Understand Invoice Classification Rules

Invoice classification rules allow Oracle Fusion Cloud Sustainability to determine which activity type and activity type attribute to use when generating an activity for an eligible invoice distribution, by using fields on the invoice, line, and distribution.

Every invoice classification rule requires the following attributes:

• Name: Enter a unique name for the rule.
• Start and End Dates: Use these dates to determine which rules are active or inactive at any given point in time. If you don’t need a rule to be applicable anymore, then you enter an end date that specifies the date from which the rule becomes inactive.
• Rule Type: Can be either Exclude or Assign.
  • Exclude: Choose this option when creating a rule to identify invoice distributions that must not be used to create activities. For example, you can use this option for a distribution that does not have any emissions impact.
  • Assign: Choose this option when creating a rule to identify invoice distributions that must be used to create activities.
• Rank: Specify a rank to sequence the rule execution. This is applicable only for rules of the type Assign. Rules with a lower rank number are executed first. If an invoice distribution meets the conditions of a rule, then the remaining rules are not evaluated for the distribution.
• Activity Classification: Choose the combination of activity type and activity type attributes that must be assigned to the generated activity. During implementation, the activity classification is generated from valid combinations of activity type attributes that are included in the emission factor mappings that you configured.

  Activity classification is generated by concatenating the activity type and activity type attributes following the same sequence as configured in the emission factor map descriptive flexfield. Values not populated will be skipped. For example, if you had configured the Mobile Combustion activity type to have three context-sensitive segments in the sequence Energy Source, Vehicle Type, and Percentage Laden, and you had configured the Stationary Combustion activity type to have a single context-sensitive attribute Fuel Type, then the following table shows the corresponding activity classification that will be generated.

  Examples of Activity Classification

  Activity Type	Energy Source	Vehicle Type	Percentage Laden	Fuel Type	Activity Classification
  Mobile Combustion	Diesel	Heavy Duty Trucks			Mobile Combustion.Diesel.Heavy Duty Trucks
  Mobile Combustion	Diesel	Passenger Car	100		Mobile Combustion.Diesel.Passenger Car.100
  Mobile Combustion	Diesel				Mobile Combustion.Diesel
  Stationary Combustion				Bituminous Coal	Stationary Combustion.Bituminous Coal
  Stationary Combustion				CNG	Stationary Combustion.CNG

• Conditions: Specify one or more conditions that invoice distributions must meet to use this rule. If you define multiple conditions for a rule, then you can specify whether the given invoice distribution must meet all the conditions or any of the conditions to use this rule.
  1. Attribute: Specify conditions on any of the following attributes on the invoice:
     • Invoice type: The type of invoice, such as Standard, Prepayment, Credit memo, and so on.
     • Item: Item on the invoice line.
     • Item description: The description of the item on the invoice line.
     • Legal entity: Legal entity on the invoice.
     • Line description: Invoice line description.
     • Line type: For example, Item, Tax, Miscellaneous.
     • Natural account: Natural account number segment value of the charge account used on the distribution.
     • Natural account description: The description of the natural account.
     • Procurement category hierarchy 1-10: Category value at one of the procurement category hierarchy level.
     • Purchasing category: Category assigned on the purchase order, for invoice lines matched to purchase orders.
     • Ship-to location
     • Supplier name
     • Supplier site
     • Business unit
     • Transaction description: Invoice description.
     • Unit of measure: Unit of measure on the invoice line.
  2. Operator: Use one of these operators to write your condition:

     Comparison Operators

     Operator	Explanation
     Contains	The selected invoice attribute contains the keyword in the condition value. For example, the keyword light, when compared with the value Floodlight, will be considered a match. The keyword is case sensitive.
     Does not contain	The selected invoice attribute does not contain the keyword in the condition value. The keyword is case sensitive.
     Is	The value of the selected invoice attribute exactly matches with the condition value. This is not case sensitive.
     Is empty	The selected invoice attribute has no value.
     Is not empty	The selected invoice attribute contains a value.
     Is exactly	The value of the selected invoice attribute exactly matches with the condition value. This is case sensitive.
     Is not	The selected invoice attribute does not match with the condition value. This is case sensitive. For example, a condition where the supplier’s name is not Light will match invoice distributions with any supplier name other than Light.
     Starts with and Ends with	The selected invoice attribute starts or ends with the condition value. This is case sensitive. For example, a condition where the supplier’s name starts with Corp will match all transactions with supplier names such as Corporation Tech, Corp Tronics, and so on. Similarly, ends with matches all transactions with supplier names such as Green Corp, Vision Corp, and so on.
     Matches any and Matches none	The selected invoice attribute matches with any of the keywords in the condition value. You can enter multiple keywords in the condition value, separated by the number sign (#). The values are case sensitive. For example, suppose that you want to create rules to differentiate between the purchase of computer hardware and computer services. You can procure either of these from three known vendors: Supplier 1, Supplier 2, or Supplier 3. If the invoice line description contains Laptop, then we must consider a hardware purchase. Otherwise, it’s a software purchase. For this scenario, we can define two rules as follows: Rule 1 Rule name: Hardware Rank: 150 Activity classification: Purchased Goods and Services.Computer hardware Rule Condition Type - All Rule condition 1: Supplier name Matches any Supplier 1#,Supplier 2#,Supplier 3 Rule Condition 2: Line description Contains laptop Rule 2 Rule name: Software Rank: 200 Activity classification: Purchased Goods and Services.Software and Software Services Rule Condition Type: All Rule condition: Supplier name Matches any Supplier 1#,Supplier 2#,Supplier 3

  3. Value: Enter a value for the expression to be evaluated.
• When rules are evaluated, all the exclusion rules are evaluated first and activities are not created for any invoice distributions that match the exclusion rules. Then, all the assignment rules are executed one after the other in the sequence of ranking.

  Exclusion Rules

  For example, consider the following scenarios:

  Scenario 1: You want to exclude all invoices of the type Prepayment.

  Scenario 2: You want to exclude all invoices from Vision Corporation because they send detailed emission data for the fleet they manage on your organization's behalf. The emission data is configured to be uploaded directly to Oracle Sustainability through your own integration with the systems of Vision Corporation. Therefore, you don't want to generate activities directly from their invoices.

  In both these scenarios, you can create exclusion rules as follows:

  Sample Exclusion Rules

  Rule Name	Rule Description	Rule Condition
  Exclude all Prepayment	Exclude all invoices of type Prepayment	Invoice type Is Prepayment
  Exclude invoices from Vision Corporation	Exclude all invoices from Vision Corporation	Supplier name Is Vision Corporation

  Assignment Rules

  For example, consider the following scenarios:

  Scenario 1: You procure IT Hardware from several vendors. All these purchases originate from the procurement system, where the Purchasing Category is clearly identified as IT Hardware. Therefore, any invoice lines matched with Purchase Order (PO) lines that use the Purchasing Category “IT Hardware” must result in an activity of type “Purchased Goods and Services.Computers” (the activity type should be Purchased Goods and Services, and the Spend Type should be Computers).

  Scenario 2: You procure natural gas for running furnaces on your shop floor, and emissions must be accounted for as Scope 1 - Stationary Combustion. All the natural gas is procured from a supplier named Green Corp. This supplier provides other fuels too, so for a purchase of natural gas, the line description always contains the words “natural gas.” Also, only the invoices charged to one of the many natural accounts containing the word “Furnaces” must be considered for Stationary Combustion. Therefore, any invoice distribution that matches all the following criteria must result in activities of type Stationary Combustion.Natural Gas (here, the activity type should be Stationary Combustion, and the fuel type should be Natural Gas):

  • Is charged to natural account that contains the word "Furnaces".
  • Invoice line description contains the words “Natural gas."
  • Supplier is Green Corp.
  In both these scenarios, you can create assignment rules as following:

  Sample Assignment Rules

  Rule Name	Rule Description	Rule Condition Type	Rule Condition	Activity Classifictaion
  IT Hardware	PO for IT Hardware category		Purchasing category Is IT Hardware	Purchased Goods and Services.Computers
  Natural gas for furnace	Natural gas for furnace must result in emission under Stationary Combustion	All	Natural account Contains Furnaces Line description Contains Natural Gas Supplier Is Green Corp	Stationary Combustion.Natural Gas