An adjustment is a manual or automatic billing update that increases or decreases the balance on a transactions such as an invoice, debit memo, chargeback or a credit memo.
Which types of Adjustments can be processed in Receivables?
- Invoice - This means that the adjustment amount will be applied to the entire invoice.
- Line - The adjusted amount is prorated across all lines. If the adjustment includes tax, then the amount is prorated across lines and tax.
- Charges - the adjusted amount is applied to the charges amount on the invoice. Again, if the adjustment includes tax, the amount is prorated across charges and tax.
- Tax - the adjusted amount is applied to the tax amount
- Freight - The adjusted amount will be applied to the freight amount
Adjustment Configurations
- Approval limits - Approval limits are going to determine whether a user can approve adjustments. These are defined by document type, amount and currency.
- A document type - can be adjustment, or it can be something like credit memo refund or receipt write off.
- Amount - Amount can be part of a defined range. the range can go from a negative number to a positive number.
- Currency - Approval limits are going to be specific by currency. There will be different limits for the US dollar, for the Euro, for the Mexican Peso, etc.
- Receivable activities - this configuration in the Receivables application will allow Receivables to generate accounting distributions. More on Managing Receivable Activities in a separate article: "Overview of Managing Receivables Activities in Oracle Fusion Applications".
- Adjustment Reasons - important for tracking and classifying adjustments. Adjustment reasons is optional by default. but you can make it mandatory. M
- Approved
- Pending Approval
- More Research
- Rejected
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Accounts receivable or AR are the unpaid bills or invoices a company has sent to its customers in the simplest sense.
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