One the sensitive process in the Accounting job


Procure To Pay ( P2P): SUPPLY CHAIN MANAGEMENT AND FINANCIAL MANAGEMENT 

Requirement planning> Request for quotation> Creation of Purchase order> Goods Receipt> Preparation of Goods Receipt> Creation of Payment of Invoice> Payment> Reporting ( creating Accounting and Transfer to GL)

1. Requisition- No journal entries 

2. Purchase- No journal entries

3. Receipts (Receiving and Delivery)

i. Inventory Receiving a/c Dr.

   To accural/Goods Clearing  ac

ii. Material/Inventory Valuation a/c Dr

  To inventory Receiving a/c

4. Invoicing 

Accural/ Goods Clearing a/c  dr

To supplier's Liability a/c cr

5. Payment

Supplier's Liability a/c dr.

To Bank clearing a/c cr

6. Payment Reconciliation

Bank  clearing a/c Dr

To bank a/c Cr. 


What is Integrated Accounting system in EPR?


Order-to- Cash ( O2C)

Order Management> Credit Management> Order Fulfillment> Shipping and Transportation> Invoicing> Accounts Receivable> Collection> Reporting

1. Entering/Booking Of sales Order - No journal entry ( interal processs)

2. Pick-up and Release

   Stage Clearing a/c Dr. 

   To Inventory/Finished Goods a.c.. Cr 

3. Shipping Exection 

Deferred COGS a/c dr

To stage clearing a/c cr

4. Sales Invoice

Receivables/Debtors a/c.. Dr

To sales /Revenue a/c Cr

5. Recognition of COGS ( cost of Goods Sold)

COGS a/c... Dr

To Deferred COGS a/c CR

6. Receipt 

Cash clearing a/c Dr

To receivables/Debtors a/c

7. Reconcile Receipt In cash Management

Cash/Bank a/c dr.

To cash Clearing a/c Cr. 



Record to Recorded ( R2R) : 

Record the Transactions>Process the transactions> Closing Cycle> Consolidation> Reporting.