Oracle Fusion cloud | (P2P) Accounting Entries

Oracle Fusion cloud 

Procure to Pay (P2P) Accounting Entries

In Oracle Fusion, all Procurement Account Maintain at Transaction Accounting Builder (TAB), it is same as work as charge account in R12 and you can maintain own TAB as per your business requirement. All the accounts maintain at the task called Mapping Set

• ·         you can set these accounts at inventory organization level or make as default for all inventory organization but default account has lesser preferences as compared to assignment at inventory organization level.
• ·         As compared to R12 where we can set only one accrual account at inventory organization level but in fusion you can maintain as many accrual accounts as you want based on your business requirement.

At the time PO creation, following account assigned

·         PO Charge Account

·         Variance Account

·         AP Accrual Account

When Receipt performed in Supply Chain Execution > Inventory Management> Receipt > Receipt Expected Shipment then following Account hit on the basis of Receipt Method I.e Direct, standard & Inspection

	Dr	Cr
Receipt Inspection Account	1000
AP Accrual Account Account		1000

	Dr	Cr
Inventory (Material) Account	1000
Receipt Inspection Account		1000

When supplier billed the invoice then In payable fusion system invoice will be booked against receipt and liability account picked from supplier site.

	Dr	Cr
AP accrual Account	1000
Supplier Liability Account		1000

At the time of payment, system debit the Supplier Liability Account and credit the Cash Account

	Dr	Cr
Supplier Liability Account	1000
Cash Account		1000