Oracle ERP system lending relationship

Entries generated by the system in different steps:

1) The inventory module generates the following entries for receiving:
Borrow: material procurement (purchase Unit Price X order quantity)
Loan: accrued liabilities (purchase Unit Price X order quantity)

 

2) The entries generated by the inventory module during inspection and warehouse receiving are:
Borrow: raw materials (depending on the sub-stock subject settings) (system cost X order quantity)
Loan: material procurement (purchase Unit Price X order quantity)
Borrow/borrow: BPPS (difference between purchase price and standard cost)

 

3) when the invoice matches the purchase order, the entries produced by the payable module are:
Borrow: accrued liabilities (purchase Unit Price X order quantity)
VAT-input tax amount
Loan: accounts payable (depending on system settings) (invoice Unit Price X order quantity)
Borrow/borrow: IPV (difference between invoice and purchase price)

 

4) invoice payment
Borrow: Accounts payable
Loan: no bank deposits/cash

 

 

Cost accounting Accounting Information Induction
Summarize the source types of transaction processing.
I,Receiving and returning purchases:
1. Receipt: Borrow: Material Purchase (Order Price)
Loan: accrued liabilities (Order Price)

 

2. warehouse receiving: Borrow: raw materials (standard cost)
Loan: material procurement (Order Price)
Borrow or borrow: material cost difference _ material order price

 

3. When the return is received, an entry opposite to Step 1 is generated. When the return is made to the supplier, an entry opposite to Step 3 is generated.

 

II,Sub-stock transfer:Only the transferred sub-database generates entries
Borrow: raw materials (self-made semi-finished products, stock goods)
Loan: raw materials (self-made semi-finished products, stock goods)

 

III,Miscellaneous Transaction Processing:
1. Inventory increase: Borrow: raw materials (self-made semi-finished products, inventory goods)
Loan: account alias (or custom account)

2. Inventory reduction: opposite to the above entries

 

IV,Purchase invoice matching:

Borrow: accrued liabilities (Order Price)
Tax payable _ VAT _ input tax
Loan: accounts payable (invoice price)
Borrow or borrow: material cost difference _ material invoice price difference

 

V,PRODUCTION STAGE:
1. Standard Ticket:
① Standard ticket receipt: Borrow: Production Cost _ direct production cost _ material
Loan: raw materials (self-made semi-finished products, stock goods)
② Standard work order return: The Opposite entry
③ Standard Ticket resource transaction processing (I .e. manual): Although our company does not perform actual manual cost accounting in the WIP module, the system will automatically calculate a sum, the system generates the following entries based on the "production cost _ direct labor" account used to define resources:
Borrow: Production Cost _ direct production cost _ direct labor (including cost center information)
Loan: Production Cost _ direct production cost _ direct labor
(The value is zero, and this entry is generated only when a ticket for the Assembly that defines the resource and process route)
Therefore, when the general ledger module processes actual labor and manufacturing fees, it is recommended that:
Borrow: Production Cost _ production cost difference _ labor (pay-as-you-go)
Loan: pay-as-you-go
Borrow: Production Cost _ production cost difference _ cost (actual manufacturing cost)
Loan: Manufacturing Cost
④ Standard work order completion warehouse receiving: Borrow: raw materials (self-made semi-finished products, inventory goods)
Loan: Production Cost _ direct production cost _ direct materials
Production Cost _ direct production cost _ direct labor
Production Cost _ direct production cost _ direct cost
(Only inventory items have labor and expense subjects)
⑤ There is no difference when the ticket is closed if the production cost is the same as the production cost based on the standard cost, that is, the production cost is the same as the offset cost;
⑥ When the ticket is closed, if the material cost is higher than the charge-off cost, that is, excessive material consumption:
Borrow: Production Cost _ difference in production cost _ Materials
Loan: Production Cost _ direct production cost _ direct materials
If there is less material consumption, reverse entries are generated.
The production process only produces a difference without a price difference.
7. When the ticket is closed, the entries for labor and expenses are constant:
Borrow: Production Cost _ direct production cost _ direct labor (standard)
Production Cost _ direct production cost _ direct cost (standard)
Loan: Production Cost _ production cost difference _ labor
Production Cost _ production cost difference _ cost

 

2. Non-Standard Ticket(Do not summarize general entries, such as materials)
① There is a non-Disassembling ticket for warehouse receiving after completion
When the product is delivered: Borrow: Production Cost _ direct production cost _ direct material (standard)
Production Cost _ direct production cost _ direct labor (standard)
Production Cost _ direct production cost _ direct cost (standard)
Loan: Finished Product
When warehouse receiving is completed: Borrow: stock item
Loan: Production Cost _ direct production cost _ direct materials (standard)
Production Cost _ direct production cost _ direct labor (standard)
Production Cost _ direct production cost _ direct cost (standard)
　　　　　
Off: Borrow: Production Cost _ direct production cost _ direct labor (standard)
Production Cost _ direct production cost _ direct cost (standard)
Loan: Production Cost _ production cost difference _ labor
Production Cost _ production cost difference _ cost
Borrow: Production Cost _ difference in production cost _ Materials
Loan: Production Cost _ direct production cost _ direct labor (standard)
Production Cost _ direct production cost _ direct cost (standard)
② Disassembly ticket:
Deliver finished product, same as above;
Issuing negative components: Borrow: raw materials (self-made semi-finished products)
Loan: Production Cost _ direct production cost _ direct materials
Return the negative component and generate the Opposite entry;
Off: Borrow: Production Cost _ production cost difference _ material
Loan: Production Cost _ direct production cost _ direct materials (standard)
Production Cost _ direct production cost _ direct labor (standard)
Production Cost _ direct production cost _ direct cost (standard)

 

3. Other types of outsourced processing, outsourced processing, and encoding splitting are similar to ticket processing (because the subject settings are the same)

 

6. Sales:
1. Pick the database: Borrow: pay by installment to issue goods
Loan: inventory goods (self-made semi-finished products and raw materials)
2. Shipping: delivery of goods by installment
Loan: Goods issued by installment

 

VII. Cost update:
1. Impact on inventory:
If the unit cost increases, borrow: raw materials (self-made semi-finished products, inventory goods)
Loan: material cost difference _ material cost update difference
If the unit cost is reduced, reverse entries are generated.
2. Different ticket statuses must be distinguished for the impact on products
① The work order has been issued, the components have not been issued, and the accessories have not been imported into the warehouse. The upgrade of the accessories, materials, labor and manufacturing costs, and components will not be affected;
② The work order has been issued, components have been released, and accessories have not been loaded into the warehouse. The update of accessories materials, labor, and manufacturing costs does not affect the cost update of a component,
Borrow (loan): Production Cost _ direct production cost _ direct materials
Loan (borrow): Production Cost _ production cost difference _ Production Cost
③ The work order has been issued, the component has been released, and parts are loaded into the Warehouse. If a component update of the Assembly causes the Assembly cost to be updated, the updates of the component and the Assembly will have an impact:
(Component cost increase) component impact:
Borrow: Production Cost _ direct production cost _ direct material (released quantity * updated value)
Loan: Production Cost _ production cost difference _ work-in-process cost
Impact of accessories:
Borrow: Production Cost _ production cost difference _ work-in-process cost
Loan: Production Cost _ direct production cost _ direct material (number of checked items * updated value)
The cost of new accessories will be reduced for future warehouse receiving.
Reduce component costs and generate reverse entries.
④ The ticket has been issued, the component has been released, and parts are loaded into the database. The materials are not updated, and the Assembly resources or manufacturing costs are updated (manual non-accumulative update is defined) impact on warehouse receiving:
Cost increase: Borrow: Production Cost _ production cost difference _ work-in-process cost
Loan: Production Cost _ direct production cost _ direct labor (number of warehouse receiving * updated value)
(Or loan: Production Cost _ direct production cost _ direct cost)
Cost reduction produces reverse entries.
⑤ The work order is complete, the component has been released, and a component is updated (but the accessories are not updated), which will affect the component sending:
Cost increase: Borrow: Production Cost _ direct production cost _ direct material (released quantity * updated value)
Loan: Production Cost _ production cost difference _ work-in-process cost
Cost reduction produces reverse entries.
⑥ The ticket has been completed and the component has been released. A component update will cause the component material cost to be updated, which will affect the component issuance and Assembly warehouse receiving:
Cost increase: Borrow: Production Cost _ direct production cost _ direct material (released quantity * updated value)
Loan: Production Cost _ production cost difference _ work-in-process cost
Borrow: Production Cost _ production cost difference _ work-in-process cost
Loan: Production Cost _ direct production cost _ direct material (warehouse receiving quantity * updated value)
Cost reduction produces reverse entries.
7. The ticket has been completed, the component has been released, the materials have not been updated, and the resources or manufacturing costs have been updated (manual definition is not accumulative ):
Cost increase: Borrow: Production Cost _ production cost difference _ work-in-process cost
Loan: Production Cost _ direct production cost _ direct labor (direct cost)
Cost reduction produces reverse entries.

 

8. carry forward the sales cost in the general ledger Based on the invoicing Information:
Borrow: main business costs (Other business expenditures _ materials)
Loan: Goods issued by installment

 

IX. summarize different accounts and share them in the general ledger according to rules.
1.Procurement acceptanceThe accounting entries are as follows :(
Borrow): Goods Receiving subject (accounting Inventory) @ PO Price
(Loan): Inventory AP amount (Inventory AP Accrual) @ PO Price

 

2.Warehouse receiving jobIf there is an account payable statement, follow the statement. If there is no statement, the purchase order information is used and the accounting entries are as follows (assuming there is an account payable statement ):
(Borrow): original Material Account (Material Account) @ Account Payable local currency amount
(Loan): Receiving subject (accounting Inventory) @ PO Price
(Borrow or borrow): Invoice Price Variance (IPV)
Purchase order settlement income/Loss (Rate Variance Gain/Loss)

 

3.Accounts payable account creationThe accounting entries are as follows:
(Borrow): Inventory AP amount (Inventory AP Accrual) @ PO Price
(Loan): Accounts payable subject @ Accounts Payable local currency amount
(Borrow or borrow): Invoice Price Variance (IPV)
Purchase order settlement income/Loss (Rate Variance Gain/Loss)

 

4. under the periodic cost, if the original material purchase invoice is matched with Receipt during billing, the periodic cost will change the invoice price difference (IPV) of this invoice into the original material cost, however, if the current invoice matches the previous Receipt, the IPV generated by this invoice will not be included in the current item cost calculation by the periodic cost.

 

 

WIP Accounting Class)
1.Direct Material sending
The entry amount is "current periodic cost 」
(Borrow): WIP Valuation @ current periodic cost
(Loan): inventory Account (MTL Account) @ current periodic cost

 

2.Direct Labor Cost Processing
The entry amount is "salary rate maintained in the current period 」
(Borrow): WIP Valuation @ current maintenance salary rate
(Loan): allocated direct labor (Absorption) @ current maintenance Wage Rate

 

3. Processing of manufacturing costs/outsourced processing costs
Manufacturing CostIn response, the following entries are generated. The amount of the entries is the "apportioned rate of the currently maintained departments 」
(Borrow): WIP Valuation @ current maintenance apportioned Rate
(Loan): the manufacturing cost has been apportioned (Absorption) @ current maintenance apportioned Rate
Outsourcing costsThe following entries are generated.
The amount of entries is the "current maintenance department apportioning rate 」
(Borrow): WIP Valuation @ current maintenance apportioned Rate
(Loan): The processing cost has been apportioned (Absorption) @ current maintenance apportioned Rate
IfThe standard outsourcing operation process is adopted for acceptance operations.The following entries are generated:
(Borrow): Goods Receiving subject (Inventory) @ PO Price
(Loan): Inventory AP amount (Inventory AP Accrual) @ PO Price?
Accounts payable account creationThe accounting entries are as follows:
(Borrow): Inventory AP amount (Inventory AP Accrual) @ PO Price
(Loan): Accounts payable subject @ Accounts Payable local currency amount
(Borrow or lend): Invoice Price Variance (IPV)
Purchase order settlement income/Loss(Rate Variance Gain/Loss)
When a work order is withdrawn, if there is a payable statement, it will follow the statement information. If there is no statement, the purchase order information will be used. The accounting entries generated are as follows (assuming there is a payable statement ):
(Borrow): WIP-Outside Process @ Accounts Payable local currency
(Loan): Receiving subject (accounting Inventory) @ PO Price
(Borrow or lend): Invoice Price Variance (IPV)
Purchase order settlement income/Loss(Rate Variance Gain/Loss)
When a ticket is completed, the following entries are generated. The debit account is classified based on the classification of the finished/semi-finished products in the ticket ), read "Periodic subject designation" for "periodic cost". The credit account is the "Billing Account" for "in-process accounting classification 」.
(Borrow): inventory subject (MTL Valuation)
(Loan): WIP Valuation)
When the number of warehouse receiving tickets = the number of tickets opened, the system switches the status to Complete )」.
Before closing the ticket at the end of the month, you must check whether there will still be transactions in all closed tickets. For tickets that can be closed, switch the ticket status to "Complete-No Charge )」.
When the ticket is settled at the end of the month, the system queries all tickets in the "Complete-No Charge" status, and closes the ticket cost.
When the ticket is closed, if there are still residual work-in-process values on the ticket, the corresponding "differential subjects" of "accounting for work-in-process" will be closed based on the cost element, respectively 」, generate the following entries:
(Borrow or lend): WIP Valuation)
(Loan or borrow): WIP Variance)

 

RMA job
There are three types: Sales return, repair return, and replacement.
The replacement operation uses the order shipment and RMA shipping methods, and uses "temporarily receive materials to return" to express the unreturned parts. The auxiliary report must be used to indicate whether the returned parts are different, if there is any difference, adjust it in the general ledger to the "Manufacturing Expense" subject.
The occurrence of the above difference may be different from that of the returned item. This part is indeed different. On the other hand, even if the same item number is different from that of the returned item, there will also be differences. In principle, these differences should not happen.
Assume that H outputs the raw material to W, and the asset in transit belongs to W, H generates the following entries during shipment (Transfer Credit is a Transfer gain):
(Borrow) Intransit (W) Receivables (H)
(Loan) original Material (Material, H) Transfer and discount (Transfer Credit, H)
Accounts Payable (Payable, W )?
W. The following entries are generated when receiving the goods:
(Borrow) original Material (Material, W)
(Loan) in-transit Inventory (Intransit, W)
Periodic cost: cost calculation when finished or semi-finished products are put into storage
Based on the unit Cost contribution of each site and the sum, there is a distinction between Cost Elements (Cost Elements ).
Unit Contribution cost of the current site = (cost incurred when the site goes live-warehouse receiving ticket, Relief cost already exists)/(number of transferred current site-Number of warehouse receiving tickets ).