Oracle Fusion Order to Cash Accounting Entries Explained
Description
One sale, every accounting entry. This video walks through Oracle Fusion order to cash (O2C) and shows exactly which steps create journals, which accounts are debited and credited, and when the numbers reach the general ledger.
The example: 10 units sold at $100, cost $60 per unit, 10% tax.
📌 What you’ll learn
Why booking the sales order creates no accounting entry
Shipment: Dr Cost of goods sold, Cr Inventory (at cost, not selling price)
Invoice: Dr Receivables, Cr Revenue, Cr Tax payable
Receipt: Dr Cash, Cr Unapplied receipts
Applying the receipt: Dr Unapplied receipts, Cr Receivables
How Subledger Accounting reaches the GL: Create Accounting, Transfer to GL, Import Journals, Post
What changes when revenue is deferred (Deferred COGS, Unearned revenue)
The net effect: $400 gross margin, $1,100 cash, $100 tax payable, $0 receivables
⏱ Chapters
0:00 The question0:12 The sale we follow0:26 Order booked: no entry0:38 The machine: events to journals0:54 Shipment (COGS and Inventory)1:10 Invoice (Receivables, Revenue, Tax)1:29 Customer receipt1:43 Applying the receipt1:55 Subledger to General Ledger2:09 Deferred revenue variant2:28 Net effect2:43 Summary
Account names and defaults shown are typical. Your own setup (transaction types, AutoAccounting, receipt methods, subledger accounting rules) decides the actual accounts.
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