AR : Adjustment 2

http://www.oracleappshub.com/accounts-receivable/ar-adjustments-detailssetup-flow-accounting-and-api/


To Read Later :-> http://asoracle.blogspot.sg/2007/11/accounting-for-oracle-receivables.html  
                                http://www.cathycakebread.com/papers/_setup.htm

How AR adjustment works

Lets try to understand how adjustment works in Oracle.

While Creation

When you create an adjustment activity an accounting segments is required.This is GL account that will be used as the offset account. The other account used will be the Receivable REC account of the transaction being adjusted.As mention above, you are allowed to adjust Invoices, Debit Memos and Credit Memos.

AR_ADJUSTMENTS_ALL table contains code_combination_id.

This is the code_combination_id of the Receivable account of the Invoice,Debit Memo, or Credit Memo the adjustment is against.

The table contains the receivables_trx_id which identifies as adjustment transaction type.

When you create an adjustment the account that exists on the adjustment transaction type, at the moment the transaction is created, is the one that will be used as the offset account.

Adjustments can be either negative or positive, and there should be always one and only row created on the ar_adjustments_all table for each adjustment. On posted to GL this one row is used to create two transactions passed to GL_INTERFACE table.

During Approvals

Approval required for adjustment , as part of pre-requsite setup.

You can create your own approval statuses, and they work as if they were interim approval steps.

The only approval that is recognized is the final one, which results in an 'A' in the status field on this table.

You must assign approval limits to users by currency.The limit should be in the range of negative adjustments amount to positive adjustments amount on AR_ADJUSTMENTS_ALL table, there is a field named 'postable'. When you set the status of an adjustment to 'A' for approved, this field should automatically be set to 'Y' for postable.

Once an adjustment is approved, it can be selected for posting to General Ledger.

This would be selected in a normal AR Gl transfer program posting run, providing it met the qualifications of being approved, with a GL_date within the posting range, and had not been posted before (posting_control_id = -3).

During posting, the Receivable and offset transactions are created and passed to General Ledger table GL_INTERFACE.

On apply with a transaction

When you create an adjustment against a transaction, the customer_trx_id and payment_schedule_id on AR_ADJUSTMENTS_ALL associates the adjustment with the transaction.

If an adjustment is approved with a status of 'R' for rejected, No impact on invoice balance and cann't proceed for GL posting .

If an adjustment has not been approved with a status of 'A', it is a pending adjustment. The total of all pending adjustments is stored in the amount_adjusted_pending on AR_PAYMENT_SCHEDULES_ALL, and is not reflected in a transaction balance.

If an adjustment has been approved with a status of 'A', it is reflected in the amount_adjusted and the balance on AR_PAYMENT_SCHEDULES_ALL.

 Ways to Create Adjustment in Oracle

Creating Adjustment in Oracle can be performed by 3 options

1. Adjustment via Transaction Window
2. Adjustment via Receipt Application Window
3. Adjustment via API's Call

 Option 1

Follow the path above to display the Account Details window. A Find window will appear on top of the Account Details window. This will allow you to search for transactions based on a number of criteria (including Transaction Number, Customer Name, and Amounts):

Navigation: Transactions > Transactions > Click Toolbar Find

Once you have entered your search criteria click Find. Records matching you search will be displayed in the Account Details window:

Select the invoice you wish to do adjustment (by clicking on the line) and click the Adjust button. This will display the Adjustments screen:

Click in the Activity Name field and open the list of values and choose any one of them and then save the record.

 Options 2 : Adjustment via Receipt Application Window

You can create customer Receipt and after finishing the Application of Invoice then click (B) Adjustments and system will show same Adjustment windows and rest is similar to option 1.

 Options 3 : By API Call

Public API Exist as third options which allows users to create, approve, update, and reverse adjustments for invoices using simple calls to PL/SQL functions.

The Adjustment API has the following basic functionality via different API calls:

1. Creating an adjustment (R11i & R12)
2. Modifying an adjustment (R11i & R12)
3. Approving an adjustment (R11i & R12)
4. Reversing an adjustment (R11i & R12)
5. Create line level adjustment (This is only applicable in case of R12)

We will take details of API's in Next Post.