P2p accounting entries
· When Inventory / Material is in Transit
· When Inventory is delivered to the Inventory Sub Stores
· When Invoice is booked / recorded
· When Payment is made
· When Reconciliation is made
ENTRY 01:
When Goods / Material Are In-Transit Or When We Receive Inventory, The Following Accounting Entry Will Be Generated.
Description Dr. Cr.
Receiving Inventory Account xxxxx
Inventory AP Accrual Account xxxx
There are two inventory Organizations:
· Receiving Organization
· Inventory Organization
When the inventory is received at Receiving Organization then the above entry will be generated. Receiving of Inventory can be made through Purchasing Responsibility as well as Inventory Responsibility.
Receiving Inventory Account
This account is defined in the Receiving Options of purchasing Responsibility.
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 Accounting tab.
Navigation: PURCHASING > SETUPS > ORGANIZATIONS > ORGANIZATIONS
ENTRY 02:
When Inventory Is Delivered To Sub Inventory Stores Then The Following Accounting Entry Will Be Generated.
Description Dr. cr.
Material Account xxxxx
Receiving Inventory Account xxxxx
When the Inventory is delivered in the Stores this account will be hit in the Inventory Organization click on the others button and then select the Inventory Information and then choose the Costing Information tab and this account will be defined in the Valuation Account region named as Material.
Receiving Inventory Account
This account is defined in the Receiving Options of purchasing Responsibility.
Material / Inventory Account
This account is defined in the Inventory Organization Parameters window; click on Others (B) and then select Inventory Information and then chose the Costing Information tab.
Navigation: PURCHASING > SETUPS > ORGANIZATIONS > ORGANIZATIONS
ENTRY 03:
When We Book Liability At Invoice Level, The Following Accounting Entry Will Be Generated.
Description Dr. Cr.
Inventory AP Accrual
Account xxxxx
Liability Account xxxxx
At the Invoice Level when we book the liability the supplier liability account will be credited.
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 Accounting tab.
Supplier Liability Account
To define the Liability account in the Payables Responsibility click on Setups, choose Options, click on Financials, and then select the Accounting tab.
Navigation: PAYABLES > SETUPS > OPTIONS > FINANCIALS
ENTRY 04:
When Payment Is Made To Supplier, The Following Accounting Entry Will Be Generated.
Description Dr. Cr.
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, choose Options, click on Financials, and then select the Accounting tab.
Cash Clearing Account
When Reconciliation Is Made In Cash Management, The Following Accounting Entry Will Be Generated.
Description Dr. Cr.
Cash Clearing Account xxxxx
Bank / Cash Account xxxxx
Summary:
