Whenever we perform write off of a PO receipt the the dollar amount of PO is wriiten off from an accounting perspective but from operations perspective the item quantities on PO still show as available. You can match these quantities to invoices in EBS even though the dollar amounts have been released. When you match such quantities system puts a debit in accrual account where there is no credit any longer to offset it. How can we close out the available quantities on a PO that has been written off ?
To write off a transaction from an accrual account:
Step 1. Submit the Accrual Reconciliation Report. Review this report and identify the transactions you want to write off.
Step 2. Select Accrual Write-Offs from the menu. Enter search criteria in the Write-Off Search Criteria region to find the transactions you want to write off:
Enter the Source:
-- AP. Payables
-- INV. Inventory
-- PO. Purchasing
-- WIP. Work in Progress
You can optionally enter the following additional search criteria: Account number, Item number, item Description, PO Number, Document Order Line, Document Number, Document Line, Destination Type, Quantity, and a date range. You can also restrict the search to include written off transactions and transactions matched to a purchase order.
Step 3. Choose Find to initiate the search and display the results in the Write-Off Transactions region.
Step 4. Select the transactions that you want to write off. Enter a Write Off Date that is in the same accounting period as the journal entry you will prepare to write off selected transactions.
Step 5. Save your work. Transactions that you selected to write off in this window will no longer appear on the Accrual Reconciliation Report. They will appear on the Accrual Write Off Report, which is used to support your manual journal entry.
Step 6. Submit the Accrual Write Off Report.
Step 7. Using the Accrual Writeoff Report as support, prepare a manual journal entry for the transactions you wish to write off. Optionally prepare a journal entry line for each transaction reason.