S No Situation

1 When you enter a regular invoice through the Transactions window

2 When credit memo is created in receivables

If you enter an invoice with a Bill in Arrears invoicing rule with a three
3 month fixed duration accounting rule

If you enter an invoice with a Bill in Advance invoicing rule,

4 Receivables creates journal entries:

5 When you credit a commitment:

Commitments: When you enter a deposit, Receivables creates the

6 following journal entry:

When you enter an invoice against this deposit, Receivables creates

7 the following journal entries:
When cash is received against this deposit, Receivables creates the
8 following journal entry:

When you enter a guarantee, Receivables creates the following

9 journal entry:
 When you enter an invoice against the guarantee, Receivables
10 creates the following journal entry:
When cash is received against the guarantee, Receivables creates the
11 following journal entry

12 When you enter a receipt,

13 When you fully apply a receipt to an invoice

14 When you enter an unidentified receipt,

15 When you enter an on-account receipt

16 When your receipt includes a discount

When you enter a receipt and combine it with an on-account credit
(which increases the balance of the receipt), Receivables creates the
17 following journal entry:
To close the receivable on the credit memo and increase the
unapplied cash balance, Receivables creates the following journal
18 entry

When you enter a receipt and combine it with a negative adjustment,

19 Receivables creates the following journal entries

When you enter a receipt and combine it with a positive adjustment,

20 Receivables creates the following journal entries:
When you write off the unapplied amount on a receipt, Receivables
21 creates the following journal entries:

When you enter a receipt and combine it with a Chargeback,

22 Receivables creates the following journal entries:
 To move funds between receipts, you can apply one receipt to another
open receipt (also called netting receipts). For example, you can move
funds from Receipt 1 to Receipt 2 by opening Receipt 2 in the
23 Applications window, and selecting Receipt 1 in the Apply To field.
When you create a receipt that requires remittance to your bank,
Receivables debits the Confirmation account instead of Cash. An
example of a receipt requiring remittance would be a check before it
was cashed. Receivables creates the following journal entry when you
24 enter such a receipt:
You can then remit the receipt to your remittance bank using one of
the two remittance methods: Standard or Factoring. If you remit your
receipt using the standard method of remittance, Receivables creates
25 the following journal entry:

When you clear the receipt, Receivables creates the following journal
26 entry

If you remit your receipt using the factoring remittance method,

27 Receivables creates the following journal entry:

When you clear the receipt, Receivables creates a short-term liability

for receipts that mature at a future date. The factoring process let you
receive cash before the maturity date, and assumes that you are liable
for the receipt amount until the customer pays the balance on the
maturity date. When you receive payment, Receivables creates the
28 following journal entry:
On the maturity date, Receivables reverses the short term liability and
29 creates the following journal entry

When you enter a negative adjustment against an invoice,

Receivables creates the following journal entry:
30
When you enter a positive adjustment against an invoice, Receivables
31 creates the following journal entry
 When you enter a debit memo in the Transactions window,
32 Receivables creates the following journal entries

When you enter an on-account credit in the Applications window,

33 Receivables creates the following journal entry
Once the on-account credit is applied to an invoice, the following
34 journal entry is created

Creating a credit card refund

When you unapply a receipt and reapply the receipt to a credit card
35 refund, Receivables creates these journal entries
After you apply the receipt to a credit card refund, Receivables
automatically creates a negative miscellaneous receipt in the amount
36 of the refund and creates this journal entry:
When you reverse a credit card refund, either by reversing the
negative miscellaneous receipt or by unapplying the credit card refund
activity, Receivables creates this journal entry for the negative
37 miscellaneous receipt:

and Receivables creates this journal entry for the original payment
38 receipt:
Claims:Creating a non-invoice related claim
When you record a non-invoice related short payment or over
payment as a claim investigation application in the Applications
39 window, Receivables creates these journal entries:

40 Claims
41 Accounting for Receipt Write-offs

42

When a receipt write-off is processed, the money is moved from

Unapplied and put to the account defined for the
43 Receipt Write-off receivable activity selected.
 Receive for Inventory:The receiving accounting entries for
44 inventory destination receipts (Inventory) are

Receive for Expense:The receiving accounting entries for

45 expense destination receipts (Expense) are:

Delivery From Receiving Inspection to Inventory:With the Receiving

Transactions window, you can move material from receiving inspection
46 to inventory

Delivery From Receiving Inspection to Expense

Destinations:
With the Receiving Transactions window, you can also move material
from receiving inspection to expense destinations. The accounting
47 entries are:

Purchase Order Receipt to Inventory

You can use the Receipts window to receive material directly from a
supplier to inventory. This is referred to as Direct Delivery. Even
though it is one step process to the user, it still consists of a receive
and deliver transaction, it is just transparent to the user.
48 Here is the receive portion of the Direct Delivery:
Inventory uses the quantity and standard cost of the received item to
update the receiving inspection and subinventory balances. Here is
49 the deliver portion of the Direct Delivery:

Purchase Order Receipt to Expense Destinations

You can use the Receipts window to receive material directly from a
supplier to the expense destination. This is referred to as Direct
Delivery. Even though it is one step process to the user, it still consists
of a receive and deliver transaction, it is just transparent to the user.
Here is the receive portion of the Direct Delivery:
50

Return to Supplier From Receiving

You use the Returns window to return material from receiving
inspection or from inventory to a supplier. If you use receiving
inspection and you have delivered the material into inventory, you
51 Here is the
must first deliver
return theportion
goods of
to the Direct before
receiving Delivery:
you can return to your
supplier. For a return from inspection, Purchasing decreases the
receiving inspection balance, and reverses the accounting entry
created for the original receipt.
Return To Supplier From Inventory or Expense Destinations
For example, for Return to Supplier from receiving for Expense
When you do not use receiving inspection, the return to supplier
Destination the accounting entries would be:
transaction updates the same accounts as the direct receipt to the
52
inventory or expense destination, with reverse transaction amounts.

For example, for Return To Receiving for Expense Destination the

accounting entries would be:
53
 You use the Corrections window to correct transactions from receiving
inspection or from inventory to a supplier. For a Correction,
Purchasing places negative accounting entries to correct the original
receiving accounting against the receiving inspection balance and
negative accounting entries against the A/P accrual account created
for the original receipt.

For example, for negative Corrections against receiving for Expense

Destination the accounting entries would be:
54

For negative Corrections against receiving for Inventory Destination

55 the accounting entries would be

Correction From Inventory or Expense Destinations

When you do not use receiving inspection, the Correction transaction
updates the same accounts as the direct receipt to the inventory or
expense destination,
Receipts with End
Accruals-Period negative transaction amounts for negative
corrections being made.
==================================
Use the Receipt Accruals - Period End process to create period-end
For example,
accruals for negative
for your Corrections
uninvoiced forexpense
receipts for Expensedistributions.
Destination the
accounting entries
Purchasing createswould be: journal entry in your general ledger for
an accrual
56 each uninvoiced receipt you choose using this form.

Each time you create accrual entries for a specific uninvoiced receipt,
Purchasing marks this receipt as accrued and ignores it the next time
you run the Receipt Accrual -Period End process. Purchasing creates
For negative
accrual entries
Corrections
only up to for
theInventory
quantity the
Destination
supplier did
the not
accounting
invoice for
57 partially
entries would
invoiced
be: receipts.

Purchasing creates the following accounting entries for each

distribution you accrue using the Receipt Accruals Period-End
process:
58

As soon as you open the next period, Purchasing reverses the accrual
entries using the following accounting entries:
59

60 When we match the Invoice with PO

When Payment is made

Module Entry
DR Receivables
CR Revenue
CR Tax (if you charge tax)
AR-Invoices CR Freight (if you charge freight)
Revenue A/c Dr Tax
A/c Dr Frieght
A/c Dr. To
AR-Invoices Receivables A/C

In the first period of the rule:

DR Unbilled Receivables
CR Revenue
In the second period of the rule:
DR Unbilled Receivables
CR Revenue
In the third and final period of the rule:
DR Unbilled Receivables
CR Revenue
DR Receivables
CR Unbilled Receivables
CR Tax (if you charge tax)
AR-Invoices CR Freight (if you charge freight)

In the first period of the rule:

DR Receivables
CR Unearned Revenue
CR Tax (if you charge tax)
CR Freight (if you charge freight)
DR Unearned Revenue
CR Revenue
In all periods of the rule for the portion that
is recognized.
DR Unearned Revenue
AR-Credit Memo CR Revenue
DR Revenue
AR-Credit Memo CR Receivables

DR Receivables (Deposit)
AR-Commitment CR Offset Account

DR Receivables (Invoice)
CR Revenue
CR Tax (if you charge tax)
CR Freight (if you charge freight)
DR Offset Account (such as Unearned
Revenue)
AR-Commitment CR Receivables (Invoice)
DR Cash
AR-Commitment CR Receivables (Deposit)

DR Receivables
AR-Commitment CR Revenue
 DR Receivables (Invoice)
CR Revenue
CR Tax (if you charge tax)
CR Freight (if you charge
freight)
DR Revenue
AR-Commitment CR Receivables
DR Cash
AR-Commitment CR Receivables (Invoice)
DR Cash
AR-Receipts CR Receivables
DR Cash
DR Unapplied Cash
CR Unapplied Cash
AR-Receipts CR Receivables
DR Cash
AR-Receipts CR Unidentified
DR Cash
CR Unapplied
DR Unapplied
AR-Receipts CR On-Account

DR Receivables
CR Revenue
DR Cash
CR Receivables
DR Earned/Unearned Discount
AR-Receipts CR Receivables

DR Cash
AR-Receipts CR Unapplied Cash

DR Receivables
CR Unapplied Cash
DR Cash
CR Receivables (Invoice)
DR Write-Off
CR Receivables (Invoice)
DR Cash
CR Receivables (Invoice)
DR Receivables (Invoice)
CR Write-Off
DR Unapplied Cash
CR Write-off

DR Cash
CR Receivables (Invoice)
DR Receivables (Chargeback)
CR Chargeback (Activity)
DR Chargeback (Activity)
CR Receivables (Invoice)
 DR Unapplied Cash (Receipt 1)
CR Netting (Receipt 1)
DR Netting (Receipt 2)
CR Unapplied Cash (Receipt 2)

DR Confirmation
AR-Remittances CR Receivables

DR Remittance
CR Confirmation
AR-Remittances
DR Cash
DR Bank Charges
AR-Remittances CR Remittance
DR Factor
CR Confirmation
AR-Remittances

DR Cash
DR Bank Charges
AR-Remittances CR Short-Term Debt
DR Short-Term Debt
AR-Remittances CR Factor

DR Write-Off
AR-Adjustments CR Receivables (Invoice)
DR Receivables (Invoice)
AR-Adjustments CR Write-Off

AR-Debit Memos
AR-On-Account Credits
AR-On-Account Credits
AR-Credit Card Refunds
AR-Credit Card Refunds
AR-Reversing a credit card refund
AR-Reversing a credit card refund
AR-Creating a non-invoice related claim
AR-Creating an invoice related claim
DR Receivables
CR Revenue (if you enter line amounts)
CR Tax (if you charge tax)
CR Freight (if you charge freight)
DR Receivables
CR Finance Charges
DR Revenue (if you credit line amounts)
DR Tax (if you credit tax)
DR Freight (if you credit freight)
CR Receivables (On-account Credit)
DR Receivables (On-account Credit)
CR Receivables (Invoice)
DR Receivables
CR Unapplied
DR Unapplied
CR Receivable Activity (Clearing
Account)
DR Receivable Activity (Clearing Account)
CR Cash
DR Cash
CR Receivable Activity (Clearing
Account)
DR Receivables Activity (Clearing Account)
CR Unapplied
DR Claim Investigation
CR Unapplied Cash
DR Cash Cr Unidentified and
DR Cash
CR Unapplied

INV-PO - Receiving Receipts for Inv
INV-PO - Receiving Receipts for Exp
INV-PO - Receiving from Inspection to INVPurchase Price Variance
Receiving Inspection account @ PO price
Dr
To Inventory A/P Accrual account @
PO price
Receiving Inspection account @ PO price
Dr
To Expense A/P Accrual account @ PO
price
Subinventory accounts @ standard cost Dr
Debit Purchase Price Variance Dr
To Receiving
Inspection account @ PO price, To Credit

PO distribution charge accounts @ PO

price Dr To
INV-PO - Receiving from Inspection to ExpReceiving
Destination
Inspection account @ PO price

Receiving Inspection account @ PO price

Dr
To Inventory A/P
Subinventory Accrual
accounts @account
standard@cost
PO Dr
price
Debit Purchase Price Variance Dr
To Receiving Inspection account @ PO
price
INV Direct Receive and Delivery To Credit Purchase Price Variance

Receiving Inspection account @ PO price

Dr
ToExpense A/P Accrual account @ PO
price

PO distribution charge accounts @ PO

price Dr
To Receiving Inspection account @ PO
price
Exp Direct Receive and Delivery

Receiving Inspection account @ PO price

Dr
To Expense A/P Accrual account @ PO
price
PO distribution charge accounts @ PO
price Dr
To Receiving Inspection account @ PO
price
 Receiving Inspection account @ PO price
Expense A/P Accrual account @ PO price

Receiving Inspection account @ PO price

Inventory A/P Accrual account @ PO price

PO distribution charge accounts @ PO

price
Receiving Inspection account @ PO price

Subinventory accounts @ standard cost

Receiving
PO chargeInspection
account @account
Uninvoiced
@ PO Quantity
price
x PO
unit Price
Expense A/P accrual account @
Uninvoiced
Expense
Quantity xA/P
POaccrual
price account @
Uninvoiced
Quantity x PO unit price
PO charge account @ Uninvoiced Quantity
x
PO Price

AP Accruals A/c Dr
AP - InV To AP Liability A/c
AP Liability A/c Dr
AP - Pay To Cash Clearing A/c
General Explanation Based on the Rules

AR: Deposit Offset Account Source profile option to

determine how Receivables derives the Offset Account to
credit for this deposit

When you apply an invoice to a deposit, Receivables

creates a receivable adjustment against the invoice.
Receivables uses the account information that you
specified in your AutoAccounting structure to create these
entries.

Receivables uses the Receivable Account and Revenue

Account fields on this guarantee's transaction type to
obtain the accounting flexfields for the Unbilled
Receivables and Unearned Revenue accounts,
respectively..
When you apply an invoice to a guarantee, Receivables
creates a receivable adjustment against the guarantee.
Receivables uses the account information you specified in
your AutoAccounting structure to create these entries.

These examples assume that the receipt has a

Remittance Method of No Remittance and a Clearance
Method of Directly.

Receivables uses the default Cash, Unapplied,

Unidentified, On-Account, Unearned, and Earned
accounts that you specified in the Remittance Banks
window for this receipt class.

You set up a Write-Off account when defining your

Receivables Activity.

You set up a Chargeback account when defining your

Receivables Activity.
After this receipt-to-receipt application completes, Receipt
2 gains additional funds that you can then apply to a debit
item.
You set up a Netting account when defining your
Receivables Activity.
Attention: When netting receipts, both receipts must be in
the same currency.
If both receipts are in a foreign currency, however, then
you could have an exchange gain or loss when you net
the receipts. The exchange gain or loss is realized on the
main receipt (Receipt 2) at the time of receipt application
(netting).
If you later adjust the exchange rate on Receipt 1 or 2,
then Receivables:
o Rolls back all accounting for both receipts.
o Re-creates the accounting, including the netting
application, using the adjusted exchange rate.
o Recalculates the exchange gain or loss on whichever
receipt is open in the Applications window.
Receivables uses the Freight, Receivable, Revenue, and
Tax accounts that you specified in your AutoAccounting
structure to create these entries

Receivables derives the accounting flexfield for the claim

investigation application from the receivable activity that
you assigned in the Applications window.
When you record an invoice related short payment as a
claim in the Applications window, Receivables creates the
standard accounting entries for the invoice and for the
receipt application. There are no additional accounting
entries for the invoice related claim.
As a cash receipt is entered, general ledger entries are
created for each step in the process. Therefore, to
explain the
entries for a receipt write-off, you need to first understand
the entries for receipts in general.

If a receipt is initially saved as unidentified (a customer is

not selected), then the following entries are made:

DR Cash
CR Unidentified

However, most cash receipts are not saved before the

customer is identified; therefore the following entries are
typically the initial accounting entries created for a receipt:

DR Cash
CR Unapplied

As you apply the receipt, entries are made to move the

money from Unapplied to Applied (Receivable).

For example, if a $100 receipt is entered and applied in

full, the following entries are made:

DR Cash 100
CR Unapplied 100

DR Unapplied 100
CR Receivable 100

For example, if a $100 receipt is entered and $95 is

applied and $5 is written off, then the following entries are
made:

DR Cash 100
CR Unapplied 100

DR Unapplied 95
CR Receivable 95

DR Unapplied 5
CR Write-off 5

If you later decide to reverse the write-off, then the

following additional entries are made:

DR Write-off 5
CR Unapplied 5
For inventory destinations, the purchase order distribution
accrual account is the Inventory A/P accrual account for
the receiving organization.

For expense destinations, the PO distribution accrual

account is the Expense A/P Accrual Account set in the
Purchasing Options window.
Positive corrections (essentially adding quantity to an
existing receipt or delivery transaction) would essentially
be accounted similar to as being like a new receipt, the
difference (delta) in the new quantity would be newly
accounted similarily to a receipt and delivery as noted
above in the first sections of this paper concerning receipt
and delivery accounting flows.
Note:
If statutory or legislative requirements in your country or
locale do not allow negative accounting entries, you must
seek relief via either localization support team or via
customization. It is long established functionality for
negative corrections to yield negative accounting entries
with Oracle Applications.
Under cash accounting, no entry is made for the invoice. However, when the
payment is made it is a debit to the expense account and a credit to the cash
account.

1.When the supplier sends the goods.

2.When the supplier details are keyed into the system
3.When the supplier is been finally paid.

1. Debit the Asset Account, Credit the Accounts Payable

2. None

3. Debit Accounts Payable, Credit Cash

Accrual accounting and cash accounting for recording an invoice and a payment are
very different and care needs to be taken as to not confuse the two.

Under accrual accounting, the invoice would be recorded as a debit to your expense
account and a credit to the payable account, such as accounts payable. When the
payment is recorded, the debit is to the accounts payable for the bill and a credit to
the cash account when the check is written.

Under cash accounting, no entry is made for the invoice. However, when the
payment is made it is a debit to the expense account and a credit to the cash
account.

1.When the supplier sends the goods.

2.When the supplier details are keyed into the system
3.When the supplier is been finally paid.

1. Debit the Asset Account, Credit the Accounts Payable

2. None

3. Debit Accounts Payable, Credit Cash

Issuance of stock to investors: Cash A/c Dr XXX------- To Common Stock A/C XXX
Borrowing money from a bank: Cash A/c Dr XXX -------To Notes Payable A/c XXX
Purchase of a long term asset: (I.e.) Equipment, furniture, or fixtures for cash payment: Equipment A/c Dr XXX ----------To Cas
A/c XXX
Purchase of a long term asset: I.e. Equipment, Furniture, or fixtures for cash down payment and credit: Equipment A/c XXX Dr
----To Cash A/c XXX to Notes Payable A/c XXX
Advance payment from a customer for payment of services or sales to be performed
at a future date: Cash A/c Dr XXX --------To Unearned Service Revenue A/c XXX
Providing the service or sales that the company is in business to perform for cash, when services are performed for credit use
Accounts Receivable for the debit: Cash A/c Dr XXX ------To Service Revenue A/c XXX
Providing the service or sales that the company is in business to perform for credit, when services are performed for credit use
Accounts Receivable for the debit: Accounts Receivable A/C Dr XXX TO Service Revenue XXX
Payment of every day expenses such as utilities, rent and salaries, Accounts Payable
would be credited if the payment was on credit Rent Expense A/C Dr XXX ---To Cash A/C XXX

Purchase of items on credit: Inventory XXX Accounts Payable XXX

Payment of a Dividend to company owners, also known as stockholders: Dividends XXX Cash XXX
Payment of cash on Account: Accounts Payable XXX Cash XXX
Received cash on Account: Cash XXX Accounts Receivable XXX
The purchase and prepayment of an asset before it is used by the company. I.e. Insurance, Rent, or Supplies. Other accounts
debited are: Prepaid Insurance or Prepaid Rent: Supplies XXX Cash XXX

The purchase and prepayment of an asset on account before it is used by the company.I.e. Insurance, Rent, or Supplies. Othe
accounts debited are: Prepaid Insurance orPrepaid Rent.
Supplies XXX Accounts Payable XXX