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.
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