Posting definition examples

This article provides examples that show how posting definitions are used for purchase order encumbrances and budget appropriations.

Before you read this topic, you should be familiar with posting definitions and transaction posting definitions. For information, see Posting definitions. The following examples can be set up on the Posting definitions page. Each example contains these sections:

  • Posting definition – Match criteria
  • Posting definition – Generated entries
  • Transactions with the accounts, dimension values, and amounts
  • Ledger entries generated from the posting definition

When a match occurs between the accounts and dimension values in the Match criteria pane for the posting definition and the accounts and dimension values on the transaction, ledger entries are generated based on the Generated entries pane for the posting definition.

Note

To associate a posting definition with a specific transaction type, use the Transaction posting definitions page. After you associate a posting definition with a transaction type and select Use posting definitions on the General ledger parameters page, all transactions of the selected transaction type must use posting definitions.

Example: Purchase order encumbrances

When you enable encumbrance processing by selecting Enable encumbrance process on the General ledger parameters page, posting definitions must be used to record encumbrances to the general ledger for any accounts that should be reserved. In most cases, all expense accounts are reserved on the balance sheet.

Posting definitions for encumbrances are set up for the Purchasing module on the Posting definitions page. Then, in the Purchasing area of the Transaction posting definitions page, you can select the Purchase order transaction type to associate the posting definition with purchase orders.

All voucher transactions for purchase order encumbrances must balance (that is, debits must equal credits) in each unique dimension on a voucher.

Posting definition – Match criteria

Account structure Match account number Priority
Account Structure - P&L * 1

A blank value in the **Match account number* field means that all matching accounts in the defined account structure are part of the matching rule.

Posting definition – Generated entries

Account structure Generated account number Generated debit/credit
Balance 300143 - -(Encumbrance account) Same
Balance 300144 - -(Reserve for encumbrance account) Balancing

Transactions with the accounts, dimension values, and amounts

The accounts and dimension values come either from the accounting distributions that you enter for a purchase order line, or from the accounts and dimensions that are automatically generated based on the default settings for vendors, items, categories, and dimension templates.

Account + dimensions Debit Credit Comment
606400-OU_1-OU_3566-Training 250.00

Ledger entries generated from the posting definition

Generated ledger entries are created to record the encumbrances.

Account + dimensions Debit Credit Comment
300143-OU_1-OU_3566-Training 250.00
300144-OU_1-OU_3566-Training 250.00

In this example, any account that is part of Account Structure - P&L matches the posting definition criteria. Therefore, when 606500-OU_1-OU_3566-Training is evaluated, generated entries are created for the accounts that are defined in the Generated entries pane for the posting definition.

Example: Budget appropriations

When you enable budget appropriation by selecting Enable budget appropriation on the General ledger parameters page, posting definitions must be used to record budget register entries to the general ledger. When a budget control configuration is active and is turned on, posting definitions and transaction posting definitions can be used to support the recording of entries for appropriations, revisions, transfers, projects, fixed assets, and supply and demand forecasts to the general ledger.

To set up a posting definition for budget register entries that has a budget type of Original budget, and that has appropriations enabled, select the Budget module on the Posting definitions page. Then, in the Budget area of the Transaction posting definitions page, you can use budget codes to associate the posting definition with budget register entries that have a budget type of Original budget.

When budget appropriations and posting definitions are enabled, the budget register entries are recorded for budget control and in the general ledger.

Posting definition – Match criteria

Account structure Match account number Priority
Account Structure - P&L * 1

A blank value in the **Match account number* field means that all matching accounts in the defined account structure are part of the matching rule.

Posting definition – Generated entries

Account structure Generated account number Generated debit/credit
Account structure 300145 - -(Estimated revenue account) Same
Account structure 300146 - -(Appropriation account) Balancing

Transactions with the accounts, dimension values, and amounts

You enter the accounts, dimension values, and amounts for the budget account entry on the Budget register entry page.

Account + dimensions Debit Credit Comment
606400-OU_1-OU_3566-Training 250.00

Ledger entries generated from the posting definition

Generated ledger entries are created to record the original budget in each dimension.

Account + dimensions Debit Credit Comment
300145-OU_1-OU_3566-Training 250.00
300146-OU_1-OU_3566-Training 250.00

In this example, any account that is part of Account Structure - P&L matches the posting definition criteria. Therefore, when 606400-OU_1-OU_3566-Training is evaluated, the generated ledger entries are created.