The Account Generator in Oracle Purchasing utilizes Oracle Workflow. You can view and customize Account Generator processes through the Oracle Workflow Builder. You can also monitor account generation through the Oracle Workflow Monitor. See: Oracle Workflow Guide.
All purchase orders, requisitions, and releases require accounting distributions. Oracle Purchasing automatically builds a charge, budget (if using budgetary control), accrual, and variance account for each document distribution.
Oracle Purchasing provides you with the features you need to:
If you are upgrading from Release 10 and used FlexBuilder, then you should perform the equivalent of this setup step as part of your upgrade, see the FlexBuilder chapter of the Oracle Applications Upgrade Preparation Manual.
If you are implementing Oracle Purchasing for the first time, you need to review how Purchasing uses the Account Generator to build Accounting Flexfield code combinations. Consider whether the default Account Generator process is appropriate for each set of books that uses a unique Accounting Flexfield structure. For each structure and set of books, you can choose one of the following:
Attention: These steps need to be performed for each operating unit.
Note: If you used FlexBuilder in Release 10 but did not customize the default configuration, you can use the default Account Generator process in Release 11, which gives you the same result as the default assignments in FlexBuilder.
Each Account Generator workflow is called an item type. Oracle Purchasing comes with the following Account Generator item types for purchase orders and releases:
For more information about using the Account Generator when you integrate Oracle Purchasing with Oracle Projects, read the following essay: Using the Account Generator in Oracle Projects.
The following functions are used by each of the Generate Default Account processes in Oracle Purchasing:
Note: For more information about using the Account Generator when you integrate Oracle Purchasing with Oracle Projects, read the following essay: Using the Account Generator in Oracle Projects.
Each account generator contains a number of item attributes. These attributes correspond to all the row parameters and some derived parameters that were used in FlexBuilder. For a particular account, such as the PO Accrual Account Generator, the item attributes, just like the functions and processes, are identical among all of the purchase order item types and all the requisition item types. Moreover, each account ID is provided as a possible source value, in the form of an item attribute, to the subsequent account being built.
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.
Additional Information: You classify a subinventory as Expense or Asset by selecting the Asset Subinventory check box in the Oracle Inventory Subinventories window. You classify an item as Expense or Asset by selecting the Inventory Asset Value check box in the Costing section of the Master Item window. (This window is accessible through Inventory or Purchasing.)
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 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.
The following matrix describes the source fields that the Account Generator references to build the charge, budget, accrual, and variance account based on the distribution destination type.
Default Account Generator Account Sources
The horizontal axis lists the Oracle products and windows you use to specify the source accounts that the Account Generator references in Oracle Purchasing. The vertical axis lists the possible destination types for each account type the Account Generator constructs. The body of the matrix lists the fields you use to enter the reference accounts.
When more than one option is indicated for a particular account/destination type combination, the Account Generator attempts to locate the primary source account identified on the matrix with a 1. If this reference account is unavailable or not appropriate for the distribution information you provide, the Account Generator tries the source indicated as 2 and so on until it either successfully locates a reference account, or fails.
Suggestion: Minimize your setup by specifying source accounts at the appropriate level of detail for your business. For example, you can specify the charge account source for Inventory (expense) destination types at the subinventory, item, or organization level. If an organization level account is sufficient for your business needs, it is not necessary to specify item or subinventory accounts.
For Shop Floor destination types, the Account Generator constructs the charge account based on the resource cost element associated with the Outside Processing job or schedule. In this case, the Account Generator selects one of the five possible source accounts; it does not step through a hierarchy of choices as it does for other destination types. Finally, the Account Generator does not construct a budget account for Shop Floor distributions, even if you are using encumbrance. Oracle Purchasing never encumbers outside processing purchases.
Attention: The default Oracle Purchasing Account Generator processes includes one rule for building Expense destination charge accounts. If you specify an expense account for each of your predefined items, the Account Generator copies this code combination to the Charge Account field of your destination documents. If you are buying one-time or predefined items with no associated expense account, the Account Generator is 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.
While you cannot edit the accrual, budget, or variance accounts that the Account Generator constructs, you can override or specify the charge account for uncommitted Expense distributions. In this case, you can either edit the charge account that the Account Generator constructs for you, or you can specify a default charge account in the Defaults region of your document. When you specify a default charge account, it always overrides any expense charge account that the Account Generator tries to provide.
For all windows, the build sequence is:
If the Account Generator is unable to construct accrual, variance, or budget accounts you cannot enter these fields to manually provide the missing values. You must identify and resolve the problem that is causing the Account Generator to fail. If the Account Generator is unable to construct a charge account, you can manually specify the missing values if the destination type is Expense. Since budget and variance account rules take the charge account value for Expense destination types, the Account Generator tries to construct these accounts as soon as you manually provide a charge account if it was unable to find one during the initial build attempt.
If you are upgrading from Release 10, follow the guidelines in the FlexBuilder chapter of the Oracle Applications Upgrade Preparation Manual.
If you want to create a new process to meet your company's needs, use the Oracle Workflow Builder to create a new process, or copy the existing default and change the name before making extensive changes to it.
For more information on the generic features and functions of the Account Generator, see the Customizing the Account Generator section of the Oracle Applications Flexfields Guide.
For more information on how to use the Oracle Workflow Builder, see the Oracle Workflow Guide.
Once the Account Generator successfully builds accounts for a document, it does not attempt to rebuild when you update the document. For example, if you build a custom process to generate the requisition charge account for Expense purchases based on requestor, and change the requestor after the Account Generator constructs the charge account, it will not attempt to rebuild.
Requisition Import does not use the Account Generator to construct charge, budget, accrual, or variance accounts. Any custom process that you create cannot be used by this utility.
Both the top-level processes used by the Account Generator item types in Purchasing are customizable. The only subprocesses that you can customize are the following:
You must test any modified Account Generator process before using it on a production database.
If you made customizations to the default process, but did not change the name of it, you do not need to perform this step.