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What are Write off , Rounding accounts ?
Posted: Mon Oct 15, 2007 7:51 am
by champ_guru_24
Hello All,
Can anybody please explain Write off , Rounding accounts with some examples?
Thanks,
Abhay
Posted: Tue Oct 16, 2007 10:54 pm
by muzaffarnaim
If you wanna know about accounting concepts then you should refer to some intermediate accounting book. Anyway, in application, if rounding imbalance account feature is enabled, rounding imbalances are automatically balanced against an account you specify.
As for write-off, there are two types of write-offs in application; invoice write-off and revenue write-off. According to oracle:
<b>Invoice write-off</b>
A transaction that reduces the amount outstanding on an invoice by a given amount and credits a bad debt account.
<b>Revenue write-off</b>
An event type classification that reduces revenue by the amount of the write-off. You cannot write-off an amount that exceeds the current unbilled receivables balance on a project.