5 Replies Latest reply on Jun 19, 2008 9:21 PM by jennifennibenni

    Expense Item--Accounting

    608027
      For an expense item,the initial accounting entry(during receipt) is
      Receiving inspection a/c Dr.
      Expense AP Accrual a/c Cr.

      Now, thr must be one more accounting entry to balance the Rec. inspection a/c. What is that, and whr is it defined?

      Thx.
      Hryzas.
        • 1. Re: Expense Item--Accounting
          602047
          that entry will be created when you accept the component in Inspection and move it to inventory
          • 2. Re: Expense Item--Accounting
            608027
            What is the othr a/c, and whr is it defined?
            • 3. Re: Expense Item--Accounting
              594214
              That is the inventory account, which you define at organization, subinventory level.
              during the movement of item to inventory, inventory account get debited and liability will get credited.

              Thanks & Regards
              Ankur Dawra
              • 4. Re: Expense Item--Accounting
                628428
                If you are accruing on Receipt for the expense item, the first entry is what you have described. The second one that offsets the receiving account is

                Cr Receiving A/C
                Dr Account used in the PO distributions (if item is used expense account of that item from that organization , subinventory used with no item then expenses accoutn from there if none of these are there then the expense account from orgnaization is used in the PO distribution. If you have extended PO Account generator then it is your Expense account in the PO distribution that gets debited).

                Thanks
                Nagamohan
                • 5. Re: Expense Item--Accounting
                  jennifennibenni
                  Well, it's possible to put expense items into inventory, so the debit side of the accounting entry depends on the destination type listed on your PO.

                  Although, whatever you have listed on the PO it's the DELIVER transaction that creates the offset receiving inspection account entry.

                  Here's a link to the cost management guide that shows all the accounting entries for related transactions.

                  http://download.oracle.com/docs/cd/B25516_18/current/acrobat/115cstug.pdf

                  Hope this helps!
                  Jen