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Accounting Entries in
Oracle Fusion Cloud
Application
Amit Thakur ☁
Oracle Cloud Pre-Sales & Solution Delivery 6 articles Follow
Strategy II Sustainability, AI Adoption,…

September 13, 2019

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Procure-to- Pay Accounting Entries:

When we receive the Goods in the staging area the

accounting entry would be (GRN):

Receiving Inventory --- Dr-----It will pick from receiving

options.

Ap Accrual --- Cr---It will pick from Purchasing Options.

When we are moving the Goods from Staging area to

Sub-Inv (Recv Trans):

Material A/C --- Dr-----It will pick from Inventory Options

Receiving Inv --- Cr----It will pick from Receiving Options

While Creating Invoice:

Ap Accrual --- Dr

Liability ---- Cr-----It will pick from supplier Liability

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While Making Payment:

Liability – Dr

Cash Clearing – Cr-----It will pick from Bank

Reconciliation:

Cash Clearing --- Dr

Cash – Cr

Standard Invoice Entry :

Ap Accrual --- Dr

Liability ---- Cr

Debit and Credit Memo Entries:

Liability --- Dr

Ap Accrual --- Cr

Prepayment Entries:

While Creating Prepayment Invoice:

Prepayment --- Dr----It will pick from supplier

Liability – Cr----It will pick from supplier

While Making Payment to Prepayment:

Liability – Dr

Cash – Cr

While applying Prepayment on Standard Invoice:

Liability --- Dr

Prepayment – Cr

INTEREST INVOICE ENTRY WHILE MAKING PAYMENT:

Interest expenses –- Dr-----It will pick from Financial

options

Liability ---------------- Dr

Cash ---------------------Cr

EXPENSE REPORT ENTRY:

Item Expense A/C --- Dr

Liability --- Cr

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PAYMENT REQUEST INVOICE ENTRY :

Item Expense --- Dr

Liability – Cr

FUTURE DATED PAYMENT ENTRY :

When Bills Issued:

Item Expense – Dr

Bills Payable --- Cr

When Maturity Date Confirmed:

Bills Payable – Dr---It will pick from Supplier or Financial

options

Liability – Cr

WITH HOLDING TAX ENTRY :

When Withholding tax applied on standard Invoice:

Item Expense --- Dr

Liability --- Cr

Withholding --- Cr-----It will pick from WHT codes

Auto Generated WHT Entry:

Item Expense – Dr

Liability --- Cr

RETAINAGE RELEASE ACCOUNTING ENTRY:

When Invoice matched with PO accounting entry would

be:

Accrual ------ Dr

Liability ---- Cr

Retainage ---Cr----It will pick from financial options

While making payment to the invoice matched with PO:

Liability ---- Dr

Cash --------Cr

When Retainage Release Invoice Matched with PO

accounting entry would be:

Retainage --------Dr

Liability ----------- Cr
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While making Payment to Retainage Release:

Liability ---Dr

Cash --------Cr

Order - to- Cash ENTRIES:

Pick Release:

Receiving Inventory ---- Dr

Item Expense/Material ac ---- Cr

Ship Confirmation:

COGS ---- Dr----It will pick from Inv Information

Receiving Inv (Sub-Inv) ---- Cr

While Creating Transaction:

Receivable ---- Dr

Revenue ------- Cr

Freight --------Cr

Tax -------------Cr

While Recording Receipt: WHEN STATE IS CONFIRMED

Confirmed Cash--------------Dr

Receivables ----Cr

When Remitted: WHEN STATE IS REMITTED

Remitted Cash ---- Dr

Confirmed Cash--------Cr

When Reconciled: WHEN STATE IS CLEARED

Cash -------Dr

Remitted Cash --- Cr

DEPOSIT ACCOUNTING ENTRY:

When we create DEPOSIT invoice the accounting entry

would be:

Receivable --- Dr

Accrual (Unearned Revenue) -------- Cr

When we create Sales Invoice:

Receivable---Dr

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Revenue----- Cr

When Deposit adjusts with actual transaction invoice the

entry would be:

Unearned Rev (Accrual) -----Dr

Receivables-------Cr

GAURANTEE ACCOUNTING ENTRY:

When we crate Guarantee transaction:

Unbilled receivable----Dr

Unearned Revenue ---Cr

When we create sales Invoice:

Receivable ----Dr

Revenue -------Cr

When Guarantee transaction adjusts with sales invoice:

Unearned Revenue ---Dr

Unbilled Receivable—Cr

REVENUE RECOGNISATION:

INVOICE ADVANCE:

When we create sales invoice and set invoicing rule as IN

ADVANCE(FIXED SCH):

Receivables ---- Dr

Unearned Revenue -------- Cr

Once we recognize the Revenue the accounting entry

would be:

Unearned Revenue ---- Dr

Revenue------------------Cr

And the final entry would be:

Receivable ------Dr

Revenue ---------Cr

INVOICE ARREARS:

REVENUE RECOGNISATION using Invoice Arrears

Schedule:

Unbilled Receivables—Dr

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Revenue-----------------Cr

Once we have billed the customer

Receivables---------------Dr

Unbilled Receivables—Cr

ON-ACCOUNT ACCOUNTING ENTRY:

When we created the Receipt and applied to On Account :

Cash ---Dr

Receivables ----CR,

ONACCOUNT -----Cr

CUSTOMER REFUND ACCOUNTING ENTRY :

When we release the On account and Refund the Amount:

Cash ----Dr

Receivables----Cr

On Account Cash ---Cr

Unapplied Cash -----Dr

Refund----------------Cr

ASSET

Asset Addition

The process of adding a Fixed Asset either through

detailed, quick or mass addition is called asset addition.
Detail and quick addition are carried out only in Oracle
Assets.

The journal entry in Oracle Assets during detailed or quick

addition is

Dr. Asset Cost

Cr. Asset clearing account

Asset clearing account is used to reconcile the

transactions between Oracle Payables and Oracle Assets.
When an asset is added through detailed or quick
additions, the credit goes to the asset clearing account.

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Also for mass addition process, oracle assets use Asset

Clearing account for reconciliation.

In Oracle Assets the journal entry remains the same

Dr. Asset Cost

Cr. Asset clearing account

In AP

Dr Asset Clearing Account

Cr Accounts Payables

Changes:

Changes refer to change in Asset Cost or Depreciation

method or Depreciation rate for one or more assets. Oracle
Assets would use the new cost or depreciation method or
rate from the period of change to arrive at the depreciation
amount. Also it recalculates the depreciation that should
have been calculated so far, compares with the actual
depreciation and passes an adjusting entry.

If the transaction results in addition to the cost of asset,

then the journal entry created is

Dr. Asset Cost

Cr. Asset Clearing

Hence an adjusting entry to incorporate depreciation as per

the new cost of the asset should be incorporated. Also due
to change in method or rate the new depreciation
calculated may be lower or greater than the depreciation
calculated so far.

If the accumulated depreciation recalculated is lower than

the accumulated depreciation calculated until now,

Dr. Accumulated Depreciation

Cr. Depreciation Expense (Adjustment)

If it is greater than the Accumulated depreciation until now,

Dr. Depreciation Expense (Adjustment)

CR. Accumulated Depreciation

Transfer

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Transfers refer to change in Location, expense account,

and employee assignment. If there is a change in expense
account, for e.g. If an asset is transferred from department
001 to department 002,The journal entry for accounting the
asset cost is

Dr. Asset Cost (002)

Cr. Asset Cost (001)

The journal entry for accounting the accumulated

depreciation is

Dr. Accumulated Depreciation (001)

Cr. Accumulated Depreciation (002)

Revaluation

Revaluation is a process so as to reflect current market

price of the Asset.

The journal entry created by revaluing a fixed asset is as

follows:

Revalue Accumulated Depreciation is enabled at the Book

Controls level:

The amount of revaluation would be credited to

Accumulated Depreciation and Revaluation reserve in the
same proportion as the existing Accumulates Depreciation
and Net Book value.

Dr. Asset Cost Cr. Accumulated Depreciation

Cr. Revaluation Reserve

Revalue Accumulated Depreciation is disabled at the Book

Controls level:

To the extend of the revaluation amount, the following

journal entry would be passed.

Dr. Asset Cost

Cr. Revaluation Reserve

Also, the existing depreciation reserve would also be

transferred to the Revaluation Reserve

Dr. Accumulated Depreciation

Cr. Revaluation Reserve

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Oracle Assets passes the following journal entry for

retirement. If the retirement transaction resulted in a Gain,
the journal entry passed would be.

Dr. Accumulated Depreciation

Dr. Proceeds of sale

Cr. Asset Cost

Cr. Gain / Loss

If the retirement transaction resulted in a Loss, the journal

entry passed would be.

Dr. Accumulated Depreciation

Dr. Proceeds of sale

Dr. Gain / Loss

Cr. Asset Cost

Depreciation:

Running depreciation (as applicable to a particular asset)

during the period end would pass a journal entry

Dr. Depreciation Expense

Cr. Accumulated Depreciation

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Pavan Kumar K. • 3rd+ 1y

Principal Functional Analyst- SCM Cloud at Oracle

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Very good info.

One correction-

On ship confirm it is going to be …see more

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Karthikeyan Konar • 3rd+ 2y

Process Lead in Financial Shared Service Team at Morningstar

Thanks for sharing the information. It was really helpful..!

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Amit Thakur ☁
Oracle Cloud Pre-Sales & Solution Delivery Strategy II Sustainability, AI Adoption,
Transformation & Modernization ll Oracle SaaS ll at TechM Europe l Ex- Zensar l Ex-
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