Typically, when Oracle Purchasing or Oracle Payables sends a reversing expenditure item to Oracle Projects, Oracle Projects accepts the reversal, associates it with the original expenditure item, and marks both expenditure items so that they are not eligible for further adjustments in Oracle Projects. Two scenarios exist in which Oracle Projects cannot automatically create the appropriate adjustment transactions. The two scenarios are as follows:

• When you cancel a historical (prior to Release 12) supplier invoice

• When you perform a partial return or partial correction of a receipt

When either of these scenarios exist, the process PRC: Interface Supplier Costs interfaces the unmatched reversing expenditure items from Oracle Payables or Oracle Purchasing to Oracle Projects. The unmatched reversing expenditure items do not contain a reference to any other expenditure items. You must manually adjust these unmatched reversing expenditure items in Oracle Projects. In addition, you must separately adjust any related expenditure items. Related expenditure items can be from related items such as invoice price variance, exchange rate variance, and tax.

You can run the Supplier Cost Audit Report to research the unmatched reversing expenditure items. You can also enable the Unmatched Reversing Items that Require Adjustment check box on the Supplier tab of the Find Expenditure Items or Find Project Expenditure Items window to query unmatched reversing expenditure items.