Automatic Offsets behavior in Accounts Payable: CM/DM with Mismatched Segments — Cloud Customer Connect
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Automatic Offsets behavior in Accounts Payable: CM/DM with Mismatched Segments

edited Aug 8, 2025 11:25AM in Subledger Accounting & Accounting Hub 1 comment

Summary:

Hi everyone,

While the Automatic Offsets feature in Oracle Payables helps manage transactions involving multiple balancing segments, we noticed that when a credit/debit memo is applied to an invoice during payment creation, the system still allows the transaction to proceed even if the distribution combinations differ.

For Example:

Invoice Distribution:

Segment 1: Company A / Segmet 2: Building A / Segment 3: Natural Account / Amount 10,000

Credit Memo Distribution:

Segment 1: Company A / Segment 2: Building B / Segment 3: Natural Account / Amount 10,000

Although the transaction nets to zero, the mismtch in Segment 2 results in imbalances that remain open, which can lead to reconciliation issues and inaccurate segment level reporting.

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