The default Account Generator configuration in Oracle Purchasing builds a charge, budget, accrual, and variance account for each purchase order, release, and requisition distribution based on the distribution’s Expense, or Inventory, destination type. Oracle Purchasing always builds these accounts using the Account Generator; you cannot disable this feature.
To populate the Accrual account for distributions with an Expense destination type, the Account Generator locates the Expense AP Accrual Account that you specify in Define Purchasing Options as part of your application setup and copies it into the Accrual Account in your document. The Account Generator then overlays the balancing segment of the AP Accrual Account with the balancing segment of the charge account so that your transactions always balance by fund.
Defining Purchase Order Receipt Accruals
You can create balanced offsets for receipt accrual accounts in Oracle Purchasing by customizing the default configuration of the Account Generator to overlay the balancing segment of the AP Accrual Account with the balancing segment of the charge account so that your transactions always balance by balancing segment.
To build Purchase Order Receipt Accrual Accounts:
1. Use the same Chart of Accounts you used to build the purchase order charge accounts by balancing segment, substituting the receipt accrual liability account for the expense account. The Account Generator function is called from the Purchase Orders window to automatically create the receipt accrual liability accounts by balancing segment on each purchase order distribution.
Attention: Use the same balancing segment for the charge account and the receipt accrual account so the receipt transactions will balance by balancing segment.
2. Customize your Account Generator process