Key Accounts of P2P in Oracle EBS

8/10/2019 Key Accounts of P2P in Oracle EBS

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Key Accounts of P2P in Oracle EBSKey Accounts.

Receiving Inventory Account

The Receiving Inventory Account is a clearing account. The account is used

for perpetual (on receipt) accruals. After receiving transactions are processed

and the Transfer Transactions to GL process is run, the Receiving Inventory

Account is cleared and the Material account is charged with the cost of the

capitalied inventory. !pecify this account when you de"ne Receiving

Infor#ation for your inventory organiations.

Inventory AP Accrual

This is the account used $y %urchasing to accrue your paya$le lia$ilitieswhen you receive ite#s you will capitalie as inventory. This account

represents your uninvoiced receipt lia$ility and is usually part of your

Accounts %aya$le Lia$ilities in the $alance sheet. %aya$les relieves this

account when the invoice is #atched and validated. !pecify this account

when you de"ne Inventory Infor#ation for your inventory organiations in

the &ther Accounts ta$.

AP LiabilityThis defaults fro# the supplier site and is credited when a standard invoice is

entered or de$ited when a credit #e#o or de$it #e#o is entered. The

account is relieved when the invoice is paid.

Expense AP Accrual

This is the account used $y %urchasing to accrue your paya$le lia$ilities

when you receive ite#s you will e'pense. This account represents your

uninvoiced receipt lia$ility when you run the Receipt Accruals %eriod nd

process. !pecify this account on the Accrual ta$ when you set up %urchasing

&ptions.

Material


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An asset account that trac*s #aterial cost. +or average costing, this account

holds your inventory and in transit values. &nce you perfor# transactions,

you cannot change this account. !pecify this account when you de"ne

Inventory Infor#ation for your inventory organiations in the aluation

Accounts region for the -osting Infor#ation ta$.

Charge Account

This is the charge account is the account that will $e charged for the

purchase on either the $alance sheet or inco#e state#ent. If the destination

type for the distri$ution is Inventory, this account will $e the Material

account associated with the su$inventory and you cannot override it. This is

the $alance sheet account that will $e charged after inventory is capitalied.

If the destination type is e'pense, you can specify this account (provided itisnt pro/ect related) and override any defaults. This account will $e either an

asset clearing account that will $e included on the $alance sheet or an

e'pense account that will $e included on the inco#e state#ent. This account

is either created or speci"ed when you create a purchase order.

Purchase Price Variance

This account is used to record di0erences $etween purchase order line price

and standard cost. The %urchase %rice ariance is calculated when ite#sdelivered to inventory are costed. This account is not used with the average

cost #ethod. +or e'a#ple, assu#e the purchase order line price for an ite#

was set at 123 per ite# $ut standard cost was set to 124 per ite# and you

purchased 23 ite#s. The %urchase %rice ariance would $e 143. !pecify the

%urchase %rice ariance account when you de"ne Inventory Infor#ation for

your inventory organiations in the &ther Accounts ta$.

Invoice Price Variance

The variance account used to record di0erences $etween purchase order

price and invoice price. This account is used $y %aya$les to record the

invoice price variance for inventory ite#s. +or e'pense ite#s, the account

generator uses the charge account to record any invoice price variance. +or

e'a#ple, assu#e the purchase order line price for an ite# was set at 123

per ite# $ut you were charged 124 per ite# and you purchased 23 ite#s.


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The Invoice %rice ariance would $e 143. !pecify this account when you

de"ne Inventory Infor#ation for your inventory organiations in the &ther

Accounts ta$.

Accounting options in Financials ptions in AP.

Liability. %aya$le assigns this account as the default Lia$ility Account for all

new suppliers you enter. 5ou can override this value during supplier entry. If

you use Accrual 6asis accounting, then the Lia$ility Account for an invoice

deter#ines the lia$ility account(s) charged when you create accounting

entries for invoices.

Prepay!ent.The %repay#ent account and description for a supplier sites

invoices. The +inancials option value defaults to new suppliers, and the

supplier value defaults to new supplier sites.Future "ate# Pay!ent. If you use future dated pay#ents, then enter a

value for +uture 7ated %ay#ent account. This value defaults to all new

suppliers and new $an* accounts. The supplier value defaults to all new

supplier sites. The $an* account value defaults to new pay#ent docu#ents.

8hen %aya$les accounts for future dated pay#ents, it uses the +uture 7ated

%ay#ent Account fro# either the supplier site or the pay#ent docu#ent,

depending on the option you select in the %ay#ent Accounting region of the

%aya$les &ptions window. If you relieve lia$ility pay#ent ti#e, this should $e

an asset account. If you relieve lia$ility at future dated pay#ent #aturity,

then this should $e a lia$ility account.

"iscount $a%en. If you choose to distri$ute your discounts to the syste#

7iscount Ta*en Account, %aya$les uses this account to record the discounts

you ta*e on pay#ents. 9se the %aya$les &ptions window to select your

#ethod for distri$uting discounts for your invoices.

P Rate Variance &ain'Loss. %aya$le uses these accounts to record the

e'change rate variance gains:losses for your inventory ite#s. The variance is

calculated $etween the invoice and either the purchase order or the receipt,

depending on how you #atched the invoice. These accounts are not used to

record variances for your e'pense ite#s. Any e'change rate variance for

your e'pense ite#s is recorded to the charge account of the purchase order.

%aya$le calculates these a#ounts during %aya$les Invoice alidation.


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Expenses Clearing.This account is optional when you use the -o#pany

%ay pay#ent option of &racle Internet 'penses. %aya$le uses this as a

te#porary account to record credit card transaction activity. %aya$le de$its

this account when you create an invoice to pay a credit card issuer for credit

card transactions. %aya$les credits this account with o0sets to the original

de$it entries when you su$#it 'pense Report I#port for an e#ployee

e'pense report entered in Internet 'penses that has credit card

transactions on it. If you enter an e'penses clearing account in this "eld and

in the 'penses -learing Account "eld of the -ard %rogra#s window, the

account entered in the 'penses -learing Account "eld of the -ard %rogra#s

window ta*es precedence.

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Key Accounts of P2P in Oracle EBS