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 |