48 Define Revenue Performance Obligation AAIs (Update A9.3)

This chapter contains these topics:

• Section 48.1, "Understanding Revenue Performance Obligation AAIs"

• Section 48.2, "Entering Revenue Performance Obligation AAIs"

48.1 Understanding Revenue Performance Obligation AAIs

During the life cycle of a project, various costs are incurred and there are rules that specify how the accounts are determined to record these costs. One rule is when working with revenue performance obligations (RPOs), you must set up RPO AAIs. RPO AAIs are similar to the AAIs that are set up at the job level, but the system uses RPO AAIs specifically when you run the Profit Recognition Build (R51800) at RPO level.

Use the AAI Criteria Revisions program (P5104) to set up RPO AAIs based on a match level and match value combination. Use the Work with RPO AAI Criteria program (P51204) to review existing RPO AAIs. During profit recognition at the RPO level, the system uses the AAI item number, match level, and match value to find the correct account to debit or credit.

The system stores the RPO AAIs in the Revenue Performance Obligation AAI Criteria table (F5104).

When you add accounts to an RPO, there should not be any overlapping AAI definitions (date ranges) for same job, project, and RPO.

Section 10.4, "Associating Accounts with a Revenue Performance Obligation"

48.2 Entering Revenue Performance Obligation AAIs

Navigation

From Job Cost (G51), enter 29

From Job Cost System Setup (G5141), choose RPO Setup

From RPO Setup (G51411), choose AAI Criteria Revision

To enter RPO AAIs

On AAI Criteria - Revisions

1. Complete the following fields:

   • RPO AAI Item

   • Match Level

   • Category Code Match Level

   • Match Value

   • Effective Date

2. Complete the following fields if the RPO AAI item corresponds to a cost (001) or revenue (002) account.

   Note:

   For balance sheet (003) and income statement (004) accounts, you can define a range of accounts using the following fields and a resulting account using the Business Unit, Object, and Subsidiary fields.

   • From Cost Code

   • Thru Cost Code

   • From Cost Type

   • Thru Cost Type

3. Complete the following fields if the RPO AAI item corresponds to any account type other than the cost (001) or revenue (002) account.

   Note:

   For balance sheet (003) and income statement (004) accounts, you can define a range of accounts using the From Cost Code, Thru Cost Code, From Cost Type, and Thru Cost Type fields and a resulting account using the following fields.

   • Business Unit

   • Object

   • Subsidiary

Field	Explanation
RPO AAI Item	Enter a value from UDC table 51/RM that defines an account or range of accounts used for a particular function in the system. Values are: 001: Cost Account (JCST) 002: Revenue Account (JCCA) 003: Balance Sheet (BS) 004: Income Statement (IS) 005: Overbilling (JCBE) 006: Underbilling (JCCE) 007: Adj-Cost of Sales (JCBOUA) 008: Adj-Revenue (JCCOUA) 009: Loss (JCLOSS) 010: Offset-Loss (BSLOSS) 011: Accrued Cost (JCAPC) 012: Deferred Cost (JCSMJ) 013: Offset-Accrued Cost (JCAPO) 014: Offset-Deferred Cost (JCSMI) 015: Adj-Prj Final Cost (JCPFC) 016: Adj-Prj Final Profit (JCPFP) 016: Adj-Prj Final Profit (JCPFP) 017: Adj-Prj Final Revenue (JCPFR)
Match Level	Enter a value from UDC table 51/TY that the system uses, in combination with the match value, to locate the required account details for the profit recognition process. The system uses the match level to specify the order in which the system searches for the RPO AAIs. For match levels that correspond to category codes (match levels 2 and 4), you must also enter a value in the Category Code field. The system uses the category code to locate the required account details. Values are: 1: Revenue Performance Obligation 2: Category Code of RPO 3: Job 4: Category Code of Job 5: Job Type 6: Project 7: Company 8: Default
Category Code	Enter a value that indicates the category code that the system uses to define the RPO AAI setup. For match levels that correspond to category codes (match level values 2 and 4), the system uses this field, along with the Match Level field, to determine the values for the Match Value field. Values are: For Match Level 2 (RPO - Category Code): Any value between 1-10. For Match Level 4 (JOB - Category Code): Any value between 1-30.
Match Value	Enter a value that the system uses, in combination with the match level, to locate the required account details for the profit recognition process. The value that you enter in the Match Level field determines the available values in the Match Value field. For example, if you enter match level 1 for revenue performance obligation, you must enter a valid revenue performance obligation number from the Revenue Performance Obligation Master table (F5102) in the Match Value field.

48.2.1 What You Should Know About

Topic	Description
Range of accounts for cost and revenue RPO AAI Items	When you set up cost and revenue AAI items, you have the option to specify a range of accounts. You can have more than one set of ranges per cost or revenue RPO AAI item. This means that you can have multiple rules (multiple cost code/cost type ranges) with the same combination of values in the Match Level, Category Code, Match Value, and Effective Date fields.
Active Rules for IS or BS RPO AAI Items	For AAI items corresponding to IS and BS, there can be only one rule active for the given combination of values in the Match Level, Category Code, Match Value, Effective Date, From Cost Code/Cost Type and Thru Cost Code/Cost Type fields.
Active rules for RPO AAI Items other than cost account, revenue account, IS or BS	For AAI items other than cost account, revenue account, IS, and BS, you can only define one rule for the same combination of values in the Match Level, Category Code, Match Value, and Effective Date fields.