P to P:- Journal Entries:

Requisition No Journal Entries

RFQ No Journal Entries
Quotation No Journal Entries
Purchase Order(PO) No Journal Entries

GRN (Goods Received at Source):

Receiving Material Debit

Inventory AP Accrual Credit

Sub-Inventory Transfer:-

Sub Inventory Material Debit

Receiving Material Credit

Invoice in AP:-

Inventory AP Accrual Debit

Vendor Liability Credit

Payment In AP:-

Vendor Liability Debit

Cash Clearing Credit

Reconcillation:-

Cash Clearing Debit

Cash/Bank Account Credit

Non PO Based Invoices:

Invoice:
Item Expense/Charge Debit
Vendor Liability Credit
Payment In AP:-
Vendor Liability Debit
Cash Clearing Credit
Reconciliation:-
Cash Clearing Debit
Cash/Bank Account Credit

Pre-payment
Invoice:
 Pre Payment/Supplier Advance Debit
Cash / Bank Account Credit
Procure the Material against prepayment:
Item Expense/Charge Debit
Vendor Liability Credit
Adjust the payment with prepayment:
Vendor Liability Debit
Prepayment/Supplier Advance Credit

Bills Payable
Invoice:
Item Expence/Chage Debit
Vendor Liability Credit
Bills payable:
Vendor Liability Debit
Future dated/Bills Payable Credit
Maturity Date:
Future dated/Bills payable Debit
Cash Clearing/Cash/Bank Account Credit

Discount Taken Account

Purchase material from vendor  payment terms  Net 30 day’s If
we pay the amount within one week they will give 3% discount.
Invoice:
Item Expence/Chage – 1,00,000 Debit
Vendor Liability -- 1,00,000 Credit
Payment with in one week:
Vendor Liability - 1,00,000 Debit
Cash Clearing - 97,000 Credit
Discount Taken - 3,000 Credit

Miscellaneous/Freight Account:
Invoices:
Miscellaneous/Freight Expense Debit
Vendor Liability Credit
Payment:
Vendor Liability Debit
Cash Clearing Credit

Realized Gain and Loss Distribution Account:

Invoice time – Exchange rate – 73
Payment Time – Exchange Rate – 74
Invoice: Rate = 73 USD INR
Item Expence/Chage Debit 1000 73,000
 Vendor Liability Credit 1000 73,000
Payment: Rate = 74
Vendor Liability Debit 1000 73,000
Realized Loss Debit 1,000
Cash Clearing Credit 1000 74,000

Expense Accrual:

At Receipt Time:
PO - No Journal Entry
GRN - Expense Debit
Accrual Credit
At period End Time:
PO - No Journal Entry
GRN - No Journal Entry
Month end - Expense Debit
Accrual Credit

Credit/Debit Memo and Refund

Invoice:
Item Expense/Charge Debit
Vendor Liability Credit
Credit/Debit Memo:
Vendor Liability Debit
Item Expense / Charge Credit
Refund:
Cash Clearing Debit
Vendor Liability Credit

Interest Invoice:
Invoice:
Item Expence/Chage – 10,000 Debit
Vendor Liability -- 10,000 Credit
Payment within one week:
Vendor Liability - 10,000 Debit
Interest Expense - 40 Debit
Cash Clearing - 10,040 Credit

Multi period Accounting / Prepaid Expenses

If we pay 6 months contract amount to vendor 6000.But client

may request us to distribute 1000 for every month. For internet
amount.
Invoice:
Deferred Item Debit 6000
 Expenses/Accrual
Cash/ bank Credit 6000

End of the month when we run program: Create Multi period

Accounting

Internet Exp./Item Expenses Debit 1000

Deferred Item Credit 1000
Expenses/Accrual

Fixed Assets
Asset Creation
Invoice in AP:
Asset Clearing Debit
Vendor Liability Credit
Payment in AP:
Vendor Liability Debit
Cash Clearing/Bank Account Credit
Asset Creation in FA:
Asset cost Debit
Asset Clearing Credit

CIP Asset Creation

Invoice in AP:
CIP Clearing Debit
Vendor Liability Credit
CIP Asset Creation in FA:
CIP cost Debit
CIP Clearing Credit
CIP Asset to Asset Conversion in FA:
Asset cost Debit
CIP cost Credit

Depreciation
Dep.Expense Debit
Accumulated Depreciation Credit

Retire the Asset

Dep.Reserve/Accumulated Dep. Debit
Asset Cost Credit
Accounts Receivable
Invoice in AR:
Receivables/Customer Debit
Revenue/Sales Credit
Debit Memo
 Receivables Debit
Revenue Credit
Credit Memo
Revenue Debit
Receivables Credit
Receipt
Confirmed Cash Debit
Receivables Credit
Remittance
Remittance Cash Debit
Confirmed Cash Credit
Un-applied Receipt
Confirmed Cash Debit
Un applied Cash Credit
Un-applied Receipt to Applied Receipt
Un-applied Cash Debit
Receivables Credit
On-account Receipt
Confirmed Cash Debit
On-account Receipt Credit
Convert On-account to Un-applied
On-account Receipt Debit
Un-applied Cash Credit
Miscellaneous Receipt
Confirmed Cash Debit
Miscellaneous Cash Credit
Discount Account
Customer is making payment Before Due Date.
Invoice in AR:
Receivables - 1,00,000 Debit
Revenue - 1,00,000 Credit
Receipt with in one week:
Confirmed Cash - 95,000 Debit
Discount - 5,000 Debit
Receivables - Credit
1,00,000

Invoicing Rule
Bills in Advance

If we are Reliance company => We receive 6 months Service Contract

from Customer. They paid 6000 contract amount. But client may request us
to distribute 1000 for every month. For internet amount.
Invoice:
 Receivables Debit 6000
Un earned Revenue Credit 6000

End of the month

Un earned Revenue Debit 1000
Revenue Credit 1000
Bills in Arrears:
Client provided services later Recognize Revenue.
Invoice:
Unbilled Receivables Debit 6000
Revenue Credit 6000

End of the month

Receivables Debit 1000
Unbilled Receivables Credit 1000
Refund Process:
Receipt amount is 10000,Invoice amount is 9000,Remaining 1000 we
need to refund
Receipt Applied to Invoice
Confirmed Cash – 10000 Debit
Receivables - 9000 Credit
Unapplied Cash - 1000 Credit
Remittance
Remittance Cash Debit
Confirmed Cash Credit
Refund
Un-applied Cash Debit
Refund Credit
In Ap Invoice
Refund Debit
Vendor Liability Credit

Cash Management

Payment in Ap
Vendor Liability Debit
Cash Clearing Credit

Cleared/Reconciled
Cash Clearing Debit
Cash/Bank Account Credit
Receivables:
Remitted Receipts
Remittance Cash Debit
Confirmed Cash Credit
Cleared
Cash/Bank Debit
Remittance Cash Credit

O2C Accounting Entries

Pick Release
Inventory Material Valuation Debit
Staging Material Credit
Shipping Goods
DCOGS Debit
Inventory Material Valuation Credit
Invoice
Customer Receivables Debit
Revenue Credit
Receipt
Confirmed Cash Debit
Receivables Credit
Remittance
Remittance Cash Debit
Confirmed Cash Credit
Cleared
Cash/Bank Debit
Remittance Cash Credit
COGS Recognized in Cost
Management
COGS Debit
DCOGS Credit