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O2C Cycle With Accounting Entries
O2C Cycle With Accounting Entries
PARTICULARS Sales order entry No Accounting Sales Order Pick From Sub Inventory A/c 100 At Standard Cost Sub-inventory Material A/c Setup Sub-inventory Material A/c Setup ORDER TO CASH DR CR SPL NOTES ACCOUNT IS PULLED FROM
100
At Standard Cost(Staging)
Sales Order Issue COGS 100 It can be fetched from five places Master Item/Org/Order Type/Line Type/Shipping Params Sub-inventory Material A/c Setup
100
At Standard Cost
Transaction level Receivable A/c Tax A/c Freight A/c Revenue A/c Receipts Receipts with no remittance method Cash 100 Before application of the receipt Receipt class 120 10 10 100 Auto Accounting Auto Accounting Auto Accounting Auto Accounting
100 After application of the receipt to the transaction 100 100 100 In case of receipt without customer or transaction when customer indentified 100
Unidentifed A/c Unapplied A/c Receipts with remittance method. Confirmed receipts A/c Unapplied A/c Remitted receipts A/c Confirmed receipts A/c Cash Remitted receipts A/c Receipts with discount/unearned discounts Cash Discount earned A/c Receivable A/c Cash Discount unearned A/c
100
On remittance to bank
90 10 100 90 10
Receivables A/c
100
Transaction type
Accounting Entries for AR Once the Order is shipped then Material account will be credit and COGS Account will be debit. At the time of Invoice creation Revenue account will be credit and receivable account will be debit. At the time of receipt creation. Receivable account will be credit and Bank payment account will be debit