Incorrect Accounting Distributions for Credit Memo Against Invoice with Accounting Rules

(Doc ID 1479089.1)

Last updated on MAY 08, 2018

Applies to:

Oracle Receivables - Version 12.2 and later
Information in this document applies to any platform.


Attempting to apply a credit memo to an Invoice with Accounting Rules and find the Accounting Distributions are incorrect for the Credit Memo.

Responsibility:  Receivables Manager
Navigation:  Setup > Accounting > Rules
Be sure Rule is set to Receivables Default Accrual - Invoice Accounting for CM = Yes for User

Navigation:  Transactions > Transactions
Create invoice with fixed non deferred rule 4 periods. 30%, 40%, 15%, 15%. Invoice no 1024 (Source: Manual-Consult) USD 1,000

Navigation:  Transactions > Credit > Create CM for the invoice from Actions Credit for 20% of line Rules method: LIFO

Revenue is reversed for the last two periods equally (ie. $100 each).  
As per LIFO, it should have reversed it for the second to last period $150 in Full and $50 for the last but one period.

Similarly, this issue exists for other methods too (ie. Prorate/Unit Method).  Accounting is incorrect.


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