Key Accounts of P2P in Oracle EBS

Key Accounts.
Receiving Inventory Account
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
capitalied inventory. !pecify this account when you de"ne Receiving
Infor#ation for your inventory organiations.
Inventory AP Accrual
This is the account used $y %urchasing to accrue your paya$le lia$ilities
when you receive ite#s you will capitalie as inventory. This account
represents your uninvoiced receipt lia$ility and is usually part of your
Accounts %aya$le Lia$ilities in the $alance sheet. %aya$les relieves this
account when the invoice is #atched and validated. !pecify this account
when you de"ne Inventory Infor#ation for your inventory organiations in
the &ther Accounts ta$.
AP Liability
This defaults fro# the supplier site and is credited when a standard invoice is
entered or de$ited when a credit #e#o or de$it #e#o is entered. The
account is relieved when the invoice is paid.
Expense AP Accrual
This is the account used $y %urchasing to accrue your paya$le lia$ilities
when you receive ite#s you will e'pense. This account represents your
uninvoiced receipt lia$ility when you run the Receipt Accruals ( %eriod )nd
process. !pecify this account on the Accrual ta$ when you set up %urchasing
&ptions.
Material
An asset account that trac*s #aterial cost. +or average costing, this account
holds your inventory and in transit values. &nce you perfor# transactions,
you cannot change this account. !pecify this account when you de"ne
Inventory Infor#ation for your inventory organiations in the ,aluation
Accounts region for the -osting Infor#ation ta$.
Charge Account
This is the charge account is the account that will $e charged for the
purchase on either the $alance sheet or inco#e state#ent. If the destination
type for the distri$ution is Inventory, this account will $e the Material
account associated with the su$inventory and you cannot override it. This is
the $alance sheet account that will $e charged after inventory is capitalied.
If the destination type is e'pense, you can specify this account (provided it
isn.t pro/ect related) and override any defaults. This account will $e either an
asset clearing account that will $e included on the $alance sheet or an
e'pense account that will $e included on the inco#e state#ent. This account
is either created or speci"ed when you create a purchase order.
Purchase Price Variance
This account is used to record di0erences $etween purchase order line price
and standard cost. The %urchase %rice ,ariance is calculated when ite#s
delivered to inventory are costed. This account is not used with the average
cost #ethod. +or e'a#ple, assu#e the purchase order line price for an ite#
was set at 123 per ite# $ut standard cost was set to 124 per ite# and you
purchased 23 ite#s. The %urchase %rice ,ariance would $e 143. !pecify the
%urchase %rice ,ariance account when you de"ne Inventory Infor#ation for
your inventory organiations in the &ther Accounts ta$.
Invoice Price Variance
The variance account used to record di0erences $etween purchase order
price and invoice price. This account is used $y %aya$les to record the
invoice price variance for inventory ite#s. +or e'pense ite#s, the account
generator uses the charge account to record any invoice price variance. +or
e'a#ple, assu#e the purchase order line price for an ite# was set at 123
per ite# $ut you were charged 124 per ite# and you purchased 23 ite#s.
The Invoice %rice ,ariance would $e 143. !pecify this account when you
de"ne Inventory Infor#ation for your inventory organiations in the &ther
Accounts ta$.
Accounting options in Financials ptions in AP.
Liability. %aya$le assigns this account as the default Lia$ility Account for all
new suppliers you enter. 5ou can override this value during supplier entry. If
you use Accrual 6asis accounting, then the Lia$ility Account for an invoice
deter#ines the lia$ility account(s) charged when you create accounting
entries for invoices.
Prepay!ent. The %repay#ent account and description for a supplier site.s
invoices. The +inancials option value defaults to new suppliers, and the
supplier value defaults to new supplier sites.
Future "ate# Pay!ent. If you use future dated pay#ents, then enter a
value for +uture 7ated %ay#ent account. This value defaults to all new
suppliers and new $an* accounts. The supplier value defaults to all new
supplier sites. The $an* account value defaults to new pay#ent docu#ents.
8hen %aya$les accounts for future dated pay#ents, it uses the +uture 7ated
%ay#ent Account fro# either the supplier site or the pay#ent docu#ent,
depending on the option you select in the %ay#ent Accounting region of the
%aya$les &ptions window. If you relieve lia$ility pay#ent ti#e, this should $e
an asset account. If you relieve lia$ility at future dated pay#ent #aturity,
then this should $e a lia$ility account.
"iscount $a%en. If you choose to distri$ute your discounts to the syste#
7iscount Ta*en Account, %aya$les uses this account to record the discounts
you ta*e on pay#ents. 9se the %aya$les &ptions window to select your
#ethod for distri$uting discounts for your invoices.
P Rate Variance &ain'Loss. %aya$le uses these accounts to record the
e'change rate variance gains:losses for your inventory ite#s. The variance is
calculated $etween the invoice and either the purchase order or the receipt,
depending on how you #atched the invoice. These accounts are not used to
record variances for your e'pense ite#s. Any e'change rate variance for
your e'pense ite#s is recorded to the charge account of the purchase order.
%aya$le calculates these a#ounts during %aya$les Invoice ,alidation.
Expenses Clearing. This account is optional when you use the -o#pany
%ay pay#ent option of &racle Internet )'penses. %aya$le uses this as a
te#porary account to record credit card transaction activity. %aya$le de$its
this account when you create an invoice to pay a credit card issuer for credit
card transactions. %aya$les credits this account with o0sets to the original
de$it entries when you su$#it )'pense Report I#port for an e#ployee
e'pense report entered in Internet )'penses that has credit card
transactions on it. If you enter an e'penses clearing account in this "eld and
in the )'penses -learing Account "eld of the -ard %rogra#s window, the
account entered in the )'penses -learing Account "eld of the -ard %rogra#s
window ta*es precedence.