G/L Accounts and Postings.

Question

I always get confused about the which accounts are posted to during entire purchasing cycle. Means during GR, IV,GI ,PAYMENT OF DUTIES, CENVAT ACCOUNTS etc.
WHICH of them are debited and which of them are credited?
Can anybody Please suggest me any simple way to remember those postings.
Also from the perspective of financial accounting whats is Debit and Credit?
When to credit /debit certain G/L account in a process.
Regards,
DEEPIKA

Answer 1

Deepika:
Purchasing Cycle Entries
  1. When PO is created :
No Entry -
  2. When GR is posted 
      Inventory Account Dr (Transaction Key BSX in OBYC)
      GRIR account Cr (T.Key WRX in T-code OBYC)
  3. When Invoice is posted
      GRIR account Dr.
      Vendor account  Cr.
  4. Payment made to Vendor
      Vendor A/c Dr
      Bank A/c Cr
Some basic guidelines: What to Debit and what to credit:
In case if an account is an expense item: Debit an increase in the expense (telephone bill), credit a decrese in expense
In case if an account is an asset: Debit an increase in the value, credit a reduction in the value of the asset
In case an account is a liability: Credit an increase in libility and vice-versa
In case of reveue account like sales revenues: Credit an increase and vice-versa
Payment of duties: is an expense, so it should be debited, cash should be credited (expense increases, debit, cash is an asset, it decreases credit) - see the above logic.
Goods receipt: goods/inventory = assets increases, debit it.
Assign points if info helps
Vj