Major Accounting Entries in Oracle Purchasing, Inventory, OM, AP & AR Modules

Procure to Pay :

At Receipt of Goods
o Dr Receiving A/c
o Cr Inventory AP Accrual A/c
AT Delivery of Inventory Items
o Dr Material A/c
o Cr Receiving A/c
At Matching PO to Invoices
o Dr Inventory AP Accrual A/c
o Cr AP Liability A/c
On Payment to supplier
o Dr AP Liability A/c
o Cr Cash/Bank (Asset A/c)
And if the Accrual Method is put to Period End, then the Expense/Charge account will be hit
instead of hitting the AP Accrual Account while you create your invoices in AP against matching a
PO.
For Period End :
o Dr. Expense Charge A/c
o Cr. Expense AP Accrual A/c
And at the Beginning of the Next Period:
o Dr. Expense AP Accrual A/c
o Cr. Expense Charge A/c

Order to Cash :

At Entry/Booking
o No Accounting Entries happen
At Shipping :
o Dr COGS A/c
o Cr Material A/c
At invoicing :
o Dr Receivables A/c
o Cr Revenue A/c
o Cr Tax A/c
o Cr Freight A/c
For RMA/RGA
o Dr Revenue A/c
o CR Receivables A/c
Refund to Customer
o Dr Receivables A/c
o Cr AP/AR Clearing A/c
Bank Reconciliation
o Dr Cash Clearing A/c
o Cr Bank/Cash A/c
Inventory/Warehouse :

At Pick Release or Sub-Inventory Transfers including WIP transfers :

o No Accounting Entries if Material A/c is same OR
o If each subinventory has different Material accounts then :
Dr Material A/c 1
Cr Material A/c 2
Inventory Item Issued to a Department
o Dr Expense A/c
o Cr Inventory Valuation
Asset Item Capilatized
o Dr Asset A/c
o Cr Asset Clearing A/c
Misc Transactions : (Use Scrap A/c to issue from/to in case of Scrap)
o Issue from Sub-Inventory
Dr GL A/c
Cr Organization Valuation A/c
o Issue to Sub-Inventory
Dr Organization Valuation A/c
Cr GL A/c
Cycle Count / Physical :
o Count > OHB :
Dr Organization Valuation A/c
Cr Adjustment A/c
o Count < OHB :
Dr Adjustment A/c
Cr Organization Valuation A/c

IR->ISO Accounting Entries :

(1) In Shipping Unit at the time of Shipment

Source : OM
In-Transit A\C ( ITR) Dr
Inventory A\C ( INV ) Cr

(2) In Shipping Unit at the time of Receiving in Receiving Unit

Source : PUR
Inter Org Receivable ( IOR) Dr
In-Transit A\C ( ITR) Cr
(3) In Receiving Unit at the time of Receiving in Receiving Unit
Source : PUR
Inventory A\C ( INV ) Dr
Inter Org Payable ( IOP) Cr

NOTE : After transferring entries from Inventory/AR/AP Modules to GL, You can see the above Journal
Entries if you query the Journal Source. This is beyond the scope of this document
How to View Accounting Entries from Inventory Module ?

Logon to Oracle EBS and choose Inventory or similar responsibility (NOTE : The Interface
Managers should active especially the Cost Manager)
Navigate to Material Distributions Path as shown

Enter some basic/few parameters and press Find:

You will see various transactions listed as follows :

 Click the TAB Location :

Click the TAB Type :

Currency & Comments TAB fields are blanks