Transaction Account Types

Transaction account types are elements that represent each transaction account on procurement transactions. There are five transaction account types for five different accounts exposed on procurement transactions. Here are five different accounts types:

• Charge Account: An account against which the money spent is finally withdrawn or charged.

• Variance Account: An account against which an entry is created to record a variance for a certain kind of spending.

• Accrual Account: An intermediary account which records money spent for goods or services that have been consumed or taken ownership of, but are yet to be invoiced.

• Destination Charge Account: The charge account belonging to the destination organization.

• Destination Variance Account: The variance account belonging to the destination organization.

You can automate the derivation of these accounts on transactions based upon your organizational policies. Derivations are required to build these accounts or transactions such as requisitions or purchase orders.