How n when the J.entry in PO gets knock off.

[msgnaga]

Hi all,

There is only one actual entry created at the time of recieving goods in purchasing.

Can any one explain how and when the journal entry gets knocked off.

Naga.

[SIVAKUMAR_G]

Hi

This is derived by the Receipt Routing set up. You have
a) Standard Receipt
b) Direct Delivery
c) Inspection Required

In all the three occassion it passes the same accounting entry, but the timing Differs. It creates the following two entries

i) Receiving Material Account Debit (picked up from Receiving Material Account in Receiving Options)
To Accruals A/c (Picked up from Inventory Organization)
This is a Purchasing Module Entry


ii) Material A/c Debit( Picked up from Item Sub inventory Material A/c)
To Reveiving Material Account (Receiving Material account from Receiving Options)
This is a Inventory Module Entry

<font color="red"><b>IMP NOTE:</b></font id="red"> The PO User guide mentions as PO Inspection account in several places but in the Oracle Purchasing Module you will no where find any account defined as PO inspection accout. It refers to the Receiving Material account in Receiving Options Form. This is a Flaw in User guide

a) When you set it as Standard Receipt the First accounting entry is generated and when you receive the inventory in receipts Form and second step the second accounting entry is generated when you receive the material in Receiving Form.

The way to find is When you create the Receipt you will find the Destination Type as Receiving which is Purchasing Module Entry and
when you create Receiving as Second step the destination type will be Deliver which is created in Inventory Module. You will not be able to view the accounting entries in Purchasing Receiving Transactions summary Form for the Destination Type Deliver. You have to view these accounting entries in Inventory Module.

b) If you set it as Direct Delivery then both the entries are created simultaneously

c) If you set it as Inspection required, then the second entry is generated only when you accpet the Goods which is third step after Receiving the Goods

In case of Expense item, the Receipt Routing Does not have any significance and it is picked up from the Item Distribution what you enter as Debit in PO and Accruals as Credit from the Inventory Organization

Hope this helps

Regards
Sivakumar