Understanding AAIs for Labor Billings

You set up AAIs for labor billings to define accounts for labor billing offsets. These offsets are natural credit or revenue entries that offset labor billing charges or debits. Entries for labor billings are generally credit entries. If the company does not use labor billings, you do not need to set up these AAIs.

For the most common account distribution, you can use the journal type RO with the appropriate account information to define a default rule for labor billings. The system uses the default rule when it does not find a rule for a specific business unit in a specific company.