PAR Accounting and Recording

The final part of the PAR replenishment process is to account and record the transaction.

Cost Management subledger accounting provides rules that you can configure to automatically transform subledger transactions into detailed subledger journal entries. You can define flexible rules for accounting policies and generate accounting for legal and corporate reporting. Reconciling accounting to transaction data enables drill down from general ledger to the underlying subledgers and standard reports.

The first step in implementing subledger accounting for a PAR location is to create a mapping set. Mapping sets provide an efficient way to define a segment or account combination value for one or more transaction or reference attribute values. Using such input and output mappings is simpler than using complex conditions on account rules. Based on the value of the source input, you can derive a single segment or a full account. Examples of source input value types include transaction attributes and reference attributes.

The next step is to create an account rule on the Edit Account Rule page. You can use mapping sets to associate a specific output value for an account or segment. You can use mapping sets in the account rules to build the account. Use the account rules to determine the accounts for subledger journal entry lines. In addition, you can specify the conditions under which these rules apply. Using these capabilities, you can develop complex rules for defining accounts under different circumstances to meet your specific requirements. You can define account rules for an account, segment, or value set.

Example of PAR Replenishment Accounting and Recording

Let's look at an example to see how with an input source of PAR Location, we can derive the output type account combination.

Let's create a mapping set:

1. Navigate to the Manage Mapping Sets task:

   • Offering: Manufacturing and Supply Chain Materials Management

   • Functional Area: Receipt Accounting

   • Task: Manage Mapping Sets

2. On the Edit Mapping Sets page, once you establish the input source, select the chart of accounts. In our example, let's say you select the chart of accounts of 102_Operations Accounting.

3. Map the input source of PAR Location to the output source of 102_Operations Accounting.

4. Select Yes for input source PAR Location and select a specific account code combination for the output type.

Let's create the account rule:

1. Navigate to the Manage Account Rules task:

   • Offering: Manufacturing and Supply Chain Materials Management

   • Functional Area: Receipt Accounting

   • Task: Manage Account Rules

2. In the Rules region of the Edit Account Rule page, enter Mapping Set for the value type. This indicates to derive the account combination by referencing the mapping set. The account combination from the chart of accounts is specified using the mapping set.

3. In the account rules, you can specify conditions for each rule detail line. Priorities determine the order in which to examine the account rule conditions. When a condition is met, the rule associated with that priority is used. Depending on which of the defined conditions is met, a different account rule detail is employed to create the account. The Create Accounting process evaluates conditions based on the priority of the rule detail. When the condition is met, the rule detail is applied.