10 Set Up Automatic Accounting Instructions
This chapter contains the topic:
10.1 Setting Up Automatic Accounting Instructions
From Advanced Stock Valuation (G39), enter 29
From Advanced Stock Valuation Setup (G394), choose Automatic Accounting Instructions
Automatic Accounting Instructions (AAI) tell the system how to create general ledger entries for programs that generate automatic journal entries. AAIs are the user-defined bridge between program functions, your chart of accounts, and financial reporting. AAIs direct transactions to the appropriate general ledger accounts.
The system already has AAIs in place. You need to ensure that these AAIs are appropriate for your business needs. You can revise existing AAIs and set up additional AAIs as needed to accommodate growth and change in your business functions and financial reporting. Follow the same setup steps to create a new AAI or to revise an existing AAI.
For distribution systems, you must create AAIs for each unique combination of company, transaction, document type, and general ledger class that you will use. Each AAI identifies a specific general ledger account consisting of a business unit, an object, and a subsidiary. When the system processes a transaction, it creates accounting entries.
When setting up each AAI item, verify that there is a default for company 00000. For each company requiring specific instructions, verify that there is a business unit or object account. In many companies, the accounting department is responsible for AAI setup and maintenance.
10.1.1 What You Should Know About
To set up automatic accounting instructions
On Automatic Accounting Instructions
Figure 10-1 Automatic Account Instructions screen
Description of "Figure 10-1 Automatic Account Instructions screen"
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Choose an AAI.
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Access AAI Revisions.
Figure 10-2 Distribution Automatic Account screen
Description of "Figure 10-2 Distribution Automatic Account screen"
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On Distribution Automatic Account, complete one or more of the following fields:
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Company
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Document Type
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General Ledger Posting Category
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Business Unit
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Object Account
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Subsidiary
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| Field | Explanation |
|---|---|
| Document Type | A user defined code (system 00/type DT) that identifies the origin and purpose of the transaction.
JD Edwards World reserves several prefixes for document types, such as vouchers, invoices, receipts, and timesheets. The reserved document type prefixes for codes are: P – Accounts payable documents R – Accounts receivable documents T – Payroll documents I – Inventory documents O – Order processing documents J – General ledger/joint interest billing documents The system creates offsetting entries as appropriate for these document types when you post batches. Form-specific information In the inquiry field at the top of the form, the asterisk (*) is the default and causes the system to display all document types. |
| G/L Class Code | A user defined code that identifies the G/L offset to use when the system is searching for the account to which it will post the transaction. If you do not want to specify a class code, you can enter **** (four asterisks) in this field.
The table of Automatic Accounting Instructions (AAIs) allows you to predefine classes of automatic offset accounts for the Inventory, Purchase, and Sales Order Management systems. G/L categories might be assigned as follows: IN20 – Direct Ship Orders IN60 – Transfer Orders IN80 – Stock Sales The system can generate accounting entries based upon a single transaction. As an example, a single sale of a stock item can trigger the generation of accounting entries similar to these: Sales-Stock (Debit) xxxxx.xx A/R Stock Sales (Credit) xxxxx.xx Posting Category: IN80 Stock Inventory (Debit) xxxxx.xx Stock COGS (Credit) xxxxx.xx Although this field is four characters, the system uses only the last two characters of the Category and the last character of the Document Type to find the AAI. |
| Object Account | The object account portion of a general ledger account. The term "object account" refers to the breakdown of the Cost Code (for example, labor, materials, and equipment) into subcategories (for example, dividing labor into regular time, premium time, and burden). If you are using a flexible chart of accounts and the object is set to 6 digits, JD Edwards World recommends that you use all 6 digits. For example, entering 000456 is not the same as entering 456, because the system enters three blank spaces to fill a 6-digit object. |
| Sub (Subsidiary) | A subdivision of an object account. Subsidiary accounts include more detailed records of the accounting activity for an object account.
Form-specific information If you leave this field blank, the system uses the value you entered on the work order in the Cost Code field. |