Prepayment Accounting entries in Oracle

Prepayment Accounting Entries in Oracle Accounts Payables

Prepayment Accounting entries in Oracle Accounts Payables

In this post we will see end to end prepayment accounting entries in oracle accounts payables (Prepayment accounting entries), its Payment and It’s application on an standard invoice as well.

Let’s understand what is Prepayment Invoice in oracle Accounts Payables.

Prepayment Invoice: whenever you make any advance payment to a supplier you record this as Prepayment Invoice in Oracle accounts payables

Below are the complete Prepayment Accounting entries in Oracle Accounts Payables

Whenever a Prepayment Invoice is created , below are the prepayment accounting invoice entries are created in oracle payables

Account	DR	CR
Prepaid Expense Account	Debit
Liability Account		Credit

 Whenever a Prepayment Invoice is paid, below accounting entries are created in oracle payables

Account	DR	CR
Liability Account	Debit
Cash Account		Credit

 Whenever Invoice is created for Expense , below accounting entries are created in oracle payables

Account	DR	CR
Expense Account	Debit
Liability Account		Credit

Now whenever the Prepayment is applied to the invoice for the same supplier it will reverse the original prepaid invoice accounts creates the following accounts

Account	DR	CR
Liability Account	Debit
Prepaid Expense Account		Credit

 In the above example we have seen how prepayment accounting entries are generated in oracle accounts payables.

 Prepayment Accounting entries in Accounts Payables|| Prepayment Accounting entries in oracle|| Prepayment accounting entries