Enter Invoice Adjustments

Adjustments

Create offsets and write-offs for invoices, debit memos, chargebacks and credit memos. Note that you cannot adjust a receipt. Use adjustments to enter write-offs for tax, freight, small balance due, bad debt, bank charges, interest payments, etc. You may use adjustments to either increase or decrease the balance due.

Collections —> Account Details (and Click on the Adjust button)

Close the Find window.
Query - Enter.
Enter the Transaction Number in the Number field.
Query - Run.
Place your cursor on the line with the transaction you wish to adjust. (The Account Details window displays one line per transaction.)
Click on the Adjust button (this takes you to the Adjustments window).

Adjustments Window
Installment Region

Use this region to view amounts for the original transaction and the remaining balance due for Lines, Tax, Freight and Totals.
You may also see the amount of approved and pending adjustments, if any.

Original - Line	Displays the original amount for all lines on the transaction.
Original - Tax	Displays the original amount for tax on the transaction.
Original - Freight	Displays the original amount for freight on the transaction.
Original - Total	Displays the total original amount for the transaction.
Balance - Line	Displays the current balance due for the lines on the transaction.
Balance - Tax	Displays the current balance due for tax on the transaction.
Balance - Freight	Displays the current balance due for freight on the transaction.
Balance - Charges	Displays the amount of finance (interest) charges you have added to this invoice. Note that there are no original finance charges.
Balance - Total	Displays the current balance due for the transaction.
Adjustments	Displays the total amount of approved adjustments applied to the transaction.
Pending Adjustments	Displays the total amount of adjustments for the transaction that have been entered but have not yet been approved.

Main Alternate Region

Use this region to enter new adjustments and to view existing adjustments. Oracle automatically queries all existing adjustments (both approved and pending). To add a new adjustment, Click on the line below the last adjustment and enter.

Number	Oracle skips this field but automatically assigns a sequential number to this adjustment when you save your work. This number appears on the Adjustment Register and on the Approve Adjustments form.
Activity Name	(List) Select the name that best describes the adjustment you are creating. Possible options include predefined values such as: "Freight Adjustments," "Tax Adjustments," "Interest Paid," etc.
Type	(Drop Down List) Select the type of adjustment you are creating. Possible options include: "Invoice," "Line," "Charges," "Freight," and "Tax." For finance or interest charges, the type will be "Charges." Use "Line" for adjustments that are not for the full remaining balance or for non-interest positive adjustments. Use "Invoice" only if the adjustment is for the full balance due. Note for type "Invoice," your adjustment amount must be equal to the inverse of the total amount remaining on the invoice. (Oracle forces the amount for this type only). For example, if the invoice balance is 45.11, the adjustment amount must be -45.11.
Amount	Enter the amount you are adjusting (note that this is sign sensitive). If you are adding to the invoice balance, the amount must be positive. If you are reducing the invoice balance, the amount must be negative. The sign is the opposite for credit memos. For example, 50.00 decreases the credit balance by 50.00 and -50.00 increases the credit balance by 50.00. When you select "Invoice" as your type, Oracle automatically populates the amount as the inverse of the remaining balance.
GL Date	Enter the accounting date for the adjustment, usually the current date. Override as needed.
Adjustment Date	Enter the date you are applying the adjustment, usually the current date. Override as needed.
Descriptive Flexfield	A window will pop open only if your site designed the Descriptive Flexfield for additional information.
Description	Displays the values for the GL account (Accounting Flexfield) associated with this adjustment, once you have entered the account. Verify that this is the account you really wish to use.

Select the Account, IDs Alternate Region. (This region will appear automatically if you keep pressing the Tab key.)

Account, IDs Alternate Region

Use this region to enter or update the account that will offset the Accounts Receivable account. Note that the Accounts Receivable Account is automatically debited (or credited, depending on the sign of the adjustment) so the General Ledger account should NEVER be an Accounts Receivable account.

Number	Oracle skips this field but automatically assigns a sequential number to this adjustment when you save your work. This number appears on the Adjustment Register and on the Approve Adjustments form.
GL Account	(List) Use the default provided (based on the Activity Name you selected), or override the account segments as needed (e.g., cost center, department, etc.). Since the adjustment process automatically offsets your Accounts Receivable account, this value should never be your Accounts Receivable account.
Document Number	Skip. Not commonly used.
Line	(Optional) You may indicate the number of the invoice line you are adjusting. Note that this number never appears on any standard reports and only the impacts the total balance on the invoice, not the line balance.
Chargeback Number	Skip. You are not allowed to enter a value in this field.
Descriptive Flexfield	A window will pop open only if your site designed the Descriptive Flexfield for additional information.
Description	Displays the values for the GL account (Accounting Flexfield) associated with this adjustment, once you have entered the account. Verify that this is the account you really wish to use.

Select the Comments Alternate Region, or continue pressing the Tab key.

Comments Alternate Region

Use this region to enter optional comments about why you are creating the adjustment. These comments may be viewed by the person approving this adjustment (if the adjustment is over your limit and must be approved). Also use this region to enter a reason for the adjustment and to confirm the status of the adjustment.

Reason	(List) Select the pre-defined reason that best describes why you are adjusting this transaction. *Always enter a reason.* Reasons are defined in set-up.
Comments	(Optional) Enter comments about why you are creating this adjustment. These comments are only viewed by the person who approves pending adjustments as part of the Approve Adjustments screen.
Status	Displays the current status of the adjustment (once you enter the amount). "Approved" indicates you entered an adjustment that is within your pre-defined limits. "Waiting Approval" indicates you entered an adjustment that is outside of your pre-defined limits. You must notify your manager that you have an adjustment requiring approval.
Descriptive Flexfield	A window will pop open only if your site designed the Descriptive Flexfield for additional information.
Description	Displays the values for the GL account (Accounting Flexfield) associated with this adjustment, once you have entered the account. Verify that this is the account you really wish to use.

Save.

If portions of the adjustment need to be booked to different GL accounts, create a separate adjustment for each GL account. Click on the next line and enter the new information following the same procedures as above.

Reversing a Prior Adjustment:

If you previously created and saved an adjustment and then determined that it was incorrect, you cannot change the original values, but you may create an "offsetting" adjustment and, optionally, a new adjustment with the proper information.
Query the old adjustment to note the Activity Name, GL Account, and the amount you originally used.
Down Arrow and create the offsetting adjustment using the same Activity Name and GL Account segments. The amount will be the same amount as before but with the opposite sign. (For example, if the original adjustment was for -47.89, the new adjustment will be for 47.89.)
Note: If you are reversing an adjustment where you originally wrote off the full remaining balance, the type must now be "Line" instead of "Invoice."
Save.
(Optional) Down Arrow and create the new adjustment using the appropriate Activity Name, Type and GL Account segments. The amount may or may not be the same as before depending on what you need to change.
Save.

By following this procedure, you ensure that you have exactly offset what you did with the original adjustment.

You may reverse an adjustment at any time, whether or not the adjustment has been posted (transferred) to the General Ledger (since this process creates an offsetting entry).

Related Reports:

The information you entered is available in the following reports:

Report Name	Navigation
Adjustment Register (List of adjustments made)	Reports à Accounting
Adjustment Approval Report (List of adjustments by status)	Reports à Accounting

Accounting Impact:

Activity	Debit	Credit
Negative Adjustment to Invoice (decreases amount due)	The Account You Entered (defaults from the activity)	AR
Positive Adjustment to Invoice (increases amount due)	AR	The Account You Entered (defaults from the activity)
Negative Adjustment to Credit Memo (increases amount available)	AR	The Account You Entered (defaults from the activity)
Positive Adjustment to Credit Memo (decreases amount available)	The Account You Entered (defaults from the activity)	AR

Note that an adjustment has no accounting impact until it has a status of "Approved."

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