Use account derivation rules to determine the Accounting Flexfields for subledger journal entries. In addition, specify the conditions under which these rules apply. Using these capabilities, develop complex rules for defining accounts under different circumstances to meet their specific requirements.

Define a rule by Accounting Flexfield, segment, or value set. If the rule is by Accounting Flexfield, the rule determines the entire Accounting Flexfield combination. For example, an account derivation rule defined by Accounting Flexfield can be used to determine the complete supplier liability Accounting Flexfield in Payables.

Define segment rules to derive the Accounting Flexfield segment by segment. For example, a particular segment like the company segment can be determined from the Distribution Accounting Flexfield. Another segment can be determined with the use of a constant value. Creating the Accounting Flexfield one segment at a time offers greater flexibility but also requires more setup.

You can use both segment-based and flexfield-based rules to derive a single account. Subledger Accounting uses segment-specific rules where they are defined and takes the remaining values from a flexfield-based rule. For example, a user can select an account derivation rule which is for All Segments and also separately select a rule which is for one particular segment. Subledger Accounting derives accounts based upon segment-specific rules and then fills in the remaining segments with the rule that specifies All Segments. Segment-specific rules take precedence over the All Segments flexfield-based rule.

If the Create Accounting program returns an account that is end-dated or disabled and a substitute account is defined in General Ledger, Subledger Accounting uses the substitute account. The original account is stored on the journal line for audit purposes. If the substitute account is invalid and a suspense account is defined, Subledger Accounting uses the suspense account. An error message is displayed if a valid suspense account is not available.

See: Adding or Changing Individual Accounts

Define account derivation rules based on value sets in the absence of an accounting chart of accounts.

See: Overview of Values and Values Sets

Share account derivation rules across applications in the following ways:

• Assign an account derivation rule from the same or a different application to a journal line type in the Journal Lines Definitions window

  For example, to derive an expense account for journal line type Expense, assign the Projects Cost Account derivation rule owned by Projects to the Payables journal line type Expense.

• Create an account derivation rule based on another account derivation rule from another application and assign it to a journal line type

  For example, create a new account derivation rule Invoice Expense Account referencing Project Cost Account assigned in the Priorities region. Attach Invoice Expense Account rule to the journal line type Expense in the Journal Lines Definitions window.