Automatic Offsets

If you enter invoices for expenses or asset purchases with more than one primary balancing segment value, you might want to use automatic offsets. Automatic offsets balance accounting entries for Oracle Fusion Payables transactions.

If you don't use automatic offsets, an invoice transaction has a single liability accounting entry and a payment transaction has a single cash accounting entry.

On the Manage Common Options for Payables and Procurement page, you can select the method for creating the offsetting accounting entry. You can offset by primary balancing segment, or you can offset by all segments, except natural account.

Invoice Accounting Entries

Amounts are automatically allocated for the following invoice accounting entries:

• Conversion rate variance gain or loss

• Liability

• Nonrecoverable tax for invoices matched to purchase orders

• Nonrecoverable tax for invoices not matched to purchase orders, where no tax expense account has been defined for the tax rate

• Withholding tax, if the withheld amount is applied at invoice validation time

Payment Accounting Entries

Amounts are automatically allocated for the following payment accounting entries:

• Cash, if you use a pooled bank account

• Cash clearing, if you use a pooled bank account and if you account for payments at clearing time

• Discount

• Realized gain or loss

• Bills payable

• Withholding tax, if amounts are withheld at payment time