I still see some of us are confused with O2C journals, especially on the Receipts side. So just wanted to clarify the same here. If you need to understand the complete flow and journals of O2C you can refer to the same in my blog which I already did before.
I would like to explain here how the receipts are accounted for with different Remittance and Clearance Methods.
Receipt with no Remittance
and clearance method By Matching
|
When
creating Receipt |
|
Remitted
Cash A/C…..Debit |
|
Unapplied
Cash A/C…......Credit |
|
When
applying receipt to open invoices |
|
Unapplied
Cash A/C…...Debit |
|
Receivables
A/C…....Credit |
|
When
reconciling in Cash Management |
|
Cash
A/C….....Debit |
|
Remitted
Cash A/C…...Credit |
Receipt with Remittance
|
When creating
Receipt |
|
Confirmed
Cash A/C……………Debit |
|
Unapplied
Cash A/C…......Credit |
|
When
applying receipt to open invoices |
|
Unapplied
Cash A/C…...Debit |
|
Receivables
A/C…....Credit |
|
When
sending for remittance |
|
Remitted
Cash A/C…..Debit |
|
Confirmed
Cash A/C……Credit |
|
When
reconciling in Cash Management |
|
Cash
A/C….....Debit |
|
Remitted
Cash A/C…...Credit |
Receipt with No Remittance and Clearance Method of Direct
|
When
creating Receipt |
|
Cash
A/C….....Debit |
|
Unapplied
Cash A/C…......Credit |
|
When
applying receipt to open invoices |
|
Unapplied
Cash A/C…...Debit |
|
Receivables
A/C…....Credit |