Auto Accounting Rules in Oracle Fusion

The primary purpose of auto accounting is to default account codes for every segment from different configurations such as Transaction Type, Customer Site, Sales Person, Inventory Item and Constant value.

Receivables uses the Auto Accounting rules to determine the GL Accounts that you Enter manually or import using Auto invoice. This helps to make the Transactions Quickly and we can make sure that , user is not doing any mistake doing manually entering these GL accounts because these will be drive automatically as per the rules.

Task: Manage AutoAccounting Rules

We can define Auto Accounting rules for these below types.

• Freight: The freight account for your transaction.

• Receivable: The receivable account for your transaction.

• Revenue: The revenue and finance charges account for your transaction.

• AutoInvoice Clearing: The clearing account for your imported transactions. Receivables uses the clearing account to hold any difference between the specified revenue amount and the selling price times the quantity for imported invoice lines. Receivables only uses the clearing account if you have enabled this feature for the invoice batch source of your imported transactions.

• Tax: The tax account for your transaction.

• Unbilled Receivable: The unbilled receivable account for your transaction. Receivables uses this account when you use the Bill In Arrears invoicing rule. If your accounting rule recognizes revenue before your invoicing rule bills it, Receivables uses this account.

• Unearned Revenue: The unearned revenue account for your transaction. Receivables uses this account when you use the Bill In Advance invoicing rule. If your accounting rule recognizes revenue after your invoicing rule bills it, Receivables uses this account.

For each segment, enter either the table name or constant value that you want Receivables to use to get information. When you enter an account Type, Receivables displays all of the segment names in your Accounting Flexfield Structure. Segments include such information as Company, Product, Account, and Sub-Account. Receivables lets you use different table names for different accounts. Choose one of the following table names:

• Salesreps: Enter this option to use salesperson when determining your revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts. If you choose this option for your AutoInvoice clearing, tax, or unearned revenue accounts, Receivables uses the revenue account associated with this salesperson. If you choose this option for your unbilled receivable account, Receivables uses the receivable account associated with this salesperson.

• Transaction Types: Enter this option to use transaction types when determining your revenue, freight, receivable, AutoInvoice clearing, tax, unbilled receivable, and unearned revenue accounts.

• Standard Lines: Enter this option to use the standard memo line item or inventory item you selected when determining your revenue, AutoInvoice clearing, freight, tax, unbilled receivable, and unearned revenue accounts. If you choose this option for your AutoInvoice clearing, freight, tax, unbilled receivable or unearned revenue accounts, Receivables uses the revenue account associated to this standard memo line item or inventory item. If the transaction has a line type of "LINE" with an inventory item of freight ("FRT"), Auto Accounting uses the accounting rules for the freight type account rather than the revenue type account.

• Taxes: Enter this option to use tax codes when determining your tax account.

 Example: The source for the third segment is 'Transaction Types'. When the default accounting is generated for the Revenue account, the accounting flexfield will pull the third segment from the Receivables account defined for the transaction type.

If in the transaction type, revenue account defined is 01-000-1210-0000-000 then the value for the third segment derived by auto accounting is 1210 as the source is “Transaction Types”. So the invoice revenue GL combination will be 100-00-1210 as per above screenshots.