53 Set Up Automatic Accounting Instructions

This chapter contains these topics:

• Section 53.1, "Cost of Sales-Lot Based Credit (LBC),"

• Section 53.2, "Cost of Sales-Lot Based Debit (LBD),"

• Section 53.3, "Cost of Sales-Lot Option Credit (LOC),"

• Section 53.4, "Cost of Sales-Lot Option Debit (L1D-L3D),"

• Section 53.5, "Provision for Final Costs-Provisional Based Debit (PBD, P1D-P3D),"

• Section 53.6, "Model Journal Entries (BSP, CM1-CM3, EA, INC, LTP, OPT, OP1-OP3, UPG)."

Automatic accounting instructions (AAIs) define the relationships between your day-to-day accounting functions and your chart of accounts. AAIs are rules that define how to create general ledger entries for each transaction.

You need to set up AAIs for the Homebuilder Management system as well as the Subcontract Management, and Accounts Payable systems.

Navigation

From Homebuilder Management (G44H), enter 27

From Homebuilder Management Technical Operations (G44H31), choose Automatic Accounting Instructions

See Also:

• Define Automatic Accounting Instructions in the JD Edwards World Subcontract Management Guide for a general discussion of AAIs, procedures for creating them, and information about AAIs specific to the Subcontract Management system,

• Work with AAIs in the JD Edwards World Accounts Payable Guide for information about AAIs specific to the Accounts Payable system.

53.1 Cost of Sales-Lot Based Credit (LBC)

LBC AAIs apply to accounts that receive credit for cost of sales. These accounts are contra assets that receive a credit entry when you transfer the cost of sales to the income statement. You have the option of creating additional AAIs that apply to Category Code 5, found in the detail area of the Original Budget Entry screen, by adding a suffix to LBC.

The following is an example of the LBC AAIs for base house costs, land costs, and options costs.

Figure 53-1 Automatic Accounting Instructions screen

Description of "Figure 53-1 Automatic Accounting Instructions screen"

53.2 Cost of Sales-Lot Based Debit (LBD)

LBD AAIs are similar to LBC AAIs, except that they represent the debit side. They identify the expense account in the income statement where you charge costs. You have the option of creating additional AAIs that apply to Category Code 5, found in the detail area of the Original Budget Entry screen.

The following is an example of LBD AAIs for base house costs, land costs, and options costs.

Figure 53-2 Automatic Accounting Instructions (Lot-Based Debit) screen

Description of "Figure 53-2 Automatic Accounting Instructions (Lot-Based Debit) screen"

53.3 Cost of Sales-Lot Option Credit (LOC)

LOC AAIs apply to accounts that receive credit for options. These accounts are contra assets that receive a credit entry when you transfer costs to the income statement. You have the option of creating additional AAIs that point to Category Code 5, found in the detail area of the Original Budget Entry screen, by adding a suffix to LOC.

The following is an example of LOC AAIs for land costs and options costs.

Figure 53-3 Automatic Accounting Instructions (Sales-Lot Open Credit) screen

Description of "Figure 53-3 Automatic Accounting Instructions (Sales-Lot Open Credit) screen"

53.4 Cost of Sales-Lot Option Debit (L1D-L3D)

Lot Option Debit AAIs are similar to LOC AAIs, except that they represent the debit side. They identify the expense account in the income statement where you charge costs. They apply to three different accounts based on three option types in the Option Master table.

The following is an example of Lot Option Debit AAIs.

Figure 53-4 Automatic Accounting Instructions (Sales-Lot Option Debit) screen

Description of "Figure 53-4 Automatic Accounting Instructions (Sales-Lot Option Debit) screen"

53.5 Provision for Final Costs-Provisional Based Debit (PBD, P1D-P3D)

PBD AAIs provide for the accrual of unrecorded costs for the base house or one of three option types. You enter the account for the credit entry in the Provision Liability processing option for the Provision for Final Cost program as well as the lot business unit, object, and subsidiary range in the Data Selection.

The following is an example of PBD AAIs.

Figure 53-5 Automatic Accounting Instructions (Provisional Based Debit) screen

Description of "Figure 53-5 Automatic Accounting Instructions (Provisional Based Debit) screen"

53.6 Model Journal Entries (BSP, CM1-CM3, EA, INC, LTP, OPT, OP1-OP3, UPG)

You use Model Journal Entries in booking the revenue. The model journal entries include entries for base house, commissions, cash, design center, lot, and option.

The following are examples of the AAIs for the model journal entries.

Figure 53-6 Automatic Accounting Instructions (Bathhouse Model) screen

Description of "Figure 53-6 Automatic Accounting Instructions (Bathhouse Model) screen"

Figure 53-7 Automatic Accounting Instructions (Commissions 2 Model) screen

Description of "Figure 53-7 Automatic Accounting Instructions (Commissions 2 Model) screen"

Figure 53-8 Automatic Accounting Instructions (Commissions 3 Model) screen

Description of "Figure 53-8 Automatic Accounting Instructions (Commissions 3 Model) screen"

Figure 53-9 Automatic Accounting Instructions (Lot Premium Model) screen

Description of "Figure 53-9 Automatic Accounting Instructions (Lot Premium Model) screen"