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The complete P2P · 6 route combinations · every accounting entry animated · ~12 min per run

Procure to Pay, one business event at a time.

Every Purchase Order follows the same journey, but the accounting does not. Inventory item or expense item? Direct PO or negotiation? Accrue at receipt or at period end? Each decision changes what Oracle does next. Follow the transaction from the first requisition to the final supplier payment, and watch every document created and every accounting entry posted, the moment Oracle creates it. Don’t memorize the process. Understand why Oracle behaves the way it does.

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Step 0/1+Accounting entries missed 0
THE LIVING LEDGER

Watch every accounting entry appear the moment Oracle creates it. Temporary accounts appear, move, and clear exactly as they do inside Oracle Fusion. A ✓ 0 account did its job and retired.

Where to next

You just watched the flow. Three ways to make it stick:

🧭Implement what you just watchedSeven step-by-step guides configure this exact flow, from Self Service Procurement to Cost Management.→ 🔧When these entries fail in productionCost processor errors and fixes: search the error text, get the cause and the check.→ 🎯Prove you can build the entriesOne accounting scenario a day, and a scored mock interview when you are ready.→

Consultant note: this flow follows Oracle Fusion’s standard Procure-to-Pay behavior. Inventory destinations accrue at receipt (Receipt Accounting books to Receiving Inspection; Cost Accounting, a separate engine, moves the value to Inventory at put-away). Expense destinations accrue at receipt or at period end depending on configuration, and period-end accruals reverse automatically next period. Amounts are illustrative; account combinations, subledger accounting (SLA) rules, and costing setups vary between implementations. When your results differ, check Receipt Accounting, Cost Accounting, Subledger Accounting, and the Procurement configuration first. Companion tools: Troubleshooting · Period Close Checklist · Implementation Guides · Releases.

Questions you’ll be asked on every Oracle project

What accounting entry is created when goods are received against a PO in Oracle Fusion?

For an inventory destination: DR Receiving Inspection / CR AP Accrual at PO price, created by Receipt Accounting the moment the receipt processes. The put-away then fires a second entry from a separate engine (Cost Accounting): DR Inventory valuation / CR Receiving Inspection, and the item's cost flows to the Costing module. Ride it live above to watch both entries book themselves.

Does a purchase order create any accounting entry in Oracle Fusion?

No. A PO is a commitment, not an obligation, standard P2P books nothing at PO time. The first real entry happens at receipt. (Public-sector shops using encumbrance accounting are the deliberate exception.) If leadership asks why open POs aren't liabilities in the ledger, that's the answer.

Where does the price difference go when the invoice price is not the PO price?

At invoice validation the accrual clears at PO price and the supplier liability books at invoice price. For inventory items the difference posts to a separate Price Variance account, kept off item cost on purpose. Expense purchases have no item cost to protect, so the difference lands back on the charge account and the budget owner sees it.

What is the difference between accrue at receipt and accrue at period end?

Accrue at receipt: the expense and accrual book the moment goods are received, real-time cost visibility, receiving discipline critical. Accrue at period end: the receipt books nothing; the invoice books the expense directly, and if the month closes before the invoice arrives, the Create Period End Accruals process books DR Expense / CR Accrual and auto-reverses on day one of the next period. Inventory destinations always accrue at receipt; expense destinations follow this configuration choice.