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Sunday 29 August 2021

What is auto accounting rule in oracle receivables

What is auto accounting rule in oracle receivables?

 

In this blog we will discuss what is auto accounting rule in oracle cloud receivables


Let's se what is Auto accounting rules in oracle cloud receivables


Auto accounting rules in oracle receivables determines how your GL accounts will be derived on the invoices which you enter manually or import using Auto-invoice.


Let us understand auto accounting with a simple example


When you create invoice in oracle receivables the basic accounting entries which are generated will be


Receivable – DR

Revenue – CR

Tax – CR


Now, in the above example we must define the auto-accounting rules in oracle receivables to tell the system from where to derive these account combinations. (These can be defined at customer level, transaction type or can be set as constant values).

Based on our auto accounting rules definition these account combinations will be derived.


We can define Auto Accounting rules in oracle receivables for these below types


Freight: determines the freight account for the transaction.

Receivable: determines the receivable account for the transaction.

Revenue: determines the revenue and finance charges account for the transaction.

AutoInvoice Clearing: determines the clearing account for the imported transactions. This account will will be used in oracle receivables if you have enabled this feature( auto invoice clearing )for the invoice batch source of the imported transactions.

Tax: determines the tax account for the transaction.

Unbilled Receivable: determines the unbilled receivable account for your transaction. This account will be used when you are using Invoicing rule in Arrears on the transaction

Unearned Revenue: determines unearned revenue account for your transaction. This account will be used when you are using Invoicing rule in advance on the transaction


In our next post we will see how to define or setup the auto accounting rules in oracle receivables in detail.


Auto accounting in oracle || Auto accounting rules in oracle receivables || what is Auto accounting rule


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