An Oracle White Paper

May 2018

Transaction Account Builder

Oracle Procurement Cloud
 Transaction Account Builder

Disclaimer

The following is intended to outline our general product direction. It is intended for information
purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be relied upon in making purchasing decisions. The
development, release, and timing of any features or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
 Transaction Account Builder

1. Introduction ................................................................................ 3

2. Background ............................................................................... 4

3. Understanding the Business ...................................................... 7

4. The Building Blocks ................................................................... 8

4.1. Transaction Account Definition ........................................... 8

4.2. Transaction Account Types ................................................ 9

4.3. Account Rule.................................................................... 10

4.4. Mapping Set ..................................................................... 13

4.5. Source ............................................................................. 14

5. Understanding Predefined TAB Setup ..................................... 15

5.1. Predefined TAB Sources .................................................. 15

5.2. Set Up TAB to Default Accrual Account ........................... 24

5.3. Set Up TAB to Default Charge Account............................ 29

5.4. Set Up TAB to Default Variance Account ......................... 32

5.5. Set Up Cost Management Predefined Mapping Sets ....... 33

5.6. Set Up Purchasing Predefined Mapping Set for TAB ....... 36

5.7. Set Up Transaction Account Definition ............................. 39

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5.8. Set Up Manage Accounting Options for Ledger ............... 41

6. Custom TAB Setup .................................................................. 45

6.1. Simple TAB Setup from Scratch ....................................... 45

6.2. Advanced TAB Setup with Segment Rules ...................... 45

7. Known Limitations .................................................................... 46

8. Conclusion ............................................................................... 46

9. Additional References .............................................................. 46

 Transaction Account Builder

1. Introduction

Transaction Account Builder (TAB) provides a flexible mechanism to derive accounting

flexfields for subledger transactions.
Purchase requisitions and purchase orders have several accounts stored on them. The three
mandatory accounts are:
• Charge Account – An account against which the money spent is finally withdrawn
or charged.
• Variance Account – An account against which an entry is created to record a
variance for a certain kind of spending. For example, for a price variance between
a purchase order and invoice.
• Accrual Account – An intermediary account which records money spent for goods
or services that have been consumed or taken ownership of, but are yet to be
invoiced. An entry against the account is reversed once the money is physically
spent or the invoice is issued.

In addition to these three accounts, there are two other accounts for more advanced
procurement scenarios where there is an intercompany transaction involving a procuring
organization and a destination organization. The accounts are:
• Destination Charge Account - A charge account belonging to the destination
organization.
• Destination Variance Account - A variance account belonging to the
destination organization.

Your organization can automate the derivation of these accounts on transactions based upon
their organizational policies. Derivations are required to build these accounts on transactions
such as requisitions or purchase orders. The Transaction Account Builder component of the
Subledger Accounting engine builds or defaults the accounts on a transaction, so the
appropriate accounting entries are created against transaction accounts.

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2. Background

Transaction Account Builder is a new concept in Oracle Applications Cloud, replacing all prior
account generator solutions. Prior to Oracle Applications Cloud, other product lines had a
similar need to default transaction accounts, but filled the need using different solutions.

For example, in Oracle E-Business Suite, Oracle Purchasing uses the Account Generator
Workflow to derive account code combinations on purchase orders and requisitions. Oracle
Purchasing provides default Account Generator processes for you to use. If the defaults do
not satisfy your accounting requirements, you can use the Oracle Workflow Builder to
customize the default processes.

In Oracle Applications Cloud, the Account Generator Workflow is replaced by TAB. Oracle
Applications Cloud also delivers predefined account defaulting rules within Transaction
Account Builder. These rules address the common defaulting scenarios and facilitate further
rule extensions, avoiding the need for customers or implementers to create them from
scratch. In Oracle Applications Cloud, TAB configuration is significantly easier than workflow
customization in Oracle E-Business Suite release 12. You accomplish TAB configuration within
the subledger accounting application, instead of in a separate technology tool.

PeopleSoft applications use ChartFields to define and default the account segments in the
transaction accounts. Each ChartField has its own attributes for maximum efficiency and
flexibility in recording, reporting and analyzing its intended category of data. Although
PeopleSoft delivers a set of ChartFields, and associated functionality that fully covers most
accounting and reporting requirements, ChartFields are designed to be configured by
customers to meet their specific requirements.

In JD Edwards applications, account generation is done by AAI (Automatic Accounting

Instruction). AAIs are rules that define the relationships between day-to-day accounting
functions and the chart of accounts. In the General Accounting system, AAIs determine how
to allocate system-generated general ledger entries. Each AAI is associated with a specific
general ledger account that consists of a business unit (BU), an object, and an optional
subsidiary. The general ledger account is mapped to the chart of accounts.

Compared with PeopleSoft and JD Edwards, Oracle Applications Cloud provides more flexible
account derivation. With TAB you can derive all transaction accounts, and TAB provides a
larger pool of potential sources.

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Moreover, with TAB you can reduce customized account defaulting definitions by sharing
them between applications. For example, you can use the account defaulting for Oracle
Fusion Projects in Oracle Fusion Purchasing and Oracle Fusion Payables. The account
defaulting can be shared by all three, but needs only be defined once.

You can use accounts on purchase orders and requisitions as defaults in downstream
accounting transactions such as purchase order matched invoices and receipts. Those
transactions may have account definition rules defined in subledger accounting that will allow
an override of some or all segments of the account found on the purchase order. The exact
flow of these accounts is complex and varies by the account and accounting options.

The following diagram provides an overview of the general flow of account data from the
reference data source, through defaulting, to the purchase order, and to final use in an
accounting transaction.

Account Sources PO Distribution Ledger

Account Generator (Peoplesoft)
(Reference Data) Account Accounting
Workflow (EBS)
Transaction
Account
Hard-coded logic, Use PO Distribution
some configurable User Updates Account
defaulting (Some data)
(Peoplesoft)
Additional Rules
TAB Process with ADR PO Distribution Defined by Customer
(Fusion) Account
SLA AMB Rules
(EBS R12)
Defaulting Process (Fusion)

Accounting Transaction Data Flow

EBS, Enterprise, Fusion

Adding In Removing in Customer

Fusion Fusion Defined

Figure 1 Accounting Transaction Data Flow Diagram

The TAB data is contained in the subledger accounting data model, moving away from
Workflow components. The top-level process in Transaction Account Definitions is the

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equivalent of the overall workflow process, and it includes the assignment of rules to each
Transaction Account Type defined for the product.

In Workflow, Oracle Purchasing had to pre-define the workflow attributes and pass them into
the Workflow process. The behavior in TAB is similar. Purchasing defines which sources may
be used for a particular account and passes them into TAB.

In Oracle E-Business Suite release 12, users can write custom PL/SQL statements, add
functions to the workflow to execute them, and then use the results in their workflow
function. Although there is no support to define custom PL/SQL sources that execute during
processing, TAB offers a comprehensive set of predefined sources so that, in most cases,
users will not need to define custom sources.

In Oracle Applications Cloud, you also have the ability to define data in mapping sets and use
them in account derivations rules to drive the account defaulting process.

Transaction Account Builder Logical Data Model Diagram

Transaction Account Types

Application
(Accounts Derived for Purchasing)

Seeded Sources
Source Assignments
(R12 WF attributes)

(DROP)Custom Account Derivation Rules Transaction Account Definitions

Sources (R12 pl/sql) (R12 WF Main Subprocess) (R12 WF Process)

Mapping Sets (R12

Reference Accounts)

Account Derivation Rule Assignments

Diagram Legend
Object Explanation

Not Configurable

Configurable

Figure 2 TAB Logical Data Model

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3. Understanding the Business

Before you can set up TAB to derive accounts, you must understand the business
requirements that drive the accounts on your transaction. Different business can have
completely different requirements, from something simple such as deriving the charge
account from the requesters default expense account, to more complex flows involving
projects and segment substitution rules. The first step is to analyze the requirements and use
cases.
It is important to understand and formulate your business needs and how you would
like to derive the accounts on the procurement transactions such as requisitions and
purchase orders. This will enable you to evaluate whether the predefined default
setup works for your organization or if you need to modify the setup for your specific
business need.
For example, consider a hypothetical business requirement for a hypothetical company called
ABC Corporation. ABC Corporation always creates requisitions, which they process into
purchase orders. The accounts on the purchase orders mirror the accounts generated on the
requisition. They do not have any inter-company setup and they do not perform global
procurement.
There are three accounts that must be defaulted on their requisitions, based on the following
logic:
Charge Account: ABC Corporation drives their charge account based on whether the
destination type is expense or inventory. For expense destination types, they map the
ship-to organization on the requisition to a particular account combination. For
inventory destination types, they use a mapping in which a particular combination of
item and ship-to organization maps to a specific account combination.

Variance Account: ABC Corporation requires that the Variance Account is the same as
the Charge Account.

Accrual Account: ABC Corporation would like to default the accrual account from the
expense account setup for the business unit responsible for creating invoices.
However, they want to derive the balancing segment of the accrual account from the
balancing segment of the charge account.

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4. The Building Blocks

In order to understand TAB, you first need to understand the building blocks of TAB. These
building blocks make up the structure of TAB.

Figure 3 TAB structure

4.1. Transaction Account Definition

At the top level is Transaction Account Definition (TAD), which defines the account rule
assignments used to derive the transaction accounts on a purchase order and requisition.
This includes both rules that define the entire account combination, as well as rules which
can define how certain segments of the account are generated. In other words, TAD specifies
which rules are used to drive which accounts on a procurement transaction. Below TAD are a
number of Transaction Account Types.

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Figure 4 Example of Transaction Account Definition

4.2. Transaction Account Types

Transaction Account Types are elements that represent each transaction account on
procurement transactions. There are five such transaction account types for five different
accounts exposed on procurement transactions.

• Charge Account – An account against which the money spent is finally

withdrawn or charged.
• Variance Account – Certain situations call for a variance to be recorded for a
certain kind of spending. An entry is created against this account for all such
variances. For example, the price variance between PO and invoice.
• Accrual Account – An intermediary account which records money spent for
goods or services that have been consumed or taken ownership of, but are
yet to be invoiced. An entry against this account is reversed once the money
is physically spent. For example, a check cashed and invoice paid.
• Destination Charge Account - A charge account belonging to the destination
organization.
• Destination Variance Account - A variance account belonging to the
destination organization.

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Each of these transaction account types have assigned, predefined sources by default.
Sources are attributes in the transaction that can be used to determine the derivation of the
account combinations. For example, there can be a business requirement to default Account
A as the charge account when the purchase order destination type is Expense, or Account B
when the destination type is Inventory. In this example, Destination Type is predefined as a
Source, and is assigned to the charge account so that it is possible to author rules to derive
charge account combinations. The source assignments cannot be altered. You can learn more
about sources in section 4.5 Source.

Figure 5 Example of Transaction Account Type

4.3. Account Rule

Account segments for each transaction account type are derived from account rules. A rule
can apply to the entire account combination (Account Combination Rule) or just for a
particular segment (Segment Rule) specified by rule type. Each account rule comprises one or
more rules, with specified conditions that dictate when they are applied. For example, there
can be a rule with priority one, saying that the Purchasing Charge Account is derived from the

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Requisition Charge Account when Cross BU = N and the Requisition Charge Account is not
null.

Figure 6 Example of Account Rule

You can use both segment rules and account combination rules to derive a single account.
Segment rules are used where they are defined, and take the remaining values from an
account combination rule. For example, you can select an account combination rule that
applies to all segments, and select a separate segment rule that applies to one particular
segment. Segment rules take precedence over the account combination rule.

Account Rules Conditions

In the account rules you may specify conditions for each rule detail line. Priorities determine
the order in which account rule conditions are examined. When the condition is met, the rule
associated with that priority is used. Depending on which of the defined conditions is met, a
different account rule detail is employed to create the account.

Account Combination Rules

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You set up account combination rules based upon the following value types:

1. Source Value Type: Derive the account combination by specifying a source. Sources
that have been set up as accounts can be assigned to an account combination rule.
Oracle Fusion Subledger Accounting then obtains the code combination identifier
from the source.

For example, a variance account can be derived from a charge account that is set up
as a source.

2. Constant Value Type: Establish the account as a constant value.

For example, the constant could be a completed account combination from the chart
of accounts specified. An example is the account combination 01.000.2210.0000.000.
This is the simplest way to derive an account.

3. Mapping Set Value Type: Derive the account combination by referencing a mapping
set. Set up a mapping set to determine the complete account combination from the
chart of accounts specified.

For example, you can set up a mapping set which maps the ship-to organization to
account combinations.

Input ship-to organization Output account value

Org A 01.000.2210.0000.000
Org B 01.000.2310.0000.000
Org C 01.000.2410.0000.000

4. Account Rule Value Type: Derive the account by referencing another account rule.

You can define this type of rule without specifying a chart of accounts. If the account
rule has a chart of accounts assigned, then all the related account rules must use the
same chart of accounts or no chart of accounts.
For example, if your charge and accrual accounts share the same derivation logic, one
account rule can be used as the source for both of them.
Tip: A chart of accounts must be specified for rules using constants.

Segment Rules

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Set up segment rules as follows:

• When a chart of accounts is specified, create a rule to derive the value for a specific
segment from the chart of accounts.
• If the chart of accounts is not specified, create a rule to derive the value for an
account segment with a specific qualifier.

Set up segment rules using the same methods discussed in the preceding Account
Combination Rules section. By specifying different value types, users can select the way in
which the segment value is derived.

Note: A chart of accounts must be specified for rules using constants.

4.4. Mapping Set

Mapping sets can be used to associate a specific output value for an account or segment. You
can use mapping sets in account rules to build the account. Use mapping sets to define a
specific output value with an account or a segment. Based on the input value from subledger
transactions or reference information, a specific value can be assigned to a segment or values
can be assigned to all segments of the account. Mapping sets provide an efficient way to
define the output values and are easier than using the account rule conditions.

To define a mapping set, pairs of values are specified. For each input value, specify a
corresponding account combination or segment output value. One or more related pairs of
these input values with the segment or account output values form a mapping set. Use value
sets or lookup types for validating the input values of the mapping set.

For example, assume a business has three major spend classifications: Software, Hardware,
and Miscellaneous. The business has a natural account segment in their chart of accounts.
Category names, which drive spend classifications such as PO and requisition, are input values
in the application transaction. These input values can be included with other information
about the transaction and become part of the source information. Users can create a
mapping set that maps category names to the corresponding natural account as described in
the table below.

Input Value Natural Account Segment Value

Software 0001
Hardware 0002

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Miscellaneous 0003

4.5. Source

A source is any transaction attribute (attribute on a requisition or purchase order) that is

registered with a subledger and available for TAB to build accounts from. For example, item
category name is a source and can be used as an input parameter to a mapping set. The
source can also be an accounting flexfield. As an example, the requisition charge account is a
source and can be used to drive the PO charge account defaulting. Sources can also be used
in account rule conditions to determine when a rule should be applied.
To summarize, sources can be used in the following TAB configurations:
i. Account rule values (both account combination rule and segment rule) for value type
of Source. In such cases only the sources which are accounting flexfields are available
for usage.
ii. Conditions for account rules setup.
iii. Input sources in Mapping Sets setup.

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5. Understanding Predefined TAB Setup

Oracle Procurement Cloud provides predefined, standard setup for TAB so that customers
can complete their transactions, such as requisitions and purchase orders, with minimal
configuration. Most typical business needs can be addressed using the delivered setup, with
minimal modifications. This section explains the predefined setups.

5.1. Predefined TAB Sources

This section describes the default predefined sources that you can use to create account
rule setups. Note that you cannot add or modify these sources. The following are the
sources which are available to all five transaction types.
Refer to these source lists during your TAB setup task.

5.1.1 Source Assignments for All Transaction Types

Subledger Application Source Name Comments

Purchasing Blanket Purchase Agreement Blanket Agreement referenced by the purchase order line.

Purchasing Blanket Purchase Agreement Line Blanket Line referenced by the purchase order line.

Purchasing Buyer Identifier Buyer identifier from purchase order.

Level 1 parent of the item category as set up in the

Purchasing Procurement Category Hierarchy Level 1
procurement category hierarchy.
Level 2 parent of the item category as set up in the
Purchasing Procurement Category Hierarchy Level 2
procurement category hierarchy.
Level 3 parent of the item category as set up in the
Purchasing Procurement Category Hierarchy Level 3
procurement category hierarchy.
Level 4 parent of the item category as set up in the
Purchasing Procurement Category Hierarchy Level 4
procurement category hierarchy.
Level 5 parent of the item category as set up in the
Purchasing Procurement Category Hierarchy Level 5
procurement category hierarchy.
Level 6 parent of the item category as set up in the
Purchasing Procurement Category Hierarchy Level 6
procurement category hierarchy.
Level 7 parent of the item category as set up in the
Purchasing Procurement Category Hierarchy Level 7
procurement category hierarchy.
Level 8 parent of the item category as set up in the
Purchasing Procurement Category Hierarchy Level 8
procurement category hierarchy.

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Level 9 parent of the item category as set up in the

Purchasing Procurement Category Hierarchy Level 9
procurement category hierarchy.
Level 10 parent of the item category as set up in the
Purchasing Procurement Category Hierarchy Level 10
procurement category hierarchy.
Contract Agreement referenced by the purchase order
Purchasing Contract Purchase Agreement
line.
Purchase order schedule level source. True if
Purchasing Cross BU
orchestration agreement exists.

Purchasing Category ID Category is from purchase order line or requisition line.

Deliver-to Location ID from purchase order or requisition

Purchasing Deliver-to Location Identifier
distribution.
Deliver-to Person on purchase order distribution, or
Purchasing Deliver-to Person Identifier
requester on requisition line.
Deliver-to Organization on requisition line. Ship-to
Purchasing Destination Inventory Organization ID
organization on purchase order schedule.
Subinventory from purchase order distribution or
Purchasing Destination Subinventory
requisition line.
Destination type value on purchase order schedule or
Purchasing Destination Type Code
requisition line.

Purchasing Document Style Specifies the style of the purchase order.

Purchasing Document Type Lookup Code Specifies whether it is a requisition or purchase order.

Purchasing Expenditure Item Date Date when the expenditure is incurred.

Purchasing Inventory Item Item identifier on purchase order line or requisition line.

The item category on the requisition or the purchase

Purchasing Item Category
order line.
Price in functional currency for goods line type from a
Purchasing Line Price
purchase order line or requisition line.
Code of the inventory organization on purchase order
Purchasing Inventory Organization Code
schedule or requisition line.

Purchasing Item Number Name of item on the requisition or the PO line.

Purchasing PO Distribution Attribute 1-20 Purchase order or requisition distribution attributes 1 -20.

PO Distribution Descriptive Flexfield

Purchasing Attribute Category
Purchase order or requisition distribution date attributes
Purchasing PO Distribution Attribute Date 1-10
1 -10.
Purchase order or requisition distribution number
Purchasing PO Distribution Attribute Number 1-10
attributes 1 -10.
Purchase order or requisition distribution timestamp
Purchasing PO Distribution Attribute Time Stamp 1-10
attributes 1 – 10.

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Purchasing PO Header Attribute 1-20 Purchase order or requisition header attributes 1 – 20.

PO Header Descriptive Flexfield Attribute

Purchasing Category
Purchase order or requisition header date attributes 1 –
Purchasing PO Header Attribute Date 1-10
10.
Purchase order or requisition header number attributes 1
Purchasing PO Header Attribute Number 1-10
– 10.
Purchase order or requisition header timestamp
Purchasing PO Header Attribute Time Stamp 1-10
attributes 1 – 10.

Purchasing PO Line Location Attribute 1-20 Purchase order schedule attributes 1 – 20.

PO Line Location Descriptive Flexfield

Purchasing Attribute Category

Purchasing PO Line Location Attribute Date 1-10 Purchase order schedule date attributes 1 – 10.

Purchasing PO Line Location Attribute Number 1-10 Purchase order schedule number attributes 1 – 10.

PO Line Location Attribute Time Stamp 1-

Purchasing Purchase order schedule timestamp attributes 1 – 10.
10

Purchasing PO Line Attribute 1-20 Purchase order or requisition line attributes 1 – 20.

PO Line Descriptive Flexfield Attribute

Purchasing Category

Purchasing PO Line Attribute Date 1-10 Purchase order or requisition line date attributes 1 – 10.

Purchase order or requisition line number attributes 1 –

Purchasing PO Line Attribute Number 1-10
10.
Purchase order or requisition line timestamp attributes 1
Purchasing PO Line Attribute Time Stamp 1-10
– 10.
The revenue category associated with the project
Purchasing Project Revenue Category
revenue.
Chart of accounts identifier from the primary ledger of the
Purchasing Requisitioning Chart of Accounts ID
requisitioning BU.
Chart of accounts identifier from the primary ledger of the
Purchasing Sold-to Chart of Accounts ID
Sold-to LE.
For local orders use requisitioning BU, for global orders
Purchasing Sold-to BU Name use profit center BU of the purchase order trade
organization.
Suggested supplier name from requisition line. Not
Purchasing Suggested Supplier Name
applicable to purchase order.

Purchasing Supplier Type Type of the supplier.

Supplier ID from purchase order header or requisition

Purchasing Supplier Identifier
line.

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Supplier site ID from purchase order header or requisition

Purchasing Supplier Site Identifier
line.
Liability account from supplier site assignment for the
Purchasing Supplier Site Assignment Liability Account
sold-to BU.
Indicates if the purchase order line or schedule is for an
Purchasing Item Outside Processing Indicator
outside processing item.
Cost Management mapping set for Outside Processing
Purchasing Outside Processing Account
Account.
Purchasing mapping set Expense Accrual Account -
Business Unit with Business Unit as parameter.
Purchasing Expense Accrual Account For local orders, use the requisitioning BU. For global
orders, use the profit center BU of the purchase order
trade organization.
Cost Management mapping set Accrual Account -
Accounts Payable Accrual Account for Organization with organization as parameter.
Purchasing Inventory Item For local orders, use ship-to organization, and for global
orders, use purchase order trade organization.

Purchasing Preparer Identifier Preparer from requisition header.

Purchasing Item Category Name Used for Purchasing natural account from category inputs.

Charge account from purchase order or requisition

Purchasing PO Charge Account
distribution.
Indicates whether the item on purchase order or
Purchasing Item Asset Indicator
requisition is an asset item.

Purchasing Organization identifier Internal identifier of the procurement business unit.

Purchasing Requisition Variance Account Variance account from requisition distribution.

Charge account from purchase order or requisition

Purchasing PO Charge Account
distribution.
Cost Management mapping set Invoice Price Variance
Ship-to Organization Price Variance
Purchasing Account - Organization with ship-to organization as a
Account
parameter.
Value of profile option used to control charge account for
Purchasing Project Account Override Profile
projects.
Cost Management mapping set Invoice Price Variance
Purchasing Trade Organization Price
Purchasing Account - Organization with purchase order trade
Variance Account
organization as a parameter.
Used for Purchasing Natural Account from Category
Purchasing Item Category Name
inputs.
Used for Purchasing Natural Account from Category
Purchasing Requisitioning BU Name
inputs.

Purchasing Requisition Charge Account Charge account from requisition distribution.

Cost of Goods Sold Account Cost Management mapping set Cost of Sales Account -
Purchasing
Organization with purchase order trade organization as

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parameter.

Inventory Material Account for ship-to Cost Management mapping set Material Account -
Purchasing organization Organization with Ship-to organization as parameter.

Purchasing Ledger Identifier Internal identifier of the primary ledger.

Purchasing mapping set Expense Account - Item with

Purchasing Trade Organization Item
Purchasing purchase order trade organization and item as
Expense Account
parameters.
Cost Management mapping set Expense Account -
Subinventory Expense Account for Transfer
Purchasing Subinventory with purchase order trade organization and
Organization
subinventory as parameters.
Cost Management mapping set Expense Account -
Purchasing Trade Organization Expense
Purchasing Organization with purchase order trade organization as
Account
parameter.
Purchasing mapping set Expense Account - Item with
Purchasing Ship-to Organization Item Expense Account
ship-to organization and item as parameters.
Cost Management mapping set Expense Account -
Purchasing Subinventory Expense Account Subinventory with ship-to organization and subinventory
as parameters.
Cost Management mapping set Expense Account -
Purchasing Ship-to Organization Expense Account
Organization with ship-to organization as a parameter.
Cost Management mapping set Material Account -
Purchasing Trade Organization Material
Purchasing Organization with purchase order trade organization as
Account
parameter.
Cost Management mapping set Material Account -
Inventory Material Account SubInv for TF
Purchasing Subinventory with purchase order trade organization and
Def Organization
subinventory as parameters.
Cost Management mapping set Material Account -
Purchasing Subinventory Material Account Subinventory with ship-to organization and subinventory
as parameters.
Cost Management mapping set Material Account -
Purchasing Ship-to Organization Material Account
Organization with ship-to organization as a parameter.
Indicates whether the item on purchase order or
Purchasing Item Asset Indicator
requisition is an asset item.
Default expense account from the HR person
Purchasing Employee Charge Account management for the requester on the purchase order or
requisition.
Value of profile option used to control charge account for
Purchasing Project Account Override Profile
projects.
Favorite or default account from the user’s preferences in
Purchasing User Preferred Account
the Purchase Requisitions work area, Requisition page.
The category name for the item on requisition or purchase
Purchasing Item Category Name
order line.
The requisitioning BU name on requisition or purchase
Purchasing Requisitioning BU Name
order.

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Purchasing Requisition Charge Account The charge account from requisition distribution.

Purchasing mapping set Expense Account - Item with

Purchasing Ship-to Organization Item Expense Account
ship-to organization and item as parameters.
Cost Management mapping set Expense Account -
Purchasing Subinventory Expense Account Subinventory with ship-to organization and subinventory
as parameters.
Cost Management mapping set Expense Account -
Purchasing Ship-to Organization Expense Account
Organization with ship-to organization as a parameter.
Cost Management mapping set Material Account -
Purchasing Ship-to Organization Material Account
Organization with ship-to organization as a parameter.
Cost Management mapping set Material Account -
Purchasing Subinventory Material Account Subinventory with ship-to organization and subinventory
as parameters.
Indicates whether the item on purchase order or
Purchasing Item Asset Indicator
requisition is an asset item.
Default expense account from the HR person
Purchasing Employee Charge Account management for the requester on the purchase order or
requisition.
Inventory Material Account for ship-to Cost Management mapping set Material Account -
Purchasing organization Organization with Ship-to organization as parameter.
Value of profile option used to control charge account for
Purchasing Project Account Override Profile
projects.
Favorite or default account from the user’s preferences in
Purchasing User Preferred Account
Oracle Fusion Self Service Procurement.
Indicates whether the item on purchase order or
Purchasing Item Asset Indicator
requisition is an asset item.

Purchasing Requisition Variance Account Variance Account from requisition distribution.

Destination Charge Account on purchase order

Purchasing PO Destination Charge Account
distribution.
Value of profile option used to control charge account for
Purchasing Project Account Override Profile
projects.
Cost Management mapping set Invoice Price Variance
Ship-to Organization Price Variance
Purchasing Account - Organization with ship-to organization as a
Account
parameter.
Project Costing Project related sources All project related sources including project ID,
expenditure type, project task number, and so on.
Project Costing Award Descriptive Flexfield Attribute Context that determines the structure of the award
Category descriptive flexfield.
Project Costing Award Descriptive Flexfield Date Attribute Additional information on the award captured using the
1-10 date attributes 1-10 of the award descriptive flexfield.
Project Costing Award Descriptive Flexfield Number Additional information on the award captured using the
Attribute 1-10 number attributes 1-10 of the award descriptive flexfield.
Project Costing Award Descriptive Flexfield Text Attribute Additional information on the award captured using the
1-20 attributes 1-20 of the award descriptive flexfield.

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Project Costing Award Institution Name of the institution. A higher-level internal entity that
receives awards to conduct research.
Project Costing Award Purpose Name Activity for which the award is funded. For example,
Research or Clinical.
Project Costing Award Type Name Classification of an award. Values for the award type are:
Federal grants or Private grants.
Project Costing Contract Business Unit Name Business unit name to which the contract belongs.

Project Costing Contract Customer Name Name of the customer that is associated with the
contract.
Project Costing Contract Customer Number Number of the contract customer.

Project Costing Contract Legal Entity Name Legal entity name to which the contract belongs.

Project Costing Contract Name Identifies the contract document.

Project Costing Contract Number An alphanumeric value that uniquely identifies the
contract.
Project Costing Contract Owning Organization Company Company segment value of the contract owning
Segment organization.
Project Costing Contract Owning Organization Cost Center Cost center segment value of the contract owning
Segment organization.
Project Costing Contract Owning Organization Name Owning Organization name to which the contract belongs.

Project Costing Customer Classification Category Name Classification of entities under a subject area in Oracle
Fusion Trading Community Architecture. For example,
classification of organizations based on industries.
Project Costing Customer Classification Name Individual values within the classification category defined
in Oracle Fusion Trading Community Architecture. Higher
Education is a code under Industry Type classification
category.
Project Costing Burden Amount Display Method Indicates if the burden amount is displayed on the same
transaction or as a separate transaction.
Project Costing Burden Cost Indicator Indicates if costs are burdened for projects associated
with this project type.
Project Costing Cost Distribution Billable Indicator Indicates if the cost is billable for a project.

Project Costing Cost Distribution Capitalizable Indicator Indicates if the cost can be capitalized for a project.

Project Costing Expenditure Business Unit ID Identifies the business unit in which an expenditure is
entered and processed for project costing.
Project Costing Expenditure Business Unit Name Name of the business unit that owns the expenditure.

Project Costing Expenditure Category A grouping of expenditure types by type of cost For
example, an expenditure category with a name such as
Labor refers to the cost of labor.

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Project Costing Expenditure Category ID Identifies a grouping of expenditure types by type of cost.

Project Costing Expenditure Item Date Date when the expenditure was incurred.

Project Costing Expenditure Organization Company Company segment value of the expenditure organization.
Segment
Project Costing Expenditure Organization Cost Center Cost center segment value of the expenditure
Segment organization.
Project Costing Expenditure Organization ID Number generated by the application that uniquely
identifies the organization incurring the expenditure.
Project Costing Expenditure Organization Name Organization name to which the expenditure belongs.

Project Costing Expenditure Type Cost classification assigned to each expenditure item
Expenditure types are grouped into cost groups and
revenue groups.
Project Costing Expenditure Type Descriptive Flexfield Expenditure type descriptive flexfield attributes 1-15.
Attribute 1-15
Project Costing Expenditure Type Descriptive Flexfield Context that determines the structure of the expenditure
Attribute Category type descriptive flexfield.
Project Costing Expenditure Type ID Identifies the expenditure type classifying the type of
work performed.
Project Costing Federal Sponsor Indicator Indicates that the sponsor, who funds the sponsored
project, is from a federal agency.
Project Costing Funding Source Name Name of the party that is funding the research, for
example, an external customer or an internal
organization.
Project Costing Funding Source Type Identifies the type of funding source. Funding sources can
be external or internal.
Project Costing Null Account This source will always contain a null value It is provided
only as a placeholder for the predefined Account
Derivation Rule templates.
Project Costing Project Billable Indicator Indicates if the project is billable.

Project Costing Project Business Unit Company Segment Company segment value of the project business unit.

Project Costing Project Business Unit Cost Center Segment Cost center segment value of the project business unit.

Project Costing Project Business Unit ID Identifies the business unit that owns the project.

Project Costing Project Business Unit Name Names the business unit that owns the project.

Project Costing Project Capitalizable Indicator Indicates if the project can be capitalized.

Project Costing Project Class Category Class category that is assigned to a project and enabled
for use in accounting.
Project Costing Project Class Category ID Identifies the class category that is assigned to a project
and enabled for use in accounting.

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Project Costing Project Class Code Code of the class category that is assigned to a project and
enabled for use in accounting.
Project Costing Project Class Code ID Identifies the class category that is assigned to a project
and enabled for use in accounting.
Project Costing Project Descriptive Flexfield Attribute 1-10 Projects descriptive flexfield attributes 1-10.

Project Costing Project Descriptive Flexfield Attribute Context that determines the structure of the project
Category descriptive flexfield.
Project Costing Project ID Number generated by the application to identify the
project.
Project Costing Project Name Name assigned to a project.

Project Costing Project Number Number assigned to a project.

Project Costing Project Organization Company Segment Company segment value of project organization.

Project Costing Project Organization Cost Center Segment Cost center segment value of project organization.

Project Costing Project Organization ID Identifies the organization owning the project.

Project Costing Project Type Implementation entity that defines basic project options
Select options at the project type level that are inherited
by each project associated with that project type.
Project Costing Project Type Descriptive Flexfield Attribute Project type descriptive flexfield attributes 1-10.
1-10
Project Costing Project Type Descriptive Flexfield Attribute Context that determines the structure of the project type
Category descriptive flexfield.
Project Costing Project Type ID Identifies the implementation-defined name that uniquely
identifies the project type.
Project Costing Project Unit ID Identifies the project unit.

Project Costing Revenue Category A grouping of expenditure types by type of revenue For
example, a revenue category with a name such as Labor
refers to labor revenue.
Project Costing Sponsored Project Indicator Indicates that the project is sponsored by an award.

Project Costing Task Billable Indicator Indicates if the task is billable for project.

Project Costing Task Capitalizable Indicator Indicates if the task for a project can be capitalized.

Project Costing Task Descriptive Flexfield Attribute 1-15 Task descriptive flexfield attributes 1-15.

Project Costing Task Descriptive Flexfield Attribute Context that determines the structure of the task
Category descriptive flexfield.
Project Costing Task ID Identifies the task.

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Project Costing Task Name Name assigned to a task.

Project Costing Task Number Number assigned to a task.

Project Costing Task Organization Company Segment Company segment value of the organization that is
assigned to manage the work on a task.
Project Costing Task Organization Cost Center Segment Cost center segment value of the organization that is
assigned to manage the work on a task.
Project Costing Task Organization ID Identifies the organization that is assigned to manage the
work on a task.
Project Costing Task Organization Name Organization name to which the task belongs.

Project Costing Task Retirement Indicator Identifies tasks for retirement cost collection.

Project Costing Task Service Type Type of work performed on the task.

Project Costing Top Task ID Identifies a task whose parent is the project.

Project Costing Top Task Name User-defined name that uniquely identifies a top task
within a project.
Project Costing Top Task Number User-defined number that uniquely identifies a top task
within a project.
Project Costing User-Defined Descriptive Flexfield Attribute User-defined descriptive flexfield attributes 1-10 for
1-10 project-related standardized cost collection.
Project Costing User-Defined Descriptive Flexfield Attribute Context that determines the structure of the user-defined
Category descriptive flexfield.
Project Costing Work Type ID Unique identifier of a classification of the work associated
with a task You can use work types to categorize and
group tasks for processing purposes.
Project Costing Work Type Name Name of a classification of the work associated with a
task. You can use work types to categorize and group
tasks for processing purposes.

5.2. Set Up TAB to Default Accrual Account

Step 1: In the Navigator, click Setup and Maintenance, and navigate to the Define Transaction
Account Rules task list.
Note: Drill down to this task list from the Implementation Project for Procurement. This picks
up the Purchasing context.

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Step 2: Navigate to Manage Account Rules task.

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Step 3: Select and view the predefined Purchasing Accrual Account Rule.

Step 4: Note how the Accrual Account is defaulted. According to the predefined rule, the
accrual account is defaulted from the Source: Expense Accrual Account when purchase order
destination type is Expense, or when Cross BU = Y. This source maps to the Purchasing
mapping set Expense Accrual Account – Business Unit.

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However, if the Destination Type is Inventory and this is not a global procurement scenario,
the Accrual Account is defaulted from the Source: Accounts Payables Accrual Account for
Inventory Item. This source maps to the Cost Management mapping set Accrual Account –
Organization.

For this example, assume that this PO is for an expense item. You will verify that a mapping
exists for the requisitioning BU on the Purchasing Mapping set Expense Accrual Account –
Business Unit.

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Step 5: Navigate to the Manage Mapping Sets task in the Define Transaction Accounting for
Procurement task list.

Step 6: Edit the mapping set Expense Accrual Account - Business Unit. Select the appropriate
Chart of Account, and ensure that a mapping exists for your Sold-to BU. (It will be same as the
requisitioning BU in a local procurement scenario.) If a mapping does not exist, create a new
one and specify the appropriate account.

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Step 7: Optionally, if your business uses inventory items, set up the Mapping Set Accrual
Account Organization for the Cost Management subledger. See setting up Cost Management
Mapping Sets for more details.

5.3. Set Up TAB to Default Charge Account

Step 1: Repeat Steps 1 and 2 from section 5.2

Step 2: Select and view the predefined Purchasing Charge Account Rule

Step 3: Note that the Charge Account is defaulted without any configuration required.
According to the predefined rule, the charge account is defaulted from a series of sources
having descending priorities. Also note the condition that applies each priority rule.

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For this example, assume that this PO has no backing requisition, that it has an expense
destination type and that the charge account is defaulted from the requester’s HR default
expense account. In other words, priority 6 is applied. Next, verify that the requester’s default
expense account is set up in HCM Person Management.

Step 4: Navigate to Person Management from the navigator.

Step 5: Search for the requester by Name.

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Step 6: Click on the requester name and navigate to the Person Management page. Select
Manage Employment from the task pane.

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Step 7: Verify that the Default Expense Account is populated. If not, populate the account
accordingly.

The charge account on the PO is defaulted from the requester’s default expense account as
set up in HCM.
Tip: Verify that the requester field on the PO distribution is populated. If there is no requester
on the PO distribution, no account will be generated from priority rule 6.

Step 8: Optionally, if your business wants to drive the PO charge account based on ship-to
organization, item, sub-inventory, destination type, and so on, set up one of the predefined
Cost Management Mapping Sets accordingly. Priority rules 3, 4, 5 and 7-13 use Cost
Management Mapping Sets as sources. See Setting up Cost Management Mapping Sets for
more details.

5.4. Set Up TAB to Default Variance Account

Step 1: Repeat Steps 1&2 from Section 5.2

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Step 2: Select and view the predefined Purchasing Variance Account Rule
Step 3: Note that the Variance Account is defaulted without any configuration required.
According to the predefined rule, the variance account is defaulted from a series of sources
having descending priorities. Also note the condition that fires each priority rule.

For this example, assume that the PO has no backing requisition and that the destination type
is expense. In this case, the priority Rule 2 is applied and the variance account is defaulted
from the charge account on the PO.

5.5. Set Up Cost Management Predefined Mapping Sets

Step 1: In the Setup and Maintenance work area, search for the Define Cost Accounting setup
task list. Expand the task list. Make sure that scope for the task is set to Cost Management.
Navigate to the Manage Mapping Sets setup task.
Note: Cost Management mapping sets cannot be accessed from a Procurement
implementation project. Search task lists directly in the Setup and Maintenance work area.

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Step 2: All the predefined mapping sets are listed here. You can edit any of the mapping sets
and populate the input and output mappings.

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Step 3: In this example, we will set up the Expense Account – Organization mapping set. This
mapping set maps input inventory organizations to output account combinations.

Step 4: Add one or more chart of accounts in the Chart of Accounts section. This defines
which chart of accounts is configured to use this mapping set.

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Step 6: Populate the mappings. For every input organization code, populate an output
account combination. Note that you can designate one of the output account combinations
as a default. The default output account combination is used if no appropriate organization
code is found.

Tip: By modifying the mapping set Output Type, it can be used to map input parameters to an
entire account combination or individual account segments.

This setup task demonstrates how to set up one of the Cost Management Mapping Sets.
Similarly, you can set up the other available Mapping Sets depending on your business needs.

5.6. Set Up Purchasing Predefined Mapping Set for TAB

There are four predefined Purchasing mapping sets:

- Expense Accrual Account – Business Unit

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- Purchasing Expense Account – Item

- Purchasing Natural Account by Procurement Category Level 1
- Purchasing Natural Account for Transaction Account Builder

The following steps use Expense Accrual Account – Business Unit mapping set as an example,
demonstrating how to set up a predefined mapping set.

Step 1: In an implementation project for Procurement, navigate to the Manage Mapping sets
task in the Define Transaction Accounting for Procurement task list.

Step 2: A Predefined mapping set Expense Accrual Account – Business Unit is available. You
can use this to set up the Accrual Account.

Step 3: Another predefined mapping set Purchasing Natural Account for Transaction
Account Builder is available here. You can edit the mapping set, and populate the input and
output mappings. This is a natural account segment mapping set. Based on input
Requisitioning BU and Item Category Name, you can determine the natural account segment
of an account combination.

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Step 4: Add one or more chart of accounts in the chart of accounts section. This defines which
chart of accounts is set up to use this mapping set.

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Step 5: Populate the mappings. For every input Requisitioning BU Name and Category Name,
populate an output account segment. Note that you can designate one of the output account
segments as a default. The default output segment is used if no appropriate organization
Requisitioning BU and Category combination is found.

Tip: By modifying the mapping set Output Type, it can be used to map input parameters to an
entire account combination or individual account segments.

If you need to derive the natural account segment based on the different levels in the
procurement category hierarchy, you can create your own mapping sets for this purpose. For
category level 1, the mapping set – Purchasing Natural Account by Procurement Category
Level 1 is predefined.

This setup task demonstrates how to set up one of the predefined Purchasing Mapping Sets.
Similarly, you can create new Mapping Sets depending on your business needs.

5.7. Set Up Transaction Account Definition

Oracle Procurement Cloud provides a predefined Transaction Account Definition which

makes use of the account rules and mapping sets explained above. For most cases, you can
reuse this delivered transaction account definition. In this task you will explore the delivered
Transaction Account Definition and how it combines all the account combination rules to
default the accounts on a requisition or purchase order.

Step 1: In the Navigator, click the Setup and Maintenance work area, and navigate to the task
list Define Transaction Account Rules.

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Step 2: Navigate to Manage Transaction Account Definition.

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Step 3: Observe the predefined TAD: Purchasing TAB Default Accounting.

Step 4: Observe the account combination rules that drive each of the transaction account
types on requisitions and purchase orders. Also note that the predefined transaction account
definition does not have any Segment Rules. See section 6.2 for information on how you can
set up segment rules and/or modify the Account Combination Rules.

5.8. Set Up Manage Accounting Options for Ledger

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This is the final yet most crucial step of TAB setup. Your business can centralize the account
defaulting piece by virtue of setting up one TAB and reusing it across different ledgers if you
so choose. After setting up the Transaction Account Definition, you must associate it with a
ledger. The appropriate Transaction Account Definition is picked up based on the ledger to
which a PO or requisition corresponds.
Take note that this setup step is optional because by default, every ledger is associated to the
predefined Transaction Account Definition Purchasing TAB Default Accounting. Perform this
setup only if you create your own Transaction Account Definitions.

Step 1: In the Navigator, click the Setup and Maintenance work area, and navigate to the
Define Transaction Account Rules task list.

Step 2: Navigate to Manage Subledger Accounting Options

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Step 3: Search for the Ledger. When the ledger is displayed in the search results, select
Purchasing as the component type and edit the Accounting Options.

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Step 4: By default, for the Purchasing subledger application, every ledger in the application is
associated to the predefined Transaction Account Definition. For example, Purchasing TAB
Default Accounting. You can change it to a new Transaction Account Definition that you have
created.

This completes the configuration of TAB using the predefined, delivered setup configurations.

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6. Custom TAB Setup

6.1. Simple TAB Setup from Scratch

In this section, we will set up a minimal custom TAB so that all three mandatory accounts in a
purchase order or a requisition are defaulted appropriately. We will assume an overly
simplistic business where based on destination type, they default the accounts on the PO and
requisition to specific constants. All the accounts on the document are same in this example.
To tabulate the use case:

Destination Charge Accrual Variance

Type
Expense 01-000-2440-0000-000 01-000-2440-0000-000 01-000-2440-0000-000
Inventory 01-110-4110-0000-000 01-110-4110-0000-000 01-110-4110-0000-000

6.2. Advanced TAB Setup with Segment Rules

In this setup you will assume the hypothetical company ABC Corporation drives the natural
account segment of their charge account on requisitions and purchase orders from project
sources in case there are project references on the document distributions. If the PO
references a project, then default the charge account segment to the following based on
project top task number.

Top Task Number Account Segment Value

1.0 1200
2.0 1210
Default 1130

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7. Known Limitations

If you plan to use the Item Category Name source in your transaction account definitions,
make sure the category name does not exceed 80 characters. Otherwise, Transaction
Account Builder might not be able to derive an account.

8. Conclusion

Oracle Fusion Procurement leverages Oracle Fusion Subledger Accounting's flexible rules-
based engine that enables you to author your unique account derivation policies and
manage them effectively. You can either use the predefined setups to lessen set up
overhead, add your own layer of customizations on top of the predefined setups, or even
start from scratch.

9. Additional References

For additional information, see the Define Accounting Transformation section in the Oracle
Fusion Accounting Hub Implementation Guide.
http://docs.oracle.com/cd/E28271_01/fusionapps.1111/e20374/toc.htm

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Transaction Account Builder Copyright © 2016, 2017 Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only and
August 2017 the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other
Author: Mayukh Bhaowal warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or
fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are
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formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any
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