SLA Journal Entry

[suryabpc]

I want to pass one adjustment entry, from AP not from Manual source in GL.
How to pass SLA Journal entry in R12.

Regards,
Surya

[karthikeyanp1981]

Switch Responsibility to Payables
Navigate to Accounting > Subledger Accounting > Journal Entries
It will open a html page ...
Click Create Journal Entry

Regards,
Karthikeyan

[AmanKhan]

Hi Karthikeyan,

I need some clarification from practical examples.
Why do we pass adjustment entry from AP module while we have GL for adjustments?
What are the accounting justification of adjustment entry from AP module where we don't have any transactions (inv & Pay) associated ?

Regards,

[babasoji]

Hii,

We pass adjustment from AP and other subledgers so that the GL balance can agree with the Subledger balances.

The point is if we make adjustment for an AP transaction in the GL as oppose to AP. AP will not have a record of the adjustment, this will then cause AP AND GL to be out of balance with each other.

Hope this is of help.

Babs.

[AmanKhan]

HI,

Thanks for the explanation, Can you please explain the nature of adjustment with example ?
I believe we can even handle all adjustments from IWB & PWB against any supplier and AP will reconcile with GL.

Regards,

[babasoji]

Hii,

Sorry, Have been away since yesterday and do not have access to any Oracle installation now but i will try to explain

Let assume your supplier gave you an invoice of $250 instead of $225 and after you inform the supplier of the invoice error, a DR memo was raise for the difference of $25.

It is better to adjust the difference in payables since that is where the transaction originated from. We will therefroe go to payables invoice workbench, entered a transaction type of DR memo and charge it against the supplier to reduce the $250 to $225.

Steps

Invoices > Entry > Invoices
Invoice Type = Debit Memo
enter the SS number and name, amount, dr memo Number, Distribution account used for the inital invoice and description.
Validate the DR Memo = Action, Validate = checked, OK.

Apply the refund

Pay in full = checked
OK.
review the memo and save

Optionally you may also create accounting.

The step to raise an adjustment journal from AP is as simple as Karthikeyan explained, just follow it and your journal is created. Thanks hope this is of help.

Regards,