Example of Creating Balanced Liability Account Entries by All Segments Except Natural Account

On the Manage Common Options for Payables and Procurement page, you can select a method for automatic offsets. The following example illustrates how liability accounts are built using the method called All segments, except natural account.

Scenario

A supplier sends you an invoice for two items. The offsetting liability account must retain all segments of the invoice distribution, except for the account segment.

Transaction Details

The invoice is for 100 USD and consists of:

• Item 1 for 60 USD

• Item 2 for 40 USD

The accounting flexfield consists of the following segments:

• Primary balancing

• Account

• Cost center

Each primary balancing segment value represents a company. The default liability account for the supplier site is 00-LIAB-000.

This table lists the distribution information that you enter for each invoice item line.

Invoice Distribution	Debit	Credit
01-EXP1-111	60
02-EXP2-222	40

Resulting Liability Account Journal Entries

This table lists the liability accounts and amounts that are automatically created for the invoice.

Account	Debit	Credit
01-LIAB-111		60
02-LIAB-222		40