3 Replies Latest reply on Nov 24, 2009 4:38 PM by S.PDASH

    PO Accounting

    735027
      Hi

      Just want to know when and how does accounting gets generated whenever a receipt is made.

      You someone can help with the whole flow of PO accounting,it will be much appreciated.

      Thanks in advance
        • 1. Re: PO Accounting
          S.PDASH
          Hi,
          Accounting during different stages of PO are as follows :

          Step1: (When PO is raised.)
          No accounting entry.

          Step2: (When goods is received against the PO)
          Receiving a/c     Dr.
          AP Accrual a/c      Cr.

          Step 3: (When goods received in inventory.)
               Material a/c Dr.
               Receiving a/c Cr.

          Step 4:(When invoice is entered)
               AP Accrual a/c      Dr.
               Liability a/c      Cr.

          Step 5: (When invoice is paid.)
               Liability a/c      Dr.
               Cash clearing a/c Cr.

          Step 6:(When reconciled through CM)
               Cash clearing a/c Dr.
               Bank/ Cash a/c Cr.

          Hope above explanation will help. :)

          Regards,
          S.P DASH
          • 2. Re: PO Accounting
            735027
            Thank you very much this realy helped clarify this process.
            • 3. Re: PO Accounting
              S.PDASH
              Hi,
              You are most welcome.
              Would you mind to close this thread along with your feedack. Mark it as Correct or helpful so that other people can refer this thread in future.


              Regards, :)
              S.P DASH