Using Entry Events to Generate Accounting Entries Automatically for Upward and Downward Adjustments

Upward and downward adjustments primarily affect Purchasing and Payables.

In Purchasing, when purchase orders are budget checked, the system determines if the obligation is associated with an unexpired or expired budget. If it is against an unexpired or expired budget then entry event can be set up to generate upward or downward adjustments.

Purchase Orders are considered for unexpired upward and downward adjustment accounting if the transaction budget date falls between the defined Begin Date and Expiration Date for the control budget. As an additional criteria, if the PO is a change order, the Accounting Fiscal Year of the adjustment must be at least one year greater than the original transaction's budget fiscal year. However, if the PO is an original transaction, then the Budget Fiscal Year must be less than the Accounting Fiscal Year.

PO Vouchers are subject to unexpired adjustment accounting under the following conditions:

The funding is designated as Unexpired on the control budget definition.
The budget date of the voucher falls between the Begin and Expiration dates on the control budget definition.
The PO Budget Fiscal Year is less than the Voucher Accounting Fiscal Year.
The PO Voucher line amount is greater than the referenced PO line amount.
The PO Voucher line is marked as final and is less than the referenced PO line amount.

Direct Vouchers are subject to unexpired adjustment accounting under the following conditions:

The funding is designated as Unexpired on the control budget definition.
The budget date of the voucher falls between the Begin and Expiration dates on the control budget definition.
The Budget Fiscal Year is less than the Accounting Fiscal Year.

Accounts Payable is impacted by upward and downward adjustments in the following important situations:

When you create PO Vouchers (purchasing vouchers) that are for more or less than the original purchase order amount, it is considered an adjustment.

Any upward change related to an expired budget is failed by the Commitment Control budget processor and must be overridden by an authorized user.
When you create a PO Voucher that is for less than the purchase order amount and it is marked as Final, it is considered for an adjustment.
Subsequent adjustments to prepaid PO Vouchers must be done through AP Journal Vouchers (accounts payable vouchers).

When you create AP Journal Vouchers, care must be taken to select the correct entry event manually.

Commitment Control accumulates voucher activity against the purchase order. The accumulated activity is used by entry event to calculate upward and downward adjustment amounts.