About Adjustments (Oracle Receivables Help) (2024)


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About Adjustments

Receivables lets you make either positive or negative adjustments to your invoices, debit memos, chargebacks, on-account credits, deposits, and guarantees. You can approve adjustments that are within your approval limits and give pending statuses to adjustments that are outside your approval limits. You can automatically write off debit items that meet your selection criteria.

Adjustment Status

An adjustment has a status that indicates whether it is complete. Receivables provides the following adjustment statuses:

Approved: This adjustment has been approved. Receivables updates the debit or credit item amount and status to reflect the adjustment.

More Research: This adjustment is on hold because you are either researching the debit or credit item, or are requesting additional information about the adjustment.

Rejected: You have rejected this adjustment. Adjustments with this status do not update the balance of the credit or debit item.

Pending Approval: The adjustment amount is outside the approval limits of the user who entered the adjustment. Adjustments with this status can only be approved by a user with the appropriate user approval limits.

You can define other adjustment statuses by updating the Receivables QuickCode 'Approval Type'. See: Reviewing and Updating Receivables QuickCodes.

Adjustment Activities

You use receivables activities to default accounting information for your miscellaneous receipt, finance charge, and adjustment transactions. You can define as many receivables activities as you need. Define adjustment activities in the Receivables Activities window. See: Receivables Activity.

Adjustment Types

You can create an adjustment at the invoice header level or adjust only specific elements of an invoice, debit memo, credit memo, or chargeback. For example, you can adjust individual invoice lines, or the tax, freight, and finance charges associated with a transaction. To do this, specify an adjustment type of Line, Tax, Freight, Charges, or Invoice when creating your adjustment. See: Creating an Adjustment.

Validation

When you create an adjustment, Receivables verifies that it is within your adjustment approval limits before approving the adjustment. If you enter an adjustment that is within your assigned approval limit for the currency of that item, Receivables updates your customer's balance to reflect the adjustment. If you enter an adjustment that is outside your approval limits, Receivables creates a pending adjustment with a status of Pending Approval. See: Adjustment Approval Limits.

If the transaction type does not allow over-application, you cannot enter an amount that would reverse the sign of the balance of the debit item.

Approving Adjustments

A pending adjustment must be approved before it affects the remaining balance of a transaction. You control adjustment approvals by creating individual approval limits. You define adjustment approval limits in the Adjustment Approval Limits window by specifying a minimum and maximum approval amount for each user and currency. See: Adjustment Approval Limits.

You can overapply an adjustment if the transaction type of the item you are adjusting has Allow Overapplication set to Yes. See: Transaction Types.

Use the Adjustments or the Approve Adjustments window to review and approve your pending adjustments. To review your adjustments and their statuses, see: Adjustment Approval Report. To review only adjustments with a status of 'Approved', see the: Adjustment Register.

Adjustment Numbering

You can use manual or automatic document numbering for your adjustments. The adjustment activity determines whether you must enter a document number for an adjustment. If you use manual numbering, you must enter a unique number when you create the adjustment. Otherwise, Receivables creates a unique number when you save.