P2P flow

P2P with Requisition (with a new Product)

Added new Product Stationery_2 under product category “MACHINERY & TOOLS” . No costs associated
with this new product.

Navigate to Requisition->
Enter Requisition lines. Notice that the Purchase Order Details tab is empty at this time.

Save the Requisition.

Complete requisition.
Scroll down and enter detials

Enter PO Line
Enter Price, volume information
See that requisition lines populated here in Purchase Order-> PO Line-> Requisition Lines.

Complete the document.

The document Status is in Progress as we have implemented Workflow Approval for PO Document.

Click on the Process button once again and read the message.
 Login and Approve with the Account head that is Ashok/Ashok , then login with Ranjay/Ranjay and
then with Rajiv/Rajiv. Once done the document is automatically completed.

Click on Posst to view accounting entries.

Now Receive the material. Go to Material Receipt window.
Note that the only Document type is MM Receipt and Movement type is Vendor Receipts by default.

Also the Receipt line can be added by clicking on “Create Lines from”.
Once done Click on the receipt lines tab to go to Receipt lines and check details.
As we can see there are more tabs in Receipt lines window. Confirmations is for knowing The quantities
are in the storage Unit of Measure and Attributes tab is not important.

Matched PO’s is for Matching the recept with the PO and same for Invoice. At the moment there are no
records in these tabs.
Complete the document. By clicking on process shipment.
Once done. Click on The Posted button to view accounting entries for Material Receipts posting.

We can go back to the Materials Receipts -> Receipts line window and check out the Matched PO tab.

Now there is a record.

Click on Posted. There are no entries. Because there is no difference between the Purchase price and
the Receipt price.
Now go back to the main Material Receipts window and create an invoice.

Click on Generate Invoice from Receipt. Select the Purchase Price List.
Check the Invoice created. Check all the details and also check the invoice lines.
Here Both the invoice header as well as the invoice lines are created automatically once user clicks on
Create invoice from the Materials Receipt window.

Once all the details are checked clicked on Process Invoice.

Invoice is processed. Click on Posted.

Now head back to Material Receipt window. Click on Receipts Line.

Record appears in Matched Invoices tab. Click to verify eh same
Click on Posted to verify the entries.

Create payment. Go to Payment Window.

Enter the Invoice Detials at the header level as shown above. Amounts Are populated automatically.
Once Document is Completed, The allocations tab also gets populated automatically.
First check the Posting for the Payment document.

Now Go to Allocations Tab,

Click on the Allocation to view the allocation document.

This takes to the View Allocation Window.

Click on Allocation line

Now at the header level click on Posted to see allocation accounting entries.
Now Open Bank/Cash Statement Window to create a bank statement and match with payment.

Choose the Right Bank date

Click on create lines from and select the payment document number.
Click on the statement line to view the line.

Process the statement. Once done click on Posted to view the entry.
.

About Confirmations:- You can click on Create confirmation from Material Receipts window.
Click on the document to view the cofirmtion in Ship/Receipt Confirm Window.
Complete the document. This is nothing but Confirmation of Shipment or Receipt - Created from the
Shipment/Receipt. This has no accounting impact whatsoever..

Accounting Entries for P2P:

1. Create Requisition- no entry

2. Create Purchase Order – no enry

3. Material Receipt –

5612_Product Expense DR -> from Product ->Accounting-> Product Expense

A/c

2121_Not invoiced receipts CR -> from Business Partner Group -> Accounting -> Not-invoiced
Receipts

4. Matching PO with Material Receipt-

(This is to post the difference between the cost of the order line vs the standard cost, if any. Since
Standard Cost = Order line for this cycle there is not entry.)
5621_Purchase price variance DR Product -> Accounting-Purchase Price Variance A/c

5622_Purchase price variance Offset CR Accounting Schema -> Defaults

5.Invoice Creation –

1184_Tax credit DR -> from Tax Rate ->Accounting -> Tax Credit
Account
5612_Product Expense DR -> from Product ->Accounting-> Product Expense A/c

2119_Vendor Payables CR -> from Business Partner-> Vendor Accounting-> Vendor

Liability A/c

6. Matching Invoice with Receipt-

2121_Not invoiced receipts DR -> from Business Partner Group -> Accounting -> Not-invoiced
Receipts

5612_Product Expense CR -> from Product ->Accounting-> Product Expense A/c

(If there is difference in cost as in step 5 then 5619_Invoice Price Variance Account is debited. This
account comes from Product-> Accounting)

7 Payment Creation -

2122_Payment selection DR -> from Bank/Cash -> Account-> Accounting -> Payment Selection

1121_Checking In-Transfer CR -> from Bank/Cash -> Account-> Accounting -> Bank in Transit

8 Payment Allocation-

2119_Vendor Payables DR -> from Business Partner-> Vendor Accounting-> Vendor Liability A/c

2122_Payment selection CR -> from Bank/Cash ->Account-> Accounting -> Payment Selection

9 Bank/Cash Statement Reconciliation-

1121_Checking In-Transfer DR -> from Bank/Cash ->Account-> Accounting -> Bank in Transit

1116_Abu dhabi commercial Bank A/c no. 1 -> from Bank/Cash->Account -> Accounting-> Bank Asset

Important Note: Since OIC is a Service company all the products are defined as either “Service” or as
ITEM with “isStocked” as no. Therefore in the above cycle the account used is Product ->Accounting
from “Stationary_2” product which is not a “stocked” item, therefore Material Receipt, Invoice Creation
and Matching Invoice with Receipt. Otherwise if the Product Type is “ITEM” and “Stocked” is checked
“yes”, then 5615_Inventory Clearing Account is used at Invoice Creation and at Matching Invoice with
Receipt in place of Product Expense account. Also 1171_Product Asset Account is used in place of
Product expense at Material Receipt Creation stage. Both these accounts are in place Product ->
Accounting.

For more see: https://wiki.idempiere.org/en/IDempiere_Accounting

P2P flow (without requisition and with an existing product.
Matching Tab:

Material Receipt or Invoice Lines matched to this Purchse Order Line

Requisition Tab

Related Purchase Requisition Lines

Adding line manually
Or add material line from create lines from
Second line added from create line in the above. Please see “Purchase order line” column appears in the
line.

The rest of the tabs “Confirmation”, Attirbutes, Matched Pos’ etc. still blank.
Delete the additional record/line
Back to Material Receipt -> Receipt line-> A line created in Matched PO’s
Click on Posted.
Now Generate Invoice from Receipt
Invoice
Matching of Receipt with Invoice:
Invoice Price Variance A/c is from Product Accounting

Payment
Allocation
Bank Statement
Now the Matching Entries for this cycle are as follows:

Purchase order PO line-> Matching

Matching Accounting Entries

Costing->

Product -Costs->

Matching Invoice with Receipt.

P2P cycle for Product which which has product type “Item” and is in “Stock”.
I have taken the product DEFUALT (0000) and made sure the product type is “ITEM” and it is
“STOCKED”.

The cycle and accounting entries are as below:

Create Purchase Order:

Create Material Receipt:
Material Receipt Entry:
Matched POS:

Entry for Matched PO

Generate Invoice:

Invoice Entry:
Check the Generated Matching document for Invoice-receipt matching:

Matching Accounting Entries:

Inventory clearing accounting:

Create Payment:
Check Allocation:
Allocation Entries:

Bank/Cash Stastment Reconciliation

Check out Transactions and Located at Tabs in Product window:
Also Check Locater-> Storage

O2C (Generic)
Imp: Check the Product cost of the product stationery_2

Go to Policy details Window (because Order form has been renamed to Policy details for OIC). Also for
the purpose of this exercise I have reactivated Standard Order Document type from Document Type
Window. This is as shown below:

As can be seen below the window has been heavily customized for OIC requirements.
Policy Number is Order No.

Policy Date is Order Date.

Policy Category is Product Category.

Be sure to select Policy Category as because of display customizations we can select product at line level
only if we select the category at header level. Source of business select as Customer.
Move to Policy Line. Which is actually the Order line.

Once again lot of customizations for OIC. Please select the Product. Enter the Quantity and Enter the
Price in Premium column which is actually the price column.
Save the line.

Changed payment term to immediate for the sake of this cycle. Process the order.
Click on Posted to view entries.
Now Navigate to Shipment (Customer) window.

Click on the order search icon to search the order.

Everything else gets populated automatically.

Keep Delivery Rule to Vehicle and Freight Cost rule to Includes Freight.
In the Packing clip line tab, select the Sales Order Line

Process Shipment.
After this Process Shipment..

Click on Posting to view the posting.

Now Click on Generate Invoice from Shipment button
( Generate Manual Shipments from the Genrate Manual Shipments Form

This creates the Chipment Receipt Packing Slip.

Click on Shipment Process. It takes us to the created Packing Lcip Receipt document.

)
Complete the invoice.
Create REceipt
Note that the Checking A/c, Checking in transfer A/c and Bank A/c are setup in Bank/Cash-> Accounts->
Accounting as below:

1. Create Order- No entries

2. Shipment –
5611_Product CoGs DR -> from Product-> Accounting -> Product COGS A/c

1171_Inventory CR -> from Product -> Accounting -Product Asset A/c

3. Invoice
1142_Sales executive receivable DR -> from Business Partner-> Customer Accounting-> Customer Receivables

4110_Trade Revenue CR -> from Product-> Accounting-> Product Revenue A/c

2143_Tax due CR -> from Tax Rate -> Accounting-> Tax Due A/c

4. Receipt
1121_Checking In-Transfer DR -> from Bank/Cash -Account-> Bank in Transit Account

1123_Checking Unallocated Receipts CR -> Bank/Cash-> Account -> Unallocated Cash Account

5. Allocation
1123_Checking Unallocated Receipts DR -> from Bank/Cash-> Account-> Unallocated Cash Account

1142_Sales executive receivable CR -> from Business Partner-> Customer Accounting-> Customer
Receivables

6. Bank Statement
1116_Abu dhabi commercial Bank A/c no. 1 DR -> Bank/Cash-> Account -> Bank Asset A/c

1121_Checking In-Transfer A/c CR -> Bank/Cash-> Account-> Bank in transit Account A/c

Fixed Assets
First Add asset group “Computer and Related”
Link Asset group to Product Category:
Then add the “Depreciation Method”
And “Depreciation Calculation Method”:

Now Create a Product which is an asset:

Asset Addition:
Depreciation Posting:
The accounts are from Asset-> Accounting Setup. The accounts default from the Asset group.
FA Cycle with Invoice and Material Receipt Matching.

Enter the amount date invoiced and account date to last month (It is good to do so for the sake of
practice).
Complete Material Receipt.
The above amount of 5000 comes from the standard cost->

Now go to Invoice Vendor Screen. Create Invoice with the same business partner and also keep the date
as 1st october.
Click on create lines from and select the material receipt.
Check out the Invoice lines.

Create Asset is already selected. Now Enter the Invoice amount as 5000 with 0% VAT.

Select “Capital” and Asset group “1000006_COMPUTER & RELATED”. No need to select Asset.
Process the invoice

Notice that there is a new record in Material Receipt in Material Receipt-> Receipt Line-> Matched
Invoices.
Click on “Posted” to view the accounting entry.
Check out the entry for the invoice:

When Match Invoice document is completed, a new asset record and a new asset
addition record will be automatically generated.
• If you check to the Asset window, you can find the newly generated Asset with autogenerated
value and name with format: Product – Vendor BP – Invoice Document No.
• One important check is the Asset Status and Activation Date. The Asset Status must be
“New” and Activation Date must be null.
Go to “Asset” screen.
Check the records. A new record is already created for the asset received.

Check the Details tab.

Go to Asset Addition screen and Open the document no. 100045.
Notice that Almost everything like Document Type, Asset, Posting Type, Source Type, Invoice, Match
Invoice, Invoice Line, Product, Shipment/Receipt Line, Capital, Create Asset, Document date and
Account Date, Source Amount, Current Quantity already entered. Check the Information.

Then Enter Delta Use Life Years and Delta Use Life Years (fiscal)*.

Complete Asset Addition Process.

Click on Accounting to View entries.
Check the Asset page once again.
Feel Free to change the Search Key to “C1000107”.

Create a record in Post Depreciation Entry with date 31/10/2020:

Process the entry.

Click on Posted to view the entry:

Now Check Asset Balances again.
Move to Asset Diposal Screen.

Enter a new record by selecting the asset above and document and account date as 1 November.

Once the Asset is selected the Disposal Amount, Asset Cost, Expense, Accumulated Depreciation and
Accumulated depreciation Delta are filled by themselves. Disposal Method and Disposal Reason do not
have any real significance.
Please note that there is no use trying to change the amounts. When the Document is processed the
Disposal Amount will automatically equal the Asset cost. And the Accumulated depreciation and Delta
equal each other. The expense will equal the Asset cost – Accumulated depreciation. This as per default
functionality as of now. Can be seen below:

Click on Posting to view accounting entries:

.

Fixed Asset cycle with a new product. (Trying to do the cycle with a new product.)

Create a new product “Computer & Software Related_2”, Attach with Product Category “Computers”.
This product category “Computer” is attached to Asset group “1000006_COMPUTER & RELATED”.
Make sure Product Type is Asset. Add the product to price list AED and Arab Emirates Dirham (AED). This
is as shown below.
FA with Invoice
Create a Material Receipt for the product.
Genarete invoice
Select Capital and Select the Asset Group
Matching Invoice and receipt:
Check the Asset Screen. A record is already created.
Check the asset addition screen. A document is already created for adding tgeh asset. Complete the
document.
Asset Depreciation:
Asset Disposal:
Make sure date is atleast one month before current date for practice.

A little bit about the product used in this cycle:

If the product selected was of the type Item and stocked as yes then the cycle from Material Receipt to
Invoice creation would use the Product Asset Account and the Product Inventory Clearing Account.