The Create Detailed Distributions check box in the Receivables system options form was created as part of the "Merge Distributions Enhancement" (Bug: 7559194: LINE LEVEL DISTRIBUTIONS NOT NEEDED FOR HEADER LEVEL CASH APPLICATION/ADJUSTMENT). Distributions were getting created at the level of granularity of an invoice line. This would result in a large number of distributions/meta data being passed to the Sub ledger Accounting Module.
When the checkbox is checked, Receivables will create detailed invoice line level distributions. These detailed distributions allow the system to create line level applications for receipts and adjustments.
You should CHECK this checkbox if any of the conditions below are true:
1. If the Primary or Secondary ledgers associated with the operating unit is using one of the following subledger accounting representations:
- The Multifund Receivable accounting representation, where receivable accounting lines for an invoice are created at the level of invoice line.
Note: Release 12 seeds Subledger accounting methods: Multi-Fund Accrual - Account Method and Multi-Fund Accrual - Balancing Method - The Cash Basis accounting representation, where accounting is created only at the time of receipt of cash.
Note: Release 12 seeds Subledger accounting methods: Encumbrance Cash and Standard Cash
2. If you want to apply receipts or adjustments to invoice lines using Line level Cash Application feature or Line Level Adjustment feature.
3. If you want to derive account code fully or partially from the invoice lines when accounting for adjustments or receipt applications.
Keep in mind that checking this box could cause performance issues. There will be a larger volume of distribution records, which could potentially cause performance issues during the Submit Accounting or Create Accounting process for Receipt Applications. There are two patches that will aid in performance issues (Patch 16198666 and Patch 16060007) See Doc ID 1534178.1 and Doc ID 1481222.1 for more details in preventing any performance related issues.
When the checkbox is UNCHECKED, Oracle Receivables will create summarized distributions. The receivable distributions for adjustments and applications are not maintained at the invoice line level, instead a summarized receivable distribution is created at the invoice header level. Adjustments and receipt applications are not pro-rated across the invoice lines. This is same way the receivable distributions are created in Release 11i.
Following is the impact of having the checkbox UNCHECKED:
- When you create Batch Sources (Navigation: Setup > Transactions > Sources), in the Batch Source tab, the checkbox Generate Line Level Balances will be disabled.
- When you create Receipt Applications (Navigation: Receipt > Receipts) in the Applications form, the Apply in Detail button will be disabled.
- When you create Adjustments against transactions (Navigation: Transactions > Transactions, Toolbar Menu Actions > Adjust) in the Account, IDs tab, the Line column will be disabled.
- When using the Receipt or Adjustment APIs, you cannot create line level applications.
For an explanation on the validation that takes place when checking and unchecking the box see Doc ID 1081657.1.