AR - Approval Limits

Table Name:  AR_APPROVAL_USER_LIMITS

Use the Approval Limits window to define approval limits for

·         Adjustments created in Receivables,

·         Requests for credit memos initiated from iReceivables and

·         Write-offs for receipts.

Receivables uses approval limits that have a document type of (Adjustment/credit memo/Receipt write off) when you create an adjustment in the Adjustments, Submit AutoAdjustments, and Approve Adjustments windows.

When you enter an adjustment that is outside your approval limit range, Receivables assigns the adjustment a status of Pending until someone with the appropriate approval limits either approves or rejects it.
The Credit Memo Request Approval Workflow uses approval limits that have a document type of Credit Memo when forwarding credit memo requests from iReceivables. The workflow sends a notification to an approver if the request is within the approval limit range for the currency and reason code specified.
When you write off an unapplied receipt amount, Receivables uses approval limits that have a document type of Receipt Write-off. You cannot write off a receipt amount that is outside your approval limit range. You can only write off positive amounts.
You define Adjustment approval limits by currency and dollar amount. You define Credit Memo approval limits by reason type, currency, and dollar amount. You define Receipt Write-off approval limits by currency and dollar amount. The approval limits for write-offs are separate from, but cannot exceed, the system level write-off maximum amount that you define in the System Options window. You must specify both lower and upper approval limits for each approver.
To review your adjustments and adjustment statuses, see the: Adjustment Register.

Attention: Be sure to update approval limits when personnel changes occur and whenever you define new credit memo reasons in the Receivables Lookups window.

Prerequisites

   Define application users

   Define currencies

   To define approval limits:

1. Navigate to the Approval Limits window.

2. Enter the Username of the person for whom you are defining approval limits, or select from the list of values. You define valid user names and descriptions in the Users window. For more information, refer to the Oracle Applications System Administrator's Guide.

3. Enter a Currency code. You can define multiple user approval limits for each currency defined in your system.

4. Enter a minimum approval amount in this currency for this user. You can enter either a positive or negative amount, but the From Amount must be less than or equal to the To Amount.

5. Enter a maximum approval amount in this currency for this user. You can enter either a positive or negative amount, but the To Amount must be equal to or greater than the From Amount.

Note: Credit memo approval ranges cannot overlap for limits with the same reason type and currency. For example, the approval range for primary approver JSMITH is from -200 USD to -100 USD and the reason code is Free Product. Therefore, you cannot define a credit memo approval range for primary approver AJONES from -250 USD to -150 USD and specify the same reason code.

6. If you specified a Document Type of Credit Memo, indicate whether this approver is the primary approver for this range by checking the Primary box.

7. Save your work.

AP- Accrual and Accounting FAQ

Q1. What is the difference between 'Accrue On Receipt' and 'Accrue at Period End'?

A: Accrue On Receipt means that when a receipt is saved, accrual transactions are immediately recorded and sent to the general ledger interface. This is also known as "online" accruals. Accrue at Period End means that when a receipt is saved, the accrual transactions are not immediately recorded and sent to the general ledger; instead, the accounting entries are generated and sent at the end of the month by running the Receipt Accruals - Period-End Process.

All items with a destination type of either Inventory and Outside Processing are accrued on receipt. For items with a destination type of Expense, you have the option of accruing on receipt or at period end.

 

Q2. Why are expense items typically accrued at period-end, and why are inventory
items always accrued on receipt?

A: One should accrue on receipt if perpetual inventory is adopted to facilitate reconciliation between inventory valuation reports and accounting entries. Expense items typically are not accounted for on a daily basis, and most companies find it easier to account for and reconcile these expenses at month-end rather than at the time each individual expense is incurred.

When both inventory and expense items are accrued on receipt, the following problems may be encountered:
A) Receiving inspection balances will include both inventory assets and expenses, so at the end of the month, they will need to be manually reclassified.
B) The number of entries needed to research and reconcile the perpetual A/P Accrual Account(s) becomes significantly increased. Since the expense receipts could double the number of accrual accounting entries to process, the Accrual Reconciliation Report could take twice as long to run. The amount of time required by your staff to research any discrepancies would also increase.

 

Q3. Which Purchasing report should be used to review period-end accruals?

A: The Uninvoiced Receipts Report should be used to view period-end accruals.

 

Q4. Which Purchasing report should be used to review online accruals?

A: The Accrual Rebuild Reconciliation Report should be used to view accrual transactions for inventory items and expense items which are set to accrue on receipt (online accruals). These transactions can also be included on the Uninvoiced Receipts Report by setting the parameter 'Include Online Accruals' to Yes when submitting the report.

 

Q5. After entering receipts and running the Receipt Accruals - Period-End Process, the new journals do not appear in the General Ledger. Should the transactions automatically appear in GL after performing these steps?

A: The transactions from Oracle Purchasing are only sent to the GL_INTERFACE table; in order to create the journals and see them in General Ledger, the Journal Import concurrent program must be run from a General Ledger responsibility. Be sure to review the output file from the Journal Import request to ensure that the records imported successfully.

Q6. How can one tell whether each journal in the general ledger is for period- end or on receipt (online) accruals?

A: Period-end and online accrual entries may be contained in the same GL batch, but there will be separate journals created for each. Journals created by the Receipt Accruals - Period-End Process will have a category of 'Accrual'; journals created for online accruals with have a category of 'Receiving'. Here is some technical table-level information that may provide assistance: Table: GL_INTERFACE Column : USER_JE_SOURCE_NAME = Purchasing Column : USER_JE_CATEGORY_NAME = Accrual (for period-end accruals) - OR - USER_JE_CATEGORY_NAME = Receiving (for online accruals) Table: GL_JE_HEADERS Column : JE_SOURCE = Purchasing JE_CATEGORY = Accrual (for period-end accruals) - OR - JE_CATEGORY = Receiving (for online accruals)

Q7. Does the process of reversing journals for period-end accruals occur automatically in GL?

A: The process of reversing the accrual journals does not occur automatically; they must be manually reversed in the general ledger.

Q8. For the Uninvoiced Receipts Report, what is the purpose of the parameter 'Accrued Receipts'?

A: This parameter should be set to 'No' to see only the uninvoiced receipts which have not yet been accrued by running the Receipt Accruals - Period-End process. This parameter should be set to 'Yes' to see all uninvoiced receipts, including those which have been accrued by running the Receipt Accruals - Period-End Process.

Q9. Records are appearing on the Uninvoiced Receipts report for expense items which have been received but not invoiced. How can these records be removed from the report and kept from accruing each month?

A: There are a couple of methods that can be used to remove records from the report and to keep them from accruing each month: A) Close the purchase order shipment line. Closing the purchase order at the Header or Line level will also have the same effect. On the Purchase Order Summary form, select Special -> Control, then 'Close'. NOTE: Selecting 'Cancel' will not keep receipts from accruing each month. Refer to question/answer #10 below for an explanation of this. B) Create an invoice in AP and match it to the purchase order for the entire received quantity. Some users choose to create a 'dummy' invoice for $0.00 in this case.

Q10. A purchase order shipment was received against, then canceled. It now appears on the Uninvoiced Receipts report and accrues each month when running the Receipt Accruals - Period-End process. Why is this happening?

A: When a purchase order is canceled (whether at the header, line, or shipment level), only the unreceived quantity is actually canceled. Cancellation does not effect quantities already received, as an obligation still remains for these receipts. If the quantity received is equal to the quantity invoiced (billed), or if no receipts have been entered against the purchase order shipment, then cancellation sets the Canceled flag of the shipment to 'Yes' and the Closure Status to 'Closed'. In this case, no accrual transaction will be generated. If the quantity received is not equal to the quantity invoiced, then cancellation sets the Canceled flag of the shipment to 'Yes' and the Closure Status remains in its current status (i.e., not 'Closed'). The difference between quantity received and quantity invoiced will appear on the Uninvoiced Receipts report, and will continue to accrue each month until an invoice is matched for the entire received quantity, or until the received items are returned to the Supplier.

Q11. What is the difference between the Accrual Reconciliation Report and the Accrual Rebuild Reconciliation Report?

A: The report is available as two (2) separate concurrent programs: the Accrual Reconciliation Report and the Accrual Rebuild Reconciliation Report. Both reports run using the same report definition file: POXACREC.rdf. When the Accrual Rebuild Reconciliation Report is selected, the following events occur: - The program will delete all records currently stored in the PO_ACCRUAL_RECONCILE_TEMP_ALL table - Accounting entries are selected from the appropriate sources (sub ledgers) based on the parameters entered at the time of report submission - The temporary table PO_ACCRUAL_RECONCILE_TEMP_ALL is repopulated with these accounting entries - Report output is generated based on this information When the Accrual Reconciliation Report is run, the report does not reselect the information from the sub ledgers; instead, it reports only on the data currently stored in the PO_ACCRUAL_RECONCILE_TEMP_ALL table. This feature saves time and decreases the performance impact on the system, because the accrual information does not have to be regenerated from the original sources every time the report is submitted. Typically, the Accrual Rebuild Reconciliation Report is run at the end of the period, and the Accrual Reconciliation Report is used for interim reporting. Note that the title showing on the report output remains the Accrual Reconciliation Report regardless of which process is actually submitted.

Q12. How do transactions which have subtotals of $0.00 get removed from the Accrual Reconciliation Report?

A: When submitting the report, setting the following parameters as shown will allow for these transactions to not show on the report output: Include All Transactions = No Transaction Amount Tolerance = 0 (or higher)

Q13. Several transactions appear on the Accrual Reconciliation Report which were charged to the accrual account in error. Manual journal entries have already been created in GL to correct these transactions. How do these transactions now get removed from the report?

A: In Oracle Purchasing, go to the Accrual Write-Offs form. Responsibility: Purchasing Super User Navigation: Accounting/Accrual Write Offs Select the lines that need to be removed from the report and save Then, run the Accrual Reconciliation Report again, setting the parameter 'Include Written-Off Transactions' to No. The written-off transactions will no longer be included in the report. NOTE: You can run the Accrual Write-Off Report to review the transactions that were written off; this can be used to support the manual journal entry created in the general ledger.

AP- Account Generation FAQ

Q1. What does the Account Generator process do?

A: The Account Generator process builds charge, budget, accrual, and variance accounts for each purchase order, release, and requisition distribution based on the distribution’s destination type. It is a synchronous Workflow process.

 

Q2. What are the Pre-requisites to use Account Generator?

A: Before using the Account Generator you must:
- Define your Accounting flexfield structure for each set of books.
- Define flexfield segment values and validation rules.
- Set up Oracle Workflow.
- Decide whether you want to use the Account Generator processes as seeded in Oracle Purchasing, or you need to customize them to meet your accounting needs.

 

Q3. What are the workflow item types used in Account Generator?

A: For Purchase Orders: POWFPOAG
For Requisitions: POWFRQAG
Each Account Generator item type contains the following top-level workflow processes:
Generate Default Account
Generate Account Using Flex Builder Rules
If you are upgrading from 10.7, and you have been using the flex builder to generate the accounts, you have an option of upgrading your existing flex builder rules to Account Generator. In which case, you should use the “Generate Account Using Flex Builder Rules” process.

 

Q4. I have been using the Flex builder rules in Release 10.7 to build the accounts. Can I continue using the same setup in account generator in 11.x also?

A: Yes. The same setup can be used with account generator also. To achieve this, the following actions should be performed on up gradation to account generator.
- Run the program in $FND_TOP/bin/FNDFBPLS. This will create a PL/SQL package that will contain all the flex builder rules.
- Apply the newly created PL/SQL file to the database. This will create a package called PO_PO_CHARGE_ACCOUNT /
PO_REQ_CHARGE_ACCOUNT
- Verify that the package is created successfully and that it is valid in database.
- Choose the Account Generator Top level process as Generate Account Using Flex Builder.
- Test the account generator.

 

Q5. The flex builder rules package PO_PO_CHARGE_ACCOUNT is being overwritten whenever I apply a family pack. Why?

A: The family pack will contain POXWFB1S.pls and POXWFB1B.pls, which contains a blank definition of the PO_PO_CHARGE_ACCOUNT for compilation purpose. This will override the already existing PO_PO_CHARGE_ACCOUNT
package created from flex builder rules. So the Client must take a backup of the Flex builder rules package before applying the patch, and revert back the package PO_PO_CHARGE_ACCOUNT using that file.

 

Q6. What are the steps to generate the WFSTAT output for Account Generator?

A: 1. Set the following profiles:
- Account Generator: Run in Debug Mode=> Yes
- Account Generator: Purge Runtime Data=> No
PO: Set Debug Workflow On => Yes
2. Make sure that the concurrent program "Purge Workflow Obsolete Runtime Data" is NOT running.
3. Open Purchase Order/Requisitions form, go to the distributions window, enter necessary fields and click on charge account field to start generating the charge account. After the account generator has done building the account, or errors out, do the following from the toolbar (DO NOT exit the form or navigate to any other block or record, otherwise this information would be lost):
Help=> Diagnostics => Examine
Enter in 1^st field => parameter
Enter in 2^nd field => charge_acc_wf_itemkey
Then tab out. The Item key will appear in the third field.
4. Now save the purchase order/requisition. If you are not able to save, then clear the distribution record and navigate back to the shipment window and save the form. Saving the form is must, because a commit is required to save the workflow information in tables, for generating the wfstat output.
5. If step#3 could not give you an item key, then use the following query to identify the relevant item key:
Select item_key, item_type, begin_date
from wf_items
where item_type = '&item_type'
order by begin_date desc;
For PO, use 'POWFPOAG' item type in above query, and for requisition, use 'POWFRQAG'.
6. To generate the WFSTAT output,
Run the sql in $FND_TOP/sql/wfstat.sql with above item_type and item_key. Spool the output.
7. To get the wf debug information, run the following query:
SELECT item_key, item_type, debug_message
FROM po_wf_debug
WHERE item_key = '&Item_key'
ORDER BY execution sequence;

 

Q7. What exactly does profile option "Account Generator: Run in Debug Mode" do?

A: This profile option controls whether the account generator workflow process runs in synchronous mode (workflow-on-a-fly) or asynchronous/persistent mode (save the runtime data).
When this profile is NULL or "No", the workflow runs in synchronous mode and it will NOT store any runtime data in database. So you cannot generate the wfstat etc for debug purposes. However once you set this profile option to "Yes", then the process would run in persistent mode, thereby the runtime data would be stored in database. Now you can generate the wfstat etc.

 

Q8. Will the account generator build the charge account based on project information?

A: No. By default, the Account Generator process as seeded in Oracle Purchasing would not consider the project information to build the account. To achieve this functionality, you should customize the Account Generator to consider the project details. There is a dummy sub process 'Build Project Related Account' seeded in the Account Generator workflow, available for customization. You would also have to modify function PO_WF_PO_CHARGE_ACC.IS_PO_PROJECT_RELATED to return a value of "True".
For more information on how to customize the Account Generator, please refer to the manual Oracle Purchasing Account Generator Workflow Customization Example.

 

Q9. Will the account be generated for amount based/one time item lines?

A: No the Account will not be generated if you are using the Account Generator as seeded in Oracle Purchasing. Either the account should be manually entered or the account generator should be customized.

 

Q10. When the charge account field is non updateable?(If it Service Item – Updatable)

A: In the following cases the charge account field is not updateable:
1. If the destination type code is INVENTORY or SHOP FLOOR.
2. If the distribution is already encumbered.
3. If the PO is created from a encumbered Requisition
4. If the destination type code is Expense and
If the project is entered and the profile option PA_ALLOW_FLEXBUILDER_OVERRIDES is set to NO
If the expense accrual code= RECEIPT

 

Q11. If the account generator process raises a blank error message, what does it mean?

A: Check the invalid objects in the database. Recompile the invalid objects.

 

Q12. Where do the various accounts come from?

A: Here is a list of all possible places from where account will be picked:

Destination type	Item type/WIP type	Sub inventory/WIP Entity type/Bom_cost_element_id	Account Hierarchy Inventory
			expense_account - subinventory
	Expense	Not NULL	expense_account - mtl_system_items
			expense_account - mtl_parameters
Inventory
		NULL	material_account - mtl_parameters
		Expense	expense_account - mtl_secondary_inventories
	Asset	Expense	expense_account - mtl_parameters
		Asset	mtl_secondary - mtl_secondary_inventories
		Asset	material_account - mtl_parameters
Expense			expense_account - mtl_system_items
	(Req)		default_code_combination_id -hr_employees_current_v
		WIP - type 6,7	st_eamcost_pub.get_direct_item_charge_acct
		Bom Id 5	overhead_account - wip_discrete_jobs
	Job WIP	4	outside_processing_account - wip_discrete_jobs
		3	resource_account - wip_discrete_jobs
		2	material_overhead_account - wip_discrete_jobs
		1	material_account - wip_discrete_jobs
		NULL	flex_value - fnd_flex_values_vl
Shop Floor
		Bom Id 5	overhead_account - wip_discrete_jobs
		4	outside_processing_account - wip_discrete_jobs
	Schedule	3	resource_account - wip_discrete_jobs
		2	material_overhead_account -wip_discrete_jobs
		1	material_account - wip_discrete_jobs
		NULL	flex_value - fnd_flex_values_vl

AP - Account Generator Setup

SETUP & Defaulting of accounts in an Encumbrance environment.

====================================================

TOPICS

I)   Definition of Items

II)  Definition of  subinventory

III) Accounts involved and their setup

IV)  Account Generator in Oracle Public Sector Purchasing

V)   Defaulting rules of the  accounts on a Purchase Order Distribution.

I)Definition of Items:

=========================

The terminlogy of items is rather confusing from an Purchasing/Inventory 

point of view. 

For easy understanding these will be referres to as  A , B  and C, 

A - Expense Items 

B - Inventory Expense Items

C - Inventory Asset Items

A - These items have attributes checked 

    Purchasable 

    Purchased 

B - These tems have the following attributes checked 

  a - inventory item = YES

  b - stockable

  c - transactable 

  d - Inventory Asset Value = NO

  e - Costing Enabled = No 

C - These items have the following attributes checked 

   a - inventory item = YES

   b - stockable. 

   c - transactable 

   d - Inventory Asset Value = YES

   e - Costing Enabled = YES

II) Definition of  subinventory

===============================

  A subinventory can be of two types

    i) Expense Subinventory 

   ii) Asset subinventory

i)Expense subinventory can be defined as an inventory which keeps  track of Items delivered into Inventory, which may NOT be of asset value. 

When Defining a new subinventory, the attribute Asset Subinventory   remains UNCHECKED, which means that this Subinventory is NOT an asset  subinventory and hence an Expense Subinventory. 

Navigation: Oracle Inventory > Subinventories window > Costing section  of the Master Item window

ii)Asset subinventory on the other hand keeps track/record of asset items 

received INTO this organization. When Defining a new subinventory, the attribute Asset  Subinventory  is CHECKED , which means that this subinventory is an asset subinventory.

Navigation: Oracle Inventory > Subinventories window > Costing section of  the Master Item Window

III)Accounts involved and their setup

=====================================

The following accounts play a vital role in Purchase Order Processing:

1) Expense Account 

2) Encumbrance Account 

3) Expense AP accrual account

4) Inventory  AP Accrual account

5) Receiving Inspection account

6) Purchase Price Variance Account

7) Invoice Price Variance Account

8) Material 

1)Expense Account

=================

The Expense account is has an GL account type of an EXPENSE and is defined 

in 3 areas:

  a)Subinventory 

  b)Item 

  c)Organization

a) Subinventory - This is the GL account used to accumulate expenses for this  subinventory.  The EXPENSE account of an EXPENSE subinventory is charged  when you receive any item (A, B, C) into it. The Expense account of an  ASSET subinventory is charged ONLY when you receive an expense item (A).

b)Item - This account is REQUIRED if Inventory Asset Value is set to No and  Inventory Item is set to Yes. This attribute is controlled at the Organization  level only. This is  the default inventory account for Inventory Expense  items (B). Oracle Purchasing debits this account when you receive an item 

into inventory.  only if the item is being expensed and received into the  expense subinventory. If the Purchase Order for an Inventory Expense Item 

(B) has a destination of Inventory AND the expense subinventory is entered on  the Purchase Order itself, then  Oracle Purchasing uses THIS (Items ? Expense  account) FIRST; if NOT, Oracle Purchasing uses the expense account you   assigned to the subinventory.  Navigation: Items > Choose an org > Purchasing Attribute.

c) Organization:

When any item is received into an Organization?s Expense Subinventory, this  account (Organizations-Expense account) is charged against. When an EXPENSE  item is received into an Organizations Asset Subinventory this ( Organizations-Expense account) is charged against.

This account accumulates Encumbrance for this organization. This account is  used if the Organization uses AVERAGE costing.

This is the default account when you define an EXPENSE subinventory.

Navigation: Setup > Organizations > Query the Inventory Org > Organization 

classifications > Other > Inventory information > Alternate region > 

Other accounts

2) Encumbrance Account

======================

The Encumbrance is has a GL account type of an EXPENSE and is  also 

defined in 3 areas:

  a) Subinventory 

  b) Item 

  c) Organization

       

a) Subinventory - 

This account holds the value of encumbrances against ITEMS in this subinventory. This account is used for purchase order receipts and returns.

Navigation: Inventory resp > Subinventories > Define Subinventories 

              

b) Item -

This account is REQUIRED if Reverse Encumbrance parameter is set to Yes

This attribute is controlled at the Organization level only. This is the default

encumbrance account Oracle Purchasing uses when an item is received. If the 

item encumbrance account  on an item does NOT exist, Oracle Purchasing uses the

encumbrance account from the subinventory. You encumber, or reserve against 

funds, when the purchase requisition or purchase order is approved. When you 

deliver into a subinventory you reverse the encumbrance. The total receipts 

plus encumbrances equals your total funds spent. 

Navigation: Items > Choose an org > Purchasing Attribute

c) Organization -

This encumbrance account at the organization level account recognizes the 

reservation of funds when a purchase order is approved. This account is used if

Organization uses AVERAGE costing.

Navigation: Setup > Organizations > Query the Inventory Org > Organization 

classifications > other > Inventory information > Alternate region > 

Other accounts

3) Expense AP Accrual account

=============================

This account is used by Purchasing to accrue your Accounts Payable liability  for expense items at time of receipt when your Expense Accrual Option is  

At Receipt, or at period?end when your Expense Accrual Option is Period End. 

This account represents your uninvoiced receipts and is usually part of your accounts payable liabilities in the balance sheet. Use the Purchasing Options 

window to set up this account. 

To populate the Accrual account for distributions with an Expense destination 

type, the Account Generator locates the Expense AP Accrual Account that you 

specify in Define Purchasing Options as part of your application setup and 

copies it into the Accrual Account on the document. The Account Generator then 

overlays the balancing segment of the AP Accrual Account with the balancing 

segment of the charge account so that your transactions always balance by fund.

Navigation : Setup > Organizations > Purchasing Options

4) Inventory  AP Accrual account

================================

This account is used by Purchasing to accrue your payable liability for an 

organization when you receive your Inventory items. 

This account represents your uninvoiced receipts and is usually part of your 

accounts payable liabilities in the balance sheet. Payables relieves this 

account when the invoice is matched and approved. 

Navigation: Setup > Organizations > Query the Inventory Org > Organization 

classifications > Other > Inventory information > Alternate region > Other Accounts.

5) Receiving Inspection account

===============================

This account also goes by the name  - Receiving Accrual Account, and is used

to record the current balance of material in receiving and inspection.

Navigation: Purchasing > Setup > Organizations > Organizations > 

Receiving Options

6) Purchase Price Variance Account

==================================

The account records the difference between the purchase order cost and an item's standard cost  at the time you

receive an item in inventory .Purchasing calculates the PPV as:

PPV = (PO unit price ? standard unit cost) quantity received

Purchase price variance is not used for average costing. Use the Organization 

Parameters window to set this account. 

Navigation: Setup > Organizations > Query the Inventory Org > 

Organization classifications > Other > Inventory information > 

Alternate region > other accounts

7) Invoice Price Variance Account

=================================

This account records difference between the purchase order price for an 

inventory item and the actual invoice price multiplied by the quantity invoiced: 

Invoice Quantity x (Invoice Price ? PO Price) x Invoice Exchange Rate. 

Purchasing uses this account on the PO distribution when the requisition or 

purchase order is created. When Payables creates accounting entries for the 

invoice, it uses the invoice price variance account from the purchase order 

to record invoice price variance entries.

Navigation: Setup > Organizations > Query the Inventory Org > 

Organization classifications > Other > Inventory information > Alternate region

> Other accounts

8) Material

===========

This is an asset type account that tracks material cost. Under standard costing, these accounts are defaulted when you define subinventories and can be overridden.

For average costing, this account  holds your inventory and intransit values. 

Once you perform transactions, you cannot change this account.

Navigation: Setup > Organizations > Query the Inventory Org > 

Organization classifications > other > Inventory information > 

Alternate region > other accounts 

IV) Account Generator in Oracle Public Sector Purchasing

=========================================================

The default Account Generator processes in Oracle Public Sector Purchasing 

build  a charge, budget, accrual, and variance account for each purchase 

order, release, and requisition distribution based on the distribution?s 

Expense, Inventory, or Shop Floor destination type.

Oracle Public Sector Purchasing always builds these accounts using the Account 

Generator; you cannot disable this feature.

For Inventory charge account construction, the Account Generator further 

distinguishes between asset and expense purchases based on the item and 

subinventory that you provide for the distribution.

If you select an expense item, the Account Generator disregards the 

subinventory and builds an expense charge account. 

If you select an asset item, the Account Generator evaluates the subinventory 

to decide whether to build an expense or asset charge account.

When the Account Generator locates a source account based on the distribution 

destination type, it copies complete code combinations (full Accounting 

Flexfields) from designated fields to destination Accounting Flexfields. 

The default Oracle Public Sector Purchasing processes do not build individual  

flexfield segments.  For example, to populate the Accrual account for 

distributions with an Expense destination type, the Account Generator locates 

the Expense AP Accrual Account that you specify in the Purchasing Options

window as part of your application setup, and copies it into the Accrual  

Account Flexfield in your document.

V) Defaulting rules of the  accounts on a Purchase Order Distribution

====================================================================

CHARGE ACCOUNT

==============

The account generation depends MAINLY on the destination type of the 

Purchase order.  Therefore:

A)  If the destination type is Expense and item is an Expense item, the 

Charge account comes from the Organization Items Expense account which is ?

Navigation : Items > Organization Items > Purchasing attribute > Expense account

B)  If the destination type is Inventory and the Item is an Inventory expense 

item, there exists an order, in which the sytem looks for the accounts to 

be defined. Subinventory Expense account (Expense subinventory) into which 

the item is being received. If this  Expense account is NOT  defined then 

the system looks at Organization Items Expense account, if this is also 

NOT available then The Organization parameters of the Receiving Org?s  

Expense account will be populated. 

Navigation: Setup > Organizations > Query the Inventory Org > Organization 

classifications > Organzation Parameters > Costing > Expense account

C) If the destination type is Inventory and the item is an Inventory Asset 

item, the charge account is defaulted in the following order:

1) Subinventory Material or Expense account of the Subinventory into the 

RECEIVING subinventory. 

Navigation: Inventory resp > Subinventories > Define Subinventories 

If this account does NOT exist then:

2) Material Account from the Organization Parameters of the Receiving 

organization is populated. Navigation: Setup > Organizations > Query the 

Inventory Org > Organization classifications > Organzation Parameters > Costing

For one?time or predefined items with no associated expense account, the 

Account Generator will be unable to build a charge account. In this case, 

you can either manually specify a charge account in your document or you can 

design a custom Account Generator function to build Expense destination charge 

accounts based on field values like Requestor.

BUDGET ACCOUNT

==============

If the destination type is Expense, the Budget account is built off of the 

Charge account. If the destination type is Inventory, the Budget account is 

built based in the following order:

i)Encumbrance account of the subinventory into which the item is being received.

ii)Encumbrance account defined against the item 

iii)Encumbrance account from the Organization Parameters of the Receiving Org.

If none of the above are available, then it copies the charge account.

ACCRUAL ACCOUNT

===============

If the destination type is Expense then the Accrual account is populated from 

the Purchasing Options Expense AP accrual account.

Navigation: Purchasing Resp > Setup > Organizations > Organzations > Purchasing 

Options

If the destination type is Inventory the accrual account is populated from 

the receiving Organization?s Organization Parameters region.

Navigation: Setup > Organizations > Query the Inventory Org > Organization 

Classifications > Organzation Parameters > Other accounts > Inventory 

AP accrual account

VARIANCE ACCOUNT

================

If the destination type is Expense then the Variance account is copied from 

the Charge account.

If the detsination type is Inventory, then this value is populated from 

the Organization Parameters of the receiving Organization.

Navigation: Setup > Organizations > Query the Inventory Org > Organization 

Classifications > Organzation Parameters > Other accounts > Inventory  

Price Variance account

Additional Reference documents:

Note:240928.1  Troubleshooting Encumbrance entries against a PO having an 

EXPENSE destination.

Note:242175.1  Definition of Items used in Purchasing.

Note:243641.1  CHARGE ACCOUNT defaults on PO DISTRIBUTIONS

Note:243291.1  Troubleshooting Encumbrance entries against a PO having an 

INVENTORY destination