Payable Option Set To Account Payment At Issue. Need At Issue And Clearing. (Doc ID 834173.1)

Last updated on AUGUST 28, 2023

Applies to:

Symptoms

-- Problem Statement:
The Account for Payment option in the Payables Options window has the following two check boxes:
• When Payment is Issued
• When Payment Clears
You can select one or both options. To account for payments that you reconcile in Oracle Cash Management, you must select at least When Payment Clears. This also allows you to use a cash clearing account and create accounting entries for bank charges, errors, and gains/losses. If you do not enable this option, you can still reconcile payments in Payables, but you cannot create reconciliation accounting
entries.

You have set this to 'When Payment is Issued' and need to add 'When Payment Clears' .

Question:

What are the consequences of changing this?

Answer:

There are only consequences for making the change if payment events have been generated in the system prior to the change. The accounting for the "When Payment is Issued" option (without the "When Payment Clears" option being checked)  is a debit to the liability account and a credit to cash. The accounting for the "When Payment Clears" option is a debit to the cash clearing account and a credit to cash. Thus, if the "When Payment Clears" option is checked after the accounting was already generated for the "When Payment is Issued" option, the cash clearing entry will not exist, and therefore cannot be relieved.

When Create Accounting is run for the events, the Payment Cleared events will not account due to the following error:

Error Number Error Message
0 This line cannot be accounted until the accounting event for the application Payables that it references has been fully accounted.

It is referencing cash clearing events that do not exist from the Payment Created event, and the code_combination_id will be -1 for the cash clearing account in the XLA tables.

Changes

Cause

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