Subledger Accounting Setup for Multifund Accounting

After you enable a business unit for Multifund Accounting using the Enable multifund accounting option in Receivables System Options, you must complete related setups in Subledger Accounting to use multifund accounting.

Define a Multifund Accounting accounting method and journal entry rule set assignments in Subledger Accounting for the primary ledger assigned to the business unit.

To prepare the primary ledger for Multifund Accounting:

• Create an accounting method for Multifund Accounting.

• Assign the predefined Multifund Accounting journal entry rule sets to the Multifund Accounting accounting method you defined.

• Associate the Multifund Accounting accounting method with the primary ledger.

Caution: You can only set up Subledger Accounting for Multifund Accounting by assigning the predefined Multifund Accounting journal entry rule sets indicated in this task to the Multifund Accounting accounting method. You can't customize the predefined Multifund Accounting journal rules and journal entry rule sets.

Set Up an Accounting Method and Journal Entry Rule Sets for Multifund Accounting

To set up the Multifund Accounting accounting method, complete these steps:

1. Navigate to the Manage Accounting Methods task from the Receivables configuration.

2. Search for the Accounting Method Standard Accrual.

3. In the Edit Accounting Method page for Standard Accrual, select Duplicate from the Actions menu.

4. In the Create Accounting Method window, create an accounting method for Multifund Accounting. Enter for example:

   1. In the Name field, enter Multifund Accounting Method.

   2. In the Short Name field, enter MULTI_FUND_ACCOUNTING_METD.

   3. In the Description field, enter "Accounting method to support Multifund Accounting."

   4. In the Chart of Accounts field, select the chart of accounts.

   5. Click the Save and Close button.

5. In the Journal Entry Rule Set Assignments section of the Edit Accounting Method page for Multifund Accounting, delete the existing rule sets copied from the Duplicate action.

6. Enter the predefined Multifund Accounting journal entry rule sets:

   • Invoices - Multifund Accounting Balancing Method

   • Credit Memos - Multifund Accounting Balancing Method

   • Debit Memos - Multifund Accounting Balancing Method

   • Adjustments - Multifund Accounting Balancing Method

   • Receipts - Multifund Accounting Balancing Method

   • Miscellaneous Receipts - Multifund Accounting Balancing Method

7. Activate the Multifund Accounting accounting method.

8. Save your work.

9. Navigate to the Specify Ledger Options task.

10. Select the primary ledger associated with the business unit enabled for Multifund Accounting.

11. In the Accounting Method field of the Subledger Accounting section of the Specify Ledger Options page, select the accounting method that you defined for Multifund Accounting.

12. Complete the remaining fields according to your business requirements

13. Save your work.

Set Up Multifund Accounting for Transactions with Invoicing Rules

You can set up Subledger Accounting for multifund accounting to create detailed distributions on Receivables transactions that use invoicing rules. With the appropriate setup, the Receivables account is split on the basis of Unearned Revenue for transactions using the In Advance invoicing rule, and Unbilled Receivables for transactions using the In Arrears invoicing rule.

Example of Multifund Accounting on an Invoice with an Invoicing Rule

The example in the tables below illustrates how the Receivables account is split on an invoice assigned the In Advance invoicing rule. The revenue scheduling rule uses the fixed schedule rule type.

This table shows details of the transaction:

Field	Value
Invoice Date	1-Mar-20
Invoicing Rule	In Advance
Line 1 Amount	12000
Line 2 Amount	15000
Revenue Scheduling Rule	3 Months Fixed
Rule Start Date	20-Jan-20

This table shows the resulting Invoice Accounting Entries, with the Receivables account split according to the balancing segment, which is the first segment of the GL account code combination. The corresponding revenue is recognized over the three-month period, as specified by the revenue scheduling rule:

Date	Dr/Cr	Account Class	GL Account	Amount
1-Mar-20	Debit	Receivables	01-000-1210-0000-000	12000
1-Mar-20	Debit	Receivables	02-000-1210-0000-000	15000
1-Mar-20	Credit	Unearned Revenue	01-000-1222-0000-000	12000
1-Mar-20	Credit	Unearned Revenue	02-000-1222-0000-000	15000
1-Mar-20	Debit	Unearned Revenue	01-000-1222-0000-000	4000
1-Mar-20	Credit	Revenue	01-000-4110-0000-000	4000
1-Mar-20	Debit	Unearned Revenue	02-000-1222-0000-000	5000
1-Mar-20	Credit	Revenue	02-000-4110-0000-000	5000
1-Apr-20	Debit	Unearned Revenue	01-000-1222-0000-000	4000
1-Apr-20	Credit	Revenue	01-000-4110-0000-000	4000
1-Apr-20	Debit	Unearned Revenue	02-000-1222-0000-000	5000
1-Apr-20	Credit	Revenue	02-000-4110-0000-000	5000
1-May-20	Debit	Unearned Revenue	01-000-1222-0000-000	4000
1-May-20	Credit	Revenue	01-000-4110-0000-000	4000
1-May-20	Debit	Unearned Revenue	02-000-1222-0000-000	5000
1-May-20	Credit	Revenue	02-000-4110-0000-000	5000

Setting Up Your Balancing Segment Values

As this example illustrates, you must use the same balancing segment value for the corresponding invoicing rule:

• In Advance: Use the same balancing segment value for the Unearned Revenue and Revenue accounts across periods.

• In Arrears: Use the same balancing segment value for the Unbilled Receivables and Revenue accounts across periods.

Note: Using the same balancing segment values applies whether a balancing segment value is manually overridden using the Review Distributions window or overridden through the segment rules in Subledger Accounting. Otherwise, Intracompany and Intercompany balancing entries are generated.

To use Multifund Accounting on transactions that use invoicing rules and revenue scheduling rules, you must modify the Multifund Accounting accounting method you created for the primary ledger associated with the business unit enabled for Multifund Accounting.

To modify the Multifund Accounting accounting method for invoices with rules, perform these four tasks:

1. Create a journal line rule for the Invoice event class and associate it with the journal entry rule set.

2. Create a journal line rule for the Debit Memo event class and associate it with the journal entry rule set.

3. Modify the conditions within the journal line rule Receipt Application to Multifund Transaction Receivable for the Receipt event class.

4. Update your Multifund Accounting accounting method with the new rule sets for Invoice, Debit Memo, and Receipt.

Create a Journal Line Rule for Invoice Event Class and Associate the Rule with the Journal Entry Rule Set

To create a journal line rule for the Invoice event class and associate it with the journal entry rule set, complete these steps:

1. Navigate to the Journal Line Rules task from the Receivables configuration.

2. In the Name field of the Manage Journal Line Rules: Receivables page, search for the journal line rule Multifund Invoice Receivable.

3. Select Multifund Invoice Receivable and click the Duplicate icon.

4. In the Create Journal Line Rule window, enter a Name and Short Name that identifies this new Multifund Invoice Receivable journal line rule.

5. Click the Save and Close button.

6. In the Conditions tabbed region of the Edit Journal Line Rule page, enter the following conditions for the new Multifund Invoice Receivable journal line rule:

   ("Transaction Invoicing Rule" Is not null) 'And' ( "Transaction Distribution Account Class" = TAX 'Or' "Transaction Distribution Account Class" = FREIGHT 'Or' "Transaction Distribution Account Class" = ROUND 'Or' "Transaction Distribution Account Class" = CHARGES 'Or' "Transaction Distribution Account Class" = DEFERRED_TAX 'Or' ( "Transaction Distribution Account Class" = UNBILL 'And' "Receivables Offset Indicator" = Y ) 'Or' ( "Transaction Distribution Account Class" = UNEARN 'And' "Receivables Offset Indicator" = Y ) )

   Caution: Insert the conditions by selecting them from the menu list. Don't copy and paste condition text from another document.

7. Click the Save and Close button.

8. Navigate to the Subledger Journal Entry Rule Sets task from the Receivables configuration.

9. In the Name field of the Manage Subledger Journal Entry Rule Sets: Receivables page, search for the journal entry rule set Invoices - Multifund Accounting Balancing Method.

10. Select Invoices - Multifund Accounting Balancing Method and click the Duplicate icon.

11. In the Create Subledger Journal Entry Rule Set window, enter a Name and Short Name that identifies this new Invoices - Multifund Accounting Balancing Method journal entry rule set.

12. Click the Save and Close button.

13. In the Journal Lines section of the Edit Subledger Journal Entry Rule Set page, click the Plus (+) icon to create a new row.

14. In the Journal Line Rule field, select the new Multifund Invoice Receivable journal line rule that you created in steps 1-5.

15. In the Account Combination Rule field, select Multifund Transaction Default Receivables GL Account.

16. In the Primary Balancing Segment, Second Balancing Segment, and Third Balancing Segment fields, select Copy.

17. Click the Save and Close button.

Create a Journal Line Rule for Debit Memo Event Class and Associate the Rule with the Journal Entry Rule Set

Create a journal line rule for the Debit Memo event class and associate the new Debit Memo journal line rule with the journal entry rule set by completing the same steps as you did for the Invoice event class.

Modify the Receipt Application to Multifund Transaction Receivable Journal Line Rule

To modify the conditions within the journal line rule Receipt Application to Multifund Transaction Receivable for the Receipt event class, complete these steps:

1. Navigate to the Journal Line Rules task from the Receivables configuration.

2. In the Name field of the Manage Journal Line Rules: Receivables page, search for the journal line rule Receipt Application to Multifund Transaction Receivable.

3. Select Receipt Application to Multifund Transaction Receivable and click the Duplicate icon.

4. In the Create Journal Line Rule window, enter a Name and Short Name that identifies this new Receipt Application to Multifund Transaction Receivable journal line rule.

5. Click the Save and Close button.

6. In the Conditions tabbed region of the Edit Journal Line Rule page, insert these new condition details:

   'Or' "Transaction Distribution Account Class" = UNEARN 'Or' "Transaction Distribution Account Class" = UNBILL

   before the existing condition details:

   'And' "Distribution Source Type" = REC 'And' "Distribution Multifund Additional Entry" = N

   Caution: Insert the conditions by selecting them from the menu list. Don't copy and paste condition text from another document.

7. Click the Save and Close button.

8. Navigate to the Subledger Journal Entry Rule Sets task from the Receivables configuration.

9. In the Name field of the Manage Subledger Journal Entry Rule Sets: Receivables page, search for the journal entry rule set Receipts - Multifund Accounting Balancing Method.

10. Select Receipts - Multifund Accounting Balancing Method and click the Duplicate icon.

11. In the Create Subledger Journal Entry Rule Set window, enter a Name and Short Name that identifies this new Receipts - Multifund Accounting Balancing Method journal entry rule set.

12. Click the Save and Close button.

13. In the Journal Lines section of the Edit Subledger Journal Entry Rule Set page, select the existing Receipt Application to Multifund Transaction Receivable journal line rule and delete it.

14. Click the Plus (+) icon to create a new row.

15. In the Journal Line Rule field, select the new Receipt Application to Multifund Transaction Receivable journal line rule that you just created and modified.

16. Click the Save and Close button.

Update Your Multifund Accounting Method with the New Rule Sets

To replace the existing rule sets for the Invoice, Debit Memo, and Receipt event class in your Multifund Accounting accounting method, complete these steps:

1. Navigate to the Manage Accounting Methods task from the Receivables configuration.

2. In the Manage Accounting Methods page, search for and select your Multifund Accounting Method to navigate to the Edit Accounting Method page.

3. In the Receivables tabbed region of the Journal Entry Rule Set Assignments section of the Edit Accounting Method page, either delete or apply an end date to the existing rule sets for Invoice, Debit Memo, and Receipt.

4. Add the new rule sets that you created for Invoice, Debit Memo, and Receipt and activate them.

5. Click the Save and Close button.