Oracle P2P Accounting entries
In Oracle purchasing 3 different events occur
1. Enter Purchase Order:
No accounting takes place
2. Enter a Receipt:
For Inventory, Asset and Expense Items:
Dr: Inventory Receiving A/c
Cr: Accrual A/c
3.Receiving Transaction:
Based on type of item here accounting entry differs
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
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 accouting 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
Oracle O2C Accounting entries
Order Management
There are 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 Autoinvoice Program and create an Invoice
Dr Receivables
Cr Revenue
When you Receive Cash
Dr Cash/ Bank Account
Cr Cash Clearing Account
When you deposit the cheque and when the cheque is cleared
Dr Cash Clearing Account
Cr Receivables A/c
INTERCOMPANY BILLING ACCOUNTING ENTRY
URL: http://docs.oracle.com/cd/E18727_01/doc.121/e13438/T188094T188101.htm
An intercompany cross charge transaction against an indirect project.
Entries for the provider operating unit.
Cost
Labor Expense Dr
Labor Clearing Cr
Intercompany Accounts Receivable -Invoice
Intercompany Accounts Receivable Dr
Intercompany Revenue Cr
The following table shows entries for the receiver operating unit.
Intercompany Accounts Payable -Invoice
Intercompany Cost Dr.
Intercompany Accounts Payable Cr.
An intercompany cross charge transaction against a contract project.
Entries for the provider operating unit.
Cost
Labor Expense Dr
Labor Clearing Cr
Intercompany Accounts Receivable -Invoice
Intercompany Accounts Receivable Dr
Intercompany Revenue Cr
The following table shows entries for the receiver operating unit.
Intercompany Accounts Payable -Invoice
Intercompany Cost Dr.
Intercompany Accounts Payable Cr.
Client Revenue
UBR/UER Dr
Revenue Cr
Client Invoice
Accounts Receivable Dr
UBR/UER Cr
Determining Accounts for Provider Cost Reclassification
Oracle Projects provides a pair of debit and credit AutoAccounting functions to support the reclassification of cost in the provider operating unit upon generating intercompany invoices.
You may use these functions to reclassify cost if you were booking cost into work-in-process cost.
Provider Cost Reclass Dr.
Provider Cost Reclass Cr.
provider cost reclassification results in the intercompany billing accounting entries as shown below.
Entries for the provider operating unit.
Cost
Construction - In - Process Dr
Labor Clearing Cr
Provider Cost Reclassification
Labor Expense Dr
Construction - In - Process Cr
Intercompany Accounts Receivable -Invoice
Intercompany Accounts Receivable Dr.
Intercompany Revenue Cr.
Entries for the Receiver operating unit.
Intercompany Accounts Payable -Invoice
Intercompany Construction - In - Process Dr
Intercompany Accounts Payable Cr
Client Revenue
UBR/UER Dr
Revenue Cr
Cost Accrual
Cost Accrual Dr.
Construction - In - Process Contra Cr.
Client Invoice
Accounts Receivable Dr
UBR/UER Cr
Close Project
Cost Accrual Dr/Cr
Interrcompany Construction - In - Process Cr
Note: After you run the process PRC: Tieback Invoices from Receivables, you run the process PRC: Generate Cross Charge Accounting Events to generate accounting events for the provider cost reclassification journal entries.
r12-4c's-chart of accounts,currency,calender, convention (Subledger Accounting Convention (Cash / Accrual))
Seeded Conventions:
• Standard Accrual
• Standard Cash
• Accrual w/ Encumbrance
• Cash w/ Encumbrance
• US Federal Accounting
• China Standard Accrual
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1. Enter Purchase Order:
No accounting takes place
2. Enter a Receipt:
For Inventory, Asset and Expense Items:
Dr: Inventory Receiving A/c
Cr: Accrual A/c
3.Receiving Transaction:
Based on type of item here accounting entry differs
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
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 accouting 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
Oracle O2C Accounting entries
Order Management
There are 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 Autoinvoice Program and create an Invoice
Dr Receivables
Cr Revenue
When you Receive Cash
Dr Cash/ Bank Account
Cr Cash Clearing Account
When you deposit the cheque and when the cheque is cleared
Dr Cash Clearing Account
Cr Receivables A/c
INTERCOMPANY BILLING ACCOUNTING ENTRY
URL: http://docs.oracle.com/cd/E18727_01/doc.121/e13438/T188094T188101.htm
An intercompany cross charge transaction against an indirect project.
Entries for the provider operating unit.
Cost
Labor Expense Dr
Labor Clearing Cr
Intercompany Accounts Receivable -Invoice
Intercompany Accounts Receivable Dr
Intercompany Revenue Cr
The following table shows entries for the receiver operating unit.
Intercompany Accounts Payable -Invoice
Intercompany Cost Dr.
Intercompany Accounts Payable Cr.
An intercompany cross charge transaction against a contract project.
Entries for the provider operating unit.
Cost
Labor Expense Dr
Labor Clearing Cr
Intercompany Accounts Receivable -Invoice
Intercompany Accounts Receivable Dr
Intercompany Revenue Cr
The following table shows entries for the receiver operating unit.
Intercompany Accounts Payable -Invoice
Intercompany Cost Dr.
Intercompany Accounts Payable Cr.
Client Revenue
UBR/UER Dr
Revenue Cr
Client Invoice
Accounts Receivable Dr
UBR/UER Cr
Determining Accounts for Provider Cost Reclassification
Oracle Projects provides a pair of debit and credit AutoAccounting functions to support the reclassification of cost in the provider operating unit upon generating intercompany invoices.
You may use these functions to reclassify cost if you were booking cost into work-in-process cost.
Provider Cost Reclass Dr.
Provider Cost Reclass Cr.
provider cost reclassification results in the intercompany billing accounting entries as shown below.
Entries for the provider operating unit.
Cost
Construction - In - Process Dr
Labor Clearing Cr
Provider Cost Reclassification
Labor Expense Dr
Construction - In - Process Cr
Intercompany Accounts Receivable -Invoice
Intercompany Accounts Receivable Dr.
Intercompany Revenue Cr.
Entries for the Receiver operating unit.
Intercompany Accounts Payable -Invoice
Intercompany Construction - In - Process Dr
Intercompany Accounts Payable Cr
Client Revenue
UBR/UER Dr
Revenue Cr
Cost Accrual
Cost Accrual Dr.
Construction - In - Process Contra Cr.
Client Invoice
Accounts Receivable Dr
UBR/UER Cr
Close Project
Cost Accrual Dr/Cr
Interrcompany Construction - In - Process Cr
Note: After you run the process PRC: Tieback Invoices from Receivables, you run the process PRC: Generate Cross Charge Accounting Events to generate accounting events for the provider cost reclassification journal entries.
r12-4c's-chart of accounts,currency,calender, convention (Subledger Accounting Convention (Cash / Accrual))
Seeded Conventions:
• Standard Accrual
• Standard Cash
• Accrual w/ Encumbrance
• Cash w/ Encumbrance
• US Federal Accounting
• China Standard Accrual
***************************************************************