Understanding AAIs

AAIs determine how to create general ledger entries for programs that generate automatic journal entries. AAIs are the user-defined link between program functions, your chart of accounts, and financial reporting. AAIs direct transactions to the appropriate general ledger accounts.

The system contains predefined AAIs. You must ensure that these AAIs are appropriate for your business needs. You can revise existing AAIs and set up additional AAIs 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 use. Each AAI identifies a specific general ledger account consisting of a business unit, an object, and a subsidiary (optional). When the system processes a transaction, it creates accounting entries.

When setting up each AAI, verify that a default for company 00000 exists. For each company that requires specific instructions, verify that a business unit or object account exists. In many companies, the accounting department is responsible for AAI setup and maintenance.