Oracle ERP Cloud: How to Derive Different Segments of Depreciation Expense Account from AP Invoice Distribution

Customers have a common requirement to populate different segments from AP Invoice Distribution to Depreciation Expense Account during Mass Addition Process. By default, the segments for Depreciation Expense Accounts are derived from Asset Category Depreciation Expense Account assigned to the asset category source line.

Oracle provides Transaction Accounting Builder (TAB) functionality which allows more flexibility to derive the Depreciation Expense Account for source lines in Fusion Assets.

TAB consists of two major concepts:
-> Transaction Account Definitions (TAD)
-> Transaction Account Types (TAT)

How to access Manage Transaction Account Definitions (TAD)

1. Setup and Maintenance > Define Transaction Account Rules
   (Scope should be Assets)

2. Click on Manage Transaction Account Definitions
   Oracle provides a seeded Transaction Accounting Definition – Asset Depreciation Expense Account which cannot be edited and it is not specific to any Chart Of Accounts.We can create your own definition and assign account rules to your defined accounting segments to meet the specific business needs for the Expense Account for the source lines.You can create Chart of Accounts (COA) specific definition but note that once the definition is saved, the COA cannot be modified or removed.Definition must be activated once a custom definition is created or modified

How to access ‘Manage Transaction Account Types (TAT)

1. Setup and Maintenance > Define Transaction Account Rules
2. Click on Manage Transaction Account Types
3. Click on Expense Account link
   There are only Five sources under Source Assignments that are allowed sources to be used with Transaction Account Builder. We have to create our own account rules but they must use one of the above sources.
   Any other sources or custom sources are not supported with TAB.
   

How to create Account Rules
Example to derive Cost Center Segment from AP Invoice Distributions

1. Setup and Maintenance > Manage Account Rules
2. Create New
3. Actions -> Change Status -> Activate
   Assign the Account Rule to Transaction Accounting Definition and Activate it.
   

Assign Transaction Accounting Definition (TAD) at the ledger level

1. Setup and Maintenance> Manage Subledger Accounting Options
2. Search for your ledger
3. Under Search Results, expand by clicking on the arrow beside the ledger name
4. Click on Edit icon (pencil) Accounting Options for Assets
5. Select the definition from the Transaction Account Builder list of values (LOV)
   
6. Save and Close.

Enable TAB for Expense Account Defaulting

1. Setup and Maintenance > Manage Fixed Assets Lookups
2. Enter ‘ORA_FA_MASSADD_MAP_EXP_BASE’ in Lookup Type field and click Search
3. Check Enabled box for ORA_TAB_GENERATION lookup type.
4. Uncheck the flag for the other two lookup codes.
5. Save and Close
   

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