R12: AP/XLA: When using the "Encumbrance Cash" Subledger Acccounting Method (SLAM) the Reserved for Encumbrance Amount (RFE) is not Equal to the Invoice Amount if the Invoice has Tax Invoice Price Variance (TIPV) and Quantity Variance (QV) (Doc ID 2911260.1)

Last updated on NOVEMBER 23, 2022

Applies to:

Symptoms

When using the "Encumbrance Cash" subledger accounting method (SLAM) to account a payment paying an invoice with Tax Invoice Price Variance (TIPV) and Quantity Variance (QV) the Reserved for Encumbrance Amount (RFE) does not equal the invoice amount.

1. In a Purchasing Responsibility create a Purchase Order (Purchase Orders-> Purchase Orders)
   
   Qty : 2
   Unit Price 18.29
   Total Price : 36.58
   
   
2. In a Purchasing Responsibility receive the PO (Receiving -> Receipts)
   
   
3. From a Payables responsibility create an invoice and match to the receipt (Invoices -> Entry -> Invoices)
   
   Amount : 44.27
   Matched to Receipt
   Qty : 2
   Unit Price : 18.29
   Match Amount : 36.58
   
   
4. Validate and account the invoice from the actions button
   
   
5. Pay the invoice (Payments -> Entry -> Payments)
   
   
6. Account the payment from the actions button
   
   
7. Create an invoice that overbills the PO (Invoices -> Entry -> Invoices)
   
   Amount : 20.57
   Matched to Receipt (overbill)
   Qty : 1
   Unit Price : 17.00
   Match Amount : 17.00
   
   
8. Validate and Account the invoice from the actions button
   
   
9. Pay the invoice (Payments -> Entry -> Payments)
   
   
10. Account the payment from the actions button
    
    
11. Create a credit memo that reverses the overbill (Invoices -> Entry -> Invoices)
    
    Amount : -20.57
    Matched to Receipt (overbill)
    Qty : -1
    Unit Price : 17.00
    Match Amount : -17.00
    
    
12. Create an unmatched invoice so the credit memo can be paid (Invoices -> Entry -> Invoices)
    
    Amount : 25.41
    One distribution for 21
    
    
13. Validate and Account the invoice from the actions button
    
    
14. Pay the invoice and credit memo together on the same check (Payments -> Entry -> Payments)
    
    
15. Account the payment from the actions button
    
    
16. The TIPV is 0
    And the RFE is 22.13 - 1.29 which equals 20.84.
    But since the invoices are for 20.57 this RFE is incorrect.

Cause

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.