Example of Creating Balanced Liability Account Entries by Primary Balancing Segment

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 Primary balancing segment method.

Scenario

A supplier sends you an invoice for two items. Each item should be charged to a different company.

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 segment

• 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 combination 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.

Liability Account	Debit	Credit
01-LIAB-000		60
02-LIAB-000		40