Understanding Automatic Accounting Instructions

Automatic accounting instructions (AAIs) are the links between the day-to-day functions, the chart of accounts, and financial reports. The system uses AAIs to determine how to distribute general ledger entries that the system generates. For example, in the JD Edwards EnterpriseOne Transportation Management system, AAIs indicate how the system records a freight charge after a shipment is confirmed.

For distribution systems, you must create AAIs for each unique combination of company, transaction, document type, and general ledger class that you anticipate using. Each AAI is associated with a specific general ledger account that consists of a business unit, an object account and, optionally, a subsidiary account.

If you are required to collect taxes on customer invoices, you must distribute the tax amounts to the correct general ledger accounts. When you set up AAIs for a specific type of tax, such as value added tax (VAT) or usage tax, you designate the accounts to debit and credit for an invoice tax amount.

The system stores distribution AAIs in the Distribution/Manufacturing - AAI Values table (F4095).

The JD Edwards EnterpriseOne Transportation Management system uses these distribution AAIs for processing:

AAI	Description
Freight Payable (4921)	Provides the general ledger account information for freight costs.
Accrued Freight (4920)	Provides the general ledger account information for accrued freight.
Freight Variance (4922)	Provides the general ledger account information for manual, tax, or currency variances.

The Account Revisions form of the Distribution AAIs program (P40950) displays each predefined AAI item and information about the document type, general ledger class, and accounts that are affected by transactions.