Overview of Receivables Adjustments in Oracle Fusion Applications

What are Receivables Adjustments?

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?

1. Invoice - This means that the adjustment amount will be applied to the entire invoice.
2. Line - The adjusted amount is prorated across all lines. If the adjustment includes tax, then the amount is prorated across lines and tax.
3. 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. 
4. Tax - the adjusted amount is applied to the tax amount
5. Freight - The adjusted amount will be applied to the freight amount

Adjustment Configurations

1. 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.

To know how to setup Approval limits, check out this step-by-step video: Managing Approval Limits in Oracle Fusion Applications.

1. 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".
2. Adjustment Reasons -  important for tracking and classifying adjustments. Adjustment reasons is optional by default. but you can make it mandatory. M

To know how to setup additional Adjustment Reasons, check out this step-by-step video: Managing Adjustment Reasons in Oracle Fusion Applications

Adjustment Statuses

1. Approved
2. Pending Approval
3. More Research
4. Rejected

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