How Is the Write Off Default Offset Account Derived in R12? (Doc ID 1970011.1) In this Document Goal Solution This document is being delivered to you via Oracle Support's Rapid Visibility (RaV) process and therefore has not been subject to an independent technical review. APPLIES TO: Oracle Purchasing - Version 12.1.3 and later Information in this document applies to any platform. GOAL How Is the Write Off Default Offset Account Derived? SOLUTION The default logic documented in the Purchasing User's Guide is as follows: 1. If the destination type on the PO distribution that is being written off is expense, the default offset account used is the charge account on the PO distribution. 2. If the destination type on the PO distribution is inventory or shopfloor, the default offset account used is the variance account on the PO distribution. Navigate to: Inventory Responsibility Setup/Organization/Parameters/Other Accounts
In Release 12 it is mandatory that the Invoice Price Variance (IPV) Account should be separate from Accrual Account because the IPV Account is the default Account used to post Accrual Write Offs transactions To override this logic, there are two options: - Change the PO account generator workflow to stamp a different account at PO distribution. - Implement your own account derivation rules in Sub Ledger Accounting (SLA) for the accrual write-off events Change accrual write off account I have not tr it, but yes, you can configure SLA to derive one or more segment values from other sources. Here are the steps: 1. Setup 1 or more (1 per segment, as needed) new Account Derivation Rules (ADR). by copying from the seeded ADR, CST_AWO_ACCRUAL. In the prorities region, select Value Type as Source and select an appropriate source, say, Inventory Item Expense Account. 2. Create a new Journal Line Defintion (JLD), by copying from the seeded defintion code, ACCRUAL_WRITE_OFF and associate your new ADR's to the Journal Line Type, Accrual. 3. Create a new Application Accounting Defintion (AAD), by copying from the seeded defintion code, COST_MANAGEMENT and associate your newly created JLD. 4. Validate your newly created AAD. 5. Create a new Subledger Accounting Method (SLAM), by copying from the seeded SLAM, STANDARD_ACCRUAL 6. Associate the newly created SLAM in Accounting setups. 7. Test, Test and Test!!