Accounting information for PO and Requisitions can be derived from multiple places within Oracle Apps. Accounts are setup on Employees, Items, Subinventories, Item Categories, etc. Whenever a PO/Requisition is raised the accounting combination for the document lines are derived by the corresponding account generator workflow. The workflows can be customized as well to deviate from the seeded rules of account generation.
Oracle has defined account generator processes for many types of documents/transactions. If you need to modify the account generation logic then you need to customize the corresponding logic. You can check the Account Generator workflow names and the process names within Oracle.
Responsibility: General Ledger SuperUser
Navigation: Setup > Financials > Flexfields > Key >Accounts
Query the form
You can see that we can have a set of Account generation based on the Accounting Flexfield structure. Therefore if we have multiple accounting structures we will also have multiple account generation workflow processes. Essentially within 1 instance the workflow items will be the same but we can customize the workflows or add new processes for the workflows for different flexfield structures.
Requisition Account Generator workflow modification
We have added a function called Expense Account to modify the default expense account generation. This function has been added in the process, Build Expense Charge Account.
Build Expense Charge Account process
The properties for the function, Expense Account is as follows
This customization will generate different segment values based on the business logic in the PL/SQL code.
You will find examples of account generator at the following link,
Account setup in Employee Master
Enter employee number, say 11854
Click on Find
Click on Assignment
Click on extra Tab button as shown below
Click on Purchasing Order Information
Note the default set of books and expense account for the employee
Accounts setup on Inventory organization
Navigation: Setup > Organization > Subinventories
Select a subinventory. We selected CMS
Click on OK.
Now query on this form for the subinventories. Click on Ctrl+F11.
Select a name, FURNTIURE.
Click on Open.
The subinventory is displayed. Click on Accounts tab.
The accounts set on the sub inventory are displayed as those are setup. As an alternate you can check the accounts from the previous screen.
Scroll right on the Subinventories screen
Now you can view the accounts
Accounts setup on Item Master
Responsibility: Inventory SuperUser
Navigation: Items > Master Items
You will be first prompted to change the organization to the correct subinventory
Choose a subinventory. We have chosen, CMS.
Query for an item, say CMS002.
Go to Purchasing tab
Note the account segment of the Expense account, i.e. 5774.
Account setup on Item Categories
Responsibility: Inventory SuperUser responsibility
Navigation: Setup > Items > Categories > Category Codes
Enter the following
Structure: Item Categories
Item Segment: Non-Stock
Item Family: Printing – Revenue Documents (5772)
Click on OK
Click on Find
Click on the DFF for Structure name=Item Categories
The account code is set on this DFF. This value is used by the PO/Requisition Account Generator when the PO or the Requisition is raised for a Non Stock item with these categories.
If we did not enter a particular Structure Name and Category and clicked on Find, then we would have got the records as shown below.
All the item categories are displayed. We have enabled a DFF for item categories on the prior form.
DFF Name: Item Categories
The segments are the following
Let us check the accounts for each scenario now.
Requisition for a Stock item
In this requisition the item, CMS002, is a stock item (as we have checked in Item master earlier). Check the distribution account.
The charge account is being picked up by the Requisition Account generator from the org setup. This is the expense account and it is picked from the material account of the subinventory.
Requisition for a Non Stock Item
The Non Stock item will not have an item number. Instead it goes by the category. In this requisition the category is Non-Stock.Printing – Revenue Documents (5772)..
Check the distributions for this requisition line.
The Requisition charge account, i.e. the item expense account, is derived from the Item Categories setup for the category used on the item line (as shown in the setup earlier)
Logic for PO account generation in this Oracle instance
|Item type||Document type||Account generation rule|
|Non stock item||Internal requisition||There is no such scenario as this can only be done for a Purchase requisition|
|Stock item||Internal requisition||1st 3 segments from emp master 4th seg from item master expense acc – Req acc generator|
|Non stock item||Purchase requisition||1st 3 segments from emp master 4th seg from item category – PO acc generator|
|Stock item||Purchase requisition||Complete accountingl combination from organization setup|
This logic is built into the PO account generator and you will see the results when you raise a PO and add distributions on the PO.
- How to check the type of Account in the Accounting Flexfield (oraclemaniac.com)
- Accounting Flexfield setup (oraclemaniac.com)
- Cross Validation Rule (CVR) setup (oraclemaniac.com)
- Security Rule setup (oraclemaniac.com)
- How to relax Security Rules (oraclemaniac.com)
- Open or Close Periods in Oracle Apps (oraclemaniac.com)
- Custom Requisition/PO approval process (oraclemaniac.com)
- Customized process to convert Internal Requisitions to Move Orders (oraclemaniac.com)
- Understanding Workflow roles (oraclemaniac.com)