Sr.No. Transaction Accounting Entries 1 Receipt of Material Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Vat Interim Receivable A/c. Cr. AP Accrual A/c. 2 PO Inspection No Entries 3 On Claiming CENVAT Dr. Cenvat Receivable A/c. Dr. Cess On Cenvat Receivable A/c. Dr. S&HE Cess On Cenvat Rece. A/c. Cr. Receiving Inventory A/c. 4 Material Delivery to Inventory Dr. Material Inventory A/c. Cr. Receiving Inventory A/c. 5 Claim Vat Dr. Vat Receivable A/c. Cr. Vat Interim Receivable A/c. 6 Receipt of Vendor's Invoice Dr. AP Accrual A/c. Cr. AP Liability A/c. Cr./Dr.Invoice Price Varience A/c. 7 Return to Receiving Point from Inventory Dr. Receiving Inventory A/c. Cr. Inventory Valuation A/c. Cr. Input Tax 8 Return to Vendor from Receiving Point Dr. AP Accrual A/c. Cr. Receiving Inventory A/c. 9 Payment Made to Vendor Dr. AP Liability A/c. Cr. Bank A/c. 10 Misc. Receipt Dr. Inventory Valuation A/c. Cr. User Specified A/c. 11 Misc. Issue Dr. User Specified A/c. Cr. Inventory Valuation A/c. 12 Inventory Adjustment (Physical/Cycle Count) Dr./Cr. Inventory Valuation A/c. Cr./Dr. Inventory Adjustment A/c. 13 Issue to Job from Inventory Dr. WIP Inventory A/c. Cr. Inventory Valuation A/c. 14 Component Return to Inventory Dr. Inventory Valuation A/c. Cr. WIP Inventory A/c. 15 Charge Labour Resource to Job Dr. WIP Resource A/c. Cr. Resource Absorption A/c. 16 Charge Non Labour Resource to Job Dr. WIP Resource A/c. Cr. Resource Absorption A/c. 17 Charge Overhead to Job Dr. WIP Overhead A/c. Cr. Overhead Absorption A/c. 18 Charge OSP Charges to Job Dr. WIP OSP Charges A/c. Cr. OSP Absorption A/c. 15 Completion of Job Dr. Inventory Valuation A/c. Cr. WIP Inventory A/c. Cr. WIP Resource A/c. Cr. WIP Overhead A/c. Cr. WIP OSP Charges A/c. 16 Completed Job Return to Shop Floor Dr. WIP Inventory A/c. Dr. WIP Resource A/c. Dr. Overhead Absorption A/c. Dr. WIP OSP Charges A/c. Cr. Inventory Valuation A/c. 17 Scrap of Job From Shop floor Dr. Scrap A/c. Cr. WIP Inventory A/c. Cr. WIP Resource A/c. Cr. WIP Overhead A/c. Cr. WIP OSP Charges A/c. 18 Sales oreder Shipment Dr. Cost Of Goods Sold A/c. Cr. Inventory Valuation A/c. 19 Return From Customer (RMA) Dr. Inventory Valuation A/c. Cr. Cost Of Goods Sold A/c. 20 Invoice Raised on Customer Dr. Receivables A/c Cr. Revenue A/c. 21 Payment Received From Customer Dr. Bank A/c. Cr. Receivable A/c. At what value PO Rate * Qty Excise Duty Amt. Cess Amt. S&HE Cess Amt. Vat Amt. Rate*Qty+All Taxes Exicise Duty Cess S&HE Cess Total Of Above PO Rate * Qty PO Rate * Qty Vat Amt. Vat Amt. PO Price Invoice Price (PO Price - Inv. Price) PO Price PO Price PO Price PO Price Amount Paid User Input Value User Input Value Procure to Pay Cycle FLOW OF ACCOUNTING ENTRIES Sr.No. Transaction Accounting Entries 1 Receipt of Material Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Receiving Inventory A/c. Dr. Vat Interim Receivable A/c. Cr. AP Accrual A/c. 2 PO Inspection No Entries 3 On Claiming CENVAT Dr. Cenvat Receivable A/c. Dr. Cess On Cenvat Receivable A/c. Dr. S&HE Cess On Cenvat Rece. A/c. Cr. Receiving Inventory A/c. 4 Material Delivery to Inventory Dr. Material Inventory A/c. Cr. Receiving Inventory A/c. 5 Claim Vat Dr. Vat Receivable A/c. Cr. Vat Interim Receivable A/c. 6 Receipt of Vendor's Invoice Dr. AP Accrual A/c. Cr. AP Liability A/c. Cr./Dr.Invoice Price Varience A/c. 7 Payment Made to Vendor Dr. AP Liability A/c. Cr. Bank A/c. At what value PO Rate * Qty Excise Duty Amt. Cess Amt. S&HE Cess Amt. Vat Amt. Rate*Qty+All Taxes Exicise Duty Cess S&HE Cess Total Of Above PO Rate * Qty PO Rate * Qty Vat Amt. Vat Amt. PO Price Invoice Price (PO Price - Inv. Price) Amount Paid