Auto Accounting in Project Costing
Auto Accounting in Project Costing
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Copyright (c) 2021, Oracle. All rights reserved. Oracle Confidential.
In this Document
Abstract
History
Details
Summary
Overview of Auto Accounting
Accounting Rules
Constant Value
Parameter value
SQL select statement value
Lookup Sets
Select a segment value source
Assign rules
Auto Accounting For Cost -Implementation steps
Accounting for labor cost
Accounting for Expenses Report
Accounting for Usage cost
Accounting for Miscellaneous cost
Accounting for Burden Transactions
Accounting for WIP and Inventory Cost
Accounting for Supplier Cost Adjustments
Account Generator
Overview
Integration with AP and Non Project Budget
Troubleshooting / FAQ and Issues
Troubleshooting Document
Frequently Asked Questions
Issues
References
APPLIES TO:
ABSTRACT
The Auto Accounting feature in Oracle Projects enables business to fetch values for account combinations for all
accounting transactions.
Based on different business scenarios users can define their own rules on predefined Auto Accounting functions which can
determine the account to be used for each financial activity .
This document intends to explain functionality and setups required to perform Auto Accounting in Oracle Project Costing.
HISTORY
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DETAILS
Objective:
This document intends to explain functionality and setups required to perform Auto Accounting in Oracle Project Costing
Scope:
SUMMARY
In order to meet customer specific business requirement , Auto Accounting rules are defined to determine the value for
each segment of the organizations Accounting FlexField.
Accounting Rules
This features allows users to define formulas that derives each segment within account structure based on the project
activities .
Navigation
Setup/AutoAccounting/Rules
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There are three intermediate value sources to derive the account segment.
Constant Value
Use a single valid segment value .
Parameter
Define a parameter to Auto Accounting Rule.
Constant Value
Users can determine the segment value by identifying a constant and can define Auto Accounting rule that supplies a
constant value to the company segment .
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Parameter value
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If the above option does not suit your business requirement and is intended to process rules that depend on more than
one parameter. You can use your business logic using sql select statements to retrieve a value .It enable you to execute a
select statement to retrieve an intermediate value.
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Lookup Sets
Lookup sets is an implementation-defined list of intermediate values and corresponding Accounting Flexfield segment
values
For each intermediate value, users maps a corresponding account segment value.
Users need lookup sets to translate organizations to cost centers, expenditure types to account codes, event types to
account codes, or for other situations where the segment value depends upon a particular predefined parameter.
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From the above options , users will have a choice to choose the intermediate value as segment value or through lookup
sets you can translate the value to corresponding segment value.
Intermediate Value
Use the intermediate value directly as a segment value, in this case lookup set is not needed
Lookup the intermediate value in a lookup set , map the intermediate value into the corresponding segment value
Assign rules
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Function
Users define rules as mentioned above to determine the account to charge for each accounting transaction.
Auto Accounting function is used to identify an accounting transaction .
Function Transaction
Oracle Projects provides default function transactions mapped to each function, which identifies commonly used scenarios
in which users may want to assign different rules.
Users can assign rules to function transactions enabled for each AutoAccounting function.
Below are the details of Auto Accounting functions provided by Oracle Projects Costing and how users can implement
them.
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In order to determine the default cost accounting for transaction associated with straight time and overtime expenditure
type class, Oracle project costing uses the labor cost account and the labor cost clearing accounting functions.
When we run PRC : Distribute Labor Cost oracle project costing calculates labor cost amount based on employee labor
cost overrides and labor costing rules .After calculating labor cost ,oracle project costing uses the labor cost account
transactions to debit a default expense account for raw labor costs
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Upon submitting PRC : Generate Cost Accounting events for labor cost process category ,the program credits a default
payroll clearing liability account to balance the labor expense account .
Expense report cost account function is used to derive expense default debit account for transactions related to expense
report expenditure type class
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Upon submitting PRC : Distribute Expense Report Adjustments , system calculates and distributes the costs originated
from expense report adjustments and uses the expense report cost account function transaction to determine which
default expense account to debit for expense report cost.
Upon submitting PRC : Generate Cost Accounting Event for the process category supplier cost , the program credits a
default supplier cost liability account to balance the supplier cost expense account
In order to determine the default cost accounting for transactions associated with usage expenditure type class, Oracle
project costing uses the Usage Cost Account and the Usage Cost Clearing Account function.
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Upon submitting PRC : Distribute Usage and Miscellaneous cost , system uses Usage Cost Account transactions to debit a
default expense account for raw usage cost
Upon submitting PRC : Generate Cost Accounting Event for the Usage Cost category , the program credits a default asset
usages liability account to balance the usage expense account .
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In order to determine the default cost accounting for transactions associated with Miscellaneous Transaction Expenditure
type class,Oracle project costing uses the Misc Trans Cost Account and the Misc Trans Cost Clearing Account functions.
When you ran PRC : Distribute Usage and Miscellaneous cost , system will use the Misc Trans Cost Account Transaction to
debit a default expense account for raw miscellaneous cost
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When you run PRC : Generate cost accounting event for miscellaneous cost process category ,the program credits a
default miscellaneous cost liability account to balance the miscellaneous cost expense account
In order to determine the default cost accounting for transactions associated with the Burden Transaction Expenditure
type class, Oracle project costing uses the burden cost account and the burden cost clearing account function.
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Upon submitting program PRC : Create and Distribute Burden Transactions , Oracle project costing uses the Burden Cost
account transaction to debit a default expense account for the burden cost
Upon submitting PRC : Generate Cost Accounting Event for process category Burden Cost , the program credits a default
burden cost liability account to balance the burden cost expense account .
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In order to determine the default cost accounting for transactions associated with Work In Process expenditure type
class, Oracle Project Costing uses the WIP Cost Account and the WIP Cost clearing account functions.
In order to determine the default cost accounting for transaction associated with the Inventory expenditure type
class,Oracle Project Costing uses the Inventory Cost Account functions and the inventory Cost Clearing Account function
Upon submitting PRC : Distribute Usage and Miscellaneous costs , Oracle Project Costing uses the WIP cost account
transactions to debit a default expense account for raw Work In Process cost.
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Upon submitting PRC : Generate Accounting Event for the Work In Process Cost process category , the program credits a
default work in process cost liability account to balance the work in process expense account .
Upon submitting PRC : Distribute Usage and Miscellaneous costs , Oracle Project Costing uses the Inventory cost account
transactions to debit a default expense account for Inventory cost.
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Upon submitting PRC : Generate Accounting Event for the Inventory process category , the program credits a default
Inventory cost liability account to balance the inventory expense account .
Once we interface the supplier cost to oracle project costing , you can adjust the supplier cost expenditure items in Oracle
Project costing . System process these invoice adjustments using the supplier invoice cost auto accounting function.
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System uses the supplier Invoice Cost Account Function to debit the appropriate the default expense account for supplier
invoice adjustments. When you run PRC : Distribute Cost Adjustment or PRC: Distribute Supplier Cost Adjustments for a
range of projects , system uses the supplier Invoice cost account function to debit a default expense account for raw
supplier costs.
Upon submitting PRC:generate cost accounting event for the supplier cost process category , the program credits a
default supplier liability account to balance the cost expense account. If specified the default account in Oracle Project
Costing Implementation Options then program uses the Default Supplier Cost Credit Account
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Account Generator
Overview
The Account generator feature uses oracle workflow to construct key flexfield automatically using custom criteria .
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Oracle Payables and Oracle Purchasing use this feature to determine the default code combinations for purchasing
requisition , purchase order , supplier invoices and expense report based on project details entered .
It allows project-related distributions to have their accounts overwritten from the default generated.
Using this profile option or by enabling it user can specify whether to update the Accounting Flexfield combination for
Projects distributions in Payables and Purchasing.
Oracle Purchasing
Oracle purchasing provides default account generator processes . To derive the account based on project information ,
you must change the default processes so that they can use the project information.
Please go to navigation Setup > Flexfields > Key > Accounts and assign custom process.
Oracle Payables
While entering an invoice or expense report that contains project and task invoice , account generator defaults charge
accounts for invoices and expense reports
Supplier Invoice
Oracle Internet Expense or Oracle Payable Expense Report call the Project Expense Report Account Generator
Please go to navigation Setup > Flexfields > Key > Accounts and assign custom process.
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To generate default accounts when a project budget is integrated with a non project budget , Oracle Project Costing uses
the Project Budget Account Generator Workflow .Customer must customize the Project Budget Account Generator
Workflow to generate accounts according to your needs.
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Troubleshooting Document
This document is provided to help understand the basic issues that occur in the accounting area of Project Costing. It
contains the most common problem scenarios and detailed steps to assist in resolving them.
This document is provided to help customer answer the most frequently asked question during the Auto Accounting
process
Issues
Processes fail with Invalid Accounting Flex field Remove the Public Sector flag on the project
Note 201988.1
rejections and rerun the distribute costs process.
Check that all AutoAccounting (AA)
PAGGLT Erroring With Signal 11:
parameters are valid for use by the rules and Note 223780.1 Q7
PA_AA_INVLD_SQL_PARAM/PA_AA_NO_RULE_PARA
functions.
Processes failes with AutoAccounting Error: The SQL statement for the rule &RULE has <Note 1017234.102>
PA_AA_NULL_SELECTED|RULE| selected a row with a NULL value. User must
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