An accounting event is a business event in Receivables that has an accounting impact. For example, creating or applying a receipt is an accounting event.
Not all business events have an accounting impact, but you can decide which events you want to monitor as accounting events. You can modify the accounting setup to create accounting for some events and not for others.
Subledger Accounting categorizes accounting events as event types. Event types are grouped into event classes that in turn are grouped into event entities. The overall grouping of these components is called an event model.
The Receivables accounting event model is predefined for you, and includes each Receivables event class and its life cycle. This accounting event model forms the basis for creating subledger accounting.
As the foundation of the event model, Receivables contains predefined event entities. An event entity enables Subledger Accounting to handle the accounting for similar business events in a consistent manner. The event entities for Receivables are:
Each event entity is associated with one or more event classes. An event class represents a category of business events for a particular activity or document. Event classes group similar event types and enable the sharing of accounting definitions.
An event type represents a business operation that you can perform for an event class. An accounting event has both an event class and an event type that affect how the Create Receivables Accounting program determines the subledger accounting for it. Event types provide the lowest level of detail for storing accounting definitions.