Example of Deriving Accounting Flexfield Segments in AutoAccounting

This example illustrates how to derive default accounting flexfield segments in AutoAccounting.

Receivables uses AutoAccounting to derive the default accounting on transactions, and uses the predefined setup in Subledger Accounting so that the Create Receivables Accounting program accepts the default accounts that AutoAccounting derives without change. However, if you modify the Subledger Accounting setup, you can instead select a constant value for all accounting flexfield segments.

These two scenarios illustrate how Receivables uses the AutoAccounting structure you define to determine your accounting flexfield defaults.

Flexfield with Four Definitions

You want to define a four segment revenue flexfield: 00-000-0000-000 (Company-Cost Center-Account-Product). You can define AutoAccounting to derive defaults for each segment:

• Company, the first segment, is the constant 01.

• Cost Center, the second segment, derives from the salesperson (John Doe).

• Account, the third segment, derives from the transaction type (Standard Invoice).

• Product, the fourth segment, derives from the standard line (20 Megabyte Hard Disk).

Salesperson John Doe enters a one line Standard Type invoice for a 20 Megabyte Hard Drive.

This figure illustrates how AutoAccounting derives the revenue flexfield based on a separate definition for each segment:

Flexfield with Two Definitions

You redefine the structure so that AutoAccounting only uses information from the transaction type (Standard Invoice) for segments 1 and 2, and standard line (consulting services) for segments 3 and 4.

This figure illustrates how AutoAccounting derives the revenue flexfield based on the same definitions for segments 1 and 2 and segments 3 and 4: