Journal Entries in Account Payables

Material Receipt: 1. On entry of PO: No accounting impact. 2. Material receipt Receiving accrual Dr AP accrual Cr. 3. On completion of inspection Inventory Dr. Receiving accrual Cr. 4. On entering invoice in AP and matching it to receipt AP Accrual Dr. Accounts payable Cr. 5. On payment Accounts payable Dr. Cash clearing Cr. (if clearing is enabled) Cash Cr. (if clearing is not enabled) 6. On clearing Cash Clearing Dr. Cash Cr. Debit and Credit Memo : Debit Memo/ Credit Memo: Accounts Payable A/c  …Dr.  To Expense A/c Standard Invoice: AP Accrual A/c …Dr  To Accounts Payable A/c Payment against Invoices and DM/CM: Accounts Payable A/c  …Dr  To Cash Clearing A/c Reconciliation Entry in Cash Management: Cash Clearing  A/c Dr  To Cash A/c

Prepayment to Supplier/Employees : Prepayment Invoice:  Prepaid Expense A/c ...Dr  To Accounts Payable  A/c Payment against Invoice Accounts Payable A/c …Dr  To Cash Clearing Ac Reconciliation in Cash Management: Cash Clearing A/c Dr  To Cash A/c Standard Invoice: AP Accrual A/c Dr  To Accounts Payable A/c Apply payment against Invoices: Accounts Payable A/c  …Dr  To Prepaid Expenses Petty Cashier Transactions: Prepayment Invoices: Prepayment Expenses A/c …Dr  To Petty Cashier Liability A/c Payment against the invoice: Petty cashier Liability A/c …Dr  To Cash A/c Expense Report: Expense A/c …Dr  To Petty Cashier Liability A/c Apply payment Against Invoices : Petty Cashier Liability A/c …Dr  To Prepayment Expenses A/c