Enabling Automatic Offsets
If you enable Automatic Offsets, Payables automatically balances invoice and payment distributions that cross balancing segments by creating offsetting entries for each balancing segment.
Automatic Offsets is a powerful feature that greatly affects processing throughout Payables. For a full account of its impact, see: Automatic Offsets.
To enable Automatic Offsets:
1. In the Accounting region of the Payables Options window, choose Account or Balancing as your Automatic Offset Method. See: Accounting Payables Options.
- Account. Payables retains all segments but the distribution's account segment when it builds an offsetting account. Use this option if you want all of your accounts to preserve the same level of distribution detail.
- Balancing. Payables retains only the distribution's balancing segment when it builds an offsetting account. Companies typically find this level of detail sufficient.
2. Select Audit as the Journal Entry Creation default for your Liability, Discount Taken, Gain or Loss, and Cash Clearing transactions. This allows Payables to supply General Ledger with the information needed to create detail balancing journal entries when you run Journal Import. See: Audit Options.
We also recommend that you leave the Create Summarized Journal Entries box unchecked. Payables can then create journal entries with your invoice and cash distributions in detail.
3. In the Payment region of the Payables Options window, choose System Account as your Discount Distribution Method if you want Payables to prorate discounts across your invoice distributions when you pay an invoice that crosses multiple balancing segments. The balancing segment from the offsetting invoice distribution replaces the balancing segment of your system Discount Taken account when Payables builds the accounts for these entries. See: Payment Payables Options; Accounting Financials Options.
4. When you set up your bank accounts, check the Pooled Account box in the Payables Options region of the Bank Accounts window if you want to create a pooled account. See: Defining Banks.
The cash in a pooled bank account is shared by multiple balancing segments; the cash in a non-pooled bank account is associated with a single balancing segment.
When you create a payment from a pooled bank account using Automatic Offsets, Payables automatically builds the cash account for each payment distribution on the basis of the bank account's associated cash account using your chosen Automatic Offset method.
Attention: When you make a payment using a non-pooled bank account, Payables generates only a single cash offset even if Automatic Offsets is enabled. For payment distributions that cross balancing segments, you can either enter balancing entries manually, or set General Ledger up to create them automatically on posting. For details, see: Intercompany Accounting.
See Also
Automatic Offsets
Intercompany Accounting
Payables Options
