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Accounting for Supplier Invoice Adjustment Costs

When you enter project-related supplier invoices in Oracle Payables, the Oracle Payables Invoices Summary or detail window invokes the Account Generator in real time. The Account Generator derives the Accounting Flexfield values based on the project information that you entered in a similar way that AutoAccounting works in Oracle Projects processes. See: Implementing the Account Generator for Oracle Projects.

Oracle Projects then creates an expenditure item for each project-related supplier invoice distribution line in Oracle Payables.

You can adjust the supplier invoice expenditure items in Oracle Projects to transfer or split the items. Oracle Projects processes these supplier invoice adjustments using the Supplier Invoice Cost Account AutoAccounting function.

Attention: When you set up your rules to account for supplier invoice costs, you need to ensure that your assignments and rules in AutoAccounting and Account Generator derive the same values.

Supplier Invoice Cost Account Function

Oracle Projects uses the Supplier Invoice Cost Account transactions to debit the appropriate expense account for supplier invoice adjustment costs.

The Distribute Supplier Costs function is called by the Distribute Supplier Invoice Adjustments program.

The Supplier Invoice Cost Account function consists of the following transactions:

Fremont posts supplier invoice costs to the project-managing organization's cost center; expenditure type determines which expense account AutoAccounting debits.
Fremont does not distinguish between supplier invoice expenditures for public/private, or capital, contract, or indirect projects, or for billable/non-billable expenditure items. Therefore, Fremont enables only the All Supplier Invoices transaction.
Fremont Corporation uses three expense accounts to record supplier invoice costs:
· Construction Subcontracting Expense (5600)
· Consulting Expense (5610)
· Miscellaneous Subcontract Expense (5620)
· Supplies (5630)
To implement the Supplier Invoice Cost Account function, Fremont defines a lookup set to map expenditure types to each of its three expense accounts. Fremont uses the lookup set to define a rule to supply an account code for the Account segment of its Accounting Flexfield.
Define a Lookup Set:
Name Supplier Invoice Cost
Description Map supplier invoice expenditure types to appropriate cost account
Segment Value Lookups
Intermediate Value (Expenditure Type) Segment Value (Account Code)
Construction 5600
Consulting 5610
Other Invoice 5620
Supplies 5630
Define a Rule to Determine Account Segment Value:
Name Supplier Invoice Costs
Description Accounts Payable supplier invoice costs
Intermediate Value Source Parameter
Parameter Name Expenditure Type
Segment Value Source Segment Value Lookup Set
Lookup Set Supplier Invoice Cost
Enable the All Supplier Invoices Transaction and Assign Rules:
Function Name: Supplier Invoice Cost Account
Transaction Name: All Supplier Invoices
Segment Rule Pairings
Number Segment Name Rule Name
0 Company Project Company
1 Cost Center Project Cost Center
2 Account Supplier Invoice Costs

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