AR Accounting entries

[archanadixit]

Hi

I need some information on the entries made in Oracle Receivables when an adjustment is done on an invoice.

I see that when an invoice is created multiple entries go into RA_CUST_TRX_LINE_GL_DIST_ALL table (REV, REC, ROUND and TAX). Now when the adjustment is made to the invoice then enteis go into the following tables:
ar_adjustments_all
ar_distributions_all - adjusts the receivables entries

My question is about the adjustment of the Revenue entries. How is the Revenue line adjusted for the invoice. I could not see any entries for Revenue in RA_CUST_TRX_LINE_GL_DIST_ALL.

Pls provide information on this.

Thanks in advance!
Archana

[anuragagarwal1980]

Archana,

If i understand correctly, what you are trying to do is adjust a receivable invoice. If this is true, then Oracle does not adjust the Revenue line from the invoice, rather it adjust only the receivable A/c portion as it needs to net the amount to be received from the customer.

For ex. If an invoice is adjusted for USD 100 on account of over billing, the accountry entry passed is

Adjustment A/c ----> Picked from the receivable activity
To Revenue A/c

Hope this helps

Thanks
Anurag

[archanadixit]

Thanks!

Your assumption is correct.....but what happens to the revenue entry then...

I am not a finance person but what seems now is that the revenue would be 100$ but the adjusted transaction would just bring in 90$ (if 10$ was the adjustment). Is this correct?

Are Revenue adjustments manually done using Revenue adjustments then?

Something should be there right?

Appreciate the help!

-Archana

[anuragagarwal1980]

The Adjustment account which is used is a kind of P&L A/c, which one would adjust with the Revenue figures to arrive at the net sales. The Revenue account will not be effected when adjustment is being made. Thats the business logic with which it is built.

You will not manually adjust the Revenue a/c See the example below

For creating Invoice

Receivable A/c---> 100
to Revenue A/c --> 100

For Adjustment

Adjustment A.c --> 10
Receivable A/c 10

So in net you will receive 90 from the customer for which the invoice is open. Revenue and Adjustment account will be shown in P&L a/c which will ne netted (100-10) = 90

Thanks
Anurag