Accounting distributions and subledger journal entries for free text invoices
Accounting distributions are used to define how an amount will be accounted for, such as how the revenue, tax, or charges will be accounted for on a free text invoice. Every amount that must be accounted for when the free text invoice is journalized will have one or more accounting distributions.
You can use the following buttons in the Free text invoice page to view, and possibly change, the accounting distributions for each amount on the free text invoice.
- Distribute amounts—View and change the accounting distributions for an individual line and any child lines, such as taxes or charges. You can also view and change the accounting distributions for the child line directly from the Sales tax transactions page or the Charges transactions page.
- Change free text invoice header amounts, such as charges or currency rounding amounts.
- Change free text invoice line amounts.
- View distributions—View the accounting distributions for all lines on the document. You can't change the accounting distributions from this view.
- View header and line amounts.
When you enter a free text invoice, each amount will be distributed as follows.
|Type of monetary amount||Where the main account is displayed from||Order of priority that determines which default financial dimension is displayed|
|Free text invoice line||The ledger account on the free text invoice line.||
|Free text invoice line for a fixed asset number and value model combination
|The ledger account on the free text invoice line.||
|Free text invoice discount amount||The Main account for customer discounts field in the Cash discounts page.||
|Free text invoice sales tax amount||The Sales tax payable field in the Ledger posting groups page.||
|Free text invoice charge line amount||The Credit account field in the Charges code page.||
Accounting distributions for taxes cannot be created until taxes are calculated. To calculate sales taxes, you must complete one of the following tasks in the Free text invoice form:
- View the sales tax.
- View the invoice total.
- View the cash flow.
- View accounting distributions for the whole free text invoice.
- View the subledger journal.
Subledger journals for free text invoices
Before you post a free text invoice, you can view the full accounting entry of the invoice, which includes debits and credits, to verify that the invoice is being posted to the correct accounts. This view of the full accounting entry is called a subledger journal. If the subledger journal entry is incorrect when you preview it before you journalize the free text invoice, you can't change the subledger journal entry. Instead, you must change the accounting distributions or the posting profile. The accounting distributions are used to define one side of the accounting entry, the debit or the credit. The offsetting subledger journal account entry is created from the posting profiles, such as from the customer account or the tax.