Understanding AAIs for Advanced Pricing

AAIs provide the rules that the system uses to create general ledger entries automatically. Each program that posts to the general ledger uses AAIs.

For logistics systems, you must create AAIs for each unique combination of company, document type, and general ledger class that you anticipate using. Each AAI points to a specific general ledger account consisting of a cost center, an object, and a subsidiary.

After you define AAIs, the system can appropriately record transactions. When you run a sales update, the system creates entries for inventory accounts, for expense accounts for cost of goods sold (COGS), and for revenue accounts for orders. You may also offset accounts for freight, taxes, or any other charges that are associated with orders.

AAIs enable you to direct how sales order transactions create various journal entries. Each AAI contains combinations of:

• Company.

• Document type.

• General Ledger class code.

• General Ledger account.

You can create various combinations to direct journal entries to different offset accounts. For example, phone-in orders might affect different general ledger accounts than over-the-counter orders.