50 Define Automatic Accounting Instructions

This chapter contains these topics:

• Section 50.1, "Defining Automatic Accounting Instructions"

• Section 50.2, "Reviewing and Revising AAIs"

• Section 50.3, "Defining AAIs"

50.1 Defining Automatic Accounting Instructions

Automatic accounting instructions (AAIs) define the link between the Job Cost, Subcontract Management, and General Accounting systems.

The following five categories of AAIs are relevant to the Job Cost system:

AAI Categories	Description
Profit recognition AAIs	Use these AAIs to specify the accounts that the system uses to create journal entries for profit recognition.
Field progress protection AAIs	Use these AAIs to protect the actual unit amounts in certain accounts from being updated as a result of job progress calculations.
Draw reporting selection AAIs	Use these AAIs to specify the accounts that are eligible for construction costs related to draw reporting.
Job summarization AAIs	Use these AAIs to direct the system to summarize the detail information for existing accounts into a single summary account.
Budget balance ledger AAIs	Use these AAIs to force general ledger entries to always be in balance.

You should first review the AAIs in your system to ensure that the AAIs you want to include are not already defined. You can then define your new AAIs.

Complete the following tasks:

• Reviewing and Revising AAIs

• Defining AAIs

See Also:

• Reviewing AAIs and Revising AAIs in the JD Edwards World Accounts Receivable Guide.

50.2 Reviewing and Revising AAIs

Navigation

From Job Cost (G51), enter 29

From Job Cost System Setup (G5141), choose Automatic Accounting Instructions

Before you define your AAIs, you should review your system to ensure that they are not already defined. You can then revise your AAIs as necessary.

To review and revise AAIs

On Automatic Accounting Instructions

Figure 50-1 Automatic Accounting Instructions screen

Description of ''Figure 50-1 Automatic Accounting Instructions screen''

1. Complete the following optional field:

   • Skip to Sequence Number

2. Do one of the following:

   • Choose AAI Revisions for the AAI you want to change

   • Choose AAI Revisions on a blank line to add a new AAI

The sequence numbers for AAIs related to the Job Cost system begin with 51.

50.3 Defining AAIs

You can define the following categories of AAIs related to the Job Cost system:

• Profit recognition AAIs

• Field progress protection AAIs

• Draw reporting selection AAIs

• Job summarization AAIs

• Budget balance ledger AAIs

50.3.1 Profit Recognition AAIs

Profit recognition AAIs specify the accounts that the system uses when it creates journal entries for profit recognition.

AAI	Description
BS	This AAI defines the offset (contra) account when work-in-progress (WIP) needs to be reflected on the income statement. The system posts offset amounts to this contra asset account. You can summarize the amounts into a single account (BS) or show detail for each account (BS1344 for cost type 1344, BS1380 for cost type 1380, and so on). The system automatically uses BS when you do not specify a cost type in the item number. This AAI is not required if you set up jobs on the income statement. However, for jobs on the balance sheet, the BS AAI must at least be defined for the default company 00000.
IS	This AAI defines the account for revenue and cost of sales reported on the income statement. The system creates entries for costs and billings when it relieves WIP amounts, then uses this AAI to transfer those entries from the balance sheet to the income statement. You can summarize the amounts into a single account (IS) or show detail for each account (IS1344 for cost type 1344, IS1380 for cost type 1380, and so on). The system automatically uses IS when you do not specify a cost type in the item number. If you set up jobs on the income statement, this AAI is not required.
JCBE	This AAI defines the account for overbillings. Overbillings are billings in excess of costs and estimated earnings. You can also use it for the credit offset to JCLOSS, if BSLOSS is not set up. This account is generally a liability account. The amounts are reversed monthly.
JCCE	This AAI defines the account for underbillings. Underbillings are costs and estimated earnings in excess of billings. This account is generally an asset account. The amounts are reversed monthly.
JCBOUA	This AAI defines the account for adjustments to the income statement related to the cost of sales. The system posts over and under entries to this account when the percentage of completion is based on billings. The account is the offset for entries posted to the accounts related to JCBE and JCCE. The amount is reversed monthly.
JCCOUA	This AAI defines the account for adjustments to the income statement related to revenue. The system posts profit and loss entries to this account when the percentage of completion is based on cost. The account is the offset for entries posted to the accounts related to JCBE and JCCE. The amount is reversed monthly.
JCLOSS	This AAI defines the account for the entries related to a provision for loss. Such an entry is created when a job has a projected final loss. The amount is reversed monthly.
BSLOSS	This AAI defines the offset (contra) account for the provision for loss. It is the offset for entries posted to the account related to JCLOSS. The amount is reversed monthly. This AAI is optional. If it is not set up, the system uses JCCE.
JCAPC	This AAI defines the account for accrued cost on the job account. Any amounts are automatically reversed in the next month.
JCSMJ	This AAI defines the account for deferred cost on the job account. You typically use this AAI for stored materials. Any amounts are automatically reversed in the next month.
JCAPO	This AAI defines the offset (contra) account for accrued costs. It is the offset for entries posted to the account related to JCAPC.
JCSMI	This AAI defines the offset (contra) account for deferred costs. It is the offset for entries posted to the account related to JCSMJ.
JCPFC	This AAI defines the account for adjustments to the projected final cost. This AAI requires the object account. The subsidiary is optional, and the business unit is not used.
JCPFP	This AAI defines the account for adjustments to the projected final profit. You typically set up this AAI only if your company posts profit to an account and maintains balanced budgetary ledger types. This AAI requires the object account. The subsidiary is optional, and the business unit is not used.
JCPFR	This AAI defines the account for adjustments to the projected final revenue. This AAI requires the object account. The subsidiary is optional, and the business unit is not used.
JCCAxx - JCCAxx+1	This AAI defines the beginning and ending object accounts for a range of revenue accounts. Profit recognition can include up the 49 ranges from JCCA01 - JCCA02 to JCCA97 - JCCA98.
JCSTxx - JCSTxx+1	This AAI defines the beginning and ending object accounts for a range of cost accounts. Profit recognition can include the 49 ranges from JCST01 - JCST02 to JCST97 - JCST98.

50.3.2 Field Progress Protection AAIs

Field progress protection AAIs protect the actual units in specific accounts from updates in related job progress entry programs. These AAIs prevent you from entering quantities when the actual quantities come from other JD Edwards World systems.

AAI	Description
JCxx - JCxx+1	This AAI defines the beginning and ending object accounts for the range of labor accounts. Field progress protection can include the five ranges from JC01 - JC02 to JC09 - JC10. This AAI requires the object account. The subsidiary is optional, and the business unit is not used.

Note:

You should set up an AAI range of cost types for any actual quantities that are automatically posted from another JD Edwards World system.

50.3.3 Draw Reporting Selection AAIs

Draw reporting selection AAIs specify the construction cost accounts that are eligible for draw reporting. The system does not process any other accounts for draw reporting.

AAI	Description
DWxx - DWxx+1	This AAI defines the beginning and ending object accounts for two ranges of eligible accounts. Draw reporting selection can include the 10 ranges from DW01 - DW02 to DW19 - DW20. This AAI requires the object account. The subsidiary is optional, and the business unit is not used.

50.3.4 Job Summarization AAIs

Job summarization AAIs direct the system to summarize the detail information from many existing accounts into one summary account. An asterisk (*) in either the Object Account or Subsidiary field specifies that account balances are kept at that level.

AAI	Description
SM01	This AAI summarizes all object accounts within their respective subsidiaries. It also specifies an object account that the system creates to keep the summarized information. The business unit, object account, and subsidiary are all optional for this AAI.

50.3.5 Budget Balance Ledger AAIs

Budget balance ledger AAIs force the system to keep balanced ledger entries for accounts on the Combined Progress Entry form.

AAI	Description
FPBAL	This AAI defines the offset account used for maintaining balanced entries to ledgers defined on user defined codes table (09/LP).