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 |
|
Account |
DR |
CR |
|
Liability Account |
Debit |
|
|
Cash Account |
|
Credit |
|
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 |