Accounting Entries of Accrue on receipt (APO) in Oracle Application?

Accounting entries for purchase orders with destinations type expense, item type expense and with accrue on receipt option is true.

Sequence of actions and accounting entries

Action

Create, Approve, Reserve PO

Accounting entries

Budget a/c DR @ PO price (base + Non Recoverable Tax calculated for the (received quantity * PO line unit price))

Action

Invoice Validation after matching

Accounting entries

Recoverable Tax calculated for the (received quantity * PO line unit price) and Non Recoverable Tax calculated for the (received quantity * PO line unit price) DR @ tax amount

Action

Create Accounting for invoice

Accounting entries

AP Expense accrual a/c DR @ PO price excluding tax and tax DR @ tax rate separately

AP Liability a/c CR @ invoice price

REC Tax and Non Recoverable Tax calculated for the (received quantity * PO line unit price) CR @ tax amount

Action

Receive the PO

Accounting entries

Receiving Inspection a/c DR @ PO price (base + Non Recoverable Tax calculated for the (received quantity * PO line unit price))

AP Expense accrual a/c CR @ PO price (base+ Non Recoverable Tax calculated for the (received quantity * PO line unit price))

Action

Deliver the PO

Accounting entries

Expense Charge a/c DR @ PO price (base + Non Recoverable Tax calculated for the (received quantity * PO line unit price))

Receiving Inspection a/c CR @ PO price (base + Non Recoverable Tax calculated for the (received quantity * PO line unit price))

Budget a/c CR @ PO price (base + Non Recoverable Tax calculated for the (received quantity * PO line unit price))

Reference

Accounting Flow against Purchase Orders, Receipts and Matched Invoices.

Authors: Manighandan Venkatraman & Asha Ravada

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