1. Implementing Payables Invoice to Pay
  2. Configuring Subledger Accounting for TAD

Configuring Subledger Accounting for TAD

Use the Transaction Account Definition to configure how to derive default account combinations for subledger transactions before they're accounted. Transaction account definitions are assigned at the ledger and subledger levels. You can use the transaction attributes in account rules, which can then be used in transaction account definitions to derive GL account combinations.

Implementing TAD doesn't require too many setups. However, you might need to configure multiple rules to ensure that every business scenario is taken care of, and the account derivation is accurately automated

Consider the following business use case as an example.

Chart of accounts (COA) details:

  • COA name: Operations Accounting Flex
  • Number of segments: 5

First 3 segments will be dynamically derived based on the transaction attributes. Remaining 2 segments will have a constant value.

In this example, we'll configure rules to derive expense account for line type of Item.

Note:

The application supports the derivation of expense account for line type of Freight and Miscellaneous. You can configure rules for them if required.

Here's a table that shows the mapping of each COA segment with the transaction attribute and their respective values.

COA Segment Number COA Segment Name/Segment Label COA Segment Mapped to Attribute Transaction Attribute Corresponding Segment Value
1 Company (Primary Balancing) Legal entity on invoice Vision Operations 01
Legal entity on invoice 02
2 Department (Cost Center) Business unit on invoice Vision Operations 110
Vision California 120
3 Account (Natural Account) Supplier Site descriptive flexfield Financials 5320
Procurement 7120
4 Sub Account

None (Use constant value)

 N/A 0000
5 Product

None (Use constant value)

 N/A 000

If you use this attribute mapping, for a scenario where the legal entity is Vision Operations, business unit is Vision California, and supplier site is Florham Park, the expense account combination defaulted on invoice lines will be 01-120-5320-0000-000

Create Account Rules

Account rules allow users to decide how the account combination on subledger journal entry lines is derived. Account rules can be defined for complete accounting combination or by individual segments. If the rule is by accounting combination, it decides the entire account combination. Or, segment rules create the value for a single segment in the accounting combination.

For our case, we'll define the following rules that are applicable at segment level and are created for every segment of the COA. Later these rules are used to derive the expense account for line type of Item.

Rule 1: Company Segment

This rule is used to derive the segment Company, the first segment of COA. The segment is tagged with the qualifier Balancing and is mapped to Legal Entity of the invoice. For this rule, we'll create a mapping set to map values between Legal Entity and the intended outcome, and then associate them in the account rule. Here's how you do this.

  1. Navigate to the Setup and Maintenance page and search for the task Manage Mapping Sets.
  2. Search and select the scope for Product as Payables.
  3. Click the Create icon and create a new mapping set with these values.
    • Name: Legal Entity Mapping Set
    • Short Name: LEGAL_ENTITY_MS
    • Output Type: Segment
    • Subledger Application: Payables
  4. In the Input section, click the Create icon and enter these values.
    • Input Source: Invoice Legal Entity Name
    • Value Set: ORA_AP_LEGAL_ENTITY_NAME_VS
    • Lookup Type:
  5. In the Chart of Accounts section, click the Create icon.
    • Chart of Accounts: Operations Accounting Flex
    • Segment: Company
  6. In the Operations Accounting Flex: Mappings section, click the Create icon.
    • Input: Vision Operations
    • Output: 01
    • Create another record
    • Input: Vision Leasing
    • Output: 02
  7. Save your changes for the mapping set.
  8. Go to the Setup and Maintenance page again, and search for the task Manage Account Rules.
  9. Search and select the scope for Product as Payables.
  10. Click the Create icon and create a new account rule with these values.
    • Name: Company Segment
    • Short Name: COMPANY_SEGMENT
    • Description: Enter a description for your company segment.
    • Chart of Accounts: Operations Accounting Flex
    • Rule Type: Segment. In following field, select the segment name as Company.
  11. In the Rules section, click the Create icon and create a new rule.
    • Value Type: Mapping Set
    • Value: Legal Entity Mapping Set
  12. In this use case, we'll not add any condition. Save your changes.

Rule 2: Department Segment

This rule is used to derive the segment Department, the second segment of COA. The segment is tagged with the qualifier Cost Center and is mapped to Business Unit of the invoice. For this rule, we'll create a mapping set, to map values between Business Unit and intended outcome, and then associate them in the account rule. Here's what you do.

  1. Navigate to the Setup and Maintenance page and search for the task Manage Mapping Sets.
  2. Search and select the scope for Product as Payables.
  3. Click the Create icon and create a new mapping set with these values.
    • Name: Business Unit Mapping Set
    • Short Name: BUSINESS_UNIT_MAPPING_SET
    • Output Type: Segment
    • Subledger Application: Payables
  4. In the Input section, add a new row with these values.
    • Input Source: Invoice Business Unit Name
    • Value Set: ORA_AP_ORGANIZATION_VS
    • Lookup Type:
  5. In the Chart of Accounts section, add a new row with these values.
    • Chart of Accounts: Operations Accounting Flex
    • Segment: Department
  6. In the Operations Accounting Flex: Mappings section, add a new row with these values.
    • Input: Vision Operations
    • Output: 110
    • Create another record
    • Input: Vision California
    • Output: 120
  7. Save your changes for the mapping set.
  8. Go back to the Setup and Maintenance page and search for the task Manage Account Rules.
  9. Search and select the scope for Product as Payables.
  10. Click the Create icon and create a new account rule.
    • Name: Department Segment
    • Short Name: DEPARTMENT_SEGMENT
    • Description:
    • Chart of Accounts: Operations Accounting Flex
    • Rule Type: Segment. In the following field, select the segment name as Department.
  11. In the Rules section, click the Create icon and create a new rule with these values.
    • Value Type: Mapping Set
    • Value: Business Unit Mapping Set
  12. In this use case, we'll not add any condition. Save your changes.

Rule 3: Account Segment

This rule is used to derive the third segment of COA, which is the Account segment. The segment is tagged with the qualifier Natural Account and is mapped to Attribute 3 of supplier site descriptive flexfield. For this rule, we'll create a mapping set, to map values between supplier site descriptive flex and intended outcome, and then associate in the account rule. Here's what you do.

  1. Navigate to the Setup and Maintenance page and search for the task Manage Mapping Sets.
  2. Search and select the scope for Product as Payables.
  3. Click the Create icon and create a new mapping set.
    • Name: Supplier Site Mapping Set
    • Short Name: SUPPLIER_SITE_MS
    • Output Type: Segment
    • Subledger Application: Payables
  4. In the Input section, add a new row with these values.
    • Input Source:
    • Value Set: Product Family
    • Lookup Type:
  5. In the Chart of Accounts section, add a new row with these values.
    • Chart of Accounts: Operations Accounting Flex
    • Segment: Account
  6. In the Operations Accounting Flex: Mappings section, add a new row with these values.
    • Input: Financials
    • Output: 5320
    • Create another record
    • Input: Procurement
    • Output: 7120
  7. Save your changes for mapping set.
  8. Go back to the Setup and Maintenance page and search for the task Manage Account Rules.
  9. Search and select the scope for Product as Payables.
  10. Click the Create icon and create a new account rule.
    • Name: Account
    • Short Name: ACCOUNT
    • Description:
    • Chart of Accounts: Operations Accounting Flex
    • Rule Type: Segment. In the following field, select the segment name as Account.
  11. In the Rules section click the Create icon and create a new rule.
    • Value Type: Mapping Set
    • Value: Supplier Site Mapping Set
  12. For this use case, we'll not add any condition. Save your changes.

Rule 4: Sub Account Segment

This rule is used to derive the segment Sub Account, the fourth COA segment. The segment always carries a constant value of “0000” and isn’t mapped to any transaction attribute. Here's what you do.

  1. Navigate to the Setup and Maintenance page and search for the task Manage Account Rules.
  2. Search and select the scope for Product as Payables.
  3. Click the Create icon and create a new account rule.
    • Name: Sub Account
    • Short Name: SUB_ACCOUNT
    • Description:
    • Chart of Accounts: Operations Accounting Flex
    • Rule Type: Segment. In the following field, select the segment name as Sub Account.
  4. In the Rules section, click the Create icon and create a new rule
    • Value Type: Constant
    • Value: 0000
  5. We'll not add any condition in this use case. Save your changes.

Rule 5: Product Segment

This rule is used to derive the segment Product, the fifth segment of COA. The segment always carries a constant value of “000” and isn’t mapped to any transaction attribute. Here's what you do.

  1. Navigate to the Setup and Maintenance page and search for the task Manage Account Rules.
  2. Search and select the scope for Product as Payables.
  3. Click the Create icon and create a new account rule.
    • Name: Product
    • Short Name: PRODUCT
    • Description:
    • Chart of Accounts: Operations Accounting Flex
    • Rule Type: Segment. In the following field, select the segment name as Product.
  4. In the Rules section, click the Create icon and create a new rule.
    • Value Type: Constant
    • Value: 000
  5. We'll not add any condition in this use case. Save your changes.

Create Transaction Account Definition

TAD allows implementation teams to assign account rules to transaction account types and group these assignments into complete definitions for an application. These definitions can be assigned to any primary ledger in the Manage Subledger Accounting Options task to derive the default account for Payables transactions associated with the ledger.

Follow these instructions to create TAD and assign the Account Rules. Note that while Payables supports account derivation for three transaction account types (Item, Freight and Miscellaneous), our use case example is limited to configuring rules to derive accounts for “Item” account type. Hence, you'll not configure any rules to assign to other transaction account types in these setups.

  1. Navigate to the Setup and Maintenance page and search for the task Manage Transaction Account Definition.
  2. Search and select the scope for Product as Payables.
  3. Click the Create icon to create a new Transaction Account Definition.
    • Name: Payables TAB
    • Short Name: PAYABLES_TAB
    • Description: Derive account combination for Payables Invoices.
    • Chart of Accounts: Operations Accounting Flex
  4. In the Account Rule Assignment section, assign the account rules, created in the previous section, for transaction account type of Item Expense.
    • Account Combination Rule: None
    • Segment Rules – Company:
    • Segment Rules – Department:
    • Segment Rules – Account:
    • Segment Rules – Sub Account:
    • Segment Rules – Product:
  5. For this use case, there's no need to add any condition. Save your changes.
  6. Activate the Transaction Account Definition.

Assign Transaction Account Definition for Payables Subledger

In Subledger Accounting, TAD is enabled for a combination primary ledger and subledger application. Following steps detail on how to associate TAD for a combination of primary ledger and subledger application.

  1. Navigate to the Setup and Maintenance page and search for the task Manage Subledger Accounting Options.
  2. Search and select the Ledger that you'd like to enable TAD in Payables.
  3. Filter on the application name Payables. Click Edit icon in the Accounting Options section. Assign the TAD created in the previous section.
    • Transaction Account Definition: Payables TAB
  4. Save your changes.

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