When we enter transactions in
Receivables
, the accounting entries will get generated with respect to the following accounts. 1.
 Accounting for invoice
: Receivables A/C DR Revenue Account Cr 2.
Credit memo
: Revenue Dr Receivables A/C CR 3.
Receipts
: Cash A/C DR Receivables A/c CR When we enter transactions in
Purchasing
, the accounting entries will get generated with respect to the following accounts. 1.
When Creating a receipt 
: Inventory Receiving A/C DR Accrual Account CR 2.
 At the time of Receiving transactions
: Asset clearing A/c or Inventory valuation a/c DR Inventory Receiving A/c CR 3.
When a Payables invoice matched with PO
: Accrual A/C DR Liability A/c 4.
when asset addition done
: Asset A/c DR Asset Clearing A/c CR(Asset item) (OR) expense a/c DR inventory Valuation A/C(Inventory item) When we enter transactions in
Payables
, the accounting entries will get generated with respect to the following accounts. 1.
Invoice
: When we create accounting for an invoice, the accounting will be generated with respect to the following accounts. Item Expense A/C DR Liability A/C CR 2.
Payment 
: There are two stages in which the accounting may generate, based on the accounting option that we setup in Payables.
> Direct Pay-No Clearance:
 In this stage, there will be no clearance process separately and the cash account will get credited directly.
 
Liability A/C DR Cash A/C CR >
Pay and Clear:
In this stage, the payment and clearance process will have separate accounting entries.
At the time of Payment
:
 Liability A/C DR Cash Clearing A/C CR
At the time of Clearance
:
 Cash Clearing A/C DR Cash A/C CR When we enter transactions in
Receivables
, the accounting entries will get generated with respect to the following accounts.
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