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Editor's Notes

• #2: Manufacturing AAIs instruct programs to post to specific General Ledger accounts. “ Manufacturing fund movement."
• #3: Using combinations of 5 key elements or filtering values, AAIs in the Manufacturing system use tables to determine the correct account that transactions will post to. When a transaction is made in the Manufacturing system, for example completion of a work order with scrap values, the combination of keys will be used to determine the specific account the scrap value is written to.
• #4: The five keys for Manufacturing AAIs are: Work Order Type, Company Number, Document Type, G/L Class Code and Cost Type. Order Type (document type) Company Number (comes from the branch plant where the work order was created) Document Type ( of transaction) *** Keep in mind both Document Type and Order Type Refer to UDC table 00/DT. GL Class Code ( UDC table – no logic built in) Cost Type ( Tracks the same kind of information as the cost component; A1, B1,B2, etc.) Depending on the AAI, NOT ALL 5 KEYS are used! The exception is: 3120 - Work in Progress uses 4 KEYS: Order Type, Company Number, GL Class Code and Cost Type We will see this in a few minutes.
• #5: The 1 st Key is Work Order Type . You will find the order type (UDC 00/DT) in the Enter Change Work Order Form. To Demonstrate this, use menu G3111 (Daily Order Preparation – Discrete) Enter/Change Order. The order type for a rate schedule is SC. SC document types are not set up in Pristine’s AAIs.
• #6: The 2 nd Key is Company Number. On the previous work order, in the Work Order Header, the Branch Plant was M30. What company is M30 Associated with? Go to Revise Single Business Unit, menu G09411. Look up M30. Looking at this Screen capture, M30 is associated with Company 200.
• #7: The 3 rd Key is Document Type . This comes from a processing option on whatever program you are using to do Issues/Completions. For Example on menu G3111, look at the processing options for Inventory Issues, (program P31113). Note: You do not have to use IM. These are user defined.
• #8: The 4 th Key is the G/L Class Code . All Manufacturing Journal Entries will use the GL Class Code of the Parent item in the primary location. Again, the GL Class code is simply a UDC table, (there is no logic built in). Exception: The credit side of an ‘IM’ Journal Entry transaction. When a purchase order is received, it increases the value of the asset account based on the G/L class code and primary location of the component/raw material. The system must be able to decrease the asset account when material is issued from inventory. Since the system does not have a parent relationship to associate with the G/L class and the primary location, the association must be with the component’s own G/L class cost and primary location. To demonstrate this, use menu G4111 Inventory Master/Transactions to access Item Branch/Plant. Search for an item and take the ‘Row’ exit to Location Revisions.
• #9: A common mistake is thinking the AAIs use the G/L Class Code from the Item Master, as seen here. To demonstrate this access menu G4111 for Item Master Revisions. Select an item and use ‘F1’ to display the G/L Class Code Help information. The G/L class code is used as one of the filters (keys) used to point to a specific object account for transactions to be logged to.
• #10: The 5 th Key is Cost Type . Cost Type comes from the P30026 (Enter Change Cost Components) To demonstrate this use menu G3014 Product Costing to access Enter/Change Cost Components. Find an item with existing cost type values.
• #11: Shown here is AAI table number 3110, it uses all five keys. Illustrated in Green It is the unique combination of the 5 keys that will yield at least an object account. There are two types of documents listed: “Do Ty” (Document Type), and ‘Or Ty” (Order Type). Document type is the Document type used in the inventory transaction, such as IM (Material Issue) or IH (Labor). Order Type is the Order type used in the Order, such as a work order (WO) or maintenance order (MN). The default is WO seen here, however the user defined order types can be created. Both the Document type and the Order Type are defined in UDC table OO/DT. To demonstrate this use menu G3141 Shop Floor Maintenance Setup. Access Automatic Accounting Instructions for AAI 3110. If transactions are against a company that is not defined in the AAI Table, then the system will default to company 00000. Next let’s look at an AAI table number that uses four of the five keys.
• #12: Shown here is AAI table number 3120, it uses four keys. Seen in red. To demonstrate this use G3141 Shop Floor Management Setup to access AAI 3120.
• #14: How will the system search for an appropriate AAI? 1. First it looks for a Work Order type, Company number(that the branch plant belongs to) and GL class code. For example, if we look at work order# 451080, it is using Work Order Type WO, item 2600 (used to find the GL Class Code) and is associated with Branch/Plant C30 (Used to find Company #). What happens when the company number associated with the Branch plant used is not defined in the AAI table? It will look for Company 00000. Company 00000 is actually a “Wild Card” or “Default” company designator, used when no branch/plant match is found, to still obtain a valid object account. Note: Use “wild card” values very cautiously. If all accounts are set up initially, it is less costly to operate the business. Staff resources are required to resolve any invalid account information each time ledger values are posted, which is likely to be each and every month. It becomes more difficult to troubleshoot account issues when using ‘wild cards’ to determine account information.
• #15: We see in this particular example that branch plant C30 is associated with Company 50. To demonstrate this use menu G09411 Organization and Account Setup. Access Revise Single Business Unit and inquire on a business unit to see the associated company. (Note: The C30 examples are not contained within the pristine demonstration data.)
• #16: Item Number 2010 uses cost types A1 and B1 To demonstrate this use G3014 Product Costing to access Enter/Change Cost Components. Demonstrate the A1 cost type for item 2010 in branch/plant D30.
• #17: Additionally, Item Number 2010 has a G/L Class of IN30. Here is the information we have, so far: Order Type = WO Company = 50 GL Class code = IN30 Cost Type = A1 At this point we have not created a transaction such as IM, IH, IV or IA. Let’s see what is set up in the AAI table for the information we have.
• #18: If we wish to create a Material Issue, (doc type IM), one of the AAI’s used is the 3120 – Work in Process. (We will get into the AAI used for particular transaction types, next.) We know: Order Type = WO Company = 50 GL Class code = IN30 Cost Type = A1
• #19: Note, that company 50 is not listed here. The B1 cost type is only assigned to company 200 and Company 00000. What happens when the company number associated with the Branch plant used is not defined in the AAI table? It will look for Company 00000. Note the branch plant is blank which means the transaction will be created using whatever branch plant is on the work order. In this case the Branch plant used will be D30.
• #20: In our example, within the AAI table, we had an AAI set up for company 200 (which branch plant D30 belongs to), with a cost type of B1. This particular AAI references object account 1720. When the entry is created, amounts are booked to D30.1720.B1 The cost component column is entitled Sub, when entries are created in general accounting, the cost component is tracked as a subsidiary. Subsidiary accounts come from: The AAI Table Cost Code from the Work Order Header
• #21: Back to the AAIs, lets talk about a couple other characteristics of the AAIs. Per the previous example with the Journal Entry, you saw that the B1 cost type(Labor) was used as the subsidiary in the account number. Where is that value coming from; the Cost Type column or the Sub column? It is coming from the sub column. In this example we are going to four different accounts for Labor.
• #22: Four types of Labor associated with the Labor object account, 1721: B1 = Direct Labor B2 = Setup Labor B3 = Machine Run B4 = Labor Efficiency If we were using a item number that had all four of these cost types associated with it, when transactions were created we would have amounts going to four different account numbers. (see next slide)
• #23: (Continued from previous slide notes) Like the accounts you see here. What if we did not want all of this detail? What if we wanted these three accounts summed into one account, so we would have one transaction of $56.00 (40.80 +6.93+8.27), and use an account number such as D30.1720.LAB. How could we set up our AAIs to accomplish this? (See next slide)
• #24: In the Sub column of your AAIs, assign LAB to all four cost types. Or if you wanted transactions with D30.1721 only you could have blanks in the sub column. (See next slide)
• #25: (Continued from the previous slide’s notes) Like this. Now, for the last characteristic. What does the **** in the G/L Cat column signify? **** means that this AAI will accept ANY G/L Class Code, and as long as the other keys match, (for example: Company Number, Order Type, Cost Type, etc.), the system will create a transaction. When used as a “Wild Card” value, **** allows any G/L Class Code the opportunity to use this line to define the object account when the system cannot find a corresponding exact table match. If the G/L value **** is defined as a valid value in the UDC, it is no longer a “Wild Card”. In this example if we were using branch plant D30, an entry would be created using account number D30.1715. The same caution should be exercised for using the “Wild Card” G/L Class Code as for use of ‘Company 00000’. It is more time consuming during setup to create all G/L key combinations, but it will be more costly during actual processing when resources are required to research and correct invalid account information prior to posting monthly entries. Each record will still need to be associated back to the correct G/L class code prior to posting. There is a search format for the AAIs. When multiple AAIs are set up for a company, (for example: company 200), how does the system know whether to use GL Class code of IN30 or ****? (See next slide)
• #26: First the system will search for a GL class code corresponding to the G/L class on the Item Location. If we were using a G/L class code of IN77, it is obviously not here. So… the system will look next for G/L Class code ****. Since **** means accept any G/L Class code, the object account referenced by G/L Class Code **** is used. The account number used will be D30.1715, not D30.1715.A1 (used in IN30)
• #27: If the GL class code on the Item Location was IN30, the system would first look for an AAI using GL Class code of IN30, associated with the WO company (which for our example is 50). If it cannot find a GL Class code of IN30 associated with Company 50, then it looks for a GL Class code of **** for Company 50. If for example, the system could not find any AAIs for company 50, it would look at the Default company.
• #28: Let’s shake it up a little! Take a look at this situation: You have a work order with Branch/Plant belonging to Company 70. The G/L Class Code for the primary location of the item used on the work order is IN80. What Object Account will be used by the transaction? Advance to the Polling �ݺ�ߣ – Have participants select their choice of object accounts. The correct answer is Object 1760 .
• #29: Each type of Transactions that we perform on a Work Order will use specific AAI’s. We will be discussing these transactions using “Standard Costing” criteria.
• #30: Each type of Transactions that we perform on a Work Order will use specific AAI’s. The sole purpose of a Variance Account is to bring your WIP Account to zero (P31804) In order to do that, the IV Journal Entries (variance JE’s) will Debit OR Credit the 3120 AAI Table AND Credit or Debit one of the five Variance Tables. (Which ever will bring your WIP account closest to a zero balance) AAI 3100 Variances Labor Material Planned Engineered Other
• #31: Purpose: To see the AAIs, Object Accounts and Documents Types that are used in creation of manufacturing transactions Let’s take each transaction separately.
• #33: Material issues may be within a single site, or material management may be processed between multiple facilities. The use of AAI functionality is identical, the difference is limited to the branch/plant (business unit) that will be utilized in the transaction account based on the 5 key combinations being utilized.
• #34: The 5000 value consists of Actual issues * Frozen Standard Costs. For example. Frozen cost of $5.00 per unit multiplied by 1000 units actually issued. The account that is debited is referenced in the table for AAI 3120, as well as for AAI 3110.
• #37: Manufacturing begins working on the work order, incurring cost such as Labor in this case our total is 1200. For standard costing items, this consists of Actual Labor * Frozen Work Center Rates
• #40: This consists of Units Completed * Frozen Standard (F30026) The Total WIP was 6200, but there is 200 units (dollars) worth of scrap, so only completed entries are added to the Finished Goods account. Referenced by AAI 3130 on the chart. Note : Web seminar participants might be polled to see if they recall what AAI will be used to account for the items being scrapped. Will the scrap value remain in 3120 or move to 3130? Will another AAI be utilized instead to account for the scrap value? Instructor could have participants change seat color indicator to a different color for each different response. (If using Placeware web access)
• #43: This consists of Units Completed * Frozen Standard (F30026) Component Scrap transactions do not write Journal Entries In this example, the subsidiary account ‘scrap’ is being utilized.
• #45: The Purpose of the IV is to bring WIP to zero. Depending on WIP account balance, will debit or credit to clear the variance from WIP. The credit side of the IM transaction uses the G/L Class Codes of all the components to write journal entries when issuing raw material out of inventory. The debit side of the IM transaction and all other transactions use the G/L Class Code of the parent to generate journal entries.
• #47: Setup Would include: Setting up a Outside Operations Item number Ex. 8101*OP10 Set up a Purchase Item to go along with parent # and outside op #. In the routing: a. Setting PO Y/N Flag to “Y” b. Adding a Supplier c. Set Cost Component to D1, for example In the Item Master: a. Set stocking type to “X” b. Set Line type to “X” In the UDC: OO/DT, find doc type D1 (or user defined) a. Set the special handling to “1” Create the Work Order Create a Work Order for the Parent Number. Run Order Processing Use the Order Processing program (R31410) to attach the parts list and routing to the work order. This will create the PO header information based on corresponding processing option selections. Receive the Purchase Order This is where the first set of AAIs are utilized; 4310 (Inventory) and the 4320 (Received Not Vouchered). IM and OV records are created in the Item Ledger file. Run Completions Program (R34802) This is where the second set of AAIs are utilized; 3120 (WIP) and 3401 (Other Accrued Expenses). The IH record is created.
• #48: Inquiring on our Work Order using production cost inquiry. Note the D1 Cost To Demonstrate this form, use menu G3116, Manufacturing Accounting. Access Product Cost Inquiry.
• #49: Here is an example of a purchase order created during order processing. Note that the purchase order pulled in the Outside Operation Item Number from the routing. To demonstrate this use G43A11 Purchase Order Processing to access Enter Purchase Orders.
• #50: After running work order processing, if you were to inquire on the Work order routing, you would see that the Related Order and PO Type fields were updated. NOTE: This routing is not an accurate reflection of what an actual complete routing would look like. The final operation in the routing would never be the outside operation . The final operation does not need to have hours associated with the final step, but the system may give unpredictable results if the outside operation is the final operation.
• #51: Recap of what happens when the Purchase Order is received. An OV Document is created in both the F0911 and the F43121 Files An OV and an IM document is created in the F4111 file During the process of creating the OV, the first set of AAIs is referenced: The 4310 with a Debit (in our example, uses a asset account (inventory account) Offset with 3401 (next slide) The 4320 with a Credit (in our example, uses a liability account (received not vouchered)) How does the system find these two AAIs? The system utilizes the following keys: Doc Type = OP GL Cat Code = IN30 Company = 200
• #52: In the Item Ledger (F4111), the OV, IM and IB have been created for outside operation 8101*OP10.
• #53: Recap of what happens when the Work Order is Completed. An IH Document is created in the F0911 (Account Ledger) File. During the process of completing the WO, the second set of AAIs is referenced: The 3120 with a Debit (in our example, uses a asset account (inventory account)) The 3401 with a Credit (in our example, uses a liability account (Other Accrued Expense)) (This could offset the debited account from previous slide, (but that is a business decision).
• #54: During completions, along with updating the Cardex file, the work order routing file is updated. Here are three fields; WLUORG = Units Transaction Quantity WLSOQS = Units Quantity Shipped WLQMTO = Units Quantity Moved When the completions program (R31802) is run, the units in the WLQMTO field are moved into the WLSOQS field. This information is then used to create the IH entry.