Oracle Apps Receivables Accounting Entries****

Transactions Accounting:

Accounting setups:

1. Define Receivable and Revenue Account for Transaction Type like Invoice,Credit Memo,etc.

    Navigation

    Setup>Transactions>Transaction Types



2. Define AutoAccounting which determines defaulting rules for each segment of different Accounts like

    Receivable, Revenue, Tax, etc

    Setup>Transactions>AutoAccounting



Accounting entries:

Below are Transaction Accounts that are hit for Transaction like Invoices and Credit Memos

Invoices

When you enter a regular invoice through the Transactions window,

Receivables creates the following journal entry:

DR Receivables

CR Revenue

CR Tax (if you charge tax)

CR Freight (if you charge freight



Credit Memos

When you credit an invoice, debit memo, or charge back through the

Credit Transactions window, Receivables creates the following journal

entry:

DR Revenue

DR Tax (if you credit tax)

DR Freight (if you credit freight)

CR Receivables (Credit Memo)

DR Receivables (Credit Memo)

CR Receivables (Invoice)



Receipts Accounting:

Depending upon the status of the Receipt whether its Applied, Unapplied, Applied On-Account the

Transaction entries will hit different accounts. The Accounts are defaulted based on Payment method

(Receipt Class) and Remittance Bank selected when you enter the receipt.



Accounting setups:

Navigation:

Setup>Receipts>Receipt Classes

1.Define your Receipt Class along with  Remittance Bank. Receivables uses the default Cash, Unapplied,

   Unidentified, On account, Unearned, and Earned accounts that you specified in the Remittance Banks

    window for this receipt class.



2. Remittance Method: determines status of receipt, remittance required or not Standard, No Remittance



3. Clearance Method: Determines whether clearance is required or not.

        By Automatic Clearing

        By Matching

       Directly

4. At Receipt Class the values of Remittance method and Clearance method determines whether accounting

     entries hit Remittance and Cash Clearing accounts. If these are No Remittance and Clearing is Directly

     the accounting entries don't hit Remittance and Cash Clearing accounts.



Accounting entries:

These examples assume that the receipt has a Remittance Method of No Remittance and a Clearance Method of Directly.

When you enter a receipt and its Unapplied, Receivables creates the following journal entries:

DR Cash

CR Unapplied Cash



When you fully apply a receipt to an invoice, Receivables creates the following journal entry:

DR Cash

DR Unapplied Cash

CR Unapplied Cash

CR Receivables



When you enter an unidentified receipt, Receivables creates the following journal entry:

DR Cash

CR Unidentified



When you enter an on– account receipt, Receivables creates the following journal entry:

DR Cash

CR Unapplied

DR Unapplied

CR On–Account



When your receipt includes a discount, Receivables creates the following journal entry:

DR Receivables

CR Revenue

DR Cash

CR Receivables

DR Earned/Unearned Discount

CR Receivables



At Receipt Class the Remittance and Clearance method is set as Standard and By Matching

Enter the Receipt the entry hits Receipt Confirmation with status of receipt as Confirmed

DR Receipt Confirmation

CR Receivables



Once the receipt is remitted and status becomes "Remitted"

DR Remittance

CR Receipt Confirmation



Once receipt is Cleared

Dr Cash

CR Remittance