hello dear, i think there is a mistake in accounting entry while you are receiving FA item in inventory, put away, entry should be asset clearing account Debit Receiving Account Credit
Please correct me on GRN Accounting entries Receipt: Receiving inventory account Dr Inv.AP Accrual account Cr Delivery: Asset clearing account DR Receiving inventory account CR Invoice Accrual DR Liability CR But I am also thinking that, Accruals for Expense items and assets are recognised in the Period end, so accounting should be as follows PO Receipt: No Entry at receipt. This will be generated and reversed during period close. Charge Account DR Accrual Account CR Invoice: Asset clearing/Charge Dr--comes from PO Liability CR
Hi Sir, could you please explain why the Inventory AP accrual a/c is credited in case of asset received as well as put away. For me it doesn't make sense as I'm new to Fixed Assets and very eager to understand the concept from ERP system point of view. Also could you please explain the difference between PO receipt and item delivered in simple terms as per Oracle ERP point of view. I appreciate your help. Thank you in advance.
@@OracleEbizandFusionVideos Thank you for clarifying sir. Yes indeed. I want to understand the concept of PO receipt & Put Away from transaction point of view
In layman terms, as soon as the goods are received near the gate, PO receipt needs to be created and once the goods are assigned to Bay or shelfs then Put Away transaction needs to be created
@@OracleEbizandFusionVideos Thank you sir! One last question. Considering your above answer, what will be the changes in the accounting entries for PO receipt and put away. Thank you very much for this video. It became very helpful for me to understand from Accounting point of view.
In PUT AWAY step why didn't we use ASSET CLEARING A/C DR. TO AP Accrual this way Material Receiving TO AP ACCRUAL IS NOT GETTING KNOCKED OFF ,Is there any logic behind it ?
Based on the below entries, let me know why do you think that AP Accrual account is not getting knocked off? 1. PO Receipt (i.e. Asset is received):- Receiving Inventory A/c Dr AP Accrual A/c Cr 2. Item Delivered (i.e. Put Away):- Asset Clearing A/c Dr Receiving Inventory A/c Cr 3. AP Invoice:- AP Accrual A/c Dr AP Liability A/c Cr 4. Asset Addition (after Mass Additions Process):- Asset Cost A/c Dr Asset Clearing A/c Cr
Asset Cost account is different from back end (FA_distribution_history) when checking it in Asset category, is there other place to check the asset cost in front end.
Hi, Big fan of you but the entry of Delivery is wrong. It should Credit Receiving Inventory. Can you please tell how will the Asset Clearing account default on PO Charge account. In my case it is defaulting as a Inventory account. How can we make it specific to a Asset Item.
Yes, entry for Delivery was wrong... I realized it after uploading of the video... Please check my description section where i had already updated the correct accounting entry
When you create a FA related AP invoice, the below will be the journal entry which would be created:- Asset Clearing A/c Dr AP Liability A/c Cr When FA Asset is created (after running of Mass Additions process), then the below entry would be created:- Asset Cost A/c Dr Asset Clearing A/c Cr Hope, this clarifies the usuage or significance of Asset Clearing account
Ideally "Track as an Asset" checkbox needs to be checked for AP invoice distribution line in order for Mass Additions process to consider the AP invoice distribution line to be transferred to FA... If you use FA Clearing account in AP invoice distribution line, then "Track as an Asset" checkbox will be automatically checked and hence pushed to FA
Hello sir! , I have a doubt with regarding ap accrual account source you have mentioned ap accrual sources as purchasing options in ap accounting entries video but here mentioned as inventory org parameters, could u pls clarify it .... Thanks in advance
@@OracleEbizandFusionVideos sir! What's the difference between the inventory accrual account which we define under inv .org parameters and the expense accrual account which is defined under purchasing options?
@@jabeenshaik5051 Inventory AP Accrual account is mentioned in Inventory Org Parameters, whereas Expense AP Accrual account is mentioned in Purchasing Options.... System uses Inventory AP Accrual account for Inventory Items and Expense AP Accrual for Expense items
