GL Entries For Off Invoice Offer are created When Create GL Entries is Unchecked (Doc ID 1473267.1)

Last updated on FEBRUARY 24, 2017

Applies to:

Oracle Trade Management - Version 12.1.3 and later
Information in this document applies to any platform.

Symptoms

The GL entries for an Off invoice offer is being posted to GL even when the "Create GL Entries for Off-Invoice Discounts" is unchecked in the system parameters.

GL Postings for Off-invoice Offers

Off-invoice discounts include Off-invoice, Promotional goods, Order Value  and Terms Upgrade offers. These discounts are treated as reductions in revenue. These discounts can be treated as expenses by setting an option in System Parameters.

For example, you create an Off-invoice offer whereby a customer gets 10% off on a $100 item. When a customer places an order, Order Management takes $10 off each unit of the item, and pass $90 of revenue to Oracle Receivables which then creates GL entries, crediting revenue with $90. This treats the $10 as a reduction in revenue.

If the option is set to create GL entries for Off-invoice discounts, the $10 is treated as an expense instead of reductions in revenue.

In System Parameters, the Administrator can specify whether GL entries must be created for Off-invoice discounts. If the option is checked, the Funds Accrual engine evaluates whether to create entries for such discounts or not. All the orders that are placed against Off-invoice offers will have GL entries created.

The following GL entries are created whenever the order data is passed to Order  Management:
  - Debit Sales or Expense or Charge (set up in Oracle Trade Management)
  - Credit Revenue (set up in Oracle Receivables)

The Base Sales or Expense or Charge GL account is derived from setups done in the following order:
  - Budget which funds the offer
  - System Parameters

The Administrator may use the Account Generator workflow to configure this account.

Credit entries are made to the Revenue account that is used by Oracle Receivables on the invoice line of the sales order line with the offer applied.

For Off-invoice offers (Off-invoice, Order Value, Promotional Goods, Terms Upgrade, and Volume offers), the Utilized column gets updated after the offer is applied on the order. The Earned column gets updated as determined by the profile option OZF-TM: Create GL Entries for Orders. The GL entries get created when the sales
order line with the offer applied has been shipped or invoiced.
 
EG for,offer adjustments for these types of offers :
 
When using the Budget Public Adjustment and Utilization API you must have at least one active offer/price list created in Trade Management. You also need to create adjustment types.

For accounting purposes, when earnings are affected by the adjustment and the Post to GL flag is checked in system parameters, the following occurs:

The Budget Public Adjustment and Utilization API requires inputs from both a debit and credit General Ledger account.  When earnings are affected by the adjustment and the Post to General Ledger flag is  checked in system parameters, but no General Ledger accounts are passed to the API,


   

Changes

 

Cause

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