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E1: 42: Flexible Accounting for Distribution

(R42800/P4112/P4113/P4114/P4312/P4314/P43291/P40296) (Doc ID 756543.1)

In this Document

Purpose
Overview
Details
Enabling Flexible Accounting
Establishing Program/Table Relationships
Determining the AAIs to be Flexed
Establishing Flexible Accounts
Sales Intercompany Orders and Flex Accounting
Inventory Applications and Flex Accounting
Flexing by Object Account Range
Flexing by Combination of both Object and AAI
References

APPLIES TO:

JD Edwards EnterpriseOne Procurement and Subcontract Management - Version XE and later

JD Edwards EnterpriseOne Inventory Management - Version XE and later
JD Edwards EnterpriseOne Sales Order Entry - Version XE and later
JD Edwards EnterpriseOne CRM Sales Order Entry - Version XE and later
JD Edwards EnterpriseOne Sales Order Management - Version XE and later
Information in this document applies to any platform.

PURPOSE

Overview

Flexible accounting provides greater flexibility in recording accounting information associated with distribution transactions.
Now a branch plant value can be based on a combination of fields. For example, a branch plant record can include
information for a sold to address number (ex. 4242), an address number category code (ex. SOU), and an item category
code (ex. ACC). This allows very specific accounting of who, where and what is being sold. In the past, the only way that
this information could be passed to the general ledger was through the subledger field and only one part could be
captured.

Flexible accounting can be used on the Manufacturing, Cost Accounting, and Distribution applications of EnterpriseOne.
This paper will address Flexible Accounting for Distribution (Sales, Inventory, and Purchasing processes). The Sales system
uses Flexible Accounting during the Sales Update (R42800). Purchasing uses Flexible Accounting during Purchase Receipts
(P4312), Landed Cost (P43291) and Match Voucher to Open Receipts (P4314).

Flex Accounting is not integrated with the Financials AAIs, F0012. The Invoice Master Business Function (B03B0011) and
the Voucher Master Business Function (P0400047) do not contain processing options to activate flex accounting
functionality. Flex accounting is not supported for the trade account stored in the Customer Ledger (F03B11) nor the trade
account used by the post program for vouchers. The trade account is determined solely by looking at the AAI RC G/L
Offset or PC G/L Offset. The A/R MBF and A/P MBF will not look at AAIs or rules determined by other system codes in an
effort to derive the trade account used. See enhancement document 2069095.1

This document details the setup that is required for Flexible Accounting to function correctly.

DETAILS
 Note: Setting up the account structure is a business decision that is made during the implementation and planning
stage. The cost/benefit analysis should be made at that time. Though it is possible to change the accounting process
from standard accounting to Flexible accounting in mid-stream (or vice versa), this process is not easily accomplished.

Enabling Flexible Accounting

Two steps need to be performed to enable Flexible accounting. The first is to define the Rule Set Up Method. The second
step is to define the tables associated with the program to be flexed. From menu G1631 the Enable Functionality by
Application (P16902) option is used to define the Rule and establish the relationship of programs to tables.

Establishing the Rule

The following form shows how the Rule Method needs to be set up. If the Rule Method is not in the table (SM type of
functionality is not listed for the application being setting up), then the rule needs to be added. Click Add; enter SM in the
Type of Functionality field and then tab. The Setup Method and Application Name fields will appear. Now enter an A and
the relevant Application Name respectively (i.e. R42800, P4312, P43291, or P4314). This will establish the method that the
system uses to create the Flexible Accounting.

Setup Methods are:

O - Object
A - AAI
C - Combination of both Object and AAI

Note: If the setup method is a combination of both Object and account, and there is flex information setup to flex a
specific field differently based on object vs AAI, Object will take precedence. AAI 4245 writes GL entry at the order
level during the bypass AR, so the flex accounting rule setup for item branch category code can not be resolved as line
level information such as item number required to resolve the flex rule is not available. If there are multiple sales order
detail lines then it is not appropriate to use one of the detail lines item information. This is the current design.

Establishing Program/Table Relationships

The second step is to associate the program that is utilizing Flexible accounting with the tables that will be accessed. If the
relationship has not already been defined, then add it, using the following form to associate a table with the program:

The following is a list of the tables that will be accessed by Sales Update (R42800)

F0006
F0101
F4071
F4101
F4102
 F4211
F42160

Following is a list of tables that will be accessed for the Purchasing process (Receipts (P4312) and Voucher Match
(P4314/P0411)). The same tables also apply to Landed Cost (P43291).

P.O. Receipts (P4312)

F0006
F0101
F4101
F4102
F4311

Voucher Match (P4314)

F0101
F4101
F4102
F4311

Following is a list of tables that will be accessed for the Transportation process (Freight Update (R4981)).

F0101
F4215
F4941

Following is a list of tables that will be accessed for the Inventory (XT4111Z1) process.

F0101
F4102
F4111

Note: Though it would appear that the user is able to add any table to the Enable Functionality form for any
application module, we cannot guarantee that all EnterpriseOne tables will work for all application modules supporting
flex accounting. When customizing the configuration of tables to be used with any application module, users should
take reasonable precautions before implementing the custom configuration in the production environment. Add the
new table through the Enable Functionality form on a test environment.

Determining the AAIs to be Flexed

For Sales Order Processing only the following AAIs can be flexed: 4220, 4230, 4240, 4243, 4250, 4245, 4225 (for
Revenue Recognition)

Note: AAI 4245 is invoked if bypassing accounts receivable by setting processing option #2 on the Update tab of Sales
Update (R42800) to a '1'.

For Advanced Pricing: 4270, 4280, 4515, 4520

For Purchasing, with the advent of Product Costing, all AAIs can be flexed. Note: When flexing on DMAAI 4370 during
Receipt Routing, the PO Receipt (P4312) version called by Movement & Disposition (P43250) needs to have Flex
Accounting activated in the processing options. See also 786376.1
For Inventory: 4122 or 4124. For Cost Revision (P4105) and Speed Cost (P41051) only the 4134 and 4136 AAIs can be
flexed.

For Transportation: 4920, 4922

For Bulk Stock Management: 4182, 4184 but only with the Bulk Stock Movements (P415101) application.
 Note: Users can setup flex account by either a To/From Object account OR a specific AAI in Flex Accounting rules, but
not both.

Establishing Flexible Accounts

Flexible Accounting provides ability to combine various fields from various files to create an individual component of an
account. The program that is used to setup these components is Flexible Sales Accounting (P40296) off menu G4241. The
parts of the account that can be flexed are the business unit, the subsidiary and the subledger fields. (The object account
cannot be flexed.) An example of a potential Flexible account business unit would be the combination of an address book
number and a category code from the item that is being sold or purchased. No longer will the branch/plant value be a
unique 12-character field that is stored in the F0006. It will now be a combination of address book number and a category
code. Note: For optimal results, if a field (ie: category code) being used in flex accounting exists in the detail transaction
file (ie: F4211 or F4311) use that value rather than trying to pull the value from the original source (ie: F4101).

There are rules for breaking out the branch plant and the subsidiary fields. The branch plant field can be broken into as
many as 6 segments with a total of 12 characters. The subsidiary can be broken into up to 4 segments with a maximum of
8 characters.

In addition, a consistent account structure must be used for all companies and all business units in the organization. This
is necessary for multi-company consolidations and automated inter-company settlements. If making use of Flexible
accounting on the financials side of the system, the distribution business units and subsidiary must be defined with the
same number of characters that the financials flexible accounting uses.

As Flexible accounting can demand quite a bit of space in the financials tables, it is not unusual for a client to track Flexible
account related information for only a select group of customers and/or items. (To do this, a separate version of the sales
(R42800) or purchasing (P4312, P43291, and/or P4314) related programs would need to be created.)

Sales Intercompany Orders and Flex Accounting

Beginning with JD Edwards EnterpriseOne release 8.11 SP1, the Flex Accounting logic for Sales Intercompany Orders was
modified with Bug 10999654: R42800 FLEX THE BU FROM DETAIL - SAR: 8916945.

After the change, R42800 standard functionality uses the sales order header branch plant (revenue business unit) on
Intercompany sales orders to flex the Business Unit used to create the GL entries. For non-Intercompany sales orders, the
G/L Account Business Unit (Defaults tab, #5 will be used to determine what branch plant to use. Clients that are using flex
accounting should review their processing options to verify that the G/L Account Business Unit is set to their preferred
value for resolving flex accounting.

This only applies when the table used in Flex Accounting to determine the business unit is the Item Branch (F4102) table
and the sales order has different branch plant on the detail lines and the order is not an Intercompany sales order.

Inventory Applications and Flex Accounting

Flex accounting is only partially supported within the Inventory Programs: Issues (P4112), Transfers (P4113), Adjustments
(P4114), Reclassification (P4116), Cycle Count Update (R41413), Item Cost Revision (P4105) and Speed Cost (P41051).

There is no processing option to turn on or off flex accounting. Basically, if the 4122 or 4124 are setup in the flex
accounting tables, they will be used. For Cost Revision (P4105) and Speed Cost (P41051) the AAI 4134 and 4136 will be
also flexed. Note: There is a processing option for flex accounting in P4105 and P41051. For Cycle Count Update
(R41413), DMAAI 4152 and 4154 will also be flexed. For more details, please see knowledge document Cycle Count
Overview (Doc ID 625397.1).

To make Flex Accounting work with the Inventory Programs, setup SM and FA for XT4111Z1 in the Enable Functionality by
Application (P16902) off menu G1631 as follows:

Inventory Issue (P4112)

Processing option 1 and 2 on the Process tab controls whether or not a manual account can be entered for the transaction.
Manually entered accounts will be used in place of the 4124 AAI. Flex accounting will not be used for that account. Flex
accounting can be setup by object, this setup works fine for the 4122 and 4124 AAIs, but will have no effect for manually
entered accounts.
Flexing by Object Account Range

When Flexing by Object Account - Setup Method must be O on the SM record in P16902:

Flex Accounting Definition (P40296) - Specify Object Account From/To Range and leave AAI Table Number Blank.

Be sure the object account to be flexed falls within the Object Acct From/To range:

Flexing by Combination of both Object and AAI

When Flexing by both: Object Account and AAI - Setup Method must be C on the SM record in Enable Functionality by
Application (P16902).

Part of the account is flexed based on Object Account Range and the other part is flexed based on AAI.

Note: If you flex on Item, the value will populate into the F0911 GL table as long as the Cost Management Constants
(P1609) Menu G1641 has fields Activate Cost Objects and Activate Activity Based Costing not equal to blank. If the
Activate Activity Based Costing is flagged, additional Activity Based fields will be displayed in forms and reports. Flex
Accounting rules will be setup to determine how to populate the cost object fields when creating Journal Entries. See MOS
document E1: 16: Advanced Cost Account (ACA) Setup (758634.1).
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REFERENCES
NOTE:786376.1 - E1: 43: Flex Accounting in Procurement

NOTE:1342177.2 - Information Center: JD Edwards EnterpriseOne Sales Product

NOTE:1346684.2 - This document has been replaced with more recent information on this topic. Please refer to more
recent documentation.
NOTE:1905866.1 - E1: 42: Troubleshooting Issues with Sales Update (R42800)
NOTE:2352155.1 - E1:42: R42800 Updates Subsidiary Incorrectly in F0911 When Flexing Subledger for DMAAI 4225
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