Total Pageviews

February 1, 2016

2/01/2016 07:43:00 PM

The Receiving Inventory Account is a clearing account. 
The account is used for perpetual (on receipt) accruals. 
After receiving transactions are processed and the Transfer Transactions to GL process is run, the Receiving Inventory Account is cleared and the Material account is charged with the cost of the capitalized inventory. 
Specify this account when you define Receiving Information  for your inventory organizations.


When a PO Receipt is created in the Receiving Transactions form with destination type as Inventory, 2 entries get created in the RCV_TRANSACTIONS form. One with Transaction type as Deliver and other with Receive. Also accounting is also derived for the 'RECEIVE' transaction.Entry RECEIVING_INSPECTION and an ACCRUAL entry 
in the RCV_RECEIVING_SUB_LEDGER table. 

When "Create Accounting: Receiving" is run, these Accrual Transaction for Receipt is transferred to GL through SLA. In SLA for Receive Transactions "Receiving Inspection" account is Debited and "Accrual" Account is credited. Journal Category will be "Receiving" for these transactions

For the Deliver Transaction type the transaction is sourced to Material Transactions as "PO Receipt" Transaction Type. 

Accounting will be done on this transaction when "Active Cost Worker" program is run. Usually this program will be scheduled to run every few minutes to calculate cost of the transactions. 
When "Accounting Program" is run, these transactions from MTL_TRANSACTION_ACCOUNTS will be transferred to GL through SLA. In SLA for Deliver Transactions, "Inventory Valuation" account is Debited and "Receiving Inspection" account is Credited. Journal Category will be "Inventory" for these Deliver Transactions.



PO Receipt Accounting entries to GL

PO Receipt Accounting entries to GL


Accounting Entries 

Dr.....Receiving Inventory a/c 
Cr.....AP Accrual A/c 

On moving to final destination 
Dr.....Sub inventory a/c 
Cr......Receiving inventory a/c 

There will be 2 more a/c entries if inspection is done. 

Entries in AP 
When Invoice is raised & matched to PO 
Dr.....AP Accrual a/c 
Cr.....Liability a/c 

When Invoices is raised w/o matching to PO 
Dr.....Charge a/c 
Cr.....Liability a/c 

On payment of the same 
Dr.....Liability a/c 
Cr.....Bank/Cash a/c 

Once the invoice is approved and accounted, you can view the accounting 
entries from Tools--> View Accounting 


Read more information on Purchasing Charge account from the following link

Oracle Purchasing Charge Account
 
Related Posts Plugin for WordPress, Blogger...