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Copyright (c) 2020, Oracle. All rights reserved. Oracle Confidential.

Whitepaper On Auto Accounting In Oracle Project Costing (Doc ID 2531695.1)

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/PO and Non Project Budget
Troubleshooting / FAQ and Issues
Troubleshooting Document
Frequently Asked Questions
Issues
References

APPLIES TO:

Oracle Project Costing - Version 11.5.10.2 and later

Information in this document applies to any platform.

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

Creation Date: 17-APR-2019

Expiration Date: NULL

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DETAILS

Objective:

This document intends to explain functionality and setups required to perform Auto Accounting in Oracle Project Costing

Scope:

Following points are discussed in detail in the document.

Overview of Auto Accounting

Auto Accounting For Cost -Implementation steps
Account Generator
Important Issues and FAQ

SUMMARY

Overview of Auto Accounting

From the inception of project creation to its completion ,Oracle Projects costing creates many accounting entries for all financial activities .
Auto Accounting helps to determine the correct account for each of these transaction .

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.

SQL Select Statement

Create your own logic using sql .

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

If using the constant value is not helping to achieve your requirement .

You can define a predefined parameter as an input parameter ,when you define an Auto Accounting rule,

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SQL select statement value

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.

a). Design your AutoAccounting setup based on your implementation data.

b). Define lookup sets. Navigation - Setup/AutoAccounting/Lookup Sets.

Select a segment value source

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

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Segment Value LookUp Set

Lookup the intermediate value in a lookup set , map the intermediate value into the corresponding segment value

Assign rules

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

The above functions can be further subdivided into function transactions.

Consider a scenario wherein business wants to have different set of rules to for billable and non billable items on contract projects.
In order to achieve such requirements wherein different rules have to be assigned to different conditions , AutoAccounting function are
used .

Oracle Projects provides default function transactions mapped to each function, which identifies commonly used scenarios in which users

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may want to assign different rules.

Users can assign rules to function transactions enabled for each AutoAccounting function.

Navigation - Setup/AutoAccounting/ Assignments.

Auto Accounting For Cost -Implementation steps

Below are the details of Auto Accounting functions provided by Oracle Projects Costing and how users can implement them.

Accounting for labor cost

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.

Labor cost account function

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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Labor Cost Clearing Accounting function

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 .

Accounting for Expenses Report

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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Expense Report Cost Account Function

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.

Expense Report Adjustment Liability Function

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

Accounting for Usage cost

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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Usage Cost Account Function

Upon submitting PRC : Distribute Usage and Miscellaneous cost , system uses Usage Cost Account transactions to debit a default expense
account for raw usage cost

Usage Cost Clear Account Function

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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Accounting for Miscellaneous cost

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.

Miscellaneous Transaction Cost Account Function

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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Miscellaneous Transaction Clearing Account Function

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

Accounting for Burden Transactions

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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Burden Cost Account Function

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

Burden Cost Clearing Account Function

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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Accounting for WIP and Inventory Cost

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

WIP Cost Account Functions

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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WIP Cost Clearing Account Function

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 .

Inventory Cost Account Function

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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Inventory Cost Clearing Account Function

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 .

Accounting for Supplier Cost Adjustments

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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Supplier Invoice Cost Account Function

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.

Supplier Cost Adjustment Credit Account

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 .

Integration with AP/PO and Non Project Budget

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 .

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Below are the steps to use this feature in AP and PO module

Profile options for AP/PO integration

PA: Allow Override of PA Distributions in AP/PO.

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 Payable calls the Project Supplier Invoice Account generator

Oracle Internet Expense and Oracle Payable Expense Report

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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Non Project Budget

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.

Troubleshooting / FAQ and Issues

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.

R12: Troubleshooting Accounting Processes in Oracle Project Costing (Doc ID 1665198.1)

Frequently Asked Questions

This document is provided to help customer answer the most frequently asked question during the Auto Accounting process

Auto Accounting in Projects Frequently Asked Questions (FAQ) (Doc ID 552086.1)

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Issues

This includes the most frequently encountered issues .

Problem Summary Resolution Document

Getting Incomplete AutoAccounting Rules when running

the processes:

PASDUC - PRC: Distribute Usage and Miscellaneous

Costs Review the values in the Auto Accounting
lookup set named in the debug log file.
PALDLC - PRC: Distribute Labor Costs The value in the lookup set must be an Note 196853.1
exact match to what was defined in the
PATTAR - PRC: Interface Invoices to Receivables setup.

PAVTVC - PRC: Interface Supplier Invoice Adjustment

Costs to Payables

Remove the Public Sector flag on the

Processes fail with Invalid Accounting Flex field
project and rerun the distribute costs Note 201988.1
rejections
process.

Check that all AutoAccounting (AA)

PAGGLT Erroring With Signal 11:
parameters are valid for use by the rules Note 223780.1 Q7
PA_AA_INVLD_SQL_PARAM/PA_AA_NO_RULE_PARA
and functions.

The SQL statement for the rule &RULE

has selected a row with a NULL value.
Processes failes with AutoAccounting Error: User must correct this SQL script for the
<Note 1017234.102>
PA_AA_NULL_SELECTED|RULE| AutoAccounting rule that is failing. The
navigation path is: Setup ->
AutoAccounting -> Rules.

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Owner: [email protected] Publisher: SHONNEGO.IN
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Created By: [email protected] Created: Apr 17, 2019
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