What is Auto Accounting and How Does it Work in Projects?
What is Auto Accounting and How Does it Work in Projects?
Presentation AgendaPresentation Agenda
• How Does AutoAccounting Work?
• Accounting Concepts and Terms
• Implementation Planning
• Setup Steps
• Troubleshooting
• Q & A
OverviewOverview
• 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?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 TermsAutoAccounting Concepts and Terms
• AutoAccounting Rules
• AutoAccounting Parameters
• AutoAccounting Functions
• AutoAccounting Transactions
• AutoAccounting Assignments
AutoAccounting RulesAutoAccounting Rules
• Setup>AutoAccounting>Rules
– By setting up the rules in Project Accounting, we define valid value for each accounting flexfield segment
Assigning AutoAccounting RulesAssigning AutoAccounting Rules
• Setup>AutoAccounting>Assign Rules
– For each accounting transaction within the accounting function, the defined accounting rule is assigned
AutoAccounting FunctionsAutoAccounting Functions
• Function names are predefined types of transactions
AutoAccounting Function TransactionsAutoAccounting Function Transactions
• A Function can have more than one accounting transaction, affecting different General Ledger account
Example of Function TransactionsExample 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?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 CostsAutoAccounting Setup for Labor Costs
Function – Labor Cost Account
AutoAccounting ImplementationAutoAccounting Implementation
• Planning
• Test Environment Setup and Testing
• Production Implementation
• Controlled Roll Out
AutoAccounting Implementation PlanningAutoAccounting 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 RequirementsHigh 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 RequirementsGathering 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 ExampleRequirements 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
ConstantConstant
• Simplest
Intermediate Value – Lookup SetIntermediate Value – Lookup Set
• Flexible
• Based on a Parameter
SQL StatementsSQL 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 StatementIntermediate Value – SQL Statement
• Based on values in DFF on Organizations
AutoAccounting Setup SetsAutoAccounting Setup Sets
• Define Lookup Sets
– Navigation: Setup>AutoAccounting>Lookup Sets
• Define Rules
– Navigation: Setup>AutoAccounting>Rules
• Assign Rules
– Navigation: Setup>AutoAccounting>Assign Rules
AutoAccounting TestingAutoAccounting Testing
• Test Environments
• Developing Test Scripts
• Sufficient Testing – Test, test, test!!!
• Controlled Roll Out
AutoAccounting ReportsAutoAccounting Reports
• IMP: AutoAccounting Functions
• IMP: AutoAccounting Rule Definitions
• IMP: AutoAccounting Lookup Sets
• IMP: AutoAccounting Segment Rule Pairings
AutoAccounting TroubleshootingAutoAccounting 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
ConclusionConclusion
• Very Flexible
• Complex
• Key to Successful Implementation
– Understanding How it Works
– Planning
– Requirements Gathering / Mapping
– Testing