Vaibhav Suhane's Oracle ERP Financials Tutorial: Fusion Multiperiod Accounting Concept with Screen ...

Vaibhav Suhane's Oracle ERP Financials Tutorial: Fusion Multiperiod Accounting Concept with Screen ...: Fusion Multiperiod Accounting Multiperiod accounting feature allows user to create accounting entries across more than one accounting...

Fusion Multiperiod Accounting Concept with Screen Shots

Fusion Multiperiod Accounting

Multiperiod accounting feature allows user to create accounting entries across more than one accounting period for a single accounting event.  The functionality is primarily used to defer recognition of expense incurred across multiple GL periods through which the benefits will accrue.  For example, expenses incurred on annual maintenance contracts for equipment’s, rent paid in advance etc.

For creating a transaction with multiperiod accounting users need to enter the multiperiod accounting start date, end date and accrual account.  

Start Date: Date when multiperiod accounting starts

End Date: Date when multiperiod accounting ends

Accrual Account: Account where the expenses will be parked till they are recognized.

These three new columns are available under the column group multiperiod accounting and are hidden by default. The new attributes are available on both the invoice line and invoice distributions. The values assigned at invoice line level will be automatically defaulted on to the invoice distributions, excluding recoverable tax distributions, which the user can override. 

1. Create Standard Invoice in AP: 

Multiperiod invoice will have two accounts on the lines and distributions. The existing expense account or distribution set will continue to be used to capture the account to which the expenses have to be booked. While another account is used to park the expenses in the interim account till the entire expenditure in recognized. This account is called the multiperiod accrual account. When the invoice is accounted the expenses will initially be debited to the multiperiod accrual account and later when the multiperiod accounting program is submitted a portion of the total expenses will be recognized and moved from accrual account to the actual expense account. The amount to be recognized will depend on the number of accounting periods for which recognition has to be done and the recognition formula used in the accounting rules. 

 

2. Go to View-->Columns-->Multiperiod Accounting-->Select Start Date, End Date and Accrual Account.

 

3. Enter Required fields enabled above in Multiperiod Accounting block.

 

4. Validate and Create Accounting for the Invoice.

 

 

5. Review the created Accounting entries.

 

 

6.  Run “Create Multiperiod Accounting” Job to recognize the Accrued Revenue

 

 

 

   7. Review Report output