515723, 758 AM ‘Accounting Entries in Oracle Fusion Cloud Application i 2 > 3 %, ® oro 2 BP % S2Y% went LCE oat Accounting Entries in Oracle Fusion Cloud Application 2 Amit Thakur + Follow Business Development & Strategy - CME & Enterprise Accounts Il Oracle Cloud Transformation, Modernization, Rainmaker & Pre-Sales Il SaaS II at TechM UK | Ex- Zensar | Ex- TCS | Ex- Genpact | Ex- Birlasoft | Blogger Published Sep 13, 2019 Procure-to- Pay Accounting Entries: When we receive the Goods in the staging area the accounting entry would be (GRN): Receiving Inventory --- Dr-----It will pick from receiving options. Ap Accrual --- Cr---It will pick from Purchasing Options. When we are moving the Goods from Staging area to Sub-Inv (Recv Trans): hitpsswwtikecin.comipulsslaccounting-anvies-fusior-cloud-application-amithakur- ana51523, 759 AM ‘Accounting Entries in Oracle Fusion Cloud Application Ap Accrual --- Dr Liability ---- Cr-----It will pick from supplier Liability While Making Payment: Liability - Dr Cash Clearing - Cr-----It will pick from Bank Reconciliation: Cash Clearing --- Dr Cash - Cr Standard Invoice Entry :. Ap Accrual --- Dr Liability ---- Cr Debit and Credit Memo Entries: Liability --- Dr Ap Accrual --- Cr Prepayment Entries: While Creating Prepayment Invoice: Prepayment --- Dr----It will pick from supplier Liability - Cr----It will pick from supplier While Making Payment to Prepayment: Liability - Dr hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- ana51523, 759 AM ‘Accounting Entries in Oracle Fusion Cloud Application Prepayment - Cr INTEREST INVOICE ENTRY WHILE MAKING PAYMENT: Interest expenses —- Dr-----It will pick from Financial options Liability EXPENSE REPORT ENTRY: Item Expense A/C --- Dr Liability --- Cr PAYMENT REQUEST INVOICE ENTRY : Item Expense --- Dr Liability - Cr FUTURE DATED PAYMENT ENTRY : When Bills Issued: Item Expense - Dr Bills Payable --- Cr When Maturity Date Confirmed: Bills Payable - Dr---It will pick from Supplier or Financial options Liability - Cr WITH HOLDING TAX ENTRY : hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- ana51523, 759 AM ‘Accounting Entries in Oracle Fusion Cloud Application Withholding --- Cr-----It will pick from WHT codes Auto Generated WHT Entry: Item Expense - Dr RETAINAGE RELEASE ACCOUNTING ENTRY: When Invoice matched with PO accounting entry would be: It will pick from financial options While making payment to the invoice matched with PO: Liability When Retainage Release Invoice Matched with PO accounting entry would be: Retainage --------Dr Liability --- ---- Cr While making Payment to Retainage Release: Liability ---Dr Pick Release: hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- ana51523, 759 AM ‘Accounting Entries in Oracle Fusion Cloud Application COGS ---- Dr----It will pick from Inv Information Receiving Inv (Sub-Inv) ---- Cr While Creating Transaction: Receivable ---- Dr Revenue ------- cr Freight -------- Cr Tax --~ ike Qeomment A Share ©0© 108-8 Comments Receivables ----Cr When Remitted: WHEN STATE IS REMITTED Remitted Cash ---- Dr Confirmed Cash--------Cr When Reconciled: WHEN STATE IS CLEARED Remitted Cash --- Cr DEPOSIT ACCOUNTING ENTRY: When we create DEPOSIT invoice the accounting entry would be: Receivable --- Dr Accrual (Unearned Revenue) -------- cr hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- sina51523, 759 AM ‘Accounting Entries in Oracle Fusion Cloud Application When Deposit adjusts with actual transaction invoice the entry would be: Unearned Rev (Accrual) -----Dr Receivables------~ Cr GAURANTEE ACCOUNTING ENTRY: When we crate Guarantee transaction: Unbilled receivable----Dr Unearned Revenue ---Cr When we create sales Invoice: Receivable Revenue -------' Cr When Guarantee transaction adjusts with sales invoice: Unearned Revenue ---Dr Unbilled Receivable—Cr REVENUE RECOGNISATION: INVOICE ADVANCE: When we create sales invoice and set invoicing rule as IN ADVANCE(FIXED SCH): Receivables ---- Dr Unearned Revenue -------- Cr Once we recognize the Revenue the accounting entry would be: Unearned Revenue ---- Dr hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- ana51523, 759 AM ‘Accounting Entries in Oracle Fusion Cloud Application Revenue --------~ Cr INVOICE ARREARS: REVENUE RECOGNISATION using Invoice Arrears Schedule: Unbilled Receivables—Dr Revenue----. Cr Once we have billed the customer Receivables. --Dr Unbilled Receivables—Cr ON-ACCOUNT ACCOUNTING ENTRY: When we created the Receipt and applied to On Account : Cash ---Dr Receivables ----CR, ONACCOUNT ----~ Cr CUSTOMER REFUND ACCOUNTING ENTRY : When we release the On account and Refund the Amount: Cash ----Dr Receivables----Cr On Account Cash ---Cr Unapplied Cash -----| Dr Refund. hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- m351523, 759 AM ‘Accounting Entries in Oracle Fusion Cloud Application i 2 called asset addition. Detail and quick addition are carried out only in Oracle Assets. The journal entry in Oracle Assets during detailed or quick addition is Dr. Asset Cost Cr. Asset clearing account Asset clearing account is used to reconcile the transactions between Oracle Payables and Oracle Assets. When an asset is added through detailed or quick additions, the credit goes to the asset clearing account. Also for mass addition process, oracle assets use Asset Clearing account for reconciliation. In Oracle Assets the journal entry remains the same Dr. Asset Cost Cr. Asset clearing account In AP Dr Asset Clearing Account Cr Accounts Payables Changes: hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- ana515723, 758 AM ‘Accounting Entries in Oracle Fusion Cloud Application i 2 the actual depreciation and passes an adjusting entry. If the transaction results in addition to the cost of asset, then the journal entry created is Dr. Asset Cost Cr. Asset Clearing Hence an adjusting entry to incorporate depreciation as per the new cost of the asset should be incorporated. Also due to change in method or rate the new depreciation calculated may be lower or greater than the depreciation calculated so far. If the accumulated depreciation recalculated is lower than the accumulated depreciation calculated until now, Dr. Accumulated Depreciation Cr. Depreciation Expense (Adjustment) If it is greater than the Accumulated depreciation until now, Dr. Depreciation Expense (Adjustment) CR. Accumulated Depreciation Transfer Transfers refer to change in Location, expense account, and employee assignment. If there is a change in expense account, for e.g. If an asset is transferred from department 001 to department 002,The journal entry for accounting the asset cost is Dr. Asset Cost (002) Cr. Asset Cost (001) The journal entry for accounting the accumulated depreciation is hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- ona51523, 759 AM ‘Accounting Entries in Oracle Fusion Cloud Application i 2 Revaluation is a process so as to reflect current market price of the Asset. The journal entry created by revaluing a fixed asset is as follows Revalue Accumulated Depreciation is enabled at the Book Controls level: The amount of revaluation would be credited to Accumulated Depreciation and Revaluation reserve in the same proportion as the existing Accumulates Depreciation and Net Book value. Dr. Asset Cost Cr. Accumulated Depreciation Cr. Revaluation Reserve Revalue Accumulated Depreciation is disabled at the Book Controls level: To the extend of the revaluation amount, the following journal entry would be passed. Dr. Asset Cost Cr. Revaluation Reserve Also, the existing depreciation reserve would also be transferred to the Revaluation Reserve Dr. Accumulated Depreciation Cr. Revaluation Reserve Oracle Assets passes the following journal entry for retirement. If the retirement transaction resulted in a Gain, the journal entry passed would be. Dr. Accumulated Depreciation Dr. Proceeds of sale Cr. Asset Cost hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- 013515723, 758 AM ‘Accounting Entries in Oracle Fusion Cloud Application lin] 2 Dr. Proceeds of sale Dr. Gain / Loss Cr. Asset Cost Depreciation: Running depreciation (as applicable to a particular asset) during the period end would pass a journal entry Dr. Depreciation Expense Cr. Accumulated Depreciation José J Lopez Liétor amo Oracle E85 & Cloud Senior Consultant Thanks Like+ Reply Vanita Sharma Tmo Assistant Professor Commerce Thank you Like- Reply Karthikeyan Konar y 2rocess Lead in Financial Shared Service Team at Morningstar Thanks for sharing the information. It was really helpful Like+ Reply niyamadullah abdulkhader ly Oracle Financial Functional Consultantt hitpsswwtikein.comipulselaccounting-anvies-fusior-cloud-application-amithakur- wns515723, 758 AM ‘Accounting Entries in Oracle Fusion Cloud Application i 2 To view or add a comment, sign in More articles by this author Aids to professional drivers "Rapid Implementation’- _ Oracle Cloud Fusion for using OFA with Oracle... Strategic Success in Fusio... Application Period Close Jun 11, 2019 Apr 5, 2018 Feb 20, 2017 See all Others also viewed £004 4 Job Search Survival Guide for Impatient People Get Hired by Linkedin News « 3mo =~ EFERL_ Short Comparison of Oracle Unified Method (OUM) Vs (AIM) Oracle Application a Implementation Methodology : Documents point of view. 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