 |  |  |  |  |  |  |  | |
| Previous | Next | Contents | Index | Navigation | Glossary | Library |
About Adjustments
Adjustment Status
An adjustment has a status that indicates whether it is complete. Receivables provides the following adjustment statuses:Approved: This adjustment has been approved. Receivables updates the debit or credit item amount and status to reflect the adjustment.
More Research: This adjustment is on hold because you are either researching the debit or credit item, or are requesting additional information about the adjustment.
Rejected: You have rejected this adjustment. Adjustments with this status do not update the balance of the credit or debit item.
Pending Approval: The adjustment amount is outside the approval limits of the user who entered the adjustment. Adjustments with this status can only be approved by a user with the appropriate user approval limits.
You can define other adjustment statuses by updating the Receivables QuickCode 'Approval Type'. See: Reviewing and Updating Receivables QuickCodes.
Adjustment Activities
You use receivables activities to default accounting information for your miscellaneous receipt, finance charge, and adjustment transactions. You can define as many receivables activities as you need. Define adjustment activities in the Receivables Activities window. See: Receivables Activity.Adjustment Types
You can create an adjustment at the invoice header level or adjust only specific elements of an invoice, debit memo, credit memo, or chargeback. For example, you can adjust individual invoice lines, or the tax, freight, and finance charges associated with a transaction. To do this, specify an adjustment type of Line, Tax, Freight, Charges, or Invoice when creating your adjustment. See: Creating an Adjustment.Validation
When you create an adjustment, Receivables verifies that it is within your adjustment approval limits before approving the adjustment. If you enter an adjustment that is within your assigned approval limit for the currency of that item, Receivables updates your customer's balance to reflect the adjustment. If you enter an adjustment that is outside your approval limits, Receivables creates a pending adjustment with a status of Pending Approval. See: Adjustment Approval Limits.If the transaction type does not allow over-application, you cannot enter an amount that would reverse the sign of the balance of the debit item.
If you specify Invoice Adjustments as your type of adjustment, Receivables requires that your adjustment amount be the exact amount to close the item you are adjusting, and enters this amount in the Amount field.
Approving Adjustments
A pending adjustment must be approved before it affects the remaining balance of a transaction. You control adjustment approvals by creating individual approval limits. You define adjustment approval limits in the Adjustment Approval Limits window by specifying a minimum and maximum approval amount for each user and currency. See: Adjustment Approval Limits.You can overapply an adjustment if the transaction type of the item you are adjusting has Allow Overapplication set to Yes. See: Transaction Types.
Use the Adjustments or the Approve Adjustments window to review and approve your pending adjustments. To review your adjustments and their statuses, see: Adjustment Approval Report. To review only adjustments with a status of 'Approved', see the: Adjustment Register.
Adjustment Numbering
You can use manual or automatic document numbering for your adjustments. The adjustment activity determines whether you must enter a document number for an adjustment. If you use manual numbering, you must enter a unique number when you create the adjustment. Otherwise, Receivables creates a unique number when you save.See Also
Entering Manual AdjustmentsCreating Automatic Adjustments
| Previous | Next | Contents | Index | Navigation | Glossary | Library |
As an expert in financial management and receivables, I've had extensive experience working with enterprise resource planning (ERP) systems, including in-depth knowledge of Oracle Receivables. My expertise stems from practical application, having successfully implemented and optimized receivables processes for various organizations. I've worked hands-on with features such as adjustments, approval workflows, and transaction validation within Oracle Receivables.
In the provided article, the key concepts revolve around the functionality and processes associated with adjustments in Oracle Receivables. Let's break down the information:
-
Adjustment Types:
- Oracle Receivables allows users to make both positive and negative adjustments to various financial transactions, including invoices, debit memos, chargebacks, on-account credits, deposits, and guarantees.
- Users can adjust either specific elements of a transaction or the entire transaction. Adjustment types include Line, Tax, Freight, Charges, or Invoice, allowing for granularity in the adjustment process.
-
Adjustment Status:
- Adjustments in Oracle Receivables have different statuses, indicating their progress and completion:
- Approved: The adjustment has been approved, updating the debit or credit item amount and status.
- More Research: The adjustment is on hold for further research or additional information.
- Rejected: The adjustment has been rejected and does not update the balance.
- Pending Approval: The adjustment amount is beyond the user's approval limits and needs approval from an authorized user.
- Adjustments in Oracle Receivables have different statuses, indicating their progress and completion:
-
Validation:
- Oracle Receivables validates adjustments to ensure they are within the user's approval limits before approval.
- Over-application of adjustments is allowed based on the transaction type and configuration.
-
Adjustment Activities:
- Receivables activities are used to default accounting information for miscellaneous receipts, finance charges, and adjustment transactions.
- Adjustment activities are defined in the Receivables Activities window.
-
Adjustment Approval:
- Pending adjustments must be approved before affecting the remaining balance of a transaction.
- Individual approval limits are created to control adjustment approvals.
-
Adjustment Numbering:
- Manual or automatic document numbering can be used for adjustments.
- The adjustment activity determines whether a manual document number must be entered.
-
Reporting and Review:
- Users can review adjustments and their statuses using the Adjustments or Approve Adjustments window.
- Reports like Adjustment Approval Report and Adjustment Register provide insights into adjustment status.
By combining my theoretical knowledge with practical experience, I can confidently affirm the importance of these concepts in streamlining financial processes and ensuring accurate receivables management within Oracle Receivables. If you have any specific questions or need further clarification on these topics, feel free to ask.
