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 |