Monday, April 26, 2010

Accounting entries in R12 Account Receivables


Invoices:
When you enter a regular invoice through the Transactions window, Receivables creates the following journal entry:
DEBIT Receivables
CREDIT Revenue
CREDIT Tax (if you charge tax)
CREDIT Freight (if you charge freight)

If you enter an invoice with a Bill in Arrears invoicing rule with a three month fixed duration accounting rule, Receivables creates the following journal entries:
In the first period of the rule:
DEBIT Unbilled Receivables
CREDIT Revenue

In the second period of the rule:
DEBIT Unbilled Receivables
CREDIT Revenue

In the third and final period of the rule:
DEBIT Unbilled Receivables
CREDIT Revenue

DEBIT Receivables
CREDIT Unbilled Receivables
CREDIT Tax (if you charge tax)
CREDIT Freight (if you charge freight)

If you enter an invoice with a Bill in Advance invoicing rule, Receivables creates the following journal entries:

In the first period of the rule:
DEBIT Receivables
CREDIT Unearned Revenue
CREDIT Tax (if you charge tax)
CREDIT Freight (if you charge freight)

DEBIT Unearned Revenue
CREDIT Revenue

In all periods of the rule for the portion that is recognized.
DEBIT Unearned Revenue
CREDIT Revenue

Credit Memos:
When you credit an invoice, debit memo, or chargeback through the Credit Transactions window, Receivables creates the following journal entry:
DEBIT Revenue
DEBIT Tax (if you credit tax)
DEBIT Freight (if you credit freight)
CREDIT Receivables (Credit Memo)

DEBIT Receivables (Credit Memo)
CREDIT Receivables (Invoice)

When you credit a commitment, Receivables creates the following journal entries:
DEBIT Revenue
CREDIT Receivables

When you enter a credit memo against an installment, Receivables lets you choose between the following methods: LIFO, FIFO, and Prorate. When you enter a credit memo against an invoice with invoicing and accounting rules, Receivables lets you choose between the following methods: LIFO, Prorate, and Unit.

If the profile option AR: Use Invoice Accounting for Credit Memos is set to Yes, Receivables credits the accounts of the original transaction. If this profile option is set to No, Receivables uses AutoAccounting to determine the Freight, Receivables, Revenue, and Tax accounts. Receivables uses the account information for on-account credits that you specified in your AutoAccounting structure to create your journal entries.

Receivables lets you update accounting information for your credit memo after it has posted to your general ledger. Receivables keeps the original accounting information as an audit trail while it creates an offsetting entry and the new entry.

Commitments:
When you enter a deposit, Receivables creates the following journal entry:
DEBIT Receivables (Deposit)
CREDIT Offset Account

Use the AR: Deposit Offset Account Source profile option to determine how Receivables derives the Offset Account to credit for this deposit.

When you enter an invoice against this deposit, Receivables creates the following journal entries:
DEBIT Receivables (Invoice)
CREDIT Revenue
CREDIT Tax (if you charge tax)
CREDIT Freight (if you charge freight)

DEBIT Offset Account (such as Unearned Revenue)
CREDIT Receivables (Invoice)

When you apply an invoice to a deposit, Receivables creates a receivable adjustment against the invoice. Receivables uses the account information that you specified in your AutoAccounting structure to create these entries.

When cash is received against this deposit, Receivables creates the following journal entry:
DEBIT Cash
CREDIT Receivables (Deposit)

When you enter a guarantee, Receivables creates the following journal entry:
DEBIT Receivables
CREDIT Revenue

Receivables uses the Receivable Account and Revenue Account fields on this guarantee's transaction type to obtain the accounting flexfields for the Unbilled Receivables and Unearned Revenue accounts, respectively.

When you enter an invoice against this guarantee, Receivables creates the following journal entry:
DEBIT Receivables (Invoice)
CREDIT Revenue
CREDIT Tax (if you charge tax)
CREDIT Freight (if you charge freight)

DEBIT Revenue
CREDIT Receivables

When you apply an invoice to a guarantee, Receivables creates a receivable adjustment against the guarantee. Receivables uses the account information you specified in your AutoAccounting structure to create these entries.

When cash is received against this guarantee, Receivables creates the following journal entry:
DEBIT Cash
CREDIT Receivables (Invoice)

Receipts:
When you enter a receipt, Receivables creates the following journal entries:
DEBIT Cash
CREDIT Receivables

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

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

When you enter an unidentified receipt, Receivables creates the following journal entry:
DEBIT Cash
CREDIT Unidentified

When you enter an on-account receipt, Receivables creates the following journal entry:
DEBIT Cash
CREDIT Unapplied

DEBIT Unapplied
CREDIT On-Account

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

DEBIT Cash
CREDIT Receivables

DEBIT Earned/Unearned Discount
CREDIT Receivables

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.

When you enter a receipt and combine it with an on-account credit (which increases the balance of the receipt), Receivables creates the following journal entry:
DEBIT Cash
CREDIT Unapplied Cash

To close the receivable on the credit memo and increase the unapplied cash balance, Receivables creates the following journal entry:
DEBIT Receivables
CREDIT Unapplied Cash

When you enter a receipt and combine it with a negative adjustment, Receivables creates the following journal entries:
DEBIT Cash
CREDIT Receivables (Invoice)

DEBIT Write-Off
CREDIT Receivables (Invoice)

You set up a Write-Off account when defining your Receivables Activity.

When you enter a receipt and combine it with a positive adjustment, Receivables creates the following journal entries:
DEBIT Cash
CREDIT Receivables (Invoice)

DEBIT Receivables (Invoice)
CREDIT Write-Off

When you enter a receipt and combine it with a Chargeback, Receivables creates the following journal entries:
DEBIT Cash
CREDIT Receivables (Invoice)

DEBIT Receivables (Chargeback)
CREDIT Chargeback (Activity)

DEBIT Chargeback (Activity)
CREDIT Receivables (Invoice)

You set up a Chargeback account when defining your Receivables Activity.

Remittances:
When you create a receipt that requires remittance to your bank, Receivables debits the Confirmation account instead of Cash. An example of a receipt requiring remittance would be a check before it was cashed. Receivables creates the following journal entry when you enter such a receipt:
DEBIT Confirmation
CREDIT Receivables

You can then remit the receipt to your remittance bank using one of the two remittance methods: Standard or Factoring. If you remit your receipt using the standard method of remittance, Receivables creates the following journal entry:
DEBIT Remittance
CREDIT Confirmation

When you clear the receipt, Receivables creates the following journal entry:
DEBIT Cash
DEBIT Bank Charges
CREDIT Remittance

If you remit your receipt using the factoring remittance method, Receivables creates the following journal entry:
DEBIT Factor
CREDIT Confirmation

When you clear the receipt, Receivables creates a short-term liability for receipts that mature at a future date. The factoring process let you receive cash before the maturity date, and assumes that you are liable for the receipt amount until the customer pays the balance on the maturity date. When you receive payment, Receivables creates the following journal entry:
DEBIT Cash
DEBIT Bank Charges
CREDIT Short-Term Debt

On the maturity date, Receivables reverses the short term liability and creates the following journal entry:
DEBIT Short-Term Debt
CREDIT Factor

Adjustments:
When you enter a negative adjustment against an invoice, Receivables creates the following journal entry:
DEBIT Write-Off
CREDIT Receivables (Invoice)

When you enter a positive adjustment against an invoice, Receivables creates the following journal entry:
DEBIT Receivables (Invoice)
CREDIT Write-Off

Debit Memos:
When you enter a debit memo in the Transactions window, Receivables creates the following journal entries:
DEBIT Receivables
CREDIT Revenue (if you enter line amounts)
CREDIT Tax (if you charge tax)
CREDIT Freight (if you charge freight)

DEBIT Receivables
CREDIT Finance Charges

On-Account Credits:
When you enter an on-account credit in the Applications window, Receivables creates the following journal entry:
DEBIT Revenue (if you credit line amounts)
DEBIT Tax (if you credit tax)
DEBIT Freight (if you credit freight)
CREDIT Receivables (On-account Credit)

Receivable uses the Freight, Receivable, Revenue, and Tax accounts that you specified in your AutoAccounting structure to create these entries.

Once the on-account credit is applied to an invoice, the following journal entry is created:
DEBIT Receivables (On-account Credit)
CREDIT Receivables (Invoice)

Thanks Realworldoracleapps!!!



2 Responses to “Accounting entries in R12 Account Receivables”

Muzammil said...
March 8, 2014 at 3:02 AM

Good attemped


Amol said...
September 29, 2016 at 4:50 AM

Helpful for interviews....
Thanks a Lot!!


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