Account Generator in AR

[banutinku]

Any one please briefly explains how we can use Account Generator in Oracle Receivables.

[SIVAKUMAR_G]

Hi

From Oracle Help Files

Using the Account Generator in Oracle Receivables
Receivables uses the Account Generator to update the balancing segment values during various accounting activities against transactions and receipts. By matching the balancing segments for different accounting activities back to the original transaction or receipt, the Account Generator ensures that Receivables uses the correct balancing segment values during this substitution process.

For example, if an invoice's balancing segment that you assess finance charges for has a value of '01' and the balancing segment of your finance charges account is '02', when Receivables accrues finance charges for this invoice, the Account Generator automatically changes the balancing segment of the finance charges account to '01'.

The Account Generator in Receivables utilizes Oracle Workflow. You can view and customize Account Generator processes through the Oracle Workflow Builder. To modify the default setup using Oracle Workflow (for example, to use a different balancing segment for either the finance charges or Receivables account), see: Customizing the Account Generator for Oracle Receivables.

Note: Some Oracle financial applications, such as Oracle Payables and Oracle Purchasing, use the Account Generator to create accounting combinations that record detailed information about each transaction. However, Oracle Receivables uses AutoAccounting to create the general ledger accounts for your manually entered or imported transactions.

Deriving Balancing Segment Values
For transaction-related activities such as adjustments and discounts, Receivables derives the balancing segment value from the receivable account that is associated with the transaction.

For receipt-related activities such as receipt write-off activity, Receivables derives the balancing segment from the Unapplied Cash account that is associated with the payment method bank account.

Note: Receivables does not substitute the balancing segment for miscellaneous cash, bank errors, or commitments (deposits and guarantees).

This table illustrates how Receivables derives the balancing segment value for various accounting activities:

Accounting Activity Original Account Setup Level Source for Balancing Segment Substitution Description of Substitution Process

Adjustments, endorsements, finance charges, and discounts (both earned and unearned) activity Receivable Activity, Tax Code (location based) The receivable account of the transaction against which the adjustment is created. The receivable activity account's balancing segment is substituted to match the balancing segment value of the receivable account of the transaction against which the adjustment is created.
Note: For these specific receivable activities, the setup determines whether the Activity GL Account or the Net Expense account on the tax code (location based) is used as the receivable activity account.
Chargeback activity (transaction-related) Receivable Activity The receivable account of the transaction against which the chargeback is created. The receivable activity account's balancing segment is substituted to match the balancing segment of the receivable account of the transaction against which the chargeback is created.
Short term debt, claims investigation, credit card refunds, chargeback activity (receipt-related), and receipt write-off activity Receivable Activity The Unapplied Cash account that is defined for the payment method bank account. The receivable activity account's balancing segment is substituted to match the balancing segment of the Unapplied Cash account that is set up on the receipt payment.
Receipt applications (exchange gain, exchange loss, and cross currency rounding) System Options The receivable account of the transaction to which the receipt application is made. The Gain, Loss, or Cross Currency Rounding account's balancing segment is substituted from the receivable account of the transaction to which the receipt application is made.
Credit memo applications System Options The receivable account of the transaction to which the application is made. The Gain, Loss account's balancing segment is substituted from the receivable account of the transaction to which the application is made.
Note: In the case of a credit memo application against a receipt, the transaction is the credit memo. Receivables thus derives the balancing segment from the receivable account of the credit memo.


Note: For adjustments to invoices, if the balancing segment on the modified account does not match that of the receivable of the invoice that was adjusted, then Receivables substitutes the balancing segment to match that of the invoice when the adjustment is approved.

Disabling the Balancing Segment Substitution Process for Activities
Optionally use the AR: Disable Receivable Activity Balancing Segment Substitution profile option to disable balancing segment substitution for receivable activities.

Note: This profile option does not affect the gain, loss, and rounding accounts that you define at the system options level.

If you disable balancing segment substitution for activities, then you must define a suspense account in the event that your activities and original transactions do not post to the same balancing segment value. Otherwise, the transfer to General Ledger will not succeed. See: Running General Ledger Interface and Defining Suspense Accounts.

The AR: Disable Receivable Activity Balancing Segment Substitution profile option impacts these activities:

adjustments
discounts (earned and unearned)
finance charges
activity applications (such as receipt write-off activity, short term debt, and claims investigation)

Please specify what is your Business requirement to use Account Generator

Regards
Sivakumar