Accrual Write-Off Accounting
Summary:
As part of Inventory PO Accrual Write Off using “Adjust Receipt Accrual Balances” feature in Fusion, Oracle creates following Accrual Write-Off Accounting entries:
Note: Assuming PO Qty. Received is 10 with Unit Price as $2.00 & AP Invoice not received from Supplier (PO Accrued at Receipt)
Accounting Event | Accounting Class | Dr | Cr |
---|---|---|---|
Acquisition Cost Adjustment | Receiving inspection | $20.00 | |
Acquisition Cost Adjustment | Inventory Valuation | $20.00 | |
Accrual Clearing | Accrual | $20.00 | |
Accrual Clearing | Receiving inspection | $20.00 |
Our Client does not want Inventory Value to be written-off & instead of Inventory Valuation, it is expected that Write-Off account should be credited (similar to EBS R12 AP-PO Write Off functionality)
Expected Accrual Write-Off Accounting entry: