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Understanding AAIs

Understanding AAIs

Concept

Each time that you enter a transaction that requires journal entries, the system must locate the appropriate account numbers to process transactions properly. It does this by reviewing the AAI table for codes that correspond to the transaction. You define your account structure and specific account values using AAIs. For example, AAIs direct the system to the AR trade account to debit when you post invoices or the correct bank account to debit when you post receipts.

The system stores AAI values in the Automatic Accounting Instructions Master table (F0012).

Procedure

In this topic, you will review the search sequence for AAIs and the Accounts Receivable AAIs.

Step Action
This diagram illustrates how the JD Edwards EnterpriseOne Accounts Receivable system uses AAIs for instructions during invoice and receipt processing:
The name of an AAI item, such as RC, is hard-coded. AAI items for Accounts Receivable always start with the letter R. For example, RC is the AAI item for the receivables class (trade) account, and RB is for the receivables bank account. Each AAI item has account codes consisting of a business unit, an object, and optionally, a subsidiary, which are mapped to the chart of accounts.
If you do not define a business unit in the AAI items RA, RC, RKD, RFC, and RFD, the system assigns the security business unit from the invoice. The security business unit, which is assigned to the customer Address Book record, is used as a default business unit when you enter invoices. If you do not assign a business unit to the AAI, the business unit from the invoice is concatenated with the object account of the AAI and is used as the account number. This process provides additional flexibility and enables specific accounts to be tracked by the business unit.

Step Action
When you enter a transaction, the system locates the following:
The system reviews the appropriate AAI table to locate an account number that has been set up for the combination of company and AAI item. If an account number exists for the combination, the system uses that account. If no account number exists, the system uses the account set up for company 00000.

Step Action
The following examples show how the system searches for the account number for an A/R trade account when a G/L offset code is used and when the G/L offset code is not used.
If you enter an invoice for company 00001 with a G/L offset TRAD, the system searches for the A/R trade account according to this hierarchical sequence:

Step Action
If the system cannot locate the first AAI item, the system searches for:

Step Action
If the system cannot locate that AAI item, the system returns:

Step Action
If you enter an invoice for company 00001, but do not enter a G/L offset (the G/L Offset field is blank), the system searches for the A/R trade account according to this hierarchical sequence:

Step Action
If the system cannot locate the first AAI item, the system searches for:

Step Action
If the system cannot locate that AAI item, the system returns:

Step Action
Review the AAIs available in the Accounts Receivable system.

Step Action
Use two AAIs to recognize revenue and receivables for delinquency fees:

• RFC: Specifies the revenue accounts to credit when you assess delinquency fees.

• RFD: Specifies the receivables accounts to debit when you assess delinquency fees.

The system debits and credits these accounts when you generate delinquency fees in final mode.

Set up default AAI items RFC and RFD for company 00000. You can set up specific AAI items RFC and RFD for each company if you want to record fees differently by company. When you set up this AAI, the business unit is optional.

Step Action
Use the AAI item RN (Deductions) to specify the suspense account for an unresolved deduction amount. If you leave the Business Unit field blank, the system uses the business unit of the invoice from which the amount is deducted.

Step Action
Use the AAI items RD1x through RD5x for draft processing. You should set up draft AAIs for each company for which you use a different account number. That is, you do not need to set up an AAI for each company that uses the same account. If the system cannot find an AAI for a specific company, it uses the AAI from company 00000.

Step Action
Use the netting AAI (NC) as a suspense account until the netting transaction is complete. For example, if you have a credit (RM document) in Accounts Receivable, and you want to reimburse a customer for the amount, run the Generate Reimbursements program (R03B610). The system:

• Debits the A/R trade account (AAI RC) and credits the suspense account (AAI NC).

• Debits the suspense account (AAI NC) and credits the Accounts Payable (AP) trade account (AAI PC).

• Debits the Accounts Payable trade account (AAI PC) when the voucher is paid.

Because no expense side exists for the voucher, the system uses the NC netting account as the expense for the voucher.

The system also uses this AAI when you perform AR or AP netting using the Manual Netting program (P03B455).

Step Action
Use AAI item RB (receivables bank) to specify the default bank account if one is not provided in the receipt record. This AAI is optional. The system retrieves the bank account to use based on the company number on the receipt. If the AAI item is not specified for a particular company, the system uses the account that is set up for the RB AAI for company 00000.

Step Action
The receivables trade (class) accounts serve as holding or clearing accounts until invoices are paid. Use AAI item RC to specify the offset account that the system uses during the post process. The system creates this record with a document type AE (automatic entry).
The RC class can be specific for each customer. When you enter an invoice, the system retrieves the class code from the customer record, or you can specify a code on the invoice. You are not required to set up a business unit for this AAI item. Set up these RC items:

• Default AAI item for company 00000.

• Company-specific AAI items.

• G/L offsets RCxxxx (where xxxx is the G/L offset) for company 00000.

• Company-specific G/L offsets.

• Default AAI item for other receivables.

Step Action
Use AAI item RCUC to specify the default account for automatic offsets that are created when you post an unapplied receipt to a specific customer’s account and not to an invoice.

Set up the default AAI item for company 00000 for all companies that use the same A/R trade account, and set up specific AAIs for companies with A/R trade accounts different from company 00000. This setup is required.

Note. If you do not set up RCUC, the system does not use RCxxxx as the default.

When you set up this AAI, the business unit is optional. If you leave the Business Unit field blank, the system uses the business unit from the customer’s address book record.

Step Action
Use AAI item RCLC to specify the default asset account that the system uses for automatic offsets when you post a receipt without identifying a customer. This default facilitates quick entry to cash received. Logged receipts are matched to invoices, a customer, or a statement at a later time. For logged receipts, the AAI item RCLC is required. If you do not set up RCLC, the system does not use RCxxxx as the default. When you set up this AAI, the business unit is required.

Step Action
Use AAI item RAxx to specify the expense accounts used for write-offs. The xx code is set up in UDC 03B/RC and represents the Write-off-off reason, such as BD for bad debt.

Set up the default AAI item for company 00000 for all companies that use the same expense account, and set up specific AAIs for companies with expense accounts that differ from company 00000. When you set up this AAI, the business unit is optional. If you leave the Business Unit field blank, the system uses the business unit of the invoice that is being written off.

Step Action
Use AAI item RKDxxx, where xxx is the discount reason code on the receipt or draft, to define the accounts for discounts taken. The system searches for the appropriate AAI based on this hierarchy:

1. The system searches for RKDxxx, where xxx is the discount reason code, for the company on the invoice that the receipt or draft pays.

2. If not found, the system searches for RKDxxx, where xxx is the discount reason code, for company 00000.

3. If the discount reason code is blank, the system uses RKD for the company on the invoice that the receipt or draft pays.

4. If RKD for the company on the invoice is not set up, the system uses RKD for company 00000.

The system uses this AAI for automatic entries that are created when you post receipts or drafts with discounts taken. Discounts are not recognized until you run the post program. Set up the default AAI item for company 00000 for all companies that use the same discount-taken account or specific AAIs for a company with a different discount-taken account. When you set up this AAI, the business unit is optional.
You have reviewed the search sequence for AAIs and the Accounts Receivable AAIs.

End of Procedure.

Ayman Refat
Over 20 years of experience in IT area, working as Oracle JD Edwards Developer with expertise in Windows Server, SQL Server and Microsoft Exchange Server, experience in Linux operating systems (Debian and Redhat), VMWare ESX / ESXi, Novell Netware, relational databases like Oracle 10/11g and backup solutions from Computer Associates. Large experience in high-end servers from Dell and HP, having the following certifications: Microsoft: MCP, MCSE, MCDBA, MCSA and MCT (2008 ~ 2013), Computer Associates: Technical Specialist – Storage and Backup Solutions,
http://www.AymanRefat.com

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