Auto Generation of Expense Charge

Account on Oracle Purchasing

Documents
 Index
Scenario 1: Manually enter Expense Charge Account on Purchase
Order for a One Time Item with Description Only.
Scenario 2: Generate Expense Account on Purchase Order for a One
Time Item with description only, through expense Account Rule.
Scenario 3: Generate Expense Account on PO for an Expense Item,
where Expense Account is entered at the Item Attribute level.
Scenario 4: Generate Expense Charge Account on PO for an Expense
Item, through Expense Account defined on the HR Record of the
Requestor.
Scenario 5: Generate Expense Charge Account on PO for an Expense
Item, through expense Account Rule.
Scenario 6: Generate Expense Charge Account on Purchase Order for
a One Time Item with description only, through Expense Account
defined on the HR Record of the Requestor.
 Index
Scenario 7: Generate Expense Charge Account on Requisition for a One
Time Item with description only, through expense Account Rule.
Scenario 8: Generate Expense Charge Account on Requisition for a One
Time Item with description only, through Expense Account defined
on the HR Record of the Requestor.
Scenario 9: Expense Charge Account generated on PO/Requisition for an
Inventory Item defaults from Material Valuation Account defined in
the costing Information in the Organization Parameters.
Scenario 10: Verify that for two operating units sharing the same set of
books, two sets of accounting rules can be defined. Each operating
unit will have its own accounting rules, and while creating
requisitions, expense charge account should default as per the
accounting rules set up for the operating unit.
Scenario 1: Manually enter Expense
Charge Account on Purchase Order for
a One Time Item with Description
Only.
 Expense Account Rules
No Expense Account Rule is defined for the Operating Unit.
Employee Information
 Employee Information
No Expense Account is defined on the HR record of the Buyer.
Create PO
Create PO
Manually enter Expense Charge
Account
 Expense Charge Account Rules
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When determining the default charge account for a line with a
destination type of expense, the account generator may reference
the charge account defined on the employee record. If the
account generator references the employee record, then the
Expense Charge Account Rules enable you to override one or
multiple segments of that default account based on the item
category. This ability to override does not interfere with the action
of the account generator, but simply replaces those segments you
configure after the account generator has created a charge
account.
 Expense Charge Account Rules
Note: This feature is available for lines containing one-time or
inventory items as long as their destination type is expense.
The account segments can only be used when the following
conditions are true:
Destination type is expense
Purchase order was not created from a requisition
Account was not set in preferences
Account was not successfully derived from project-based
rules
Account was not successfully derived from the item setup
PO Account Generator: Processes:
Build Expense Charge Account
Scenario 2: Generate Expense Account
on Purchase Order for a One Time
Item with description only, through
expense Account Rule.
 Expense Account Rules
Create Expense Account Rule for Item Category.
 Employee Information
Enter Expense Account on the HR record of the Buyer.
Create PO
Create PO

Expense Charge Account

defaults from the
Expense Account Rule.
PO Summary
Scenario 3: Generate Expense Account
on PO for an Expense Item, where
Expense Account is entered at the
Item Attribute level.
Create Expense Item
Inventory Asset Value
indicates whether to value
an item as an asset in
inventory. Turning this
option off indicates an
expense item.
 Create Expense Item
Enter Expense Account on the Item Attribute.
Create PO
Create PO

Expense Charge Account

defaults from the Item
Attributes.
PO Summary
Scenario 4: Generate Expense Charge
Account on PO for an Expense Item,
through Expense Account defined on
the HR Record of the Requestor
 Employee Information
Enter Expense Account on the HR record of the Buyer.
 Expense Account Rule
No Expense Account Rule is defined for the Operating Unit.
Create PO
 Create PO
Enter Requester at the Distribution line, Expense Charge
Account will default from HR record of the requester.
PO Summary
Scenario 5: Generate Expense Charge
Account on PO for an Expense Item,
through expense Account Rule.
Expense Item / Category
Expense Account Rule
Employee Information
Create PO
Create PO
PO Summary
Scenario 6: Generate Expense Charge
Account on Purchase Order for a One
Time Item with description only,
through Expense Account defined on
the HR Record of the Requestor.
Employee Information
Create PO
Create PO
PO Summary
Scenario 7: Generate Expense Charge
Account on Requisition for a One Time
Item with description only, through
expense Account Rule.
Expense Account Rules
Employee Information
Create Requisition
Scenario 8: Generate Expense Charge
Account on Requisition for a One Time
Item with description only, through
Expense Account defined on the HR
Record of the Requestor.
Employee Information
Create Requisition
Scenario 9: Expense Charge Account
generated on PO/Requisition for an
Inventory Item defaults from Material
Valuation Account defined in the
costing Information in the
Organization Parameters.
Create Inventory Item
Create Inventory Item
Organization Parameters
Create PO
Create PO

Expense Charge Account

defaults from Material
Valuation Account
defined in the costing
Information in the
Organization
Parameters.
Scenario 10: Verify that for two
operating units sharing the same set
of books, two sets of accounting rules
can be defined. Each operating unit
will have its own accounting rules,
and while creating requisitions,
charge account should default as per
the accounting rules set up for the
operating unit.
Operating Unit.1
Operating Unit.2
Expense Account Rule.1
Expense Account Rule.2
Create Requisition
Create Requisition.1
Create Requisition.2
Thank You