Wednesday, October 15, 2014

Oracle Payable Automatic Offset

Setup the Accounting method from the Payable option from the AP Responsibility

(N) Setup> Option> Payable Option

Enable the check mark for the Automatic Offset Method as Balancing
Then enter the invoice with the multiple balancing segment value in distribution window

Click on (B) Distribution and enter the accounting string or Accounting code combination with multiple balancing segment value

Save it and close the distribution window

Validate and Account it
Now ensure that the Journal Entry has been created for Liability Account with the multiple Balancing segment Value 

Click on the View Journal Entries

You will find out that the system build the Liability account for the multiple Balancing segment value
Now pay the invoice (N) Payment> Entry> Payment

Enter the required information and save it
Error occurred while creating accounting entry for the payment

To resolved this issue enable the check mark box for Pooled Account from bank account window

Pooled and Non-Pooled Bank Accounts with Automatic Offsets
If you enable Automatic Offsets, you can choose to pool any or all of your bank accounts. The cash in a pooled bank account is shared by multiple balancing segments; the cash in a non-pooled bank account is associated with a single balancing segment. If you do not enable Automatic Offsets, you can only have non-pooled bank accounts.

How Payables Builds the Offsetting Cash Accounts
When you create a payment from a pooled bank account using Automatic Offsets, Payables automatically builds the cash account for each payment distribution on the basis of the bank account's associated cash account. Payables uses the Automatic Offset Method you specified when you enabled this feature in building these cash accounts.
If you selected Balancing as your Automatic Offset Method, Payables takes the cash account associated with your pooled bank account, substitutes the balancing segment from the invoice distribution and uses that as the distribution's offsetting cash account.
If you selected Account as your Automatic Offset Method, Payables takes the account used for the invoice distribution and substitutes the account segment from the cash account associated with your pooled bank account, preserving all other segment values.
To resolve the issue implement the following steps from CM RESP (N) Banks> Banks Account and query the back account

Click on update click on next

Click on next then click on save and next

From the Payables Controls Pooled Account option should be enable the check mark box and then create an accounting entry for the Automatic offset for payment and it will give the desirable result i.e.

Click on View Journal Entries


Tarun Bhargava said...

Can Debit memo be applied against Deposit invoice commitment balance?

Raghav Pareek said...


Unknown said...

Very Useful... thanks....

Post a Comment

Best Blogger TipsGet Flower Effect