Transcript Document
Oracle Project Accounting: What is PA AutoAccounting and How Does it Work?
Suzana Ferrari DARC Corporation
Presentation Agenda
• How Does AutoAccounting Work?
• Accounting Concepts and Terms • Implementation Planning • Setup Steps • Troubleshooting • Q & A
Overview
• Projects: AutoAccounting – Part of Project Accounting Implementation Setup • One of the last setup steps in Projects • AutoAccounting implementation depends on the Projects application setup, hence accounting requirements should be determined before starting the Projects setup – Determines General Ledger Accounts
How Does It Work?
• Project Accounting Processes – When processes are run in Projects, the defined rules determine which valid account combinations are debited and credited.
• AutoAccounting Rules and Rules Assignment – Users define and assign rules • Accounting Flexfield Structure – Account combination is based on values setup in the accounting flexfield structure
AutoAccounting Concepts and Terms
• AutoAccounting Rules • AutoAccounting Parameters • AutoAccounting Functions • AutoAccounting Transactions • AutoAccounting Assignments
AutoAccounting Rules
• Setup>AutoAccounting>Rules – By setting up the rules in Project Accounting, we define valid value for each accounting flexfield segment
Assigning AutoAccounting Rules
• Setup>AutoAccounting>Assign Rules – For each accounting transaction within the accounting function, the defined accounting rule is assigned
AutoAccounting Functions
• Function names are predefined types of transactions
AutoAccounting Function Transactions
• A Function can have more than one accounting transaction, affecting different General Ledger account
Example of Function Transactions
• Contract, All • Contract, Private, Billable • Contract, Private, Non-Bill.
• Contract, Public, Billable • Contract, Public, Non-Bill.
• Indirect, All • Indirect, Private
Which Process Invokes Which Accounting Function?
Example: • PRC: Distribute Labor Costs – Calculates the cost based on the employee labor cost rate, and then uses Labor Cost Accounting to debit the appropriate account, based on enabled function transaction rule assignment.
• PRC: Interface Labor Costs to General Ledger – Uses Labor Cost Clearing Accounting to credit the labor account and offset the debit side entry.
AutoAccounting Setup for Labor Costs
Function – Labor Cost Account
AutoAccounting Implementation
• Planning • Test Environment Setup and Testing • Production Implementation • Controlled Roll Out
AutoAccounting Implementation Planning
• AutoAccounting implementation depends on the Project Accounting application setup, and accounting requirements should be determined before starting the Project Accounting setup • Determine type of accounting transactions taking place in Projects • Gather and document requirements
High Level Requirements
• In absence of Projects, what determines which GL account is impacted?
– Example, where are the costs charged? • Which accounts are valid revenue accounts? • Which GL departments (Organizations in PA) are enabled to have revenue and cost of sales?
• Are our revenue accounts based on type of business sold?
Gathering and Documenting Requirements
• Documenting the Projects business requirements and accounting impact of the business requirements • The AutoAccounting rule setup requirement is to have a rule for each accounting flexfield segment – The rule can be defined as constant, lookup set, or SQL select statement • The simplest way to start is to create spreadsheet with two columns: Business Requirement and Accounting Requirements
Requirements Example
• Ability to enter billable labor – DR – WIP Account & CR – Labor Transfer – Employee • Ability to enter non billable labor – Entry needs to debit and credit same account since labor is non-billable should have no P&L impact • Revenue / COS – Each task has a service type: Accounting depends on service type assigned to a task
Constant
• Simplest
Intermediate Value – Lookup Set
• Flexible • Based on a Parameter
SQL Statements
• Minimize Maintenance • Descriptive Flexfield (DFF) • LOV Contains Values Setup in General Ledger • Provides Flexibility • Incorrect Select Statements Will Cause Performance Implications
Intermediate Value – SQL Statement
• Based on values in DFF on Organizations
AutoAccounting Setup Sets
• Define Lookup Sets – Navigation: Setup>AutoAccounting>Lookup Sets • Define Rules – Navigation: Setup>AutoAccounting>Rules • Assign Rules – Navigation: Setup>AutoAccounting>Assign Rules
AutoAccounting Testing
• Test Environments • Developing Test Scripts • Sufficient Testing – Test, test, test!!!
• Controlled Roll Out
AutoAccounting Reports
• IMP: AutoAccounting Functions • IMP: AutoAccounting Rule Definitions • IMP: AutoAccounting Lookup Sets • IMP: AutoAccounting Segment Rule Pairings
AutoAccounting Troubleshooting
• Incorrect SQL Statements • Invalid Lookup Set Value • Invalid Account Combination • Incorrect Rule Assignment • Cross Validation Rules • Allow Dynamic Inserts for Accounting Flexfield is Disabled
Conclusion
• Very Flexible • Complex • Key to Successful Implementation – Understanding How it Works – Planning – Requirements Gathering / Mapping – Testing
Questions