Monday, 12 July 2021

PO: Charge Account Selection (Automation) PO Account Generation

In Oracle, whenever we raise  a new PR/PO, the Charge Account, Budget Account, Variance account and Accrual Account can be automatically set based on the standard PO Account Generator Workflow Process. The same can be customized according to our business rules. 

To set budgetary control options for an account range:

 

 

 

1. Select Automatic Encumbrance accounting to automatically create encumbrance batches for transactions originating from your feeder systems such as Oracle Purchasing and Oracle Payables. If you do not select Automatic Encumbrance, you must enter a funds check level of None.

2. Select the Funds Check Level: page 2 – 81.

 

3. If you select an Advisory or Absolute funds check level, enter the Amount Type and Boundary to determine the time interval over which to perform funds checking. See: Amount Type and Boundary: page 2 – 82.

 

4. If you select an Advisory or Absolute funds check level, enter the name of the Funding Budget against which you want General Ledger to check or reserve funds. You must enter a budget which requires budget journals.

 

 


Charge account defaulting rules depend on

a) Type of Item

b) Destination Type

c) Destination Sub-inventory.

 

There are 3 kinds of Items used in Purchasing.

 

Expense Items - Referred to as Exp Items

Inventory Expense Items - Referred to as Inv Exp Item

Inventory Asset Items - Referred to Inv Asset Item

 

 

1) Expense Items - Referred to as Exp Items.

These items normally have the following attributes...

 

INVENTORY_ASSET_FLAG = N

PURCHASING_ITEM_FLAG = Y

INVENTORY_ITEM_FLAG = N

 

2) Inventory Expense Items - Referred to as Inv Exp Item

These items normally have the following attributes...

 

INVENTORY_ASSET_FLAG = N

PURCHASING_ITEM_FLAG = Y

INVENTORY_ITEM_FLAG = Y

 

 

c) Inventory Asset Items - Referred to Inv Asset Item

These items have the following attributes...

 

INVENTORY_ASSET_FLAG = Y

PURCHASING_ITEM_FLAG = Y

INVENTORY_ITEM_FLAG = Y

COSTING_ENABLED_FLAG = Y

 

 

2. DESTINATION TYPE :

The Destination type determines the final destination of the

items.

This can be of two types

a) EXPENSE

b) INVENTORY -

 

 

 

3. DESTINATION Subinventory:

When an Item is being received into Inventory , a sub-inventory

needs to be specified. A subinventory can be

a) ASSET subinventory

b) EXPENSE sub-inventory

 

 

The sql below will help in identifying what type of a

subinventory , the item is being delivered INTO.

 

 

select

substr(EXPENSE_ACCOUNT,1,6) Exp_act ,

substr(ENCUMBRANCE_ACCOUNT,1,7) Enc_act ,

ASSET_INVENTORY,

substr(SECONDARY_INVENTORY_NAME,1,15) S_name,

substr(DESCRIPTION,1,15) descrip,

substr(SOURCE_ORGANIZATION_ID,1,8) s_o_id

from

MTL_SECONDARY_INVENTORIES

where

SECONDARY_INVENTORY_NAME = '&destination_subinventory';

 

pass the value of DESTINATION_SUBINVENTORY

from PO_DISTRIBUTIONS_ALL.DESTINATION_SUBINVENTORY

 

if the value of ASSET_INVENTORY = 1 then this is an ASSET subinventory.

if the value of ASSET_INVENTORY = 2 then this is NOT an ASSET subinventory.

 

 

 

 

3.Keeping in view of the types of Items and the destination mentioned above

These are the destination types that can be possible against each type of item

 

Exp Items can have ONLY one destination- EXPENSE

 

Inv Exp Inv Asset Iteman have the destination of

a) EXPENSE

b) INVENTORY -- ASSET subinventory

c) INVENTORY -- EXPENSE subinventory

 

Inv Asset Item can have the destination of

a) EXPENSE

b) INVENTORY -- ASSET subinventory

c) INVENTORY -- EXPENSE subinventory

 

 

 

Defaulting Rules for

1) Exp Items --- Defaults from the Expense a/c defined against the ITEM in the Receiving Organization.( Organization Items)

 

=======================================================================================

2) Inv Exp Item--- EXPENSE -Defaults from the Expense a/c defined against the ITEM in the

in the Receiving Organization.( Organization Items)

 

2) Inv Exp Item ---INVENTORY--- ASSET Subinventory .... charge account comes from

a) EXPENSE a/c of the ASSET SUBINVENTORY in the RECEIVING Organization.

(This is ONLY if the PO Distribution , contains the Subinventory Information)

 

b) If the PO distribution DOES NOT have a SUBINVENTORY information

Expense a/c defined in the Organizational Parameters of the Receiving Organization.

 

3) Inv Exp Item ---INVENTORY--- EXPENSE subinventory -- comes from

a) EXPENSE a/c of the EXPENSE SUBINVENTORY in the RECEIVING Organization.

(This is ONLY if the PO Distribution , contains the Subinventory Information)

 

b) If the PO distribution DOES NOT have a SUBINVENTORY information

Expense a/c defined in the Organizational Parameters of the Receiving Organization.

 

=========================================================================================

4) Inv Asset Item --- EXPENSE -Defaults from the Expense a/c defined against the ITEM in the

in the Receiving Organization.( Organization Items)

 

5) Inv Asset Item ---INVENTORY---ASSEST Subinventory .... charge account comes from

 

a) Material a/c defined against the ASSET SUBINVENTORY /of the RECEIVING Organization.

(This is ONLY if the PO Distribution , contains the Subinventory Information)

 

b) Material a/c defined in the Organizational Parameters of the Receiving Organization.

 

6) Inv Asset Item ---INVENTORY --EXPENSE Subinventory -- comes from

a) Expense a/c defined against the EXPENSE Subinventory in Receiving Organization.

(This is ONLY if the PO Distribution , contains the Subinventory Information)

 

b) If the PO distirbution DOES NOT have a SUBINVENTORY information

Material a/c defined in the Organizational Parameters of the Receiving Organization.

 


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