Accounting Entries in SAP

https://www.stechies.com/accounting-entries/

https://yourfinancebook.com/accounting-entry-posted-due-to-fi-mm-integration/

Journal Entry for Credit Purchase and Cash Purchase - AccountingCapital

Accounting and Journal Entry for Purchase Returns (With Example) (accountingcapital.com)

P2P Accounting entries in SAP : https://www.youtube.com/watch?

v=Fn2QbrkorjA&t=183s

What is the Journal Entry for Credit Purchase and Cash Purchase?

Journal Entry for Credit Purchase and Cash Purchase

To run successful operations a business needs to purchase raw material and

manage its stock optimally throughout its operational cycle. Accounting and journal
entry for credit purchase includes 2 accounts, Creditor and Purchase. In case of a
journal entry for cash purchase, ‘Cash’ account and ‘Purchase‘ account are used.

The person to whom the money is owed is called a “Creditor” and the amount owed
is a current liability for the company. Purchase orders are commonly used in large
corporations to order goods on credit.

Accounting and Journal Entry for Credit Purchase

In case of a credit purchase, “Purchase account” is debited, whereas, the “Creditor’s

account” is credited with the equal amount.
 Purchase Account Debit

 To Creditor’s Account Credit

Journal entry for credit purchase

Golden rules of accounting applied (UK Style)

 Purchase A/C (Type – Nominal) > Rule – Dr. all Expenses and Losses
 Creditor’s A/C (Type – Personal) > Rule – Cr. the Giver

Modern rules of accounting applied (US-Style)

 Purchase A/C (Type – Expense) > Rule – Dr. the Increase in Expenses
 Creditor’s A/C (Type – Liability) > Rule – Cr. the Increase in Liability

Example – Journal Entry for Credit Purchase

Post a journal entry for – Goods purchased for 5,000 on credit from Mr Unreal

Accounting and Journal Entry for Cash Purchase

Cash Purchase, on the other hand, is simple and easy to account for. In case of
cash Purchase, the “Purchase account” is debited, whereas “Cash account” is
credited with the equal amount.

Purchase Account Debit

  To Cash Account Credit

Journal entry for cash purchase

Golden Rules applied (UK Style)

 Purchase A/C (Type – Nominal) > Rule – Dr. all Expenses and Losses
 Cash’s A/C (Type – Real) > Rule – Cr. What Goes out

Modern Rules applied (US-Style)

 Purchase A/C (Type – Expense) > Rule – Dr. the Increase in Expenses
 Cash A/C (Type – Asset) > Rule – Cr. the Decrease in Asset

Example – Journal Entry for Cash Purchase

Post a journal entry for – Goods purchased for 5,000 in cash from Mr Unreal
Business process GR/IR & SR INVOICE Remarks

1.Stock item INVENTORY A/C – DR GR/IR A/C -DR

Purchase GR/IR CLEARING A/C
CGST A/C – DR

SGST A/C – DR

OR IGST A/C –DR

VENDOR A/C-CR