Accounting information defaulting hierarchy

The Requisitions application automatically decides the accounting information placed on a requisition. The accounting information is determined from a hierarchy that uses several criteria, including the requesting location type, the transaction type, the item type, and whether the requisition was created from a price agreement. Sometimes, the hierarchy for accounting units is different from those for accounts.

Direct Transfer or Intransit Transfer requesting locations

Direct Transfer or Intransit Transfer requesting locations use these hierarchy and processing rules for accounting information based on the transaction type. Direct Transfer or Intransit Transfer locations are inventory locations that store items, that use transaction types of direct transfer and intransit transfer, and that issue items to non-inventory (non-stock) locations.

Stock to stock transaction

A stock to stock transaction transfers inventory items from one inventory location to another inventory location. These processing rules are used for accounting information for a stock to stock transaction:

  • Accounting units, accounts, or subaccounts cannot be overridden on a requisition.

  • Account information does not display on the line detail on Requisition (RQ10.1).

  • The inventory account from the General Ledger category is credited for the From location and debited for the requesting location.

Stock to issue transaction

A stock to issue transaction moves inventory items from an inventory location to a location where the item is non-stock. Typically, the To location is an issue (non-inventory) requesting location. In addition, the To location can be an inventory location that is also defined as an issue (non-stock) requesting location for items that are consumed, such office supplies. These processing rules are used for accounting information for a stock to issue transaction.

Issue requesting locations

Issue requesting locations use this accounting information hierarchy for all item types. Issue requesting locations are the same as non-stock requesting locations. An Issue requesting location only requests items and is required to use a transaction type of issue. The accounting information hierarchy is different for accounting units and accounts. These processing rules are used for accounting information for issue requesting locations:

  • The inventory account from the general ledger category is credited for the From location for inventory (I) items during transaction posting.

  • For non-stock (N), special (X), and service (S) items, the accounting information defaults to the purchase order created from the requisition.

  • The Defaulting Hierarchies shown in the tables below are used to determine the accounting unit, account, and subaccount that are debited. Defaulting hierarchy for Accounting Unit Defaulting hierarchy for account and subaccount

Defaulting hierarchy for Accounting Unit

The defaulting hierarchy for Accounting Unit is shown in the table below, listed from highest to lowest. (The highest entry overrides the next lowest.)

Par/Cart requesting location GL category
Vendor agreement with GL commit flag set to Y
Manually specified at line
Template line PO15 or template line AU from RQ Loc flag set to Y
From location GL category AU if IC Loc flag set to Y
Requesting location RQ01 (at header of requisition)
Requisition header (manually specified) RQ10
Agreement participant PO25.3
If no accounting unit is found, you must specify the accounting unit.

Defaulting hierarchy for the Accounting Unit uses these rules:

  • You select the accounting unit for each line.

  • If the accounting unit is not selected for each line, the Requisitions application searches for the line defaults information. The accounting information defaults from the line defaults information, if found.

  • If the accounting unit is not selected as part of the line defaults information, Requisitions searches for a price agreement for the item. If a price agreement is found, Requisitions uses the information specified on Vendor Agreement Participants (PO25.3). You can specify the requesting location or the accounting unit. If you select the requesting location, Requisitions uses the accounting unit from that location, if the accounting unit is specified. If you select an accounting unit on Vendor Agreement Participants (PO25.3), Requisitions uses the specified accounting unit.

  • If there is no price agreement for the item, Requisitions uses the accounting unit specified in the requisition header. If there is no accounting unit specified in the requisition header, the accounting unit defaults from the requesting location.

  • If Requisitions does not find any accounting unit information, you must specify an accounting unit.

Defaulting hierarchy for account and subaccount

Account origination as shown in this table is from highest to lowest. (The highest entry overrides the next lowest.)

Par/Cart requesting location general ledger category
Vendor agreement with general ledger commit flag set to Y
Manually specified at line
Template line PO15 or template line accounting unit from RQ Loc flag set to Y
Requesting location RQ01 (at header of requisition)
From company/location general ledger category
Item Master account
Requisition header (manually specified) RQ10
Agreement line
If no accounting is found, you must specify the account

Defaulting hierarchy for Account and Subaccount uses these rules:

  • You specify an account.

  • If you do not specify an account, Requisitions searches the line defaults for an account.

  • If it does not find line defaults, it searches for a price agreement for the item. If a price agreement is found, Requisitions uses the account from the price agreement line. If a price agreement line is not found or if there is no account found on the price agreement, Requisitions uses the account in the requisition header.

  • If it does not find the account in the requisition header, Requisitions uses the account for the requesting location. If it does not find the account for the requesting location, it searches for an Item Location record at the From location.

  • If an Item Location record at the From location is found, the account defaults from the issue account of the general ledger category.

  • If Requisitions does not find any accounting unit information, you must specify an accounting unit.