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