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 Receivables Cr Revenue When you Receive Cash Dr Cash/ Bank Account Cr Cash Clearing Account When you receive the payment Dr Cash Clearing Account Cr Receivables A/c

ENTRY 01: When Goods / Material Are In-Transit Or When We Receive Inventory, The Following Accounting Entry Will Be Generated. Description Receiving Inventory Account Inventory AP Accrual Account There are two inventory Organizations: <!--[if !supportLists]--><!--[endif]-->Receiving Organization <!--[if !supportLists]--><!--[endif]-->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. Dr. xxxxx xxxxx Cr.

Navigation: PURCHASING > SETUPS > ORGANIZATIONS > RECEIVING OPTIONS

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 Material Account Receiving Inventory Account

Dr. xxxxx

Cr.

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 Inventory AP Accrual Account Liability Account Dr. xxxxx xxxxx Cr.

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 Liability Account Cash Clearing Account Dr. xxxxx xxxxx Cr.

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 To define Cash Clearing Account click on Setups, choose Payments and then click on Banks. After entering 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 the GL Accounts. Here we find the Cash Clearing Account. Navigation: PAYABLES > SETUPS > PAYMENT > BANKS

ENTRY 05: When Reconciliation Is Made In Cash Management, The Following Accounting Entry Will Be Generated. Description Cash Clearing Account Bank / Cash Account Dr. xxxxx xxxxx Cr.

Switch to the Cash Management Responsibility for Reconciliation purpose. When we made 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 on Banks. After entering 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 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. After entering 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 the GL Accounts.

Accounting Entries Fixed Assets

Account 1 2 3 4 5 6 7 8 9 10 Asset Cost Asset Clearing Depreciation Expense Accumulated Depreciation Deferred Depreciation Reserve Deferred Depreciation Expense Depreciation Adjustment Proceeds of Sale Clearing Cost of removal Clearing Gain & Loss

Segment Qualifier Asset Account Asset Account Expense Account Contra-Asset Account Liability Account Expense Account Expense Account Asset Account Liability Account Revenue Account

Here are the entries made by FA.

Asset is added

Asset Cost Asset Clearing

$100 $100

Asset Depreciation

Depreciation Expense Accumulated Depreciation

$100 $100

Asset Retirement W/o proceeds and W/o removal cost

Accumulated Depreciation Gain/Loss

$60

$40

Asset Cost

$100

Asset Retirement With Proceeds, W/o Cost of removal

Accumulated Depreciation Gain/Loss Gain/Loss Proceeds from Sale Asset Cost

$60

$40 $10 $10 $100

Asset Retirement With Cost of removal

Accumulated Depreciation Gain/Loss Gain/Loss Cost of removal Clearing Asset Cost

$60 $40 $5 $5 $100