About Adjustments

Receivables lets you make either positive or negative adjustments to your invoices, debit memos, chargebacks, on–account credits, deposits, and guarantees.

Adjustment Approval
You can approve adjustments that are within your approval limits and give pending statuses to adjustments that are outside your approval limits. You can automatically write off debit items that meet your selection criteria.

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 Approval Limits window by specifying a minimum and maximum approval amount for each user and currency.

You can overapply an adjustment if the transaction type of the item you are adjusting has Allow Overapplication set to Yes.
Use the Adjustments or the Approve Adjustments window to review and approve your pending 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.
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.
Rejected: You have rejected this adjustment. Adjustments with this status do not update the balance of the credit or debit item.
Research Required: This adjustment is on hold because you are either researching the debit or credit item, or are requesting additional information about the adjustment.

You can define other adjustment statuses by updating the Receivables lookup ’Approval Type.

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.

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.

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.

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.

Adjustment Numbering
Receivables automatically generates and assigns a unique adjustment number when you create adjustments.

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules