Account Payable Accounting (AP)

PAYABLES:

standard Invoice Entry :

Ap Accrual --- Dr

Liability ---- Cr

Debit and Credit Memo Entries:

Liability --- Dr

Ap Accrual --- Cr

Prepayment Entries:

While Creating Prepayment Invoice:

Prepayment --- Dr----It will pick from supplier

Liability – Cr----It will pick from supplier

While Making Payment to Prepayment:

Liability – Dr

Cash – Cr

While applying Prepayment on Standard Invoice:

Liability --- Dr

Prepayment – Cr

INTEREST INVOICE ENTRY WHILE MAKING PAYMENT :

Interest expenses –- Dr-----It will pick from Financial options

Liability ---------------- Dr

Cash ---------------------Cr

 

EXPENSE REPORT ENTRY :

Item Expense A/C --- Dr

Liability --- Cr

PAYMENT REQUEST INVOICE ENTRY :

Item Expense --- Dr

Liability – Cr

FUTURE DATED PAYMENT ENTRY :

When Bills Issued:

Item Expense – Dr

Bills Payable --- Cr

When Maturity Date Confirmed:

Bills Payable – Dr---It will pick from Supplier or Financial options

Liability – Cr

WITH HOLDING TAX ENTRY :

When Withholding tax applied on standard Invoice:

Item Expense --- Dr

Liability --- Cr

Withholding --- Cr-----It will pick from WHT codes

 Auto Generated WHT Entry:

Item Expense – Dr

Liability --- Cr

RETAINAGE RELEASE ACCOUNTING ENTRY:

When Invoice matched with PO accounting entry would be:

Accrual ------ Dr

Liability ---- Cr

Retainage ---Cr----It will pick from financial options

While making payment to the invoice matched with PO:

Liability ---- Dr

Cash --------Cr

When Retainage Release Invoice Matched with PO accounting entry would be:

Retainage --------Dr

Liability ----------- Cr

While making Payment to Retainage Release:

Liability ---Dr

Cash -------Cr