Creation of Expensed Asset. The client is using encumbrance accounting.

The client will be using encumbrance basis of accounting.

The client will be doing the entire P2P process and using 4 way match.

The Expensed Asset will be created as Expensed Inventory Item in the Inventory Module.

As per my understanding in this scenario the distribution account populated in the Invoice Workbench will be AP Accrual Account and not the Expense Account.

When I have read the document of Oracle I found that for expensed asset one of the pre-requisite, distribution account should be charged to an expense account.

Please let me know as to how to handle the situation.