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What happens if I don’t create a clearing account?

Posted on February 16th, 2013 by Sanjit Anand ||Email This Post Email This Post

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If you do not use an AutoInvoice clearing account and enable the Create clearing option on the transaction source, AutoInvoice requires that the revenue amount be equal to the selling price times the quantity for all of the transactions it processes.

AutoInvoice rejects any transaction line that does not meet this requirement.

dgreybarrowAutoInvoice Clearing Account

During AutoInvoice processing, Receivables uses the AutoInvoice clearing account to store any differences between the specified revenue amount and the (price * quantity) for imported invoice lines.

Receivables only uses the AutoInvoice clearing account if you enabled the Create clearing option on the transaction source assigned to imported transactions. However, you must define a clearing account in any case.

You can use constant value, customer bill-to site, salesperson, transaction type, and standard item for your AutoInvoice clearing account. If you select salesperson or standard item, Receivables uses the specified Revenue Flexfield.

dgreybarrowThe Calculation

The AutoInvoice Clearing Account is used when the supplied Amount does not match Unit Selling Price times the Quantity.

The calculation is the following:

  • AutoInvoice Clearing Account = (quantity * unit_selling_price) – amount
  • Tax(rate based tax) = (quantity * unit_selling_price) * tax_rate
  • Revenue = amount

Account Receivables = Sum of all
1. Revenue Lines
2. Tax lines
3. AutoInvoice Clearing Account

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