AR Invoice ( Process for Customer Invoicing)

qty unit price total

numbers

master data

---> legal entity ( enterprise hz_ )

---> business units (hr_org_
---> customer --> name . adress , contacts , vat ....legal information of
customer (hz_ )
---> items --> egp_
---> unit price list -> doo_
---> type of invoice ..> invoice , cedit memo or debit memo (ar_trans_
---> receivables (ar and ra )

ra_customer_trx_all --> header -- trx_date between '23

ra_customer_trx_lines_all --> line level

item_id , unit_price , qty , cust_trx_id

Country jurisdiction
Company Reporting

Legal Entity Name

Ledger
CR
Legel employer
Gosi
ZATCA(VAT)

============================================>
define strucuture in the system
--> legal entity
--> reporting jurisdiction
-> Legal Employer , GOSI , VAT

----------------------------------------------> Ledgers ( accounting book)

---> +ve -ve

 ---> farhan investing --> 1000

+ve 1000 riyal to my bank

+ve 1000 riyad company get from farhan

investor/shareholder/stakeholder

accounting principles

bank dr 1000

farhan cr 1000

five types

-> Asset dr. increase and cr. decrease

-> Liability cr. increase and dr. decrease

-> eQUITY cr. increase and dr. decrease

-> Revenue cr. increase and dr. decrease

-> Expense dr. increase and cr. decrease

Asset types :

1) bank = 1000

2) customer b

3) Inventory = 1000

Liability:

1) supplier waleed = 1000

Equity :

1) shareholder farhan = 1000

Revenue :

1)
 Expense :

1)

---> waleed is the supplier ---> company -> b customer

--> bank 1000

-->
farhan 1000 = 0 = 0

balance sheet ==> total Assets = Total liab. + total Equity

1000 = 0 + 1000

1000-1000 = 0

--->
waleed 1000

--> waleed
cr 1000

1000 = 1000 + 1000

1000 = 2000

--->

Accounting principle that when ever you write any transaciton in the

accounting book (ledger) it should be two lines ( one line dr and second

line will be credit)

waleed cr 1000

inventory dr 1000
----------------------
dr=cr

==> dr-cr = 0
1000 (bank) + 1000(inventory) = 1000(waleed) + 1000(farhan)

2000 = 2000

--->
these transactions ---> GL journal

Journal --> dr = cr

===> Test Company S1 shareholder (1000) -->

---> register legel entity
---> saudi jurisdiction --> CR , GOSI , LO ,
VAT

----> sell the mobiles --

--> Financial statements ( BS , IS , CF)

--> Customers
--> Suppliers
--> stores distribution units
--> employees

--> ERP ( whole enterprise solution Test )

Enterprise Resource planning
--> Family suites
---> Modules (applications)

Oracle Fusion Cloud

--> ERP (Financials)
-> General Ledger
-> Account Receivbles
-> Account Payables
-> fixed Assets
-> Cash Managment

--> SCM ( Supply chain management)

-> Procurement
-> Product management
-> Inventory
-> Costing
-> order management

--> HCM
-> Compensation
-> Talent
-> Core HR

--> CRM
 -> CX
-> Sales

General Ledger --> journal / journal entry / journal

vaucher

----->

---> waleed 100000 -> bank

-> waleed mobile 10000

waleed 90000 bank + waleed 1000 mobile

GL --> WALAYS talk about balance

---> journal --> bank dr 1000

waleed cr 1000

GL Asset - bank
equity - waleed

balance bank 1000

waleed 1000

-->
Journal
waleed dr 100
bank cr 100

-->
balance bank 900
waleed 900

GL keeps balances of Accounts

Financial reportings = BS , IS , CF

BS = total Assets = total

Liabitiy + T Equity

900 = 0 + 900
900=900

IS = Operating Rev

- Operating
Cost

====================

Gross Profit
-
Indirect Expenses

==================
 Net profit

============

0 - 0 = GP (0) - 0 = 0

CF
==> Cash account
operation - financial - investment =

0 - 900 - 0 = -900

--> Account types -- COA chart of

Account
-> bank ,
cash at hand , cash at purse ----> asset

supplier credit , accrual salary ---> liabities

share holder equity ---> Equity

revenue from mobile , revenue from chrgers --> Revenue

employee salary , cost of good sold (cogs) --> expense

journal --> dr = br

bank dr 1000
waleed cr 1000

dr = cr ( bank = waleed)

farhan bank dr 1000

farhan equity cr 1000

farhan dr = farhan
cr
farhan is balacing
element

journal - > GL ledger books

balancing element
=> BS

farhan bank dr
1000
waleed bank
is cr 1000
Balacing element is
always company

----> Journal

Test Company - bank dr

1000
Test Company - share
holder equity cr 1000
 ---> BALANCE ACCOUNT BANK 1000
BALANCE OF SHARE HOLDER EQUITY
1000

--->
Journal headers
journal Lines

--> accounitng cycle -> Periodic - >

Daily , Weekly , monthly ,quaterly , yearly
Acounting Periods
-> begin
balance , activity balacne , ending balance
1000
-100 900
900 -50
850
850 50
900

--> Functional or ledger currency

---> Journals -> BS , account
, Accounting period , Currency , Accounting Method
--> GL (MAIN Modules) which keeps the balances
-> of all Natural Account
-> Assets ( dr to increase and
cr to decrease)
-> Liability ( cr
to increase and dr to decrease)
-> Equity ( cr
to increase and dr to decrease)
-> Revenue ( cr
to increase and dr to decrease)
-> Expense ( dr to
increase and cr to decrease)

---> using these account tyeps

we get Financial statements
-> Balance
Sheet = > Total Asset = Total Liability + Total Equity
-> Income
Statmen = > Operating Rev - Operating Cost =

=> Gross Profit - Indirect

Expenses

=> Net
Proft
-> Cash
Flow => cash operations - finacial activities - investment activity

--->
accounting period

----> Journals --> minimum lines

dr and cr --> dr = cr ( against Balancing element)

---> Accounting
---> Currency ( functional
or ledger currency and entered currency)

Jounral
Test Company bank dr
1000 ( sar) - 1000 sar
test company
waleed share holder cr 300 ( usd) - 1000 sar
---> to have multicurrency
journals we should maintian exchange rates

GL -> COA , Calender ,

Currency , Accounting method

-->
COA -> CHART OF account ->
five types of account

1200 - natural accounts

-> Blance Element

Test company bank

alrahji cr 100
Test Company
salary tech dept farhan dr 100

BSE - > Test

Company == 001
nATURAL Acc ->
bank -10001

salary - 40001
cost center
-> tech dept. - 1001
sub account
-> farhan - 65875

-> alrajhi - 90001

-> no subaccount 00000

---->
Balancing Segment
-->
Natural Account
-->
Cost Center
-->
Sub Account ------> 30 segments

1000

001.10001.90001.00000 cr 100
001.40001.10001.65875 dr 100

code
combinations

-----> 01-24
( 01-01-2024 to 31-01-2024 )

001.40001.10001.65875 begin balance 100 debit balance

perid activity 50 debit balance

ending balance 150 debit balance

001.10001.90001.0000 beg. 1000

actiivyt -100

ending 900
close

---> 02-24 (01-02-

2024 28-02-2024)

001.40001.10001.65875 begin balance 150 0 150

001.10001.90001.00000 begin 900 0 900

---> 03-24

-----> CODE
COMBINATION ---->

Journal =>
Ledger Name
-> Legal Entity -> Balance segment
lines
will be balanced dr = cr

Header :
Ledger NAME,

ACCOUNTING DATE ( Accounting period)

Currency

status

Lines

001.10001.90001.00000 cr 100
001.40001.10001.65875 dr 100

total dr = total cr

status

---> saving
( unposted)
---> posted
(accounting date and period)

-------------------------->
waleed
1. registration
2. COA , accounting period , currency
and accouting method
accounting period -> 01-24 , SAR
, accural method
COA -> BSV , Natural
account
BSV -> Waleed legal
entity -> 001
Natural Account :
Bank - 1001
- Asset
Inventory -
1002 - Asset
suppliers -
2001 - Liability
shareholder
- 2301 - Equity
Selling
Rev. - 3001 - Revenue
Cogs
- 4001 - Expense
salary
- 4002 - Expense

3. ledger => waleed ledger

waleed legal
entity
balacing segment
value for this LE 001
4. open accouting period and start JV
,

JV ->
Headers ( dexription invest waleed share holder)
-
> Ledgername : Waleed Ledger

-> accounting date 01-01-2024 ( accounting period)

-> currency (SAR)

Lines

001.1001 dr 100

001.2301 cr 100

->
save
->
upon posting balances got created or updated

---> Ledger write

this JV in the book of waleed ledger

-> 001.1001 dr balance 100

-> 001.2301 cr balance 100

Balance sheet => ( total assets dr - total asset cr) = 100 - 0 = 100 total
assets

= > (total liabilty cr - total liability dr ) = 0 -0 = 0

total liability

= > ( total euity cr - total equity dr ) = 100 - 0 = 100

total equity

=========

0
---> i procure 2 mobiles of 10
each

Header ->
(description procure 2 mobiles from farhan digital supplier)

ledger name : waleed ledger

accounting date : 02-01-2024 ( 01-24)

currency : SAR

Lines
->

001.2001 cr 20

001.1002 dr 20
 post the JV

=====> Ledger
Balances

->
001.1001 dr balance 100
->
001.2301 cr balance 100
->
001.2001 cr balance 20
->
001.1002 dr balance 20
====>
BS ( 100+20
= 120 = 100+ 20 = 120
120 =
120 = 0 )

====> Paying to
supplier farhan digital
Header ->
Descripting payment to farhan digital

-> Waleed ledger

-> 03-01-2024 ( 01-24)

-> SAR

Lines

001.2001 dr 20

001.1001 cr 20

Posting

=====>
Ledger Balances

->
001.1001 dr balance 100
->
001.2301 cr balance 100
->
001.2001 cr balance 20
->
001.1002 dr balance 20
->
001.1001 cr balance 20
->
011.2001 dr balance 20
 ==>

BS =
( 100 -20 ) + ( 20 - 0) = (20 - 20) + (100 - 0)

80 + 20 = 0 +100

100 = 100

IS ->
0 -0 = 0

CF
=> ( 100 - 20 ) - 0 - 0

80 - 0 -0

80

=====>
alahdal customer

Header : Selling 2 mobiles each of 30 riyal

ledgername waleed ledger

date : 04-01-2024

currency sar

Lines :

001.1001 dr 60

001.1002 cr 20

001.3001 cr 60

001.4001 dr 20

----->

to
generate rev .... we need some expense

sell -> cost ( cogs)

---> 2
mobiles ---> update inventory 20
=====> Ledger Balances ( 01-24)

->
001.1001 dr balance 100 + 60 =160
->
001.2301 cr balance 100
->
001.2001 cr balance 20
->
001.1002 dr balance 20
->
001.1001 cr balance 20
->
001.2001 dr balance 20
->
001.1002 cr balance 20
->
001.3001 cr balance 60
->
001.4001 dr balance 20

BS = (160 -20 ) + (20-20) = 140

20 - 20 = 0

100 - 0 = 100 ( Retained earning ( total REV - Total Expense)

100 + (( 60 - 0) - (20 - 0))

100 + (60-20)

100 + 40

140

140 = 140

------> GL
journals
balancing segment
accounting period
(calender)
currency
accounting method
chart of account
==> Code combination
-> bs + natural account + ..... 30 segment

-> natural acc values -> types of account

===> journal -lines CC

dr and cr

ledgers
legal entities
balances against BS wiht
CC either dr balance or a cr balances
---> cc begin balance
activity ending balance of accounting period

----> new environment

Financials -> GL -->
Summarised balances ( Record to Report)
-> Accounts
Payables
-> Account
Receivables
-> Cash
Managment
-> Fixed
Assets

--> Business Cycles

--> Business Process
(functions)

--> buying mobile -->

business cycle
-> want mobile -> money ->
which mobile -> mobile store -> purchase mobile -> payment
P2P ( procure to pay )

---> idea ( Product

managment) ->cash management -> Procurement ( PIM , Sourcing , Reuisition )
-> (suppliers ) -
> (purchasing ) -> Accounts Paybles , expense (1000) tea , dispoal cups ,...

---> Acquire to Retire

--> item (fixed asset)
--> depreciation -> retired (selling or disposed)

---> inventory -> customer

-> sales order -> issue item inventory -> customer invoice

-> customer payments

O2C -> order to cash
-> inventory ->
account receivables - > Order management -> inventory - > account receivables
(invoice)
 - -> account
receivale (recipts ) -> bank

--> FIN , SCM

-> gl,ap,ar,ce,fa
-> inventory, procurement, ont , pim, costing
-> manual jv -->

ledger
and Sub ledgers
->
ledger always keeps summarized balance
->
sub ledgers are maintianed detail balance

-->
transaction in sub ledger

1. bank cr 1000

expe dr 1000

-> post to ledger

2. bank cr 900

exp dr 900

->
ledgers and sub ledgers

-> SUB LEDGER Accounts payabes

-> invoice -> tells pay

-> supplier cr 2

-> batatis dr 2

-> payment -

-> cash cr 2

supplier dr 2

Accounting methods

--> accrual accounting

--> cash accounting

->
-> liability

-> expense

-> quity