ERPstuff - Oracle EBS Community

Hi,

I have little bit doubt in Invoice price Variance Accounting Entry,

Po price =10 qty= 10
Receipt and Invoice price =11

When received material

Receiving Material A/C dr 110
AP Accrual A/C cr 110

When we matched the invoice with receipt,

<b>The Accounting entry is,

AP Accrual A/C dr 100
Invoice price variance A/c dr 10
Liability A/c cr 110</b>

Is this Accounting entry is correct or Vice versa.

Please let me know your Valuable Suggestions.


Thanks & Regards,
Anjireddy.

Hi anjireddy

P2P Entries

Inventory item upon Recipt:
=========================
Receiving inventory a/c (inspection) Dr ****xx
Inventory A/P accrual Cr ********

Upon Delivery:
===============
Material a/c for (inventory org. receiving goods) Dr ****x
Purchase price variance Cr ****x

Purchase price variance Dr ****x
Receiving inventory a/c Cr ****x

Upon Invoicing:
==================
Inventory A/P Accrual Dr ****xx
Invocie Price Variance Cr ****xx

Invocie Price Variance Dr ****xx
A/P liability A/c l cr ****xx

Expense item at period end
========================
Upon receipt and delivery
-no accounting-

Upon invoicing
================
Expense A/c dr ****x
Invocie Price Variance Cr ****xx

Invocie Price Variance Dr ****xx
A/P liability A/c cr ****xx

Expenses item accrue on receipt
==========================
Upon receipt
===========
Receiving inventory a/c dr ************x
expenses A/P accrual a/c cr ************xx

Upon delivery
==========
Expense a/c on purchase order Dr. ****************
receiving inventory a/c cr ****************

Upon Invoicing
Expenses A/P accrual a/c Dr ************xx
A/P liability A/c cr ****xx

HI,

THANKS FOR UR REPLY.

Your mean every both debit and credit entries will create one time or in the case of Invoice price variances increases or decrease.

I understood your reply for given example AS,

Po price 10 and qty 10y 10.
Invoice and Receipt prices is 11 and qt

AP accrual A/C Dr 110
Invoice price variance a/c Cr 10
Invoice price variance a/c Dr 10
Liability A/C cr 110


Thanks & Regards,
Anjireddy.

Hi Anjireddy,

In ur case the accounting entry :

AP accrual A/C ------- Dr 100
Invoice price variance a/c----- Dr 10
Liability A/C -----------------Cr 110

It doesnt create both Debit and Credit.It generate only debit line or credit line based on prove is more or less.

Hope You appreciate!!!