Automatic Offsets and Future Dated Payments (Oracle Payables Help)


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Automatic Offsets and Future Dated Payments

With Automatic Offsets, when you submit Approval for an invoice that uses a future payment method, Payables creates an offsetting Liability Account for each invoice distribution. When you transfer payments to your general ledger during posting, Payables debits all the automatically created offsetting Liability Accounts and credits a single Cash Clearing Account. Payables credits the Cash Clearing Account assigned to the payment document you used to make the payment.

If you pay from a non-pooled bank account, after you clear a future dated payment and you post the payment, Payables creates accounting entries that debit the Cash Clearing Account and credit the Cash Account of the bank account.

If you pay from a pooled bank account, Payables creates accounting entries that debit the Cash Clearing Account and credit multiple Cash Accounts, based on the balancing segment of the original invoice distributions.

Automatic Offsets and Future Dated Payments

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