The Under/Over Recovery accounts are used in two specific processes.
- When the user chooses to generate an A/R invoice using the Invoice with Under/Over Recovery option. This option allows the user to override the invoice value that the system calculates and insert their own invoice values for the invoice. The difference between the two values is posted to the Under/Over Recovery account.
- In the contract completion process where the system calculates the values of the revenue that has been accrued in the income statement and of the invoices that have been raised, and makes an adjustment for the difference which is posted to the Under/Over Recovery account.