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E1: 45: Accruals in Advanced Pricing (R42800/P4210/P4074) (Doc ID 1169884.1)

Last updated on JANUARY 03, 2020

Applies to:

JD Edwards EnterpriseOne Advanced Pricing - Sales - Version XE and later
Information in this document applies to any platform.

Purpose

Overview

Accruals are adjustments that accrue amounts to a specific account that will be paid at a later date. An accrual adjustment does not affect an order line’s price. A company might want to use an accrual for advertising allowances, commissions, or product/customer based royalties.

Accrual adjustments do not print on the invoice. The adjustment shows in the Price History (P4074), and the adjustment name is highlighted. Appropriate expense/liability entries are created when using the Sales/Update program.

Accrual adjustments can be used for Line, Basket and Volume Level adjustments, but not with Order Level adjustments.

In the example shown below, an accrual is set up to accrue commissions. A complex item group for all customers is used, and the salesperson will be written to the subledger of the accrual and price adjustment accounts. Complex item group TOYS is based on Sales Cat Code 5. Toys that belong to Cat Code WDN (Wooden toys) pay out a 5% commission.

Scope

Using accrual adjustments makes it possible to reserve monetary amounts through journal entries for such items as commissions and royalties. The monetary amount can be tracked, but the order price does not change. Accrual functionality is available from Release XE and above; this document has been written for Release 8.12 and above.

Details

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In this Document
Purpose
Scope
Details
 Advanced Pricing Definition
 Item Price Group and AAI Setup
 Price Adjustment Details
 Customer Billing Instructions
 Item Branch Details
 Creating the Sales Order (P4210)
 Sales Update
 Post the Sales Batch
 Simple Accrual Example
References

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