AutoAccounting is the process that Oracle Receivables uses to assign default values for the key General Ledger accounts for Accounts Receivable activity. The accounts that use AutoAccounting include:
- Accounts Receivable
- Unearned Revenue (for deferred revenue recognition)
- Unbilled Receivables (for deferred receivables recognition)
- AutoInvoice Clearing (used for items created through AutoInvoice where the quantity * the unit price does not equal the Extended Amount).
AutoInvoice allows you to define the source of each segment (piece) of each of the above Accounting Flexfield 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 you create manual transactions.
The type of account you are defining determines the possible sources of the value. The sources are other 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 Accounting Flexfield for what you are doing. See Diagram A, AutoAccounting Worksheet for a representation of how 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 Memo Line 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, could you use “dummy salesreps” as a way to achieve the accounting values that we want? Is the salesrep the 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 are often the best sources of the values. If not, you may need to define a few more Transaction Types. See Diagram 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 type of 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. Then determine, if you used the values according to the sources indicated, what would the value be in each segment? Would the combination of segments result in a valid or invalid Accounting Flexfield? If any problems 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 determined and verify the combinations. If the results are anything other than what you expected, back to the drawing board until you are satisfied.
Note that if you are using Oracle Projects, they have a similar feature called “AutoAccounting.” This is a much more powerful tool and it takes precedence over the values in Oracle Receivables for transactions imported from Projects to Receivables.