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

    PO Accounting


      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
          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. :)

          S.P DASH
          • 2. Re: PO Accounting
            Thank you very much this realy helped clarify this process.
            • 3. Re: PO Accounting
              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