26/07/2018 Document 625475.

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Copyright (c) 2018, Oracle. All rights reserved. Oracle Confidential.

E1: 40: Automatic Accounting Instructions for Distribution (AAI / DMAAI) [Video] (Doc ID
625475.1)

In this Document

Purpose
Scope
Details
Definition
Setup
G/L Class Codes
Business Unit
Setup of Financial AAIs
AAI Error Messages
AAIs
Inventory AAIs
Sales AAIs
Purchasing AAIs
Advanced Pricing AAIs
Transportation AAIs
References

APPLIES TO:

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

JD Edwards EnterpriseOne Transportation Management - Version XE and later
JD Edwards EnterpriseOne Advanced Pricing - Sales - Version XE and later
JD Edwards EnterpriseOne Sales Order Management - Version XE and later
JD Edwards EnterpriseOne Inventory Foundation - Version XE and later
Information in this document applies to any platform.

PURPOSE

How to set up Distribution Automatic Accounting Instructions (DMAAI). Includes a listing of Distribution AAIs, programs that
use them, common error messages, and how information defaults in.

SCOPE

DETAILS

Definition

Automatic Accounting Instructions - AAIs - determine which account numbers will be affected when various transactions are
created by EnterpriseOne programs.

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Setup

AAIs for Distribution are stored in Distribution/Manufacturing - AAI Values (F4095), and are set up on any distribution setup
menu (ie: G4142). The fast path is DMAAI. Establish an AAI for any unique combination of:

Company Number
Document Type
G/L Class code

If the AAI for a specific combination is not found the system will use Company 00000 and G/L Class code **** as defaults.
The document type must match. For example, for a specific document type, company 00100, G/L class code IN20, the system
performs AAI searches as follows:

1. Searches for Company 00100, G/L Class code IN20.

2. If not found, then searches for Company 00100,G/L Class code ****.
3. If not found, then searches for Company 00000, G/L Class code IN20.
4. If not found, then searches for Company 00000, G/L Class code ****.
5. If not found, then gives error message.

Note: Financial AAIs are stored in Automatic Accounting Instructions Master (F0012). The fast path to setup is AAI. Financial
AAIs PC (A/P) and RC (A/R) have a default search sequence similar to Distribution's AAIs. For financial AAIs the last default
search is Company 00000, item PC____ or RC____ where PC____/RC____ indicates blank or no additional characters after RC
or PC. Financial AAIs do not use document type.

The Distribution AAIs application (P40950) does not validate object accounts (OBJ) entered against records in the Account
Master (F0901) due to the complexity used to build the entire account used for a transaction.

G/L Class Codes

For inventory transactions, the G/L Class code comes from the Item Location (F41021) file, or for non-stock, the Item Master
(F4101) file. For sales and purchasing transactions, the G/L Class code used is determined by the inventory interface for the
line type.

Inventory Interface of Line Type Where G/L Class Code Comes From
Y Item Location (F41021)
C* Item Location (F41021)
B* Item Location (F41021)
D Item Location (F41021)
N (Edit Item Master Flag Checked) Item Master (F4101)
N (Edit Item Master Flag Unchecked) Line Type Constants (F40205)
A* Line Type Constants (F40205)

* These Inventory Interfaces are only used in Procurement. Also with the A and B inventory interface the account on the line
is debited and the G/L Class Code is retrieved for the Received Not Vouchered (RNV) account.

For more information on where the G/L Class Code defaults in from please check out this short video:

Video - Where Does The G/L Class Code Default From (5:30)

Advanced Pricing
For details on Advanced Pricing DMAAI functionality, please refer to Advanced Pricing DMAAI in Sales (Doc ID
1159465.1).

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Taxes
Tax AAIs pull their G/L Class code from the Tax Rate/Areas (P4008) off menu G0021.

Landed Cost
Landed Cost G/L Class code pulls from the Landed Cost Revisions (P41291) program off menu G43A41.

Business Unit

The Business Unit is optional on AAI setup. If the Business Unit is blank on the AAI setup, where does it come from?
Generally, it will be pulled from the Branch/Plant on the transaction. There are exceptions:

Project Number of Business Unit

A Project Number, also called Subsequent Cost Center, can be assigned to a business unit in Revise Single Business Unit
(P0006) off menu G09411. If this is populated, it will be used as the business unit portion of the account (if the business unit
is blank on the AAI).

Sales Update (R42800)

Processing option 5 on the Defaults tab of Sales Update (R42800) controls where the Business Unit (or Cost Center) portion of
the account is derived. It can come from the Subsequent Cost Center (Project Number on Business Unit), the Branch/Plant on
the order detail line, or the Sold-To Address Book Number. The system uses the company of revenue business unit to fetch
4220 (COGS) and 4230 (Revenue) AAIs, not the header company.

Flexible Sales Accounting

The Business Unit portion of the Account Number can be populated using Flexible Sales Accounting (P40296) off menu G4241.
For more information on the setup and use see Flexible Accounting for Distribution (Doc ID 756543.1).

Setup of Financial AAIs

In the main Financials AAI screen (fast path AAI), take the Multiple AAIs form exit. This screen resembles the distribution AAI
table. "Item Number" refers to the AAI, for example RT. You can use the wildcard * to search AAIs. Example: RT* will bring
up every combination of RT____ available.

A/P
PCxxxx is the financial AAI used for payables. The G/L Class code is assigned at the Supplier Master Information (P04012), if
at all, since PC____ is valid.

PTxxxx is the financial AAI for purchasing taxes. The four character G/L Offset is pulled from the Tax Rate/Area (P4008)
program except for 'U' and 'B' Tax Explanation Codes. These are self assessed taxes and they use PT____.

For tax explanation code U, the PT AAI defines the business unit and the object. The subsidiary is the Tax Rate / Area. If the
account number doesn't exist with a subsidiary, the system will take the account number minus the subsidiary. For example,
with tax explantion code U and tax rate area CO, if the PT AAI indicates account 10.4223 the post program will create the
offset to account 10.4223.CO if account 10.4223.CO is setup in the chart of accounts. If 10.4223 is not setup in the chart of
accounts, the offset will be created to account 10.4223.

A/R
RCxxxx is the financial AAI used for receivables. The G/L Class code is assigned in the Customer Billing Instructions (P03013)
on the G/L Distribution tab, if at all.

RTxxxx is the financial AAI for sales taxes. The four character G/L Offset is pulled from the Tax Rate/Area (P4008) program
off menu G0021.

Invoices created by sales update (R42800) are created for the company on the sales order header. The RC AAI corresponding
to the company on the accounts receivable invoice is validated for the A/R trade account.

AAI Error Messages

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A.A.I. Account Not Setup (0381) - Error message at Sales Update (R42800). It will state which AAI is missing. Set up in
the DMAAI table.

Invalid Distribution/Manufacturing AAI (3429) - Interactive error message for inventory or purchasing. Specifies what
AAIs are not set up.

Account Number Invalid (0028) - AAI is pointing to an account number that is not set up in the Chart of Accounts (F0901)
file. Set up a valid account on the Chart of Accounts off menu G09411.

Record Not Set Up in Auto Acct Inst File (1829) - Tax AAI is not set up. Set up RT xxxx, or PT xxxx, PT____, or GTxxxx
in the financials AAI table.

Distribution AAI Number &1 Invalid (029P) - The Automatic Accounting Instruction (AAI) number &1 used by this
application is not defined in the Distribution/Manufacturing AAI table. The error will provide the AAI, Company, Order Type
and G/L Class Code where the error is encountered.

Posting Edit Code Does Not Allow Entry (0069) - This error indicates that the account used for the AAI used at the time
does not allow posting. No specific AAI is referenced, so some research will need to be done to determine which account is
failing. This will be dependent upon the application being used.

AAIs

Inventory AAIs

Inventory AAIs

AAI Account Purpose

Inv
4122 Inventory Inv
Journal Entry (JE) for Issues, Adjustments, Transfers
4124 Expense or COGS Inv
Inv

Inv
4126 Inventory Inv
Zero balance adjustment. Used when quantity equals zero, but dollars remain.
4128 Expense or COGS Inv
Inv

4134 Inventory
Records change to COGS when cost of an item changes Item
4136 Expense or COGS

Inv
Variance when the transaction has a different standard cost than what is in the Item Inv
4141 Standard Cost Variance
Cost (F4105) file. Inv
Inv

4152 Inventory Change to inventory value when quantity counted does not equal quantity on hand in a Cyc
4154 COGS physical inventory. Tag

4172 Inventory Fut

Change in inventory when unit cost of an item is changed through Future Cost Update.
4174 Expense or COGS Bat

Sales AAIs

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Sales AAIs
AAI Account Purpose
4220 COGS
4230 Sales/Revenue
4240 Inventory
Journal Entries to record standard sales transactions
4245 Accounts Receivable (Trade)
RC Accounts Receivable
4250 Sales Tax Liability
Records Interbranch revenue when processing options are set behind Sales Order
4260 Interbranch Revenue
Entry (P4210) and Sales Update (R42800)

4270 Advanced Price Adjustment Records discount/markup of advanced price adjustment. For more information see
4280 Advanced Price Accruals Advanced Pricing DMAAI in Sales (Doc ID 1159465.1).

4141 Standard Cost Variance
Cost of Goods Sold Performance
4225
Liability
RP Performance Liability Account
Cost of Goods Sold Performance
RQ
Liability Adjustment Account
4243 Consigned Inventory
4240 Inventory
Variance when the transaction has a different standard cost than what is in the Item
Cost (F4105) file.
Records the performance liability for the cost of goods amount until the amount is
recognized as cost of goods sold. Used beginning with the 9.1 enhancement for
Revenue Recognition 2030115.1
Records the performance liability. Used beginning with the 9.1 enhancement for
Revenue Recognition 2030115.1.
Records the Cost of Goods Sold(COGS) adjustment amount during COGS recognition.
Used beginning with the 9.1 enhancement for Revenue Recognition 2030115.1.
Used for tracking inventory at the customer's location. This AAI is used exclusively fo
internally owned shipment orders. Used beginning with the 9.1 enhancement for
Outbound Inventory Management 2056248.1.
Credits the inventory value to an inventory account. Used beginning with the 9.1
enhancement for Outbound Inventory Management 2056248.1.

Purchasing AAIs

Purchasing AAIs
AAI Account Purpose
Rec
4310 Inventory Journal Entry for Receipt
Rec

Rec
Rec
4315 Non-stock asset Journal Entry for Receipt
For
Mat

If the inventory interface for the line type used for the Commodity Structure is
4318 Non-stock Requisition SS Req
an A, then it will use AAI 4318 for the GL account. (8.11 and later)

Temporary Liability - Received Mat

4320 Journal Entry for Receipt
Not Vouchered (RNV) Rec

If the A/P Interface in the line type constants is not flagged, the 4322 AAI will
Rec
4322 AP Trade be used to determine the credit account used when processing a receipt for
Rec
this line type. (8.9 and later)

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4330 Variance Account of Inventory Record the variance when the invoice amount at voucher match is different Mat
Written to F4111 than amount at receipt.

Must have the Voucher Match Variance Account flag checked in the Line Type
definition.
* in 9.0 and 9.1, see 1638122.1
Cost Variance. Not written to Record a variance to the Cost of Sales when quantity on hand is less than
4332 Mat
F4111 quantity vouchered.
Variance Account. Record is Rec
4335 Records standard cost variance
written to Cardex F4111 Rec
Rec
4337 Material Burden Material Burden accounts for all other costs in addition to Purchase Price.
Rec
4340 Variance Account Records exchange rate variance. Mat
4350 Tax Expense or Inventory. Rec
Records tax during receipt or voucher match. 4355 not used if taxed at
Written to F4111 Rec
voucher match.
4355 Temporary Tax Liability Mat
4365 Prior to Receipt/Compl Liability
Records journal entries at specified steps in a Receipt Route. (As of XE) Mov
4370 Routing Operation
4375 Expense Debits expense account for items dispositioned off during receipt routing Mov
4385 Inventory or Landed Cost. Rec
Written to F4111 Landed Costs Rec
4390 Landed Cost Temporary Liability Sta

4400 Inventory Rec

Zero balance adjustment. Used when quantity equals zero, but dollars remain
4405 COGS or Expense Rec

Advanced Pricing AAIs

Advanced Pricing AAIs

AAI Account Purpose
4270 Price Adjustments Records discount/markup of advanced price adjustment Pric
4280 Rebate Payable Rebate Payables Pric

For more information on setting up and using the Advanced Pricing AAIs see: Automatic Accounting Instructions (AAI) for
Advanced Pricing in Sales (Doc ID 1159465.1).

Transportation AAIs

Transportation AAIs
AAI Account Purpose
4920 Freight Cost Auto Pay and Freight Allocation Fre
4921 Accured Freight Auto Pay and Freight Allocation Fre
The purpose of the 4922 AAI is to record freight variances after the R4981 Freight Fre
4922 Freight Variance
Update has been processed. to O

For more information on setting up and using the Transportation AAIs see: the Account Setup tab on E1: 49: Freight update
in Transportation (R4981) (Doc ID 2213279.2).

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REFERENCES

NOTE:1506485.1 - E1: 09: How To Effectively Manage Your Chart of Accounts In EnterpriseOne (P0901)
NOTE:1159465.1 - E1: 45: Automatic Accounting Instructions (AAI) for Advanced Pricing in Sales
NOTE:548764.1 - Advisor Webcast Details

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