aswell as Inventory Responsibility.Receiving Inventory Account This account is defined in the Receiving Options of purchasing Responsibility.


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Navigation: PURCHASING > SETUPS > ORGANIZATIONS > RECEIVINGOPTIONS

Inventory AP Accrual Account This account is defined in the Inventory Organization Parameters window; click on

Others (B) and then select Inventory Information and then chose the Other Accountingtab.

Navigation: PURCHASING > SETUPS > ORGANIZATIONS > ORGANIZATIONS

ENTRY 02: When I nventory Is Delivered To Sub I nventor y Stores Then Th e F oll owing Accounti ngEn try Wil l Be Generated.
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At the Invoice Level when we book the liability the supplier liability account will becredited.

Inventory AP Accrual Account This account is defined in the Inventory Organization Parameters window; click on

Others (B) and then select Inventory Information and then chose the Other Accountingtab.

Supplier Liability Account To define the Liability account in the Payables Responsibility click on Setups, chooseOptions, click on Financials, and then select the Accounting tab.Navigation: PAYABLES > SETUPS > OPTIONS > FINANCIALS

ENTRY 04: When Payment I s M ade To Supplier, The Fol lowing Accounting Entr y Wil l B eGenerated.


Liability Account xxxxx

Cash Clearing Account xxxxx

Cash Clearing Account is defined in the Payables Responsibility while defining the banks.Supplier Liability Account To define the Liability account in the Payables Responsibility click on Setups, chooseOptions, click on Financials, and then select the Accounting tab.Cash Clearing Account To define Cash Clearing Account click on Setups, choose Payments and then click onBanks. After entering the required information in the main bank window click on theBank Accounts button. In the Bank Accounts region choose the Account Use Type

Internal to show the GL Accounts. Here we find the Cash Clearing Account.Navigation: PAYABLES > SETUPS > PAYMENT > BANKS
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ENTRY 05:

When Reconcil iation I s M ade I n Cash M anagement, The F ollowing A ccounting En tryWill Be Generated.


Cash Clearing Account xxxxx

Bank / Cash Account xxxxx

Switch to the Cash Management Responsibility for Reconciliation purpose. When wemade the Reconciliation then the above Accounting entry will be generated.Cash Clearing Account To define Cash Clearing Account click on Setups, choose Payments and then click onBanks. After entering the required information in the main bank window click on theBank Accounts button. In the Bank Accounts region choose the Account Use TypeInternal to show the GL Accounts. Here we find the Cash Clearing Account.Bank / Cash Account

To define Cash Account click on Setups, choose Payments and then click on Banks. Afterentering the required information in the main bank window click on the Bank Accounts button. In the Bank Accounts region choose the Account Use Type Internal to show theGL Accounts.
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Accounting Entries Fixed Assets

Account Segment Qualifier

1 Asset Cost Asset Account

2 Asset Clearing Asset Account

3 Depreciation Expense Expense Account

4 Accumulated Depreciation Contra-Asset Account

5 Deferred Depreciation Reserve Liability Account

6 Deferred Depreciation Expense Expense Account

7 Depreciation Adjustment Expense Account

8 Proceeds of Sale Clearing Asset Account9 Cost of removal Clearing Liability Account

10 Gain & Loss Revenue Account

Here are the entries made by FA.

Asset is added Asset Cost $100Asset Clearing $100

Asset Depreciation Depreciation Expense $100

AccumulatedDepreciation

$100

Asset Retirement W/o proceeds and W/o removalcost


$60

Gain/Loss $40


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Asset Cost $100

Asset Retirement With Proceeds, W/o Cost ofremoval


$60

Gain/Loss $40

Gain/Loss $10

Proceeds from Sale $10

Asset Cost $100

Asset Retirement -

With Cost of removal

Accumulated

Depreciation

$60

Gain/Loss $40

Gain/Loss $5

Cost of removal Clearing $5

Asset Cost $100

Documents

ORACLE AR, FA AP Journal Entries