How To Set Up Automatic Accounting Instructions (AAIs) Within EnterpriseOne Accounts Payable (P0012)

Automatic Accounting Instructions (AAIs) are used throughout the Account Payable system. These AAIs can be established for a specific company or for default company 00000. The system searches for the AAI by specific company first, and if it is not set up, will automatically default to the AAI for company 00000. Autoamtic Accounting Instructions provide these features:

Automatic Accounting Instructions (AAIs) are rules that define the relationship between day-to-day accounting transactions and a chart of accounts.
Each AAI is associated to a specific general ledger account that consists of a business unit, object and optionally a subsidiary.
AAIs are used during posting to determine where automatic entries need to be posted.
AAIs are also used during the creation of vouchers or invoices to determine the Bank Account that these transactions are posted to.

Note: The system does not perform any validation on edits to the account number associated to an AAI (P0012). The account number is only validated at the time a transaction is entered or when a transaction is posted using the General Ledger Post (R09801) program

Scope

This document is intended for EnterpriseOne users who are setting up the Accounts Payable module for use within their organization.

Details

Prefix and Suffix

AAI items with similar purposes have the same prefix; usually 2-3 characters. For example:
PB – Accounts Payables Bank Account
RC – Accounts Receivable Trade
PKL – Accounts Payable Discount Lost
Some AAIs are followed by a Suffix, which can provide a greater flexibility in how an account is determined. A suffix can be related to:
GL offsets
Currency Code (if in multicurrency environment)
Range of accounts
Adjustment codes

AAI Hierarchy

AAIs are selected based on a hierarchy.
For an AAI without GL offsets or currency codes, the system checks for an existing AAI in the Automatic Accounting Instruction table (F0012) by:

Searching for an AAI related to the transaction company.
If the AAI does not exist for that transaction company, it uses the AAI item set up for company 00000.

AAIs do not need to be set up for every transaction company if the same account is always used. In this case, only set up the AAI for company 00000.

GL offsets

If the AAI can be associated to a GL offset, the system searches for the AAI in the Automatic Accounting Instructions Table (F0012) by:

AAI with GL offset for the transaction company.
AAI with GL offset for company 00000.
AAI without GL offset for the transaction company.
AAI without GL offset for company 00000.

Selection in a Multicurrency Environment

In multicurrency environments, the suffix on AAIs can be associated to a specific currency.
These AAIs take precedence over GL offsets:

AAI item associated to the currency code of the transaction for the transaction company.
AAI item with a suffix of the currency code of the transaction in company 00000.
AAI item associated to the GL offset for the transaction company.
AAI item associated to the GL offset for company 00000.
AAI item without a suffix associated to the transaction company.
AAI item without a suffix related to company 00000.

Shared AAIs Between AP and AR

Item NC is used for the AR/AP Netting Process that is available as of release 8.11.
E1: FIN: How To Set Up and Use AP to AR and AR to AP Netting Process With EnterpriseOne (P03B455). See Document 1991354.1 -
"How To Set Up Automatic Accounting Instructions (AAIs) Within EnterpriseOne Accounts Payable (P0012) [Video]"
Item ICCC is used for Intercompany transactions if using Intercompany Method 1 or 2 in the General Ledger Constants (P0000).
GL offsets cannot be used.
Separate AAI for each non-hub company, regardless of whether or not that company is involved in intercompany settlements.
Business unit is required.
See "Overview of Intercompany Settlement Methods (P0000)"

Video Presentation (Video)

Refer to the attachment section of this knowledge document to download the .MP4 video link to your desktop.

Set Up Accounts Payable Automatic Accounting Instructions(AAIs) (P0012)

There are three groups of AAIs for Accounts Payable, default AAIs, Miscellaneous and Multi Currency AAIs. You can fast path using AAI to access P0012 program.

Definitions for Default AAIs

Item	Item Description	Item Details
PC	Offset or Trade Account	Can be set up for use with or without a GL Offset. The GL Offset field is a four-character alphanumeric field that exists in the voucher record (Supplier Ledger table F0411). It can be manually added during voucher entry (P0411) or set as a default value in the Supplier Master application (P0401). If the GL Offset has a value, a corresponding AAI for item PCyyyy (where yyyy = value in GL Offset field) must exist. PCyyyy can be set up for a specific company, or for the Default Company (00000) only. If AAI PCyyyy is not set up at the time of voucher entry, the system returns an error If the voucher does not have a value in the GL Offset field, AAI item PC will be used. Business Unit (data dictionary item MCU) is optional. If the Business Unit is left blank, the system uses the business unit on the voucher (P0411) in conjunction with the Object Account (data dictionary item OBJ) and Subsidiary (data dictionary item SUB) defined in the AAI to determine the offset account. If this account does not exist in the Account Master table (F0901), the system produces an error during voucher entry.
PB	Default Bank Account	Based on the company number entered during Standard Voucher Entry (P0411). Can be configured for a specific company or for the Default Company (00000). Business Unit is required. Designed to automatically fill in the G/L Bank Account (ANI) field during Standard Voucher Entry (P0411). If the PB AAI does not exist, the system produces an error If a G/L Offset is used for the Trade Account AAI (PCyyyy), a matching PB AAI must exist or the system produces an error. The system uses the following hierarchy to validate the PB Automatic Accounting Instructions (AAIs). If the first item does not exist, the system looks for the next AAI: 1. PBxxx - where xxx is the currency code. 2. PByyyy - where yyyy is the GL Offset. 3. PB for the company assigned to the transaction. 4. PB for Company 00000.
PKD	Discount Taken	Used when posting a payment to the General Ledger (R09801) that contains discount taken amounts. Can be configured for a specific company or for default company 00000. Business Unit is optional.
PKL	Discount Lost	Used when posting a payment to the General Ledger (R09801) that contains discount lost amounts. Can be configured for a specific company or for default company 00000. Business Unit is optional.
PKJ AND PKJL	Job Cost	Primarily used for Job Cost to track the discount back to a job (Business Unit). Note - You may get errors on these AAIs even if your AP transaction is not related to the Job Cost module, system just validates they exist if Job Cost module is turned on in EnterpriseOne. AAI items PKJL and PKJ are used for job cost discount. They are similar to the Accounts Payable Discount AAIs (i.e. PKD and PKL), except they track discounts for a particular job. Although the discount available is calculated during voucher entry, it is not updated to the discount accounts until the voucher’s payment is posted. As per Bug 10819528 there is a change in how the payment post looks for discount AAIs. The hierarchy that the system uses to search for discount AAIs is now: Job Cost AAIs PKJ and PKJL for the transaction company. Job Cost AAIs PKJ and PKJL for Company 00000. The PKD and PKL AAIs for the transaction company. The PKD and PKL AAIs for Company 00000.

Item PB (Default Bank Account) Hierarchy

Hierarchy	Company	Description
1	Company Specific	PBxxx. The system uses PBxxx that is associated with the company entered on the voucher, where xxx is the transaction currency of the voucher.
2	Company 00000	PBxxx. The system uses PBxxx for company 00000, where xxx is the transaction currency of the voucher.
3	Company Specific	PBxxxx. The system uses PBxxxx that is associated with the company entered on the voucher, where xxxx is the G/L offset on the voucher.
4	Company 00000	PBxxxx. The system uses PBxxxx, where xxxx is the G/L offset for company 00000.
5	Company Specific	PB. The system uses PB that is associated with the company entered on the voucher.
6	Company 00000	PB. The system uses PB for company 00000.

Definitions for Miscellaneous AAIs

Item	Item Description	Item Details
PT	Tax Account	Used to track tax information in the Accounts Payable module. The system either uses PT or PTyyyy (where yyyy is the value in GL Offset entered in the Tax Rate Area) depending on which tax explanation code is used. Tax explanation codes for Use tax are tracked with the PT item. Tax explanation codes for VAT (Value Added Tax) tax are tracking with the PTyyyy item. Tax explanation code B (which is a combination of VAT and Use tax) are tracked with both the PTyyyy and the PT item. If the G/L Offset is blank, the system uses the account associated with the PT AAI. Can be configured for a specific company or for the default company (00000). Business Unit (MCU) is required. Object (OBJ) is required. Subsidiary (SUB) is optional. The following table displays the hierarchy the system uses to determine the account that VAT tax amounts are posted.

VAT Tax AAI Hierarchy

Hierarchy	Company	Description
1	Company Specific	PT + GL Offset
2	Company 00000	PT + GL Offset
3	Company Specific	PT
4	Company 00000	PT

Miscellaneous AAIs continued...

Item	Item Description	Item Details
PP and PQ	Voucher Logging	Item PP is used to track preliminary expenses prior to the redistribution of logged vouchers. It serves as a suspense account. Item PQ is used to track the offset for voucher logging. This feature is activated by checking the Use Suspense Account check box in the Company Numbers and Names application (P0010). If this option is left unchecked, the system uses AAI item PC to locate the offset account. Can be configured for a specific company or for the default company 00000.
PD	Draft Payable Account	Acts as a holding or clearing account until a draft is paid. When a draft is created, the system debits the AP Trade Account (PC AAI) and credits the Drafts Payable Account (PD AAI). When a draft is paid, the system debits the Drafts Payable Account and credit the correct bank account.
NC	Netting document	Used for the AR/AP Netting process that is available as of EnterpriseOne release 8.11

Definitions for Multi Currency AAIs

Item	Item Description	Item Details
PG and PL	Multi Currency Gain and Loss	Used if the system calculates a realized gain or loss at the time a payment is generated A gain occurs if the exchange rate during voucher entry is greater than the exchange rate during payment generation. A loss occurs if the exchange rate during voucher entry is less than the exchange rate during payment generation. Business Unit is Optional.
PV and PW	Unrealized Gain and Lose	Used when unrealized gains and losses are calculated. The AP Unrealized Gain/Loss Report (R04425) must be run in Final Mode to create gains and losses. This program generates JX documents to either the gain or loss account depending on the exchange rate at the time the program is run. This program is used to value open vouchers at a specific point in time. Business Unit is required.
PR	Unrealized Gain/Loss Offset account	Can be used instead of the AP Trade Account. Can be configured for a specific company or the default company 00000. Business Unit is required.
PY and PZ	Alternate Currency	PY is used for alternate currency gains. PZ is used for alternate currency losses. Can be configured for a specific company or for the default company 00000. Business Unit is required.
P7	Alternate Clearing account	Used as the alternate clearing account when paying vouchers in an alternate (third) currency. Can be configured for a specific company or for the default company 00000. Business Unit is required.

Accounts Payable AAI Hierarchy

AP Trade Account – PC

Identifies an offset account for Accounts Payable transactions when posting vouchers and payments.
Can be set up with a GL offset. The GL offset can be manually added during voucher entry (P0411) or set as a default value in the Supplier Master application (P04012).
Business unit is optional. If the business unit is left blank, the system uses the business unit on the voucher (P0411) in conjunction with the Object Account and Subsidiary to determine the account.

Accounts Payable – AAI PC Hierarchy

1	PCyyyy (where yyyy is the voucher GL offset) for the voucher transaction company
2	PCyyyy (where yyyy is the voucher GL offset) for company 00000
3	PC for the voucher transaction company
4	PC for company 00000
5	Error

Accounts Payable Bank – AAI PB

Designed to automatically populate the GL Bank Account during Standard Voucher Entry (based on company number).
Business unit required.
If multiple bank accounts for a company exist, define an offset PByyyyy. Note that if PByyyy is set up, PCyyyy must also exist.

Accounts Payable Bank – AAI PB Hierarchy

1	PBxxx (where xxx is the voucher currency code) for the voucher transaction company
2	PBxxx (where xxx is the voucher currency code) for company 00000
3	PByyyy (where yyyy is the voucher GL offset) for the voucher transaction company
4	PByyyy (where yyyy is the voucher GL offset) for company 00000
5	PB for the voucher transaction company
6	PB for company 00000
7	Error

Accounts Payable Discount Taken– AAI PKD

Used when posting a payment with discount to the General Ledger (R09801).
Configure for a specific company or for default company 00000.
Business unit is optional.

Accounts Payable Discount Lost – AAI PKL

Used when posting a payment with discount lost to the General Ledger (R09801).
Configure for a specific company or for default company 00000.
Business unit is optional.

Accounts Payable Discount Taken/Lost – AAI PKD/PKL Hierarchy

The hierarchy for AAI items PKD and PKL is the same.
This example shows the sequence in which the system searches for AAI item PKD:

1	PKD for the payment transaction company
2	PKD for company 00000
3	Error

Accounts Payable Tax Account – AAI PT

Used when posting (R09801) a voucher with Tax.
Subsidiary is only ignored for Use tax. Instead the system looks for the account number specified in the AAI in conjunction with the tax rate/area specified on the voucher.
Example Use tax: set up PT for 1.4433 and enter a voucher with tax rate/area DEN, the system searches for 1.4433.DEN. If the system cannot locate this account number, 1.4433 is used.

Accounts Payable Tax Account– AAI PT Hierarchy

Use taxes (tax explanation code U) do not use a GL offset to specify a tax account; the system always uses PT (blank).

1	PT for the voucher transaction company
2	PT for company 00000
3	Error

VAT taxes (tax explanation code V) use the GL offset on the Tax Rate/Area (P4008).

1	PT for the voucher transaction company
2	PT for company 00000
3	Error

Tax explanation code B (combination of VAT): PTyyyy or PT.

Accounts Payable Logged Vouchers – AAI PP and PQ

Item PP serves as a suspense account to track preliminary expenses when entering a logged voucher.
Item PQ is used to track the offset for voucher logging. This feature is activated by checking the Use Suspense Account check box in Company Numbers and Names (P0010). If this option is left unchecked, the system uses AAI item PC to locate the offset account.
These AAIs can be configured for a specific company or for the default company 00000.

Accounts Payable Logged Vouchers – AAI PP/PQ Hierarchy

The hierarchy for AAI PP is the same as the hierarchy for PB AAIs:

1	PPxxx (where xxx is the voucher currency code) for the voucher transaction company
2	PPxxx (where xxx is the voucher currency code) for company 00000
3	PPyyyy (where yyyy is the GL offset on the voucher) for the voucher transaction company
4	PPyyyy (where yyyy is the GL offset on the voucher) for company 00000
5	PP for the voucher transaction company
6	PP for company 00000
7	Error

The hierarchy for AAI PQ is the same as the hierarchy for PC AAIs:

1	PQyyyy (where yyyy is the voucher GL offset) for the voucher transaction company
2	PQyyyy (where yyyy is the voucher GL offset) for company 00000
3	PQ for the voucher transaction company
4	PQ for company 00000
5	Error

Accounts Payable Foreign Currency Gain – AAI PG

Used when the system calculates a realized gain at the time a payment is generated.
A gain occurs when the payment amount is less than the voucher amount (for the domestic value).
Business unit is required.

Accounts Payable Foreign Currency Loss – AAI PL

Used when the system calculates a realized loss at the time a payment is generated.
A loss occurs when the payment amount is more than the voucher amount (for the domestic value).
Business unit is required.

Accounts Payable Foreign Currency Gain/Loss – AAI PG/PL Hierarchy

The hierarchy for AAI PG and PL is the same.
This example shows the sequence in which the system searches for AAI item PG:

1	PGxxx (where xxx is the payment currency code) for the payment transaction company
2	PGxxx (where xxx is the payment currency code) for company 00000
3	PGyyyy (where yyyy is the GL offset on the paid voucher) for the payment transaction company
4	PGyyyy (where yyyy is the GL offset on the paid voucher) for company 00000
5	PG for the payment transaction company
6	PG for company 00000
7	Error

Accounts Payable Alternate Clearing Account – AAI P7

Used as the alternate clearing account when paying vouchers in an alternate currency to track the conversion from the payment amount to the original voucher amount by creating an audit trail.
Business unit is required.

Hierarchy:

1	P7 for the payment transaction company
2	P7 for company 00000
3	Error

Accounts Payable Alternate Currency Gain – AAI PY

Used for gains created during alternate currency payment.
Can be configured for a specific company or for default company 00000.
Business unit is required.

Accounts Payable Alternate Currency Loss – AAI PZ

Used for losses created during alternate currency payment.
Can be configured for a specific company or for default company 00000.
Business unit is required.

Accounts Payable Alternate Currency Gain/Loss – AAI PY/PZ Hierarchy

The hierarchy for AAI PY and PZ is the same.
This example shows the sequence in which the system searches for AAI item PY:

1	PYxxx (where xxx is the payment currency code) for the payment transaction company
2	PYxxx (where xxx is the payment currency code) for company 00000
3	PYyyyy (where yyyy is the GL offset on the paid voucher) for the payment transaction company
4	PYyyyy (where yyyy is the GL offset on the paid voucher) for company 00000
5	PY for the payment transaction company
6	PY for company 00000
7	Error

Accounts Payable Unrealized Gain/Loss – AAIs PV, PW, PR

The AP Unrealized Gain/Loss Report (R04425) is used to value open vouchers at a specific point in time.
Must be run in Final Mode to create gains and losses.
Generates JX documents to either the gain or loss account depending on the exchange rate at the time the program is run.
Uses the following AAIs:
PV: system-generated unrealized gains.
PW: system-generated unrealized losses.
PR is used in place of the AP Trade Account (offset account).
Note: Business unit is required for all three AAIs.

Accounts Payable Unrealized Gain/Loss – AAIs PV/PW/PR Hierarchy

The hierarchy for AAI PV, PW, and PR is the same.
This example shows the sequence in which the system searches for AAI item PV:

1	PVxxx (where xxx is the voucher currency code) for the voucher transaction company
2	PVxxx (where xxx is the voucher currency code) for company 00000
3	PVyyyy (where yyyy is the voucher GL offset) for the voucher transaction company
4	PVyyyy (where yyyy is the voucher GL offset) for company 00000
5	PV for the voucher transaction company
6	PV for company 00000
7	Error

Troubleshooting Automatic Accounting Instructions (AAIs)

Please refer to our new AAI troubleshooting Troubleshooting Automatic Accounting Instructions Within EnterpriseOne Accounts Payable (P0012)

Frequently Asked Questions

Question 1: How can the AP Trade Account AAI be configured to use the Business Unit instead of Company?

Answer 1: Configure the default AP Trade Account (PC) AAI for the default company 00000. In this default PC AAI, do not include a business unit. It this field is left blank, the system uses the business unit entered in the voucher record in the Accounts Payable Ledger (F0411) to concatenate onto the object and subsidiary account defined in the AAI.

Question 2: Is the GL Offset taken into consideration when posting discounts to the PDK and PKL AAIs?

Answer 2: The system does not use the GL Offset (GLC) to determine the correct PKD and PKL AAIs for posting discounts. These AAIs must be set up by company. However, it is possible to get the discount to follow the company or business unit of the distribution accounts by using the Multi Currency Single Supplier application (P041016). This is possible if the business unit of the AAI is left blank. The system uses the business unit from the distribution account entered in this application. See question/answer number 3.

Question 3: How can the AP Trade Account be determined based on distribution accounts instead of the single business unit or company of the voucher?

Answer 3: To use distribution accounts to determine the AP Trade Account (AAI PC), The Multi Company-Single Supplier program (P041016) can be used. This program creates the AP Offset based on the company of the business unit entered into the Account Number (ANI) field. If the AAI item PC does not contain a business unit, the business unit entered for the distribution account will be concatenated to the object and subsidiary account. This functionality allows the offset to follow the distribution business unit.

Question 4: Is it possible to use multiple PC AAI items for a single supplier?

Answer 4: The default GL Offset that is used to determine which PC AAI to use is defined in a supplier’s Supplier Master (P04012) record. It is not possible to attach two different default GL Offsets to a single supplier. However, the the GL offset can be overwritten by the user during voucher entry.

Question 5: Is it possible set up multiple discount AAI items PKD and PKL within the same company, but for different business units?

Answer 5: PKD and PKL can only be set up for company 00000 or a specific company. There cannot be additional AAIs for a single company.