Oracle Payables Accounting Entries

In this post, we will discuss and understand the oracle payables accounting entries. When We do certain transaction in Oracle application, System creates the Accounting Entries for the Same in the application. This Helps to capture all the System Transactions in GL accounts and we can generates the Financial Reporting based on this Accounts. Here below I will be share all the Oracle Payables Accounting entries.

 

Here I am sharing the Oracle Payables Accounting Entries for all the Transactions of the Oracle Payables. I am taking the Transactions of P2P cycle in Oracle Application in Sequence.

 

P2P Accounting entries for Inventory Items

Transaction 1: -  PO Creation

When We creates The Purchase Order, Then We enter the PO distribution Account. For Inventory Items, we enter the Items Inventory Accounts but Still System does not create any accounting entries at the Time of PO Creation.

 

*NO ACCOUNTING ENTIRY DURING PO CREATION*

 

 

 Transaction 2: - PO Receiving

When We Do Purchase Order Receiving, Then At the Time of Receiving, System creates this Below Accounting Entries

 

 

This Transaction Means that , my Received Item Value will be show in the Received Account and My Liability Given to the Supplier as I received its PO items will be seen in Accrual Account.

Transaction 3:- PO Received Item Delivered to Inventory

This Means that now my Received Item Value nullify in Receiving Account and Entered in the Inventory Account.

 

Transaction 4:- Creating AP Invoice match the PO Receipt.

Credit Account	Debit Account
AP Liability Account
	Accrual Account

 

This Means that now We have booked the Supplier Invoice again the PO received Items then My Liability account is Pending for the Supplier but the Accrual Account is nullified as I have booked the Supplier Invoice for the Received PO.

 

Transaction 5:- Creating Payment For AP Invoice.

Credit Account	Debit Account
Bank Clearing Account
	AP Liability Account

 

This Mena that , I have Created the Payment for the Supplier Invoice so my Liability will be nullified and the Amount will be Deducted from my Internal Bank account to make this Payment for the Supplier.