8/4/2019 What is Auto Accounting

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Oracle Applications: What is AutoAccounting?y Oracle Applications Order Management, Receivables and General Ledger Cross Flowy Oracle Applications Acoounts Receivables (AR) Tables Information.y Oracle Applications: what is a transaction? What are Transaction Types?y Oracle Applications:Importance of Receivables Activities.y Receipt API in Oracle Receivables

AutoAccounting is the process that Oracle Receivables uses to assign default values for the keyGeneral Ledger accounts for Accounts Receivable activity. The accounts that use AutoAccountinginclude:

- Accounts Receivable- Revenue- Tax- Freight- Unearned Revenue (for deferred revenue recognition)- Unbilled Receivables (for deferred receivables recognition)

- AutoInvoice Clearing (used for items created through AutoInvoice where the quantity * the unitprice does not equal the Extended Amount).

AutoInvoice allows you to define the source of each segment (piece) of each of the above AccountingFlexfield values. These values are automatically used when you create transactions using AutoInvoice(the transaction import program) and are automatically provided (but may be overridden) when youcreate manual transactions.

The type of account you are defining determines the possible sources of the value. The sources areother setup screens that you have setup using the basic account values. AutoInvoice combines the

values from the sources you specify for each segment to create what should be the perfect AccountingFlexfield for what you are doing. See Diagram A, AutoAccounting Worksheet for a representation ofhow this works. For instance, for the Receivables account, you can attain segment values from the

Transaction Type or from the Salesrep. For Revenue, you also have the option of the using the MemoLine or Item account values to complete the segments. And, so on.

You need to ask yourself what is the lowest common denominator?Do we you salesreps? If not, couldyou use dummy salesreps as a way to achieve the accounting values that we want? Is the salesrepthe lowest common denominator? Would they sell for multiple regions? Divisions?

If salesreps work along lines that are similar to the way you wish to complete the account, they areoften the best sources of the values. If not, you may need to define a few more Transaction Types. SeeDiagram B for a typical use of the AutoAccounting Worksheet.

To use the worksheet, list your Accounting Flexfield segments in the left column. Then, for each typeof account, indicate (using the list of possible sources) the best source for each segment.

Once you have come up with a straw model, test it out (a white board works well for this exercise).List the setups that would be entered for the sample salesrep, for the Transaction Type, etc. Thendetermine, if you used the values according to the sources indicated, what would the value be in eachsegment? Would the combination of segments result in a valid or invalid Accounting Flexfield? If anyproblems arise, reevaluate your assumptions and keep testing until you get what you really want.

Once you have tested outside of the system, setup Oracle Receivables with the values you determinedand verify the combinations. If the results are anything other than what you expected, back to thedrawing board until you are satisfied.

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