Hi Arvind, Is there any difference in AP Accrual Account and Inventory AP Accrual Account ? You have used INVENTORY AP ACCRUAL ACCOUNT in FA PO Based Accounting Entry
Over all it is a good presentation how accounting entries drived in p2p cycle but you are missing to show issuance.accounting entry when item issue to department.
I have already created videos on Mass Allocation. Please see below:- ua-cam.com/video/Eb8sCd3Q21Y/v-deo.html -- This is for Step Down Mass Allocation ua-cam.com/video/5whcIxKJHCs/v-deo.html -- This is for Mass Allocation process
Hope you are doing well Arvind. Your videos are very much understandable. Requested you to share a video on BPA and release. Also the steps how AP and AR entries are transferred to GL. Thank you.
With regard to AP and AR entries to be transferred to GL, you need to run Create Accounting program in AP or AR with Transfer to GL as "Yes" which will push the subledger entries to GL
@@OracleEbizandFusionVideos For AP, Subledger accounting entries will be Expense (dr) and Liability (cr) and for AR Receivable (dr) and Revenue (cr). Am I correct ?
Very nicely explained. Will you please share the excel sheet P2P, O2C and FA cycle. Also the accounting entries for accrue at receipt and accrue at period end?
Hi...I have watched your video..can you please check whether the accounting entries are created on receipt of expense items . The Accounting entries for Expense Items will be Dr- PO charge Ac (Expense Ac) from the PO and Cr- AP (Expense) Accrual Ac and not Inventory Accrual Account. Hope am not wrong.
Hi, is it determined in the PO creation the nature of item i.e. whether is it an inventory, or consumables (expense) or capital expindture (fixed asset) so when the GRN is issued the related Debit account will be determined in the system automatically, can you elaborate please?
Hi Hisham, yes, there are different item attributes in item definition which specify if the item is a expense item or inventory item or FA item... Based on the item attribute, system takes care of accounting entries when a PO or Receiving is created for that item
I just happen to watch this video and i have a question. While adjusting the prepayment against Standard Invoice A/c, the entry should be Dr AP Expense and Cr Prepayment A/c. However, in this video, you are actually crediting the AP Liability A/c and how will this account be nullified.. Can you please clarify?
When AP Invoice is created, the below is the entry:- Expense A/c Dr AP Liaibility A/c Cr When Prepayment is created, the below is the entry:- AP Prepayment Dr AP Liaibility A/c Cr When Prepayment is paid, the below is the entry:- AP Liaibility A/c Dr Bank A/c Cr When Prepayment is adjusted against Standard Invoice, the below is the entry:- AP Liaibility A/c (Its the liaibility from Standard invoice) Dr AP Prepayment A/c Cr As we are applying prepayment to original standard invoice, prepayment balance should get reduced and hence its being credited.... Liaibility from standard invoice is debited because, we are no longer paying for this liaibility, instead we are adjusting it against Prepayment.... Note:- Expense Account is already debited in standard invoice and hence no need to debit it again.... Hope this clarifies your question
In pure accounting terms, to accrue means, to recognize Expense or revenue as when they are occured or earned and not as when they are paid or received... Liability is nothing but the amount which you owe to your vendor for the goods or services received from him
If possible, could you please attach the Excel sheet here. You can upload it into Google Drive and share the Public Link to the document in the description.
Oracle E-Business Suite Functional R12 - I guess my question was not clear. I mean what is intent of PO charge account and accrual account functionally?
As mentioned in my video, for Expense PO's, the PO Charge account mentioned in PO will be copied to AP where actual accounting happens when AP invoice is created. For Inventory items, AP Accrual account gets credited when an item is received and it gets debited when AP invoice is created. From Accounting perspective, AP Accrual should get nullified if AP invoice is created for a PO. If AP invoice is not yet created, then the balance lies in AP Accrual account
Yes, as explained in the video, there are no accounting entries created when you create Purchase Requisiton or Purchase Order...Certain accounts like Charge Account, Variance account are defaulted when you create a PR or PO... this does not mean that system creates accounting entries for these events.... these accounts are used by the system in the next flow... i.e. when GRN is created or AP invoice is created
@@OracleEbizandFusionVideos Very informative videos..every such video published by you..Please provide me the accounting entries for an asset item in P2P cycle.
It's crystal clear with all scenarios, Many thanks Sir !!!
You are most welcome
Always clear explanation...and immediate response to queries thanks sir...we learned so many critical aspects in easy way...thanks sir...
Thanks for your feedback
Very good. Can you please do for encumbrance accounting entries
Greate Video thanks for sharing
Thanks for watching!
Thanks for sharing this video.
Thanks
Hi Arvind, Is there any difference in AP Accrual Account and Inventory AP Accrual Account ? You have used INVENTORY AP ACCRUAL ACCOUNT in FA PO Based Accounting Entry
Thanks Arvind. Could you please explain where do we set up Inventory Receiving account in Oracle Fusion?
It help a lot
Thanks
Sir you are great. Thank You
Most welcome
This video is very informative. Thanks. Can you please create video illustrating Blanket Purchase Agreement and release ?
Sure... I will try that in my future video
@@OracleEbizandFusionVideos ok.
Good Explanation
Thanks and keep following my channel
Over all it is a good presentation how accounting entries drived in p2p cycle but you are missing to show issuance.accounting entry when item issue to department.
yes, when the item is issued to department, then the accounting entry would be:-
Expense A/c Dr
Inventory Material Valuation Account Cr
great
Thanks for your feedback
Hi sir
Videos are very much helpful in learning oracle.
If possible plz make full length video on P2P cycle Please.
Thank
Sure
@@OracleEbizandFusionVideos thanks sooo much sir ..
Nice..you have explained so well...can you plz share or upload video on mass allocation with eg of step mass allocation..
I have already created videos on Mass Allocation. Please see below:-
ua-cam.com/video/Eb8sCd3Q21Y/v-deo.html -- This is for Step Down Mass Allocation
ua-cam.com/video/5whcIxKJHCs/v-deo.html -- This is for Mass Allocation process
Hope you are doing well Arvind. Your videos are very much understandable. Requested you to share a video on BPA and release. Also the steps how AP and AR entries are transferred to GL. Thank you.
With regard to AP and AR entries to be transferred to GL, you need to run Create Accounting program in AP or AR with Transfer to GL as "Yes" which will push the subledger entries to GL
@@OracleEbizandFusionVideos For AP, Subledger accounting entries will be Expense (dr) and Liability (cr) and for AR Receivable (dr) and Revenue (cr). Am I correct ?
Yes you are correct
Very nicely explained. Will you please share the excel sheet P2P, O2C and FA cycle. Also the accounting entries for accrue at receipt and accrue at period end?
Ping me on my facebook page
@@OracleEbizandFusionVideos I am not in FB. Please share via email
Whats your email id?
Hi Arvind, How would be the accounting entries for 4 way matching?
4 Way matching considers Inspection and during Inspection, there will not be any Accounting entries generated
Hi thanks for nice and informative video
Thanks
Thanks for such wonderful videos
can you please share videos for Purchasing to FA cycle
Sure
Hey Arvy - When does Accrual Clearing Account get impacted ? And when does it get cleared ?
Hi...I have watched your video..can you please check whether the accounting entries are created on receipt of expense items . The Accounting entries for Expense Items will be Dr- PO charge Ac (Expense Ac) from the PO and Cr- AP (Expense) Accrual Ac and not Inventory Accrual Account. Hope am not wrong.
Yes, you are correct
Hello Arvind, could you please elaborate how actually AVG Costing is calculated or defined in oracle apps
Sure. I will try to create a separate video on Average costing
Hi, is it determined in the PO creation the nature of item i.e. whether is it an inventory, or consumables (expense) or capital expindture (fixed asset) so when the GRN is issued the related Debit account will be determined in the system automatically, can you elaborate please?
Hi Hisham, yes, there are different item attributes in item definition which specify if the item is a expense item or inventory item or FA item... Based on the item attribute, system takes care of accounting entries when a PO or Receiving is created for that item
I just happen to watch this video and i have a question. While adjusting the prepayment against Standard Invoice A/c, the entry should be Dr AP Expense and Cr Prepayment A/c. However, in this video, you are actually crediting the AP Liability A/c and how will this account be nullified.. Can you please clarify?
When AP Invoice is created, the below is the entry:-
Expense A/c Dr
AP Liaibility A/c Cr
When Prepayment is created, the below is the entry:-
AP Prepayment Dr
AP Liaibility A/c Cr
When Prepayment is paid, the below is the entry:-
AP Liaibility A/c Dr
Bank A/c Cr
When Prepayment is adjusted against Standard Invoice, the below is the entry:-
AP Liaibility A/c (Its the liaibility from Standard invoice) Dr
AP Prepayment A/c Cr
As we are applying prepayment to original standard invoice, prepayment balance should get reduced and hence
its being credited.... Liaibility from standard invoice is debited because, we are no longer paying for this liaibility,
instead we are adjusting it against Prepayment....
Note:- Expense Account is already debited in standard invoice and hence no need to debit it again....
Hope this clarifies your question
@@OracleEbizandFusionVideos yes.. thanks
Hello Sir,
What about the Expense Item entries?
What will chang if the inspection comes in picture.
Regarding Expense PO's, refer scenario 2 in the video which covers this scenario
Hi Arvind, can you please explain us the difference between Accrual and Liability accounts ?
In pure accounting terms, to accrue means, to recognize Expense or revenue as when they are occured or earned and not as when they are paid or received... Liability is nothing but the amount which you owe to your vendor for the goods or services received from him
Thanks for your Clarification
Please share video on AP reconciliation Journal entries to be asked in interviews..share ASAP
Refer the below two videos on my channel:-
ua-cam.com/video/eDGqCdQgIvQ/v-deo.html
ua-cam.com/video/Qe8SN5dvuvY/v-deo.html
If possible, could you please attach the Excel sheet here. You can upload it into Google Drive and share the Public Link to the document in the description.
Ping me your email id, i will email you
@@OracleEbizandFusionVideos dropped you my email id on Facebook. Thanks for your help and reply.
@@TheNmank Sent details
@@OracleEbizandFusionVideos Could you kind share the Excel Sheet for accounting entries?
divaxki@gmail.com
Sorry for the late response.... Sent
Thanks. Really great. Do u have something on PA ?
No. I will try in future
what is use of PO CHARGE and PO ACCRUAL account ? Why specifically these two accounts ?
@@KumR PO Charge Account:- What ever is being entered as PO Charge will be defaulted to AP invoice as Expense account and it gets accounted in AP
Oracle E-Business Suite Functional R12 - I guess my question was not clear. I mean what is intent of PO charge account and accrual account functionally?
As mentioned in my video, for Expense PO's, the PO Charge account mentioned in PO will be copied to AP where actual accounting happens when AP invoice is created. For Inventory items, AP Accrual account gets credited when an item is received and it gets debited when AP invoice is created.
From Accounting perspective, AP Accrual should get nullified if AP invoice is created for a PO. If AP invoice is not yet created, then the balance lies in AP Accrual account
There are no entries before GRN . Can u please suggest me on this
Yes, as explained in the video, there are no accounting entries created when you create Purchase Requisiton or Purchase Order...Certain accounts like Charge Account, Variance account are defaulted when you create a PR or PO... this does not mean that system creates accounting entries for these events.... these accounts are used by the system in the next flow... i.e. when GRN is created or AP invoice is created
sir can you send xl sheet of this video
You can download the same from my telegram channel
Hi Arvind could you please share this file over your telegram group..in case you still have it with you.. thanks in advance.
Ping me your email id on my facebook page and i can email you
Please share with me this excel file
Ping me your email id in my facebook page:-
facebook.com/CAArvindVaraganti/
Thanks for such wonderful videos
can you please share videos for Purchasing to FA cycle
Sure
@@OracleEbizandFusionVideos Very informative videos..every such video published by you..Please provide me the accounting entries for an asset item in P2P cycle.
@@a1b2c3d4c5d6e7 Ping me on my facebook page with your email id
@@OracleEbizandFusionVideos Pinged my email address to you on FB.
@@a1b2c3d4c5d6e7 I did not receive your ping