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You have come to the right place, if you are facing either of the following situations:

  • Do you see an increasing number of Account Master (F0901) records in your system?
  • Is the Next Number for Account ID is nearing its limit (99,999,999)?
  • Did you notice an increasing number of Account Ledger (F0911) and Account Balances (F0902) transactions in your system?
  • You realized that you are keeping many more years of data in the system than is necessary for business or statutory reasons?


Situation

  Since Model Chart of Accounts are used as a basis for creating accounts for Business Units, Projects, and Jobs:

  • These models often contain every possible account for a Business Unit, Project, or Job.
  • Many of these accounts are unused by the Business Unit, Project, or Job.
  • These unused accounts are not removed from the system.


Recommendations

  • Evaluate your Business Units, Projects, and Jobs for best fit into Model Chart of Accounts.
    • Determine if there are distinct categories of Business Units, Projects, or Jobs that have different account needs.
    • Consider creating separate models for these variations to optimize the number of accounts in a model.
  • Define a process for purging unused accounts after Projects or Jobs close.
  • Define and implement a Financial Purge and Archive Strategy so that your live system is not carrying unnecessary data.  This data includes but is not limited to Account Master, G/L Transactions, Account Balances, A/R transactions, and A/P transactions.


Results

  • Customers have been able to dramatically reduce the number of accounts and the volume of financial data in their production environments.
  • Customers have found their Financial Reporting performance improves with the reduction of transactions and accounts.
  • Customers have found they are no longer in danger of running out of Account IDs.

Cash basis accounting is an accounting method that recognizes revenue when cash is “received” and expenses are recognized, when cash is “paid” out. This particular accounting method shows only cash that is actually received or disbursed during a particular accounting period. The Cash Basis Accounting is in contrast to the Accrual Basis of Accounting, where revenues are recognized when they are “earned” and expenses are matched to revenues or the accounting period when they are “incurred”. So even though Cash Basis Accounting may not be in compliance with accounting's matching principle, it is relatively simpler than the Accrual Basis Accounting and might be required to use due to a requirement in an oil well lease, venture capital, or partnership.


The timing of receipts and disbursements might differ from the period of operating activities. Therefore, the period during which cash basis transactions are recorded might differ from the period during which transactions are recorded for accrual accounting.


The JD Edwards EnterpriseOne product by default maintains Accrual entries in the AA (Actual Amount) ledger. When you use Cash Basis accounting, the system generates parallel transactions from the AA ledger and updates the AZ (Cash Basis) ledger.


Understanding Accrual Entries


Transactions involving the receipt and disbursement of money occur as receipts and payments in the EnterpriseOne Accounts Receivable and EnterpriseOne Accounts Payable systems. For accrual entries, the system creates debits and credits to the bank account in the F0911 table for these batch types:


  • K: Automatic payments
  • M: Manual payments with match
  • W: Manual payments without match
  • RB: Receipts

 

The system creates the entry as one sided with a document type of PK, PN, or PT for Accounts Payable and RC or RK for Accounts Receivable. It then creates a balancing entry in the accounts payable and accounts receivable trade accounts with a document type of AE automatic entry. Because the system creates both documents in the same batch, the batch is in balance and can be posted without error.


Understanding Cash Basis


In order to determine the best business practices, you must understand how the system creates cash basis entries for the JD Edwards EnterpriseOne General Accounting, JD Edwards EnterpriseOne Accounts Payable, and JD Edwards EnterpriseOne Accounts Receivable systems.


The Create Cash Basis Entries program (R11C850) always creates cash basis entries for Account Ledger transactions, regardless of the batch type, and then launches additional programs to create accounts payable and accounts receivable balancing entries for batches K, M, W, and RB.


For payments (Accounts Payable transactions) and receipts (Accounts Receivable transactions) , the system:


  • Excludes general ledger transactions for the corresponding expense and revenue accounts because those document types (such as PV and RI) are in UDC 00/DX.
  • To balance the cash basis entry, the system automatically runs the Create Cash Basis Entries - A/P (R11C854) and Create Cash Basis Entries - A/R (R11C853) programs to retrieve the expense and revenue accounts.

 

  You can run Cash Basis program (R11C850) to create cash basis entries in following ways:


  • Running R11C850 independently from menu or batch versions


When you setup cash basis accounting for the first time, you should run the Create Cash Basis Entries program from the menu instead of from the General Ledger Post program. All transactions that were previously entered must be processed for cash basis accounting; therefore, the program requires additional processing time and might run more efficiently during off-peak hours. If you create cash basis entries periodically, such as weekly, monthly, or quarterly, you can control when to create cash basis entries by running the Create Cash Basis Entries program from the menu or batch versions independently.


  • General Ledger Post Report program (R09801) calling Cash Basis (R11C850)


After you create cash basis entries, you can ensure that your AZ ledger has the most up to date information as cash is received or disbursed by activating a processing option in the General Ledger Post program (R09801) under the Cash Basis Tab. To activate the cash basis processing option, you designate the version of the Create Cash Basis Entries program that you want to run. You can activate the cash basis processing option in versions of the General Ledger Post program for these batch types only:


    • G: General ledger
    • K: Automatic payments
    • M: Manual payments with match
    • W: Manual payments without match
    • RB: Cash Receipts


For more information on Cash Basis Accounting setup, detailed examples of how cash basis records are created for cash receipts and manual payments, please refer to the following KM documents:


  • Overview of Cash Basis Accounting (Doc ID 1458454.1)
  • Frequently Asked Questions regarding Cash Basis Accounting (Doc ID 1462188.1)

If your company reorganizes or acquires another business, you might need to move an existing business unit to a different company. You complete this move by changing the company number on the business unit and then updating the relevant tables with the new company number.

 

Following graphic illustrates the process of moving Business Unit 3 from Company 1 to Company 200:

 

Moving_Business_Unit.png

 

You achieve this by running following integrity reports in update mode in sequential order:

 

  1. Accounts without Business Units (R097041)
  2. Account Balance without Account Master (R097031)
  3. Transactions without Account Master (R097021)


Additionally, if your company has recently expanded or merged with another company, or a management decision has been made to change financial reporting, you might need to change the company account structures in the chart of accounts. This task might involve:

 

  • Creating new business units and moving existing account detail and balances to the new business units. You can change the business unit portion of the account number on many accounts at once by globally changing the business units. For example, you can change business unit 501 to business unit 301 for all object and object.subsidiary accounts. You can run the Global Business Unit Change application (P09812) to change business unit for multiple accounts.
  • Creating new object or object.subsidiary accounts under an existing or new business unit, and moving existing account detail and balances to the new object.subsidiary or business unit.object.subsidiary. For example, you can change object account 1131 to 1132 for all business units in company 1 or you might change the subsidiary portion of account 1110.BEAR i.e. BEAR to 2220 for data entry efficiency. For these scenarios, you can run the Global Account Number Change application (P09803) to change object accounts for one company or for all companies and Global Subsidiary Update application (P09805) to change Subsidiary for multiple accounts.

 

In addition to changing the structure of your accounts, you can also run programs that:


  • Change Account information. For instance, you can run the Change Account Information program (R09813) to change information such as account description or posting edit code for several accounts at one time.
  • Change Model/Consolidation field. For instance, you can run the Update Model/Consolidated Field program (R0006QD) if you change the value of the Model/Consolidation field on a business unit. This program updates the Model/Consolidation field on all accounts in the business unit to match the value for the field for the business unit.
  • Update Category Codes. For instance you can run the Update Cat Codes F0101>F0006 program (R098021) to ensure that the category code information for a business unit in the F0101 table matches the category code information for the business unit in the Business Unit Master table (F0006).

 

More detailed information on Global Updates applications can be found in the following KM documents:

  • How To Run Global Updates for Organizational and Account Structure Revisions In EnterpriseOne (Doc ID 1390947.1)
  • How To Change the Company Number for a Business Unit In EnterpriseOne (Doc ID 664718.1)
  • How To Run Global Update To Change Account Information (Doc ID 664713.1)
  • Global Update: Update the Model/ Consolidated Field (Doc ID 1393249.1)
  • How To Run Update Category Codes F0101>F0006 program For Business Units In EnterpriseOne (Doc ID 1393213.1)

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