1. Material Receipt

Receiving Accural Dr

AP Accural Cr

2. On completion on inspection and accepting of goods

Inventory Dr

Receiving Accural Cr

The Above given 2 entries are in PO module

3. On entering Invoice in AP

AP Accural Dr

Accounts Payable Cr

4. On Making payment

Accounts Payable Dr

Cash/Bank Cr

1. On Entry of PO ________ No accounting impact

2. On Materil Receipt

Receiving Accural Dr

AP Accural Cr

3. On Completion of Inspection and goods accepted

Inventory Dr

Receiving Accural Cr

The Above mentioned entries in PO Module

4. On entering invoice in AP

AP Accural Dr

Accounts Payable Cr

5. On Payment

Accounts Payable Dr'

Cash/Bank Cr

When we raise the Purchase Order entry is

Material in transit a/c Dr

To AP Accrual A/c

When we match the Invoice with PO

AP Accruals A/c Dr

To AP Liability A/c
When Payment is made

AP Liability A/c Dr

To Cash Clearing A/c