Guidelines for Creating an AutoAccounting Structure

To implement AutoAccounting, you first define your AutoAccounting structure and then define information for each salesperson, transaction type, product, and tax rate code in order for AutoAccounting to properly create your default accounts.

You must define your AutoAccounting structure before you can enter invoices and credit memos, and you can only define one structure for each account type. During transaction creation, if AutoAccounting can't determine all of the accounting flexfield segments, it derives what it can and displays an incomplete accounting flexfield. You must provide any missing accounting flexfield information before you can complete a transaction.

Review these guidelines for each account type when creating your AutoAccounting structure:

• AutoInvoice Clearing Account

• Freight Account

• Receivable Account

• Revenue Account

• Tax Account

• Unbilled Receivable Account

• Unearned Revenue Account

• Available Information for Each Account

This table indicates the information that you can use to create each type of account. (Rec) and (Rev) indicate whether the account information is taken from the corresponding Receivables or Revenue accounting flexfield.

Information Source / AutoAccounting Type	Constant	Customer Bill-to Site	Salesperson	Transaction Type	Standard Item	Tax Rate Code
AutoInvoice Clearing	Yes	Yes	Yes (Rev)	Yes	Yes (Rev)	No
Freight	Yes	Yes	Yes	Yes	Yes (Rev)	No
Receivable	Yes	Yes	Yes	Yes	No	No
Revenue	Yes	Yes	Yes	Yes	Yes	No
Tax	Yes	Yes	Yes (Rev)	Yes	Yes (Rev)	Yes
Unbilled Receivable	Yes	Yes	Yes (Rec)	Yes	Yes (Rev)	No
Unearned Revenue	Yes	Yes	Yes (Rev)	Yes	Yes (Rev)	No

Notes on the table:

• If AutoAccounting for the AutoInvoice Clearing, Tax, Unbilled Receivable, or Unearned Revenue account is based on Standard Item, Receivables uses the segment from the standard item Revenue accounting flexfield.

• If AutoAccounting for the AutoInvoice Clearing, Tax, or Unearned Revenue account is based on Salesperson, Receivables uses the segment from the salesperson Revenue accounting flexfield.

• If AutoAccounting for Unbilled Receivable is based on Salesperson, Receivables uses the segment from the salesperson Receivable accounting flexfield.

• If the AutoInvoice Clearing, Revenue, Tax, Unbilled Receivable, or Unearned Revenue account is based on Salesperson, and there are multiple salespersons on the transaction, then Receivables creates separate distributions for each salesperson.

AutoInvoice Clearing Account

During AutoInvoice processing, Receivables uses the AutoInvoice clearing account to store any differences between the specified revenue amount and the (price * quantity) for imported invoice lines.

Receivables only uses the AutoInvoice clearing account if you enabled the Create clearing option on the transaction source assigned to imported transactions. However, you must define a clearing account whether or not you enable this option.

You can use constant value, customer bill-to site, salesperson, transaction type, and standard item for your AutoInvoice clearing account. If you select salesperson or standard item, Receivables uses the specified Revenue accounting flexfield.

Freight Account

The freight account controls the account in general ledger to which you post freight amounts. You can use constant value, customer bill-to site, salesperson, transaction type, and standard item to specify your freight account.

If you choose standard item, Receivables uses the specified Revenue accounting flexfield. In addition, you can't import transactions with header-level freight through AutoInvoice.

If the transaction has a line type of LINE with an inventory item of freight, AutoAccounting uses the revenue scheduling rules for the freight account rather than the revenue account.

Receivable Account

The receivable account controls the account in your general ledger to which you post receivable amounts. You can use transaction type, customer bill-to site, salesperson, and constant value to specify your receivable account.

Revenue Account

The revenue account controls the account in your general ledger to which you post your revenue amounts. You can use transaction type, customer bill-to site, standard item, salesperson, and constant value to specify your revenue account.

Tax Account

The tax account controls the account in your general ledger to which you post tax amounts. You can use tax rate codes, customer bill-to site, salesperson, transaction type, standard item, and constant value to specify your tax account.

If you select salesperson or standard item, Receivables uses the specified Revenue accounting flexfield.

Unbilled Receivable Account

Receivables uses the unbilled receivable account for transactions that have invoicing and revenue scheduling rules. Whenever the revenue scheduling rule recognizes revenue on the transaction before the invoicing rule bills for the transaction, Receivables posts this amount to the unbilled receivable account.

You can select constant value, customer bill-to site, salesperson, transaction type, and standard item for your unbilled receivable account.

If you select standard item, Receivables uses the specified Revenue accounting flexfield. If you select salesperson, Receivables uses the salesperson Receivable accounting flexfield.

Unearned Revenue Account

Receivables uses the unearned revenue account for transactions that have invoicing and revenue scheduling rules. Whenever the revenue scheduling rule recognizes revenue on the transaction after the invoicing rule bills for the transaction, Receivables posts this amount to the unearned revenue account.

You can select constant value, customer bill-to site, salesperson, transaction type, and standard item for your unearned revenue account.

If you select salesperson or standard item, Receivables uses the specified Revenue accounting flexfield.