1. Implementing Joint Venture Management
  2. Associate the Supporting Reference to Accounting Methods

Associate the Supporting Reference to Accounting Methods

Associate the supporting reference you created in the preceding task to an accounting method.

Note: Businesses can use many accounting methods, one for each chart of accounts. Each accounting method can have many journal entry rule sets for a subledger application. Each journal entry rule set can have many journal lines. You associate the supporting reference at the journal line level. It’s important that you associate this supporting reference to the applicable journal lines in the active rule sets for all the subledgers from where you identify transactions for joint ventures. For example, if you identify invoices and credit memos from Oracle Receivables to be distributed and processed in Oracle Joint Venture Management, you must associate the supporting reference to all the applicable journal lines (revenue, tax, freight, and so on) for the event classes, invoice and credit memo in all the active journal entry rule sets for Receivables. For Oracle Payables, your journal lines that you associate with the supporting reference can be miscellaneous expense, item expense, and so on. This will help to ensure the creation of accurate accounting entries because the transactions you bring into Joint Venture Management will be recorded with the correct transaction dates.

The following steps use the Payables subledger as an example. Use the steps as a guide to associate the supporting reference to other subledgers within the same or different accounting methods.

  1. Navigate to Setup and Maintenance and select the Payables functional area under the Financials offering.

  2. Click Show - All Tasks and select Manage Accounting Methods in the list of tasks.

  3. In the Search area, search on the accounting method that contains journal entry rule sets for the subledgers for a specific chart of accounts

  4. Click the link to the accounting method to edit it.

    The following example shows an accounting method for a chart of accounts named HEPPLedger. The Payables subledger contains a rule set for each event class: Credit Memos, Debit Memos, Invoices, Payments, and so forth. The rule set establishes the data required for a journal entry line for an event class.

    This image shows the Edit Accounting Method section with an accounting method name HEPP_Accounting in the Name field and other details related to the accounting method such as the short name, description, chart of accounts, and so forth. The focus of the image is to show the section below the accounting method, Journal Entry Rule Set Assignments. This section has multiple tabs: Payables which is selected, Cost Management, Assets, Receivables, Cash Management, Payroll, Receipt Accounting, Project Costing, Commercial Banking, Revenue. The table in this section has the following columns: Event Class, Event Type, Rule Set, Status, Effective Start Date, Effective End Date. The focus of this table is to show the first row that is highlighted, which contains the following data respective of the aforementioned columns: Credit Memos, All, Credit Memo Accrual Basis, Active, 1/1/51, m/d/yy.

  5. In the event class row, click the rule set to edit it.

    This is where you associate the supporting reference to a journal line for Payables.

  6. In the Journal Lines area, review if the journal lines that you want to associate with the supporting reference already exist. If you need to create a new journal line, click Add Row (+ icon) and select the following values to add a journal line rule for invoicing:

    • Line Type

    • Journal Line Rule

    • Account Combination Rule

    Note: If you have two journal line rules for invoicing, there can’t be an overlap or a gap in the effective dates. They must be successive.

  7. To associate the supporting reference to a journal line:

    1. Highlight the journal line.

    2. Scroll to the Supporting References area below the Journal Lines area and click Add.

    3. Select the supporting reference and then save your changes.

    Note: The event class in the supporting reference must be the same as the event class in the journal rule set. For example, if one of the sources in the supporting reference is for the Invoicing event class, then the journal rule set must also be for the Invoicing event class.

  8. Continue to associate the supporting reference to all applicable journal lines as appropriate.

  9. Click Save and Close.

    The system returns you to the Edit Accounting Method page.

  10. To associate the supporting reference to the journal lines of another rule set, click the rule set to edit it, and then follow the appropriate steps.

  11. Change the status to Active.

  12. Click Save and Close.

    This returns you to the Accounting Method page.

  13. Make sure the status of the accounting method is Active and then save it.

  14. Continue to add the supporting reference to journal line rules in other accounting methods as appropriate.