The distributions you enter for an invoice allocate the invoice line amount to various expense or asset accounts. For example, you can distribute expenses from one office supply invoice line to expense accounts for several departments. Payables uses distributions to create accounting entries for invoices.
You can create distributions:
Automatically using a Distribution Set. See: Distribution Sets
Automatically by matching an invoice to a purchase order or receipt. See: Entering Invoices with Matched Purchase Orders and Receipts in the Invoice Workbench
Manually in the Distributions window. See: Entering Invoice Distributions Manually
Manually by allocating charges. See: Creating Distributions by Allocation
In general, Tax distributions are automatically created by E-Business Tax. However, if your tax setup permits, you can enter tax distributions manually. See: Taxes on Invoices.
If an invoice is matched to a purchase order, Payables checks the distributions to see if they are within the tolerance you define. See: Invoice Tolerances.
You can enter distributions manually if you want to control how the total invoice amount is allocated to various expense or asset accounts.
All manually entered distributions will automatically have a Distribution Class of Permanent.
You cannot enter distributions manually for the following types of invoice lines: purchase order/receipt matched lines, prepayment applications/unapplications, automatic withholding tax lines, or lines related to corrections.
To enter distributions manually in the Distributions window:
Select your invoice in the Invoice Workbench, then select the line that you want to enter distributions for, and choose the Distributions button to navigate to the Distributions window.
Choose a distribution Type. Choose Item for goods or services you ordered. Choose Miscellaneous for other expenses on an invoice that are not freight or withholding tax. Choose Freight or Withholding Tax for those types of charges.
Note: If you use Periodic Costing and enter a Freight or Miscellaneous invoice line, then you need to Allocate the charges to one or more distributions. See: Creating Distributions By Allocating in the Invoice Workbench.
Enter the distribution Amount and the GL Account.
If you enter an asset type Account, Payables automatically enables the Track as Asset check box at the distribution level and you cannot change it. If you enter an expense account and want to import this distribution to Oracle Assets, enable the Track as Asset check box at the distribution level. See: Assets Integration.
Enter or override defaults for other distribution fields as necessary.
The distribution GL Date defaults from the GL Date you entered on the invoice line, which gets its default from the invoice header. You can override the default and change the distribution GL Date to any date in an open or future period. Payables uses the GL Date as the accounting date for a distribution.
Enter any additional distributions in the same manner.
If the sum of the distributions does not equal the Invoice Total, Payables will put the invoice on Distribution Variance hold during Invoice Validation.
Save your work.