Adjustments in Fusion Receivables

What is an Adjustment in Fusion Receivables?

An adjustment is a manual or automatic billing update that increases or decreases the balance on a transactions such as an invoice, debit memo, chargeback or a credit memo. We can make either positive or negative adjustments to your invoices.  We can approve adjustments that are within approval limits and give pending statuses to adjustments that are outside approval limits. We can automatically write off debit items that meet specific selection criteria.

Configurations required:

·       Setup Approval limits for User - Approval limits are going to determine whether a user can approve adjustments. These are defined by document type, amount and currency.

§  A document type - can be adjustment, or it can be something like credit memo refund or receipt write off.

§  Amount - Amount can be part of a defined range. the range can go from a negative number to a positive number.

§  Currency - Approval limits are going to be specific by currency. There will be different limits for the US dollar, for the Euro.

·       Receivable activity for Adjustment - this configuration in the Receivables application allows to generate accounting distributions. 

Setup Approval Limits

Task: Manage Approval Limits

Positive Amount Adjustments: If you want to increase the Invoice amount, then enter positive amount in Adjustments screen. For ex: additional charges

Negative Amount Adjustments: if you want to decrease the invoice amount, then enter negative amount in Adjustments screen. For ex: to reduce customer invoice balance.

Setup Receivables Activity for Adjustment

Task: Manage Receivables Activities

 

Which types of Adjustments can be processed in Receivables?

• ·       Invoice - This means that the adjustment amount will be applied to the entire invoice.
• ·       Line - The adjusted amount is prorated across all lines. If the adjustment includes tax, then the amount is prorated across lines and tax.
• ·       Charges - the adjusted amount is applied to the charges amount on the invoice. Again, if the adjustment includes tax, the amount is prorated across charges and tax.
• ·       Tax - the adjusted amount is applied to the tax amount
• ·       Freight - The adjusted amount will be applied to the freight amount

How to make manual adjustments?

Go to Transactions à Actions à Manage Adjustments à

Click + to create an adjustment and provide details as mentioned in the above screenshot

Click Submit

How Adjustment Feature works in Oracle?

There is no approval workflow in Oracle for Adjustments. Any user who has approval limits assigned for Adjustment document type can create adjustment in Receivables. If the adjustment amount is within approval limit, that adjustment gets automatically approved. In case user does not have approval limit for the adjustment amount, when user submits adjustment it is processed with a status as “Pending Approval”. Any user who has that approval limit can approve it, user does not need to be any supervisor or manager.