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 OnAccount 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