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PO Created Entries [message #277749]

Wed, 31 October 2007 06:39

san4u
Messages: 42
Registered: September 2007
Location: bangalore

Member

HI,

suppose when i create a PO, what is the JOurnal Entry.

how can i see that entry.

could you pls explaine about this......

Thx.. in Advance.

regards,
Sankar.K

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Re: PO Created Entries [message #277760 is a reply to message #277749]

Wed, 31 October 2007 07:08

arunkp76
Messages: 16
Registered: August 2007
Location: Chennai

Junior Member

Hi Sankar,

There is no accounting impact when you create a PO.

However when you receive against the PO there is accounting impacts.

Receive
-------
Dr Material Receiving
Cr AP Accrual Expense / Asset Account
Deliver
-------
Dr Inventory / Expense
Cr Material Receiving Account

The AP Accrual Account thus parked will be nullified when you match the invoice against the PO. However these accrual entries are passed based on the Receipt accounting setups in Purchasing Option(At Period end or At receipt)

For inventory items you can choose only 'At receipt'. Further if you choose to set 'At period end' for expense item, you need to run 'Receipt Accrual - Period End process'

Regards ... Arun

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Re: PO Created Entries [message #278170 is a reply to message #277760]

Fri, 02 November 2007 04:07

san4u
Messages: 42
Registered: September 2007
Location: bangalore

Member

Thanks a lot Arun

regards,
Sankar

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Re: PO Created Entries [message #279492 is a reply to message #277749]

Thu, 08 November 2007 15:22

jayaharan76
Messages: 62
Registered: June 2006
Location: BANGALORE

Member

Furhter to the Arun's reply ... here you go

I am assuming PO Journal Enteries in Standard Costing Method

Account Generator will create four accounting values in PO Distribution

Charge Account (Material Account defined in MTL_PARAMETERS - Org Parameters)- also depends on the receiving subinventory defined in PO_DISTRIBUTION_LINE

Inventory AP Accrual Account (from receiving parameters)

Budgetory Account (If Budetory enabled)

Invoice Price Variance - from Org parametrs

Upon Receiving - accounting entries in INV Subledger (1) Material Account (associated with receiving subinventory) OR Charge account

(2) AP Accrual Expense/Asset account

Upon Delivering into Inventory
(1) Inventory Expense
(2) Material Receiving Account

Purchase Price variance (Line amount ~ Item Cost defined in receiving Inv org)

Overhead abosrption (If Overhead element defined )

Upon Creating Payable Invoice - accounting entries in AP Subledger

AP Accrual Account
Liability
Invoice Price Variance

Upon PO Matching, PO Accrual Account would be nullified Upon Payment to supplier
Liability account reversed and
CASH / BANK Account debited

these accounting will be based on Receipt Accpuntind setups in Purchasing options

Pls visit Oracle Metalink Whitepaper 404152.1 clearly explains the difference in 11i and R12 accounting impacts

HTH
Jayaharan Krishnamurthy
Jayaharan76@yahoo.com

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