Oracle Procurement Transaction Account Builder Configuration

1. How to Identify the ledger for the procurement business unit.

2. How to identify the chart of accounts (COA) for the above ledger.
3. How to create a custom transaction accounting builder for the above chart of accounts (COA)
4. How to assign the custom transaction accounting builder to the subledger accounting options
(Purchasing)
5. How to find the available sources for accounts
6. How to customize the charge account code combination for a specific requirement
• For expense destination
• For Inventory and Dropship
• For Projects
• For Work orders
7. How to customize the charge account’s individual segment
8. How to customize the variance account code combination for a specific requirement
• For Expense destination
• For Inventory and Dropship
• For Projects
• For Work orders
9. How to customize the Accrual account code combination for a specific requirement
• For Expense destination
• For Inventory and Dropship
• For Projects
• For Work orders
10. Role of Destination charge account and destination variance account
11. How to check if data security rules are enabled for an account segment or code combination.
12. Role of Cross validation rules in Transaction Accounting Builder.
13. Charge account generation based upon DFF For Requisition/Purchase order.
1. How to Identify the ledger for the procurement business unit.
Setup and Maintenance → Financial Offerings → Organization Structure → “Assign Business
Unit Business Function”
Select the scope as the target business unit

Look for Primary Ledger in the above screen shot.

2. How to identify the chart of accounts (COA) for the above ledger.

• Setup and Maintenance → Financial Offerings → Organization Structure →

“Manage Primary Ledgers”
• Copy the ledger name from step-1 and search in the primary ledger field
• Chart of Accounts field shows the chart of account name for the respective
ledger.
3. How to create a custom transaction accounting builder for the above chart of
accounts (COA)

• Navigate to Setup and Maintenance → Global Search → Search for task →

Define Transaction Accounting for Procurement → Manage Transaction Account
Definitions
• There are two options to create a new Transaction account definition
Suggestion: - It is always recommended to create TAD from scratch using
create option.

1. Create: Using + Icon/Create from Actions to create a new one

2. Duplicate: Using Duplicate Icon/Duplicate from Actions to duplicate the
existing TAD
4. How to assign the custom transaction accounting builder to the subledger accounting
options (Purchasing)
Navigation:

Setup and Maintenance → Global Search → Search for task → Manage Subledger Accounting
Options

Search for Ledger (Ledger Name)

Filter with Purchasing

 Click on Accounting Options Edit Icon

Choose the Transaction Account Definitions in the Drop down

5. How to find the available sources for accounts

Navigate to Setup and Maintenance → Global Search → Search for task → Define Transaction
Accounting for Procurement → Manage Transaction Account Definitions

Search TAD name in the search section

Click on the TAD name

Click on respective account type (For Example Charge Account to find out the sources for charge
account).

You can find all available sources for the charge account from below page.
 Similarly, click on different account types (Variance/Accrual) to find out the respective sources.

6. How to customize the charge account code combination for a specific requirement

6.1 For Expense Destination

Navigation

Setup and Maintenance → Global Search → Search for task → Manage Account Rules

Suggestion: - It is always recommended to create account rule from scratch using create option.

Click on + icon
Below are Sample Rules and Conditions(Also, available in standard TAD account rules)

Value Type Value Conditions Meaning

Source Requisition "Cross BU" = N 'And' Source - Requisition Charge Account.
Charge "Requisition Charge This condition usually gets applied
Account Account"."All" Is not null when a requisition is getting
converted into a purchase order.
System checks if the valid charge
account is present on requisition and
same gets copied over Purchase
order.
Source User "Cross BU" = N 'And' Source - Employee Charge Account.
Preferred "Requisition Charge As per the condition system tries to
Account Account"."All" Is null 'And' pick the charge account from User's
"Destination Type requisition preferences when
Code"(PO,S,S) = EXPENSE 'And' destination type is expense.
"User Preferred Account"."All"
Is not null
Source Employee "Cross BU" = N 'And' Source - Employee Charge Account.
Charge "Destination Type As per the condition system tries to
Account Code"(PO,S,S) = EXPENSE 'And' pick the charge account from
"Employee Charge Requester's default expense account
Account"."All" Is not null when the destination type is
expense.
6.2 For Inventory and Dropship Destination

Navigation

Setup and Maintenance → Global Search → Search for task → Manage Account Rules

Suggestion: - It is always recommended to create account rule from scratch using create option.
 Value Type Value Conditions
Source Subinventory "Subinventory Material
Material Account"."All" Is not null 'And'
Account "Cross BU" = N 'And' (
"Destination Type
Code"(PO,S,S) = INVENTORY
'Or' "Destination Type
Code"(PO,S,S) = DROP SHIP )
'And' "Item Asset Indicator" =
Y from the Costing mapping set
Source Subinventory "Subinventory Expense
Expense Account"."All" Is not null 'And'
Account "Destination Type
Code"(PO,S,S) = INVENTORY
'And' "Item Asset Indicator" =
N 'And' "Cross BU" = N 'And'
"Inventory Item"."All" Is not
null
Source Ship-to "Ship-to Organization Expense
Organization Account"."All" Is not null 'And'
Expense ( "Destination Type
Account Code"(PO,S,S) = INVENTORY
'Or' "Destination Type
Code"(PO,S,S) = DROP SHIP )
'And' "Item Asset Indicator" =
N 'And' "Inventory Item"."All"
Is not null 'And' "Cross BU" = N
Meaning
Source: Sub inventory Material Account
Condition Meaning - This condition will
be evaluated for Inventory/Dropship
destination type of PRs and Pos and is an
Inventory item.
The source is meant to drive the value
“Material Account – Subinventory" and
This mapping set has input sources as
“Secondary Inventory Name and
Inventory Organization Code” ”
"Subinventory Expense Account"."All" Is
not null And' "Destination Type
Code"(PO,S,S) = INVENTORY Meaning
system checks if the requisition is for
Inventory destination and Subinventory
Expense Account (Mapping set in costing
- Expense Account - Subinventory) has
the valid setup of account then it picks
the charge account from this source.
"Inventory Item"."All" Is not null
Meaning as per item definition it is an
inventory expense item.
"Ship-to Organization Expense
Account"."All" Is not null 'And' (
"Destination Type Code"(PO,S,S) =
INVENTORY 'Or' "Destination Type
Code"(PO,S,S) = DROP SHIP ) 'And' "Item
Asset Indicator" = N 'And' "Inventory
Item"."All" Is not null 'And' "Cross BU" =
N
Meaning system tries to fetch the
account from the Costing mapping set
“Expense Account – Organization” for
Drop Ship destination type of PRs and Pos
and not an asset item.
This mapping set has input sources as
“Inventory Organization Code”
 Source Ship-to "Ship-to Organization Material
Organization Account"."All" Is not null 'And'
Material ( "Destination Type
Account Code"(PO,S,S) = INVENTORY
'Or' "Destination Type
Code"(PO,S,S) = DROP SHIP )
'And' "Item Asset Indicator" =
Y 'And' "Cross BU" = N
"Ship-to Organization Material
Account"."All" Is not null 'And' (
"Destination Type Code"(PO,S,S) =
INVENTORY 'Or' "Destination Type
Code"(PO,S,S) = DROP SHIP ) 'And' "Item
Asset Indicator" = Y 'And' "Cross BU" = N
Meaning system tries to fetch the
accounts from the Costing mapping set
“Material Account – Organization” for
Drop Ship destination type of PRs and Pos
and is an asset item. This mapping set has
input sources as “Inventory Organization
Code”

Note: Deliver to locations are not inventory locations and these are customer’s locations with respect to
drop ship. If you create any custom mapping set, with deliver to location as input source, the rule will
fail

6.3 For Projects

Navigation

Setup and Maintenance → Global Search → Manage Account Rules

Suggestion: - It is always recommended to create account rule from scratch using create option.

Requirement: To derive the account code combination for PO charge account based on the
projects. If project details are captured in PR or PO then which account needs to be derived
based on the category and if not populated then which account needs to be derived.

1. Create two mapping sets in purchasing module with input source as Item category
and output as account code combination.
2. First mapping set is triggered when project details are captured with respect to the
categories
3. Second mapping set is triggered without project details with respect to the
categories.
Input Source Chart Of account Valueset
Item Category Operations Accounting Flex ORA_PO_TAB_CATEGORY_VS

Mapping Set: XX_Non Capitalizable Accounts

"Project Number"(PJC,S,S) Is null 'Or' ("Project Number"(PJC,S,S) Is not null 'And' "Task
Capitalizable Indicator"=N)

Category Accounts
Furniture 01-000-1540-0000-000
Home & Office Merchandise 01-000-1540-0000-000
Laser Printer 01-000-1560-0000-000
Miscellaneous_1 01-000-7740-0000-000

Mapping Set: XX_Capitalizable Accounts

"Project Number"(PJC,S,S) Is not null 'AND' "Task Capitalizable Indicator" = Y

Category Accounts
Furniture 01-740-1540-0000-000
Home & Office Merchandise 01-740-1540-0000-000
Laser Printer 01-740-1560-0000-000
Miscellaneous_1 01-740-7740-0000-000

Add the Mapping sets to the existing charge account rule

“XX_PURCHASING_CHARGE_ACCOUNT_CC” with above conditions listed.
6.4 For Work orders

Navigation

Setup and Maintenance → Global Search → Manage Account Rules

Suggestion: - It is always recommended to create account rule from scratch using create option.

Requirement: To derive the account code combination for PR/PO charge account which is
initiated from Manufacturing Work Orders.

Add the new account rule to the existing charge account rule
XX_PURCHASING_CHARGE_ACCOUNT_CC” with above conditions listed.

Either we can use the standard source which will include below input sources or create a custom
mapping set as per the business requirement.

• Inventory Organization Code

• Work Order Sub Type
• Purchasing Category Code
• Item Number

Value Type Value Conditions Meaning

Source Work Order "Cross BU" = N 'And' "Work "Work Order Account"."All" Is not null
Account Order Account"."All" Is not 'And' "Destination Type Code"(PO,S,S) =
null 'And' "Destination Type MANUFACTURING
Code"(PO,S,S) = Meaning system tries to fetch the
MANUFACTURING accounts from the Costing mapping set
“Work Order” for work order destination
type PRs and POs.
7. How to customize the charge account’s individual segment

Navigation
Setup and Maintenance → Global Search → Manage Account Rules

Suggestion: - It is always recommended to create account rule from scratch using create option.

Requirement: To derive the individual account segment of PR/PO charge account based on the
“Project Number”.

Add the new account rule to the existing charge account rule XX_Purchasing_Project_Account”
with below listed conditions.

Value Type Value Conditions Meaning

Constant 7515 "Project "Project Number"(PJC,S,S)=B200
Number"(PJC,S,S)=B200 Meaning system tries to fetch the
accounts 7515 when project is B200 is
captured either in PR or PO.

This is an individual account segment rule

which would be evaluated and if it is true
then the constant value will be returned
in the Account Segment value of the
Charge account.
 Associate this segment rule to the “Transaction Account Definition”.

8. How to customize the variance account code combination for a specific requirement.
Navigation
Setup and Maintenance → Global Search → Manage Account Rules

Suggestion: - It is always recommended to create account rule from scratch using create option.

Requirement: To derive the Variance account combination to derive of PR/PO.

Add the new account rule “XX_Purchasing_Variance_Account” with below conditions listed.
 Value Type Value Conditions
Source Requisition "Cross BU" = N 'And'
Variance "Requisition Variance
Account Account"."All" Is not null
Source PO Charge ("Cross BU" = Y 'And'
Account "Destination Type
Code"(PO,S,S) = EXPENSE ) 'Or'
"Cross BU" = N 'And'
"Requisition Variance
Account"."All" Is null 'And' (
"Destination Type
Code"(PO,S,S) = INVENTORY
'Or' "Destination Type
Code"(PO,S,S) = DROP SHIP)
Meaning
"Cross BU" = N 'And' "Requisition
Variance Account"."All" Is not null
Meaning system fetches the variance
account from PR in the PO when PR is
converted to PO.
("Cross BU" = Y 'And' "Destination Type
Code"(PO,S,S) = EXPENSE ) 'Or' "Cross
BU" = N 'And' "Requisition Variance
Account"."All" Is null 'And' (
"Destination Type Code"(PO,S,S) =
INVENTORY 'Or' "Destination Type
Code"(PO,S,S) = DROP SHIP)
Meaning system fetches the variance
account from Purchase Order Charge
account.
9. How to customize the Accrual account code combination for a specific requirement
Use the standard Purchasing Accrual Account Rule OR follow the same steps to create new rule
from scratch as mentioned for Variance account or Charge account.

10. Role of Destination charge account and destination variance account

Destination Charge Account - A charge account belonging to the destination organization.
Destination Variance Account - A variance account belonging to the destination organization.

These are used for Global procurement scenarios where Supply Orchestration is involved.

These two accounts are used for more advanced procurement scenarios where there is an
intercompany transaction involving a procuring organization and a destination organization.

11. How to check if data security rules are enabled for an account segment or code
combination.

• Go to Task "Manage Key Flex-fields", Search for "GL#' as Key Flex-field Code.
"General Ledger" should be returned. Click on action "Manage Structures".
• Manage Key Flex-field Structures, Search for the structure customer defined. Click
on the "Edit"
• For each segment, Edit the segment to check the "Default Value Set Code". List
down all the value sets used each segment.
 • Go to Task "Manage Value Sets". For each value set, Edit it. Please review if it is
"Security enabled" and "Data Security Resource Name" is set.
If yes, the user needs to have the data security to use the segment.

12. Role of Cross validation rules in Transaction Accounting Builder

Cross-validation rules prevent the creation of combinations with values that can't coexist in the
same combination

Suppose your accounting key flexfield has an Organization segment with two possible values, 01
and 02. You also have a Natural Account segment with many possible values, but company
policy requires that Organization 01 uses the natural account values 001 to 499 and
Organization 02 uses the natural account values 500 to 999. You can create cross-validation
rules to ensure that users can't create a general ledger account with combinations of values
such as 02-342 or 01-750.

Note: Cross-validation rules have no effect on combinations that already exist. The flexfield
treats any existing invalid combinations that pre-date the rule as valid.

If you want to prevent users from using previously existing combinations that are no longer valid
according to your cross-validation rules, manually disable those combinations using the
combinations page for that key flexfield.
13. Charge account generation based upon DFF For Requisition/Purchase order.

Navigation
Setup and Maintenance → Global Search → Manage Account Rules

Suggestion: - It is always recommended to create account rule from scratch using create option.

Requirement: To derive the Company Segment for PR/PO charge account based on the DFF
value captured.

Add the new account rule “XX_Purchasing_DFF_Company” with below conditions listed.

• Create Mapping Set

• Input Source.
1..1. PO Header Attribute1 ( Value Set : Company)
1..2. Requisitioning BU Name ( Value Set : ORA_PER_BUSINESS_UNITS_VS)
Value Type Value Conditions Meaning
Mapping XX_Purchasing_DFF_Company Meaning system evaluates to
Set true as the condition is blank
and mapping set will be called
for further evaluation as per the
input sources.