Introduction
Transaction Account Builder (TAB) is used in Oracle
Fusion Procurement to automatically derive default accounting combinations
for purchasing transactions before they are transferred to Subledger
Accounting.
TAB helps organizations define rules to determine
accounts dynamically based on transaction attributes such as item category,
organization, supplier, or other business criteria.
For more details, refer to the official Oracle FusionFinancials documentation.
In Oracle Fusion, TAB is commonly used for:
- Purchase
Requisitions
- Purchase
Orders
- Intercompany
transactions
By using TAB, organizations can ensure consistent and
automated account derivation, reducing manual intervention and improving
accounting accuracy.
Agenda
This article covers:
- Components
of Transaction Account Builder
- TAB
Setup and Configuration
- Creating
a Mapping Set
- Creating
an Account Rule
- Assigning
the rule to a Transaction Account Definition
Components of Transaction Account Builder
The Transaction Account Definition (TAD) is the
top-level configuration used by TAB.
A TAD contains Transaction Account Types, which
represent different accounts used in procurement transactions.
These account types are predefined by Subledger
Accounting and categorize the accounts generated during transactions.
Each transaction account type can have account rules
assigned to derive the required accounting segments or full account
combinations.
The configuration is completed using the Define
Transaction Account Rules task list in the Setup and Maintenance
work area.
Transaction Account Types in Procurement
Procurement transactions expose five primary transaction
account types:
|
Type |
Definition |
|
Charge Account |
The primary expense
account where the procurement cost is recorded. |
|
Variance Account |
Used to record differences or
variances in procurement transactions. |
|
Accrual Account |
An intermediary
account used when goods or services are received but not yet invoiced. |
|
Destination Charge
Account |
The charge account associated
with the destination organization. |
|
Destination
Variance Account |
The variance account
associated with the destination organization. |
Example of a Charge Account in PO Distribution is
shown below.
TAB Setup and Configuration
TAB configuration is performed from the Setup and
Maintenance work area.
Setup Offering: Procurement
Step 1 – Review Subledger Accounting Options
Navigation:
Setup and Maintenance →
Task: Manage Subledger Accounting Options
Search for the relevant Ledger (Example: US Primary
Ledger) and select:
Application: Purchasing
Here you can see which Transaction Account Definition
(TAD) is currently assigned.
For example:
GSE TAB may already be selected as the Transaction
Account Definition.
This means that purchasing documents will use this
configuration to derive account combinations.
For demonstration purposes, we will use this seeded
configuration. However, in real implementations it is recommended to create a
custom TAD.
Step 2 – Create Transaction Account Definition
Navigation:
Functional Area: Procurement Transaction Account Rules
Task: Manage Transaction Account Definitions
Best practice is to copy a seeded TAD and modify it
according to business requirements.
Example:
Copy Purchasing TAB Default Account (or GSE TAB) and
provide a new name.
Once copied, you will notice that the TAD contains all five
transaction account types.
For this example, we will focus on Charge Account
derivation.
Business Scenario
A common business requirement is to derive different charge
accounts based on item category.
Example:
For Item Category: Miscellaneous
The system currently generates the following Natural
Account: 60540
We will configure TAB to derive a different natural account:
50600
We will setup a new account for this category, once you
understood, you can then add multiple categories and their account.
We will create
1.
Account Mapping Set
2.
Account Rule
3.
Assign the account rule to
TAB National Account segment
Step 3 – Create a Mapping Set
Navigation:
Setup and Maintenance →
Task: Manage Mapping Sets
Mapping Sets are used to map input values to output
account segments.
Configuration example:
Output Type: Segment
(Used when only a specific segment needs to change)
Input Source: Item Category
Chart of Accounts: Charge Account
Segment: Natural Account
Mapping example:
Item Category | Natural Account
Miscellaneous | 50600
Additional mappings can be added for other categories if
required.
Step 4 – Create Account Rule
Navigation:
Setup and Maintenance →
Task: Manage Account Rules
Configuration example:
Rule Type: Segment
Segment: Natural Account
Select the Mapping Set created in the previous step.
Optional Rule Conditions can be added if additional
logic is required.
After configuration, validate and save the rule.
Step 5 – Assign Rule to Transaction Account Definition
Navigation:
Setup and Maintenance →
Task: Manage Transaction Account Definitions
Edit the relevant Transaction Account Definition.
Assign the newly created Account Rule to the Charge
Account – Natural Account segment.
After assignment:
Activate the TAD.
Only activated definitions are used by the system for
account derivation.
Testing the Configuration
To validate the configuration:
- Create
a Non-Catalog Requisition
- Select
Item Category: Miscellaneous
- Review
the Charge Account
The system now derives the Natural Account = 50600,
as defined in the mapping set and account rule.
This confirms that Transaction Account Builder is
successfully deriving the account dynamically.
Conclusion
Transaction Account Builder (TAB) provides a flexible
mechanism in Oracle Fusion Procurement to derive accounts dynamically
based on business rules.
By using Mapping Sets, Account Rules, and Transaction
Account Definitions, organizations can automate account derivation and
maintain consistent accounting across procurement transactions.
Proper planning of TAB configuration ensures:
- Accurate
financial postings
- Reduced
manual intervention
- Improved
control over accounting structures
For more details, refer to the official Oracle FusionFinancials documentation.
Oracle Fusion TAB Procurement
Oracle Fusion Account Rules
Oracle Fusion Mapping Set Example
Oracle Fusion Procurement Accounting
Oracle Fusion Charge Account Derivation
Oracle Fusion Subledger Accounting Procurement
Oracle Fusion Procurement Setup Guide