Encumbrance In Payables
Hi,
We are on R12 with Encumbrance Enable Option and we want change our process of Advance To Employees
Issue of Advance to Employee:
Currently we have practice that when we want to give advance to employee we make a prepayment invoice and pay to employee in AP.
In GL we go and book an encumbrance journal against the particular expense account to RESERVE the amount.
Settlement of Advance to Employee:
When employee comes back with the receipt we make an invoice of actuals and knock off the prepayment against the Invoice in AP.
In GL we REVERSE the encumbrance journal to release the amount.
We are on R12 with Encumbrance Enable Option and we want change our process of Advance To Employees
Issue of Advance to Employee:
Currently we have practice that when we want to give advance to employee we make a prepayment invoice and pay to employee in AP.
In GL we go and book an encumbrance journal against the particular expense account to RESERVE the amount.
Settlement of Advance to Employee:
When employee comes back with the receipt we make an invoice of actuals and knock off the prepayment against the Invoice in AP.
In GL we REVERSE the encumbrance journal to release the amount.
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