How to create accounting rules and how it works for transactions in AR in R12

Create (configure) accounting rules for fixed duration and/or variable duration

Setup>Transaction>Accounting rules

In this article transactions (both Arrear and Advance) have been created with invoice line 1200 and 5% reduced VAT has been applied on invoice amount.

Create transactions>while creating transaction select ‘In Arrear’ or ‘In Advance’ at the header level in invoice rule field (pop up)>select the rules at line window under rules tab.

Open the relevant periods in AR and GL

Create a transaction with advance rules

Enter line items for Advance Rules

Complete the transactions.

Create accounting

View Accounting

Now select Arrear invoice

Enter line items, complete the transactions, create accounting and view accounting

GL and Invoice date will be changed to 20^th July 2009

Accounting entries are: