Skip Headers

Oracle Receivables User Guide
Release 12.1
Part Number E13522-04
Go to Table of Contents
Contents
Go to previous page
Previous
Go to next page
Next

Multi-Fund Accounts Receivable Accounting Examples

Multi-Fund Accounts Receivable Balancing and Accounting Method Example

Multi-Fund Accounts Receivable accounting methods are predefined in Oracle Applications and have two accounting options:

For example, a non-profit research group, Big Think Tank Institute, must issue approximately 30 invoices per week to various foundations, endowments, and government agency grants for funding of its continued operations. Typically, one funding agency, such as the National Science Foundation (NSF), provides money for several operational funds operated by Big Think Tank.

The following conditions exist in this example:

Related Topics

Multi-Fund Accounts Receivable

Balancing Method

If the Balancing accounting method of multi-fund accounts receivable is assigned to the Big Think Tank ledger, Big Think Tank can debit the natural receivables account, 1210, for all three funds: 100, 200, and 300. Big Think Tank can now track the outstanding receivables for each balancing segment fund.

The invoice accounting for NSF using the Balancing method appears as shown in the table below. For the Receivables accounts, the balancing segment values are copied from the revenue credit lines and all other segments from the receivables account.

Invoice with Multi-Fund Accounts Receivable, Balance Method
Line Description $ Amount Revenue Account (Fund-Cost Center-Natural Account) Receivables Account (Fund-Cost Center-Natural Account)
1 General Funds 1,000 100 - 35 - 5500 100 - 00 - 1210
2 Operating Funds 2,500 200 - 35 - 5600 200 - 00 - 1210
3 Trust Funds 3,000 300 - 35 - 5700 300 - 00 - 1210

Account Method

If the Account accounting method of multi-fund accounts receivable is assigned to the Big Think Tank ledger, Big Think Tank can debit the natural receivables account, 1210, for all three funds: 100, 200, and 300. Big Think Tank can now track the outstanding receivables for each balancing segment other than the account segment.

The invoice accounting for NSF using the Account method appears as shown in the table below. For the Receivables accounts, all the segments other than the account segment value are copied from the revenue credit lines. The account segment value comes from the receivables account.

Invoice with Multi-Fund Accounts Receivable, Account Method
Line Description $ Amount Revenue Account (Fund-Cost Center-Natural Account) Receivables Account (Fund-Cost Center-Natural Account)
1 General Funds 1,000 100 - 35 - 5500 100 - 35 - 1210
2 Operating Funds 2,500 200 - 35 - 5600 200 - 35 - 1210
3 Trust Funds 3,000 300 - 35 - 5700 300 - 35 - 1210

Cash Receipts in Multi-Fund Accounts Receivable Model

Multi-fund accounts receivable provides the ability to track separate cash balances within multiple fund segments.

If an agency maintains separate Receivables balances within each separate fund, it is most likely required to maintain separate cash balances within each fund.

The multi-fund accounts receivable accounting method lets you track cash balances in several funds. When you apply a receipt against an invoice with more than one Receivables line, the multi-fund accounts receivable generates one debit cash entry for each Receivables line in the invoice.

Related Topics

Cash Receipts Example

Multi-Fund Accounts Receivable

Cash Receipts Example

In the previous example, Big Think Tank issued an invoice with multi-fund accounts receivable. The invoice has three Receivables lines and three Receivables balances in funds 100, 200, and 300 as shown in the table below.

Invoice with Multi-Fund Accounts Receivable, Account Method
Line Description $ Amount Revenue Account (Fund-Cost Center-Natural Account) Receivables Account (Fund-Cost Center-Natural Account)
1 General Funds 1,000 100 - 35 - 5500 100 - 35 - 1210
2 Operating Funds 2,500 200 - 35 - 5600 200 - 35 - 1220
3 Trust Funds 3,000 300 - 35 - 5700 300 - 35 - 1230

The multi-fund accounts receivable accounting method lets you perform line-level cash receipt applications to invoices and to track cash balances in separate funds as shown in the table below, using check number 12345 as an example.

Cash Receipts Application Accounting, Account Method, Check Number 12345
Line $ Amount Applied Receivables Account Cash Account
1 1,000 100 - 35 - 1210 100 - 35 - 1113
2 2,500 200 - 35 - 1220 200 - 35 - 1114
3 3,000 300 - 35 - 1230 300 - 35 - 1115

Credit Memo Examples

The following examples use a three-segment chart of accounts where the first segment is Fund, the second segment is Department, and the third segment is Account. The accounting examples are discussed for the following transaction types:

Invoice

The credit memo examples are based on the following invoice.

Transactions - Invoice Entry – Distribution Lines Example
Debit/Credit Account Name Debit Description Credit Description
Cr. Revenue   $1,000 Account - 02.101.3000
Cr. Tax   $50 Account - 02.000.2500
Cr. Freight   $20 Account- 02.101.4500
Cr. Revenue   $500 Account - 03.102.3000
Cr. Tax   $25 Account - 03.000.2500
Cr. Freight   $10 Account - 03.102.4500
Dr.Receivables $1,605 Account 01-000-1200  
Multi-Fund Accounts Receivable Invoice Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Dr. Receivables $1,000 Account - 02.000.1200  
Dr. Receivables $50 Account - 02.000.1200  
Dr. Receivables $20 Account - 02.000.1200  
Dr. Receivables $500 Account - 03.000.1200  
Dr. Receivables $25 Account - 03.000.1200  
Dr. Receivables $10 Account - 03.000.1200  
Cr. Revenue   $1,000 Account - 02.101.3000
Cr. Tax   $50 Account - 02.000.2500
Cr. Freight   $20 Account- 02.101.4500
Cr. Revenue   $500 Account - 03.102.3000
Cr. Tax   $25 Account - 03.000.2500
Cr. Freight   $10 Account - 03.102.4500

Direct Credit Memo at Header Level (Line, Tax, and Freight)

The following example shows the accounting for a direct credit memo at the header level. The credit memo credits 100% of the line amount, 100% of the tax amount, and 100% of the freight amount.

Multi-Fund Accounts Receivable Direct Credit Memo at Header Level (Line, Tax, and Freight) Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Cr. Receivable   $1,000 Account - 02.000.1200
Cr. Receivable   $50 Account - 02.000.1200
Cr. Receivable   $20 Account - 02.000.1200
Cr. Receivable   $500 Account - 03.000.1200
Cr. Receivable   $25 Account - 03.000.1200
Cr. Receivable   $10 Account - 03.000.1200
Dr. Revenue $1,000 Account - 02.101.3000  
Dr. Tax $50 Account - 02.000.2500  
Dr. Freight $20 Account - 02.101.4500  
Dr. Revenue $500 Account - 03.102.3000  
Dr. Tax $25 Account - 03.000.2500  
Dr. Freight $10 Account - 03.102.4500  

Direct Credit Memo at Header Level (Line Only)

The following example shows the accounting for a direct credit memo at the header level. The credit memo credits 20% of the line amount.

Multi-Fund Accounts Receivable Direct Credit Memo at Header Level (Line Only) Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Cr. Receivables   $200 Account - 02.000.1200
Cr. Receivables   $100 Account - 03.000.1200
Dr. Revenue $200 Account - 02.101.3000  
Dr. Revenue $100 Account - 03.101.3000  

Direct Credit Memo at Line Level

The following example shows the accounting for a direct credit memo at the line level. The credit memo is applied to a specific invoice line.

Multi-Fund Accounts Receivable Direct Credit Memo at Line Level Example
Debit/Credit Account Name Debit Description Credit Description
Dr. Revenue $1,000 Account - 02.101.3000  
Dr. Tax $50 Account - 02.000.2500  
Dr. Freight $20 Account - 02.101.4500  
Cr. Receivables   $1,000 Account - 02.000.1200

On-Account Credit Memo

The following example shows the accounting for an on-account credit memo. By default, multi-fund accounts receivable reallocates the credit memo against a customer account.

On Account Credit Memo Entry – Distribution Lines
Debit/Credit Account Name Debit Description Credit Description
Dr. Revenue $1,000 Account - 02.101.3000  
Cr. Receivables   $1,000 Account - 02.000.1200
Multi-Fund Accounts Receivable On-Account Credit Memo Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Cr. Receivables   $623.05 Account - 02.000.1200
Cr. Receivables   $31.15 Account - 02.000.1200
Cr. Receivables   $12.46 Account - 02.000.1200
Cr. Receivables   $311.53 Account - 03.000.1200
Cr. Receivables   $15.58 Account - 03.000.1200
Cr. Receivables   $6.23 Account - 03.000.1200
Dr. Revenue $1,000 Account - 02.101.3000  

Related Topics

Multi-Fund Accounts Receivable

Multi Fund Accounts Receivables Receipt Examples

The following examples use a three-segment chart of accounts where the first segment is Fund, the second segment is Department, and the third segment is Account:

Invoice

The receipt examples are based on the following invoice.

Transactions - Invoice Entry - Distribution Lines
Debit/Credit Account Name Debit Description Credit Description
Dr. Receivables $100 Account - 01.000.1200  
Invoice Line 1
Cr. Revenue
  $40 Account - 02.101.3000
Invoice Line 2
Cr. Revenue
  $60 Account - 03.102.3000
Multi-Fund Accounts Receivable Invoice Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Dr. Receivables $40 Account - 02.000.1210  
Dr. Receivables $60 Account - 03.000.1210  
Invoice Line 1
Cr. Revenue
  $40 Account - 02.101.3000
Invoice Line 2
Cr. Revenue
  $60 Account - 03.102.3000

Apply Receipt

The following example shows the accounting when applying a receipt to an invoice.

Multi-Fund Accounts Receivable

Multi-fund accounts receivable generate multiple cash entries. For example, for a $100.00 receipt, the cash accounting is as follows:

Multi-Fund Accounts Receivable Applying Receipt Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Dr. Cash $100 Account - 01.000.1115  
Cr. Unapplied Receipts   $100 Account - 01.000.1220
Dr. Unapplied receipts $100 Account - 01.000.1220  
Cr. Cash   $100 Account - 01.000.1115
Dr. Cash $40 Account - 02.000.1115  
Dr. Cash $60 Account - 03.000.1115  
Cr. Receivables   $40 Account - 02.000.1210
Cr. Receivables   $60 Account - 03.000.1210

Unapply Receipt

The following example shows the accounting when unapplying a receipt.

Multi-Fund Accounts Receivable Unapplying Receipt Example
Debit/Credit Account Name Debit Description Credit Description
Dr. Cash $100 Account - 01.000.1115  
Cr. Unapplied receipts   $100 Account - 01.000.1220
Cr. Cash   $40 Account - 02.000.1115
Cr. Cash   $60 Account - 03.000.1115
Dr. Receivables $40 Account - 02.000.1210  
Dr. Receivables $60 Account - 03.000.1210  

Reverse Receipt

The following example shows the accounting when reversing a receipt.

Multi-Fund Accounts Receivable Reversing Receipt Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Dr. Receivables $40 Account - 02.000.1210  
Dr. Receivables $60 Account - 03.000.1210  
Dr. Unapplied $100 Account - 01.000.1220  
Cr. Unapplied   $100 Account - 01.000.1220
Cr. Cash   $100 Account - 01.000.1115
Dr. Cash $100 Account - 01.000.1115  
Cr. Cash   $40 Account - 02.000.1115
Cr. Cash   $60 Account - 03.000.1115

Receipt Partially Applied Specifically to Invoice Line

The following example shows a receipt of $100 partially applied specifically to invoice line one.

Multi-Fund Accounts Receivable Partial Receipt to Invoice Line Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Dr. Cash $1040 Account - 01.000.1115  
Cr. Unapplied   $4100 Account - 01.000.1220
Dr. Unapplied $40 Account - 01.000.1220  
Dr. Cash $40 Account - 02.000.1115  
Cr. Cash   $40 Account - 01.000.1115
Cr. Receivables   $40 Account - 02.000.1210

Partial Receipt Applied Generally to Invoice

The following example shows a receipt of $100 partially applied generally to the invoice.

Standard Receivables Partial Receipt Applied Generally Example
Debit/Credit Account Name Debit Description Credit Description
Dr. Cash $1040 Account - 01.000.1115  
Cr. Unapplied   $100 Account - 01.000.1220
Dr. Unapplied $40 Account - 01.000.1220  
Dr. Cash $16 Account - 02.000.1115  
Dr. Cash $24 Account - 03.000.1115  
Cr. Cash   $40 Account - 01.000.1115
Cr. Receivables   $16 Account - 02.000.1210
Cr. Receivables   $24 Account - 03.000.1210

Related Topics

Multi-Fund Accounts Receivable

Adjusting Multi-Fund Accounts Receivable Invoice Examples

The following examples use a three-segment chart of accounts where the first segment is Fund, the second segment is Department, and the third segment is Account. The following accounting examples are considered.

Invoice

The adjustment examples are based on the following invoice.

Transactions - Invoice Entry- Distributions Window
Debit/Credit Account Name Debit Description Credit Description
Dr. Receivables $1,605 Account - 01.000.1200  
Cr. Revenue   $1,000 Account - 02.101.3000
Cr. Tax   $50 Account - 02.000.2500
Cr. Freight   $20 Account- 02.101.4500
Cr. Revenue   $500 Account - 03.102.3000
Cr. Tax   $25 Account - 03.000.2500
Cr. Freight   $10 Account - 03.102.4500
Multi-Fund Accounts Receivable Invoice Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Dr. Receivables $1,000 Account - 02.000.1200  
Dr. Receivables $50 Account - 02.000.1200  
Dr. Receivables $20 Account - 02.000.1200  
Dr. Receivables $500 Account - 03.000.1200  
Dr. Receivables $25 Account - 03.000.1200  
Dr. Receivables $10 Account - 03.000.1200  
Cr. Revenue   $1,000 Account - 02.101.3000
Cr. Tax   $50 Account - 02.000.2500
Cr. Freight   $20 Account- 02.101.4500
Cr. Revenue   $500 Account - 03.102.3000
Cr. Tax   $25 Account - 03.000.2500
Cr. Freight   $10 Account - 03.102.4500

Invoice Type Adjustment

The following example shows an adjustment against an entire invoice.

Multi-Fund Accounts Receivable Invoice Type Adjustment Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Cr. Receivables   $1,000 Account - 02.000.1200
Cr. Receivables   $50 Account - 02.000.1200
Cr. Receivables   $20 Account - 02.000.1200
Cr. Receivables   $500 Account - 03.000.1200
Cr. Receivables   $25 Account - 03.000.1200
Cr. Receivables   $10 Account - 03.000.1200
Dr. Adjustment $1,000 Account - 02.000.1260  
Dr. Adjustment $50 Account - 02.000.1260  
Dr. Adjustment $20 Account - 02.000.1260  
Dr. Adjustment $500 Account - 03.000.1260  
Dr. Adjustment $25 Account - 03.000.1260  
Dr. Adjustment $10 Account - 03.000.1260  

Line Type Adjustment

The following example shows an adjustment at the line level.

Multi-Fund Accounts Receivable Line Type Adjustment Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Cr. Receivables   $200 Account - 02.000.1210
Cr. Receivables   $100 Account - 03.000.1210
Dr. Adjustment $200 Account - 02.000.1260  
Dr. Adjustment $100 Account - 03.000.1260  

Tax Type Adjustment

The following example shows an adjustment to invoice tax lines.

Multi-Fund Accounts Receivable Tax Type Adjustment Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Cr. Receivables   $50 Account - 02.000.1210
Cr. Receivables   $25 Account - 03.000.1210
Dr. Adjustment $50 Account - 02.000.1260  
Dr. Adjustment $25 Account - 03.000.1260  

Freight Type Adjustment

The following example shows an adjustment to invoice freight lines.

Multi-Fund Accounts Receivable Freight Type Adjustment Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Cr. Receivables   $20 Account - 02.000.1210
Cr. Receivables   $10 Account - 03.000.1210
Dr. Adjustment $20 Account - 02.000.1260  
Dr. Adjustment $10 Account - 03.000.1260  

Line Type Adjustment to Single Line

The following example shows a line type adjustment to a single line.

Multi-Fund Accounts Receivable Line Type Adjustment to Single Line Accounting Example
Debit/Credit Account Name Debit Description Credit Description
Cr. Receivables   $1,000 Account - 02.000.1210
Dr. Adjustment $1,000 Account - 02.000.1260  

Related Topics

Multi-Fund Accounts Receivable