AP: Create Accounting Completed In Warning with Offsets Error

Issue Overview:

The error “The accounting program cannot create this journal line because the debit or credit that offsets it cannot be found” occurs when attempting to run the Create Accounting program in Oracle Payables, version 12.2.6 or later. This error typically occurs due to incorrect conditions in the XXX_AP_ITEM_EXPENSE_INV journal line type, causing misalignment in the journal entries.

 

Steps to Reproduce:

1. Create an invoice, validate, and approve it.
2. Run the Create Accounting program.

 

Root Cause:

The issue is caused by incorrect conditions in the custom XXX_AP_ITEM_EXPENSE_INV journal line type. The current condition includes unnecessary OR clauses that mistakenly pick up rows that should not be processed, specifically AWT rows. These invalid conditions prevent the creation of correct accounting entries.

 

Solution:

To resolve the error, the condition in the XXX_AP_ITEM_EXPENSE_INV journal line type needs to be corrected. Follow these steps to apply the fix:

Steps to Update the Journal Line Type Condition:

1. Navigate to Payables Manager:
   • Go to Payables Manager.
   • Navigate to Setup → Accounting Setups → Subledger Accounting Setup → Accounting Method Builder → Journal Entry Setup → Journal Line Type.
2. Query for the Journal Line Type:
   • In the Journal Line Type window, query for the custom journal line type: XXX_AP_ITEM_EXPENSE_INV.
3. Update the Conditions:
   • Click on the Conditions button for XXX_AP_ITEM_EXPENSE_INV.
   • Replace the existing condition with the following corrected condition:

(Invoice Distribution Type = ‘RetroExpense’ AND (Invoice Source = ‘SFD’ OR Invoice Source = ‘MTVDHMO’))

OR (Invoice Distribution Type = ‘Item’ AND (Invoice Source = ‘SFD’ OR Invoice Source = ‘MTVDHMO’))

OR (Invoice Distribution Type = ‘Exchange Rate Variance’ AND (Invoice Source = ‘SFD’ OR Invoice Source = ‘MTVDHMO’) AND Accrue on Receipt Option != ‘Yes’)

OR (Invoice Distribution Type = ‘Invoice Price Variance’ AND (Invoice Source = ‘SFD’ OR Invoice Source = ‘MTVDHMO’) AND Accrue on Receipt Option != ‘Yes’)

1. Save the Record:
   • Save the changes after updating the condition.
2. Rerun Create Accounting:
   • Run the Create Accounting program again.

 

Conclusion:

By correcting the condition in the XXX_AP_ITEM_EXPENSE_INV journal line type as described above, the error “The accounting program cannot create this journal line because the debit or credit that offsets it cannot be found” will be resolved, and invoices should be correctly accounted.