Oracle Leasing and Finance Management SLA Guide

Table of Contents 1. Introduction................................................................. ........................................................................3 1.1 Summary..................................................................... ..............................................................3 1.2 Purpose of this document.................................................... .......................................................3 1.3 Definitions................................................................. ................................................................3 2. Feature Overview............................................................. ...................................................................9 2.1 Business Overview........................................................... ..........................................................9 2.2 Business Value.............................................................. ...........................................................11 3. SubLedger Accounting Process Flow............................................ ...................................................12 4. Feature Details ............................................................. .....................................................................13 5. Feature Setups............................................................... ....................................................................15 6. Feature Dependencies......................................................... ..............................................................16 7. Upgrade to R12.1 Roadmap..................................................... .........................................................17 8. Technical Details ........................................................... ....................................................................18 9. Scenarios ................................................................... .........................................................................25 9.1 Scenario A..................................................................

.............................................................25 9.1.1 Setup Ledgers............................................................. .................................................................. 26 9.1.2 Setup Subledger Accounting................................................ ......................................................... 28 9.1.3 Setup Lease Accounting ................................................... ............................................................ 38 9.1.4 Record Transactions....................................................... .............................................................. 40 9.1.5 Generate Subledger Journal ............................................... ........................................................... 43 9.1.6 Generate General Ledger Journal .......................................... ....................................................... 47 9.2 Scenario B.................................................................. .............................................................51 9.2.1 Setup Reconciliation Templates ........................................... ........................................................ 52 9.2.2 Reconcile................................................................. ..................................................................... 53 9.2.3 Close Period.............................................................. ................................................................... 56

1. Introduction 1.1 Summary Oracle Leasing and Finance Management and the Oracle eBusiness Suite are designe d to setup accounting configurations that meet complex organizational requirements and to avoid rigid accounting structures that are inflexible and costly to modify as circumstances change over time. Subledger Accounting Architecture is one of Oracle Financials key initiatives th at is made available in Release 12.1 of Oracle eBusiness Suite. It constitutes an intermediate step between the operational subledger products and General Ledger and aims to provide a single source of truth for all accounti ng, reporting and analytical applications. Oracle Leasing and Finance Management has enhanced Accounting in R elease 12.1 to uptake the Subledger Accounting Architecture to help you control operations and statutory r isks. 1.2 Purpose of this document The purpose of this document is to address the process for the uptake of Subledg er Accounting Architecture in Oracle Leasing and Finance Management 12.1. It provides details on how to config ure the new functionality, understand any dependencies or interactions and learn how to use the functionali ty to meet your business requirements. 1.3 Definitions Accounted Amount The amount on a journal entry line in the ledger currency that records the finan cial impact of the line. Accounting Date/GL Date The date that determines to which period a general ledger journal belongs. Each accounting event and journal entry can have only one accounting date. If multiple accounting dates ar e entered for a document, then multiple accounting events and journal entries will be created. Accounting Definition The collection of setups/rules that determine how accounting events will be proc essed by the accounting program to create subledger and general ledger journal entries. The a ccounting definition includes journal line types, account derivation rules, analytical criteria, and subledger journal entry descriptions. These components are set up in Accounting Methods Builder. Accounting Event Business events of fiscal or operational significance for which financial inform ation can be recorded. The analysis of accounting events is undertaken from a business perspective. Acc ounting events are captured at the same time that business events are recorded in the system.

Accounting Event Class A user oriented mechanism for grouping accounting event types. An event class re presents the actions possible for a particular transaction type or document.

Accounting Event Status Used to determine whether an accounting event requires accounting and if so, whe ther it has been accounted. Accounting Event Type Accounting event types represent the 'business operation' that can be performed on the end-user transaction type (event class). Accounting Methods Builder A common module used to create accounting definitions. Accounting Program A program that processes eligible accounting events to create subledger journal entries. Accounting Representation A consistent interpretation of the state of an organization and the financial im pact of its transactions expressed in terms of journal entries and related balances. An organization may use multiple accounting representations, each oriented towards a different audience of financ ial readers. For example, a US organization with a legal entity in France may utilize a French Fis cal accounting representation oriented towards the French auditors. It may also utilize a US GAA P representation, which is used for consolidating financial statement results with the US operatio ns, and read by US investors. Accrual Reversal A Subledger Accounting feature that provides the ability to schedule and create an exact reversal of a journal entry. The reversing entry is created at the same time as the originatin g entry. It has a GL Date, which is in the future. Analytical Criteria Analytical criteria can be used to store additional source information about a s ubledger journal entry either at the header or line level. They may also be used to establish a subledg er balance for a particular source value or combination of source values, for a particular accoun t. Analytical criteria may assist with reconciliation of account balances, and can also be used for fin ancial and managerial analyses. Application Accounting Definition

A consistent set of journal entry setups for a specific product (application). E ach application accounting definition determines how accounting for all the events for that prod uct will be processed by the accounting program. Currency Precision The precision to which an amount in the currency should be rounded. Distribution Identifier A distribution identifier corresponds to the sources that form the unique key of transaction distributions.

Header Level Sources Sources whose values do not vary with each extract line of an event. This includ es sources (such as Supplier Name) whose value is obtained from accounting event headers and which h ave the same value for the entire event. For contrast, see Line Level Sources. Journal Category: Determines the nature and purpose of a journal entry. Journal Entry Header Description The description assigned to the subledger journal entry header. Journal Lines Definition A group of line assignments for an event class or event type. Journal Line Type One of the building blocks of an accounting definition. Journal line types are d efined in the Accounting Methods Builder and include options necessary to convert transaction data into subledger journal entries. Ledger A ledger represents a set of accounting information for a legal or management en tity. Each ledger is associated with a chart of accounts, calendar, and currency for which accounting information is recorded. A ledger that is used for recording accounting information for a legal entity (legal ledger) is also associated with a subledger accounting method. Primary Ledger A primary ledger is the legal ledger for a legal entity on which other legal led gers are based. You can use a primary ledger to represent the accounting information for a legal entity s primary accounting method. Secondary Accounting Representations Secondary accounting representations are created to provide financial statement readers an alternate view of the accounting for an organization. Unlike the primary accounting repres entation, it is not necessary for a secondary accounting representation to use the transaction chart of accounts. Accounting Methods Builder is used to determine the accounting for the secondary accounting representation. Secondary Ledger

A secondary ledger is a legal ledger that is based on the primary ledger. Second ary Ledgers represent the accounting information for another accounting method for which a legal entit y performs accounting and reporting. Seeded Sources Sources that are provided by Oracle product teams as part of their start up data . For contrast, see Derived Sources.

Source The contextual data drawn from the transaction model and included in extract dat a, which can be used to determine how the event should be accounted. Subledger A ledger that is subsidiary to the General Ledger, representing the accounting f or a single subledger product. Transactions occur in subledger products such as Oracle Payables and Re ceivables. To represent the financial impact of these transactions, accounting is created as s ubledger and general ledger entries. Subledger Accounting Refers to the infrastructure for creating and maintaining subledger journal entr ies. Transaction Date The date a user assigns to a transaction. Transaction Identifier (Event Class Attribute) Information about an event that allows a user to trace the event back to the sou rce transaction. Transaction Object: Transaction specific programs or views that transform transaction data into a st andardized form required by the accounting program. Valuation Method: A legal entity's transactions may be subject to one or more valuations. For exam ple, a fixed asset may be depreciated according to local fiscal rules in a tax book, and according to c orporate rules a corporate book. Each asset book represents a valuation method. Other examples of valuation methods are found in Costing and OPM (costing method). Most applications have only one valuation m ethod. XLA The product code for the subledger accounting solution. SLA The subledger accounting team. OKL The product code for the Oracle Lease Management Application.

AP The product code for the Oracle Payables Application. AR The product code for the Oracle Receivables Application. FA The product code for the Oracle Assets Application.

Asset Disposition Sale or disposal of assets. Booking The process of preparing and recording accounting records associated with a cont ract. Concurrent Program An instance of an execution file, along with parameter definitions and incompati bilities. Concurrent programs use concurrent program executables to locate the correct execution file . Several concurrent programs may use the same execution file to perform their specific tasks, each h aving different parameter defaults and incompatibilities. Contract A written, signed, Legal Agreement between/among trading partners that has finan cial, legal, and industry-specific operational consequences. Contract ID Unique identifier of a contract. Customization Customizations are enhancements to an Oracle applications system made to fit the needs of a specific user community. Disbursement Disbursements are payments to suppliers or other third parties for the cost of e quipment, a prepayment facility with lessor, maintenance, insurance and other services. Some disburseme nts such as passthrough and investor payments are linked to billing events. Accounting Distribution Defined group of accounting codes that determine debit and credit accounts that is affected in the General Ledger. A distribution may define percentage-wise allocation of funds be tween accounts. Evergreen A lease contract period past the initial term end date; rents are still collecte d. Financial Product A financial product in Oracle Lease Management groups together a set of attribut

es and rules based on which contracts are created. It is mandatory for every contract to be associated with a single product. Formula An arithmetic operation over operands. General Loss Provision Loss Provisions and reserves established based on contract types and aging categ ories to offset writeoffs for bad debts.

Journal Entries A set of financial data that is of significance for recording ledger transaction s in accounting. Key Flexfield A key flexfield is a field format you can customize to enter multi-segment value s such as part numbers, account numbers, location, and so on. Key flexfields relate to specific uses in Oracle applications. Lease A lease is a contract in which one party conveys the use of an asset to another party for a specific period of time for a predetermined payment amount. Lookup Codes Imbedded codes in Oracle Applications that enable you to define a feature prior to setup. These include defining article sets, contract roles, and so on. Profile Options In Oracle Applications, profile options enable you to turn on or off specific fu nctionality, such as integrations and processes, and allows you to set specific parameters that gover n a process or transaction such as number of days before a task is due that the user is notifie d. Responsibility A responsibility is a level of authority in Oracle Applications that allows acce ss only to those Oracle Applications functions and data appropriate to fulfill your role in the organiza tion. Specific Loss Provision A loss provision or reserve, established to recognize potential impairment of th e collection of a specific receivable. Stream A stream is a schedule of amounts and associated dates. Stream Element A single amount and its corresponding date (i.e., a cash flow). A stream element is the line level detail of a stream. A stream can have multiple stream elements. Stream Type The functional name for a stream, which relates to the attributes used to proces

s a stream. Accounting Transaction Type A business event in Oracle Lease Management that has fiscal importance. Workflow A complete workflow management system that supports business process definition and automation in Oracle Applications. Typically, workflow is used for contract approval, change r equests, and notifications.

2. Feature Overview 2.1 Business Overview Subledger Accounting has been introduced to develop a corporate global subledger accounting standard so Oracle Financials can be consistent in creating subledger journal entries. Suble dger Accounting provides tools that allow you to meet Multi-GAAP corporate, and fiscal accounting requirements. With the flexible Accounting Methods Builder you can determine the accounts, lines, descriptions, summarization, and dates of their journal entries. You can also add detailed transaction information to jour nal headers and lines. Detailed subledger accounting journals are available for analytics, auditing, and reporti ng. They are summarized, transferred, imported and posted to the Oracle General Ledger. The use of subledger accounting in Leasing and Finance Management enables these key enhancements: Multiple accounting options available: You have the option to choose to derive a ccount codes in one of the following ways. You can select the option for an operating unit. You can der ive account codes using Account method Builder (AMB) setup; the AMB option requires you to complete setu ps in the Account Method Builder. Oracle Leasing and Finance Management does not derive the accoun t codes using Accounting Template Set. When a transaction is processed for accounting in SLA, AMB setup is evaluated and account codes are derived for accounting the transaction. Simultaneous accounting in multiple ledgers: Subledger Accounting allows simulta neous accounting for all primary and secondary ledgers. This improves the operational efficiency of t he accounting process. Contracts level accounting using supporting references: You can associate the co ntract number with every subledger journal entry using the supporting reference functionality. This functionality enables the analysis of accounting information by contracts, and contracts level accounting. With Subledger Accounting, you can: Centralize accounting setups. Provides common subledger accounting infrastructur e for setting accounting rules for generating a subledger journal entry and for maintaining th e accounting information for all oracle application modules. Increase flexibility setting up account codes. You are no longer limited by the number of parameters on the accounting template to derive accounting, but can use all identified sources to derive account codes. SLA allows you to define complex account derivation rules, if required, and to s etup user defined rules

for Journal Descriptions. Perform multi-GAAP accounting by allowing you to define multiple subledger accou nting methods each with different chart of accounts, account derivation rules, journal entry setups and to associate the subledger accounting method with primary and secondary ledgers. Subledger Accoun ting functionality allows Oracle Leasing and Finance Management to create multiple accounting trans actions one for each ledger.

Perform detailed analysis of the accounting information by using Supporting refe rences functionality to associate additional information with subledger journal entry. Leasing and Finance Management has enhanced Accounting in Release 12.1 to help c ustomers control operations and statutory risks. First, Enhanced Accounting with Subledger Accounting Architecture, SLA, is Oracl e s global subledger accounting standard and provides tools that allow you to meet Multi-GAAP, corpor ate, and fiscal accounting requirements. The flexible Accounting Methods Builder automatically determines j ournal entry accounts, lines, descriptions, summarization, and dates. Now you can add detailed transaction inf ormation to journal headers and lines. Second, Leasing and Finance Management leverages General Ledger functionality th at enables you to access and process data for multiple ledgers and legal entities simultaneously. Third, identify issues quickly to ensure proper accounting for all transactions and balances by viewing trial balances for each contract. The trial balance view of each contract provides a q uick analysis of a contract s accounting and profitability to enable quality decisions. Fourth, Leasing and Finance Management leverages Oracle s sub-ledger architecture to provide a set of user configurable reconciliation reports that match account balances in the general l edger with the contract and asset details. Reconcile contract and asset balances to accurately reflect transaction s for each period. Reconcile revenue and expense balances on the income statement with income and expenses fr om lease and loan contracts.

2.2 Business Value Quality information is the foundation of comprehensive business intelligence and sound decision making to control your operations and manage risk. Accounting for transactions in the appr opriate detail collected, categorized and reported in the most logical way to meet your unique business or ganization requirements is a fundamental step towards delivering quality information. How you setup your accounting to collect, categorize and report operating result s has a significant impact on your ability to report results of operations accurately and quickly. As organiza tions grow to compete effectively in this global economy, accounting and reporting becomes proportionately more co mplex. The challenge to meet increased complexity is complicated by the requirement to deliver operating results faster. Leasing and Finance Management and the Oracle eBusiness Suite are designed to fl exibility to setup accounting configurations that meet complex organizational requirements and to avoid rigid accounting structures that are inflexible and costly to modify as circumstances change over time. Oracle s seeded subledger accounting method generates accounting using one of two options you choose. The first method, appropriate for less complex organizations, enables you to con tinue using the same setups in Release 11i. Financiers with more complex organization structures can use the se cond method to derive accounts by associating each transaction with contract and asset accounting sour ces. The subledger accounting method applies the transaction and accounting source co mbinations to account derivations rules to determine the appropriate accounts and generate journal ent ries. Based on the transaction and accounting source combinations, Oracle s subledger accounting method records t ransactions in the appropriate Primary and Secondary ledgers. This means you can close multiple ledgers simultaneously during month-end close. Then, you can review trial balances generated for each contract, and reconcile account balances using contr act data.

3. SubLedger Accounting Process Flow

4. Feature Details In R11i, for any transaction created in OKL, the accounting entries get created in OKL or other related Oracle modules like AP, AR and FA which OKL interfaces with. Oracle Release 12.1 introduces Subledger Accounting Architecture where all the a ccounting setups and accounting (for all Oracle modules) is done in the accounting subledger only. Su bledger accounting provides a tool that allows users to configure their entries for all applications requiring accounting. It includes architecture with a unified user interface and programs that can generate accounting for all the Oracle applications. As a result, with regard to accounting, the applications will work as a suite. In the Subledger Architecture process, all the transactions will be captured in the respective Oracle module (like OKL, AR, AP, etc) but the accounting and creation of Journal entry occurs in the Accounting subledger. The accounting happens based on the setups done in the Accounting subledger. You have two options to derive account codes. The first option is to setup accou nting configuration in the same way used in Release 11i, using transaction types, product and accounting templat e sets to derive accounting. The new seeded subledger accounting method honors default accounts generated. If you are upgrading from Release 11i, no change in setups is required. The second option provides a new accounting infrastructure for flexible configur ation to derive accounts. This option uses Oracle s subledger accounting method to derive accounts from accountin g sources that are associated with transactions. This option requires additional accounting sources generated from the contract or asset. One of the benefits of the new seeded Subledger accounting method is the ability to generate accounting in multiple ledgers from the same set of transactions. Then in during the month-end close, you can review trial balances for each contract, reconcile account balances with contract data, and c lose multiple ledgers simultaneously. Enhance Accounting Steps are: Accounting Configuration o Two options to derive account codes o New accounting infrastructure for flexible configuration o Additional accounting sources from contract and asset o Accounting in multiple ledgers Month-End Close o Review contract trial balance o Reconcile account balances with contract data o Close multiple ledgers simultaneously Your ability to configure automatic accounting in multiple ledgers and currencie s improves your financial reporting flexibility, accuracy and timeliness. Using a common subledger account

ing infrastructure streamlines your setup processes and simplifies maintenance of your accounting configuration .

Use lease contract parameters for automatic account derivation to minimize the m anagement and reconciliation of clearing and suspense accounts. At month-end you can speed up the close proce ss by closing multiple ledgers in a ledger set simultaneously. Then view and reconcile accounting at the contra ct level quickly and efficiently. Accounting Configuration o Improve financial reporting by accounting in multiple ledgers and currencies o Streamline setup and maintenance of accounting configuration using common subled ger accounting infrastructure o Minimize clearing and suspense accounts by using lease contract parameters for a ccount derivation Month-End Close o Speed up processing by closing multiple ledgers in a ledger set simultaneously o View and reconcile accounting for each contract efficiently When you select the first option, Accounting Template Set, to derive account cod es using accounting template lines in Leasing and Finance Management, Oracle s subledger accounting method gene rates accounts based on the same setups for transactions types, products and accounting template sets th at are used in Release 11i. The primary advantage using the Accounting Template Set account derivation metho d is that you do not have any additional setups when you upgrade and migrate data from Release 11i. This m ethod continues to provide currently used sources in Leasing and Finance Management, and does not require a dditional sources in Oracle Receivables, Oracle Payables, Oracle Assets or other Oracle applications. When you select the new option, Account Method Builder, in Oracle s new subledger infrastructure, account codes are derived from the transaction sources in Leasing and Finance Management , Oracle Receivables, Oracle Payables, Oracle Assets and other Oracle applications. An advantage of using Account Method Builder is your flexibility to generate acc ounts using additional accounting sources from contracts and assets. Contract and asset accounting sour ces are available in Oracle Receivables, Oracle Payables and Oracle Assets for transactions created from Lea sing and Finance Management. The only disadvantage is the requirement to setup additional sources to drive the subledger accounting method. When you use the Accounting Template Set derivation method to generate accounts, account codes are generated by the Oracle subledger accounting in Leasing and Finance Management a

nd does not require additional accounting sources. When you use the Account Method builder, you can configure complex accounting easily by associating accounting sources made up of contextual and re ference data to transactions or documents. This enables the subledger accounting method to identify and apply appropriate a ccount codes to each accounting transaction automatically. Accounting sources for Leasing and Finance Management transactions are seeded to configure accounting in Oracle Receivables, Oracle Payables and Or acle Assets. When these seeded sources do not meet your requirements, you can define your own sources to generate desired accounting classifications.

5. Feature Setups When you record a transaction, Oracle subledger accounting method identifies the associated Journal Line Types, Account Derivation Rules and Journal Entry Descriptions to generate accou nting events based on the Event Class Type. During the month-end close, run Create Accounting to generate subledger journals in Oracle Receivables, Oracle Payables, Oracle Assets and Leasing and Finance Management. Running Create Accounting transfers journal entries from the Oracle application and imports the m to the appropriate ledgers in Oracle General Ledger. Then you can review the accounting and run reconciliation reports in Leasing and Finance Management to reconcile contract balance details with the ledger balances. Once all journal en tries are posted and approved, you can close the accounting period for each ledger. When you setup your accounting configuration, the first decision is whether to u se the existing accounting template set or the new account method builder to generate account codes using o racle s subledger accounting method. When you choose the account method builder to generate account codes, yo u do not have to setup accounting template sets. If you are upgrading from 11i, the Account Generator used in 11i can be used if the account derivation method is Accounting Template Set. When implement Oracle s subledger accounting method, s etup the account derivation option in System Options to select whether you will be using the Acco unting Template Sets option or Account Method Builder option to generate account codes. Define subledger accoun ting method in each Oracle application to generate accounting for transactions. Use the Accounting Setup Manager in the Oracle General Ledger to define the ledg ers and ledger sets in the General Ledger. The Accounting Setup Manager will also associate each ledger wit h Operating Units. The Ledger concept in Oracle General Ledger has replaced the Set of Books required i n 11i. Setup the Reconciliation Template in Leasing and Finance Management to generate Reconciliation Reports at month-end that match your unique accounting configuration. Setup Subledger Suppo rting References that are used to associate the contracts with each journal entry line. Setup the ledgers and ledger sets in the Oracle General Ledger using the Accounting Setup Manager. Run Create Accounting to create journal entries in the subledger and import jour nals to ledgers in Oracle General Ledger. You have the option to transfer Journal Entries from Leasing and Finance Management to Oracle General Ledger and import them in the Oracle General Ledger in one step, or to run Create Accounting to transfer and import individually at different times. Oracle s new subledger arc

hitecture replaces 11i processes including the Accounting Entry Process, Periodic Reversal and Transfer to Genera l Ledger, so these processes are obsolete. Once you have completed running the accounting processes, and have posted the Jo urnal Entries to General Ledger from Leasing and Finance Management you can generate the Reconciliation R eport from the Reconciliation Template to confirm and adjust journal entries, if necessary. The new Oracle s subledger architecture replace 11i accounting processes including Draft Accounting, Accoun t Balance Report and the Multi-GAAP Adjustments Report, so running these processes is not necessary.

6. Feature Dependencies After subledger journals are created in Oracle General Ledger, you can use Leasi ng and Finance Management to view accounting for transactions and accounting events in the Accounting Tran saction screen to verify the accounting transactions have been properly recorded for the events and details. In Oracle General Ledger, you can drill down to subledger in Leasing and Finance Management from the Oracle Ge neral Ledger. You can also view accounting details for contracts and asset transactions In Oracle Receivabl es, Oracle Payables and Oracle Assets.

7. Upgrade to R12.1 Roadmap To upgrade from Oracle Leasing and Finance Management 11i to Oracle Leasing and Finance Management R12.1, follow these mandatory pre-upgrade steps. These pre-upgrade steps are nec essary for a smooth upgrade to R12 with OKL. If you do not perform these pre-upgrade steps, or they are not performed correctly, you may experience data inconsistency. Apply the appropriate Pre-Upgrade patch. o To upgrade from Oracle Leasing and Finance Management OKL.G, apply the OKL.G P reUpgrade patch 6027572 on OKLG code line. o To upgrade from Oracle Leasing and Finance Management OKL.H, apply the OKL.G P reUpgrade patch 6027561 on OKLH code line. (R) Lease Administrator, run the OKL Accounting Pre-Upgrade Report to find pend ing transactions that have not been transferred into Oracle General Ledger and to identify accounting setup discrepancies. (R) Lease Administrator, run the Accounting Entry Process to clear the pending transactions and resolve the setup discrepancies (R) Lease Super User, correct Accounting Entries posted to the OKL subledger wi th errors using the Correct Accounting Entries screen. (R) Lease Administrator, run the General Ledger Transfer program. (R) Lease Super User, if any accounting templates are identified as having more than two template lines then, update the accounting templates to have single lines and remove the percen tage allocation. Repeat these steps until all pending transactions are cleared and setup discrepancies a re resolved.

8. Technical Details The following objects have been modified or newly created to manipulate the SLA architecture in Oracle Leasing and Finance Management. Name Type New? Brief Description OKL_SYS_ACCT_OPTS_ALL Table Existing The table is modified to add a new system o ption column called Account Derivation. OKL_SYS_ACCT_OPTS_V View Existing The system options view is modified to display the new account derivation option column. The set of books ID column is removed from this view since the system option setups are not for a single set of books or ledger. The system options are ledger independent. OKL_SAO_PVT.VALIDATE_SET_OF _BOOKS_ID API Existing The system accounting options simple API is modified to remove the validation on the set of books ID column. OKL_SAO_PVT.VALIDATE_ACCOU NT_DERIVATION API Existing A new procedure is added to validate the account derivation option. OKL_ACCOUNT_DERIVATION_OPTI ON Lookup Existing A new lookup type is created for the account derivation option. OKL_TRX_TYPES_B Table Existing The table is modified to add a new column called accounting event class code. The column holds the corresponding event class code for each transaction type that has been mapped in the SLA events model. OKL_TRX_TYPES_V View Existing The transaction types view is modified to include a new column called accounting event class code. OKL_ACCOUNTING_EVENT_CLASS Lookup New A new lookup type is created for the accou nting event classes that are seeded in SLA for each transaction type. OKL_TRY_PVT.VALIDATE_AEP_CO DE API Existing The procedure is modified to accept a null aep_code value. OKL_TRY_PVT.VALIDATE_ACCOU NTING_EVENT_CLASS_CODE API Existing The procedure validates the accounting event class code against the lookup type OKL_ACCOUNTING_EVENT_CLASS. OKL_AE_TEMPLATES Table Existing The accounting templates table is modified to ma ke certain redundant columns as null able. OKL_AVL_PVT.VALIDATE_SET_OF _BOOKS API Existing This procedure is stubbed out. Accounting Templates are not defined for a set of books. So no value should be populated in this column. Currently this procedure requires a SOB ID, else it errors out. OKL_AVL_PVT.VALIDATE_POST_T O_GL API Existing This procedure is stubbed out. Currently this procedure requires a value for this column, else it errors out. OKL_AVL_PVT.VALIDATE_MEMO_ YN

API Existing This procedure is stubbed out. Currently this procedure requires a value for this column, else it errors out. OKL_SETUP_ACCT Menu Existing The Accounting Templates prompt is renamed to Accou nting Template Sets. OKL_ACCOUNT_GENERATOR_PVT API Existing The API is modified to evaluate the Upfro nt Tax account generator rule. OKL_EBTAX_V View New New view from which the CCID is derived for the upfront tax accounting. okllkup.ldt LDT Existing LDT file okltrxty.ldt LDT Existing LDT file Oklutryb.sql Script New Script to update tax attributes OKLACCT.odf ODF Existing New view added. OKL_ACCOUNT_GENERATOR_PVT. get_segment_value API Existing Account generator API. OKL_ACC_GEN_WF_PVT.START_PR OCESS API Existing Account generator Workflow. OKL_PERD_STATUS_PVT.UPDATE_ PERD_STATUS API Existing The API is modified to update the period status for each Ledger ID passed as an input parameter and not by calling the accounting utility to identify

Name Type New? Brief Description the SOB ID. OKL_PERD_STATUS_PVT.UPDATE_ PERD_ROW API Existing The API is updated to ensure un-posted accounting distributions and accounting events do not exist while closing the period OKL_TRX_CONTRACTS_ALL Table Existing The following new columns are added to the transaction table: representation code, accrual reversal date, and accounting reversal flag. OKL_TXL_CNTRCT_LNS_ALL Table Existing A new column called tax line ID is added t o the table. The Upfront Tax transaction type populates the tax line id from the ebtax table. OKL_TRX_EXTENSION_ALL Table New A new table is created to extend the existing in ternal transaction tables of OKL, AR and AP. This table holds accounting source values that do not change across representations. OKL_TXL_EXTENSION_ALL Table New A new table is created to extend the existing in ternal transaction line tables of OKL, AR and AP. This table holds accounting source values that do not change across representations. OKL_TRX_CONTRACTS_V View Existing The view is modified to display the new column s added to the table. OKL_TXL_CNTRCT_LNS_V View Existing The view is modified to display the new colum ns added to the transaction lines tables. OKL_TRX_EXTENSION_V View New New view for the OKL_TRX_EXTENSION_ALL base table. OKL_TXL_EXTENSION_V View New New view for the OKL_TXL_EXTENSION_ALL base table. OKL_THE_PVT API New Simple API for the new OKL_TRX_EXTENSION_ALL base table. OKL_TLE_PVT API New Simple API for the new OKL_TXL_EXTENSION_ALL base table. OKL_SLA_ACC_SOURCES_PVT API New Process API that fetches accounting source value s and populates the OKL_TRX_EXTENSION_ALL and OKL_TXL_EXTENSION_ALL tables. OKL_TCL_PVT API Existing The simple API s record structure is modified to populate the tax line ID column. OKL_GENERATE_ACCRUALS_PVT. PROCESS_ACCRUALS API Existing The Generate Accruals program is modified to populate the accrual reversal date column for estimated and billed transactions. The date populated is the first date of the next accounting period. OKL_TCN_PVT.VALIDATE_ACCOU NTING_REVERSAL_YN API New This a new procedure that validates the value of the accounting reversal flag against YES_NO FND Lookup. OKL_MULTI_GAAP_UTIL.GET_REP RESENTATION_CODE API New New function to retrieve the representation code for the specified Multi GAAP representation. OKL_TCN_PVT.VALIDATE_ACCRU AL_REVERSAL_DATE API New New procedure to validate the accrual reversal date value before the record is inserted. OKL_TCN_PVT.UPDATE_ROW API Existing Modified to update the accounting reversal Y N column to Y when the status of the transaction in the tsu_code column changes to CANCELED.

OKL_TCN_PVT.VALIDATE_ATTRIB UTES API Existing The validate attributes procedure is modified to call the individua l functions to validate the new columns. OKL_TCN_PVT.VALIDATE_REPRES ENTATION_CODE API New New procedure to validate the representation code against the valid representations setup within OKL before inserting the record. Also validates whether the representation-code column value is null or not. If it is null, then an error is raised. OKL_EBTAX_V Lookup New A new lookup type is seeded for enhancing the account gen erator API for Upfront Tax Accounting. OKL_TCN_TYPE Lookup Existing New lookup codes are added for new transaction type s that are seeded. OKL_TCL_TYPE Lookup Existing New lookup codes are added for new transaction type s that are seeded. OKL_TRANSACTION_TYPE_CLASS Lookup Existing New lookup codes are added for new tr ansaction types that are seeded. OKL_AE_LINE_TYPE Lookup Existing New lookup code is seeded for enhancing the acc ount generator API for Upfront Tax accounting. OKL_ACC_GEN_SOURCE_TABLE Lookup Existing New lookup code is seeded for enhancing the account generator API for Upfront Tax accounting. OKL_ACCOUNTING_UTIL.GET_VAL ID_GL_DATE API Existing The API is modified to add a new IN parameter for the Ledger ID. Th e default value is the primary ledger ID. The API is modified to retrieve the GL Date for the corresponding primary or secondary ledger. OKL_ACCOUNT_DIST_PVT.GET_TE MPLATE_INFO API Existing The cursor prod_csr is modified to use OKL_PRODUCT_PARAMETERS_V instead of OKL_PRODUCTS_V.

Name Type New? Brief Description If the product status is not APPROVED then an error is raised. OKL_ACCOUNT_DIST_PVT.CREATE _ACCOUNTING_DIST API Existing An error message is raised for the accounting template not being fo und only if the account derivation option is ATS or, the account derivation option is AMB and the transaction amount is unknown. the API is also modified to process accounting templates only if the account derivation option is ATS or, the account derivation option is AMB and the transaction amount is unknown. OKL_ACCOUNT_DIST_PVT.CREATE _DIST_RECS API Existing Code is bifurcated to create distributions based on the account der ivation option value. The corresponding Ledger ID is derived from the transaction s representation and not by calling the OKL_ACCOUNTING_UTIL.GET_SET_OF_BOOKS_ID API. OKL_XLA_EVENTS_PVT.CREATE_E VENT API New This API creates a single event at a time. OKL_XLA_EVENTS_PVT.CREATE_B ULK_EVENTS API New This API creates multiple events for multiple transactions. Use this API only to create events for a new transaction with no accounting events associated. Do not use this API to create events for a transaction or a transaction for which events exist. OKL_XLA_EVENTS_PVT.UPDATE_E VENT API New This API updates multiple attributes of a single event. Using this API, the calling program can update event type, event date, and event status. An error code is returned if the update fails. OKL_XLA_EVENTS_PVT.UPDATE_E VENT API New This API updates multiple attributes of a single event. Using this API, the calling program can update event type, event date, event status, and event number. An error code is returned if the update fails. OKL_XLA_EVENTS_PVT.UPDATE_E VENT API New This API updates multiple attributes of a single event. Using this API, the calling program can update event type, event date, event status, and the event's reference information. An error code is returned if the update fails. OKL_XLA_EVENTS_PVT.UPDATE_E VENT API New This API updates multiple attributes of a single event. Using this API, the calling program can update event type, event date, event status, event number, and the event's reference information. An error code is returned if the update fails. Note: This API updates both the event's event number and reference information. OKL_XLA_EVENTS_PVT.UPDATE_E VENT_STATUS API New This API updates the event status of one or more events within a transaction matching the specified criteria. OKL_XLA_EVENTS_PVT.UPDATE_B

ULK_EVENT_STATUSES API New This API updates the event status of multiple events. OKL_XLA_EVENTS_PVT.DELETE_E VENT API New This API deletes an unaccounted event based on its event identifier. The API returns an error code if the delete fails. OKL_XLA_EVENTS_PVT.DELETE_E VENT API New This API deletes all events for a transaction that meet the specified criteria. When called, events that belong to the given event class, event type, and event date are deleted. OKL_XLA_EVENTS_PVT.DELETE_E NTITY API New If a transaction is deleted, users must call the DELETE_ENTITY API to delete the row in the XLA_TRANSACTION_ENTITIES table. OKL_XLA_EVENTS_PVT.DELETE_B ULK_EVENTS API New This API deletes multiple events. OKL_XLA_EVENTS_PVT.UPDATE_T RANSACTION_NUMBER API New The transaction number is captured on the event. If the transaction number is updated in the transaction model, this API updates the transaction number on the events in the XLA_Transaction_Entities table so that they are consistent with the transaction. Updating the transaction number changes this information on all events related to the transaction. OKL_XLA_EVENTS_PVT.GET_EVEN T_INFO API New This API returns information for a particular event. The event is identi fied by specifying the transaction and event identifier. OKL_XLA_EVENTS_PVT.GET_ARR AY_EVENT_INFO API New This routine returns information for one or more events within a transaction. The calling program specifies the transaction and event selection criteria. Return information contains data on all events that belong to the specified transaction and fall under the given criteria. OKL_XLA_EVENTS_PVT.GET_EVEN T_STATUS API New This API returns the event status for a specified event. The calling program needs to specify the transaction and event identifier.

Name Type New? Brief Description OKL_XLA_EVENTS_PVT.EVENT_EX ISTS API New This API checks whether an event exists for the specified criteria. It returns True if it finds at least one event matching the criteria; otherwise, it returns False. OKL_TCN_PVT.UPDATE_ROW API Existing The procedure is modified to validate the TS U_CODE transaction status column. The value of the TSU_CODE column can change from ENTERED to CANCELED but not from ENTERED to any other status. This validation is required only for Accounting Transaction Types. This is to ensure data integrity between the transaction and the accounting event created in SLA. OKL_REVERSAL_PVT.REVERSE_EN TRIES API Existing The reverse entries procedure is modified to create a reverse accou nting event when a transaction is cancelled and the accounting distributions are reversed. OKL_REVERSAL_PVT.REVERSE_EN TRIES API Existing The periodic reversal procedure, which is an overloaded procedure, is obsolete in R12B. OKL_ACCOUNTING_PROCESS_PVT API Existing This procedure is obsolete in R12B. OKL_ACCOUNT_BALANCES_PVT API Existing This procedure is obsolete in R12B. OKL_XLA_CREATE_ACCOUNTING_ PVT API New New concurrent program, which is a wrapper around SLA s, Create Accounting program. This program replaces the accounting process concurrent program. The new concurrent program processes accounting events by representation. OKL_XLA_GL_TRANSFER_PVT API New New concurrent program to transfer Sub ledger Jo urnal Entries to GL in stand alone mode. This program replaces the OKL GL Transfer program. The new concurrent program is a wrapper around SLA s GL Transfer Program. OKL_GL_TRANSFER_PVT API Existing This program is obsolete in R12B. OKL_PERIOD_SWEEP_PVT.OKL_PE RIOD_SWEEP API Existing The API is modified to sweep distributions and accounting events fr om one accounting period to another by changing the accounting date. OKL_XLA_HOOK_PVT.PREACCOUN TING API New This is a new API for the pre-accounting extract hook. This API marks distributions that are selected for processing. OKL_XLA_HOOK_PVT.EXTRACT API New This is a new API for the extract hook during t he Create Accounting process. The procedure locks transactions, which are being accounted for by the Create Accounting program. OKL_XLA_HOOK_PVT.POSTACCOU NTING API New The post accounting extract hook is a new procedure. This is currently a n empty stub. OKL_XLA_HOOK_PVT.POSTPROCE SSSING API New The post processing extract hook is a new procedure, which updates

accounting distributions with the posted flag value. OKL_DRILLDOWN_PUB_PKG.DRILL DOWN API New The drilldown new procedure supports drilldown from SLA s accounting events to the corresponding OKL transaction. OKL_SAO_PVT.INSERT_ROW API Existing The system accounting options insert row pro cedure is modified to insert values for new columns added to the system accounting options table. OKL_TRY_PVT.INSERT_ROW API Existing The transaction types insert row procedure i s modified to support new columns added to the transaction types table. OKL_MISC_TRANS_PVT.CREATE_M ISC_TRANSACTION API Existing The miscellaneous transaction/manual journal API is modified to sup port creation of accounting distributions when the account derivation option is ATS and AMB. Correct Accounting Entries UI Existing The Correct Accounting Entries UI is obso lete in R12B. oklLaContractBook.jsp jsp Existing Comment out Generate Journal Entries button Comment out Generate Journal Entries Checkbox for batch processing OklContractBookPC.java Java Existing Comment out Journal related code logic. Okl_Contract_Book_Pub.generate_Journ al_Entries API Existing Comment out code logic and return to caller but without error. Okl_Contract_Book_Pvt.generate_Journa l_Entries API Existing Comment out code logic and return to caller but without error. OKL_CONTRACT_BOOK_PUB.Gener ate_Draft_Accounting API Existing Comment out code logic and return to caller but without error. OKL_CONTRACT_BOOK_PVT.Gener API Existing Comment out code logic and return to ca ller but without error.

Name Type New? Brief Description ate_Draft_Accounting. OKL_LA_JE_PVT.Generate_Journal_En tries API Existing Comment out code logic and return to caller but without error. Note: There are 3 overloaded procedures for Generate_Journal_Entries OKL_TRX_HEADER_UV View Existing Modified to add new columns such as representati on ID to the view. Joins with AR, AP and FA modules are commented out. OKL_TRX_LINE_UV View Existing Modified to add new columns added to the base tran saction table. OKL_AR_TRX_LINE_UV View Existing Stubbed out. OKL_AP_TRX_LINE_UV View Existing Stubbed out. OKL_FA_TRX_LINE_UV View Existing Stubbed out. OKL_AP_DIST_UV View Existing Stubbed out. OKL_AR_DIST_UV View Existing Stubbed out. OKL_FA_DIST_UV View Existing Stubbed out. OKL_INTERNAL_TO_EXTERNAL API Existing Modify to check the Account Derivation met hod before creating records in OKL_XTD_SELL_INVS_B table. OKL_STREAM_BILLING_PVT API Existing Modify to check the Account Derivation metho d before creating records in OKL_XTD_SELL_INVS_B table. OKL_ARINTF_PVT API Existing Modify to check the Account Derivation method before building invoice distribution pl/sql table. Also, modify the cursor or code to fetch data from ext billing tables even if there are no accounting distributions. OKL_INVESTOR_BILLING_PVT API Existing Modify to follow the regular billing proce ss and to add the check for Account Derivation method STAccountingOptionsUpdCrPG.xml UI Existing Screen to Capture System Accounting O ptions STAccountingOptionsUpdCrCO.java Java Existing CO for STAccountingOptionsUpdCrPG. xml STAccountingOptionsLovAM.xml AM Existing AM referred in STAccountingOptionsUpdCr PG.xml STAccGLSetOfBooksLovVO.xml VO Existing VO queries from HR_ORGANIZATION_INFORMATI ON_V, GL_LEDGERS_PUBLIC_V OklBaseAM.xml AM Existing Base AM for MOAC STAccountingOptionsEO.xml EO Existing EO on OKL_SYS_ACCT_OPTS table STAccountingOptionsDtlsPG.xml UI Existing Screen to View System Accounting Optio n Value STAccountingOptionsDtlsCO.java Java Existing CO for STAccountingOptionsDtlsPG.xm l STAccountingOptionsAM.xml AM Existing AM for System Accounting Option pages STAccountingOptionsExpVO.xml VO based on OKL_SYS_ACCT_OPTS and GL_LEDGERS_PUBLIC _V is referred in STAccountingOptionsUpdCrPG.xml and STAccountingOptionsDtlsPG.xml STAccTrxTypesSrchPG.xml UI Existing Screen to search and view the details of any transaction type. STAccTransactionTypesSrchCO.java Java Existing CO for STAccTrxTypesSrchPG.xml STTrxTypesLovAM.xml AM Existing AM for STAccTrxTypesSrchPG.xml STAccTrxTypesExpLovVO.xml VO Existing VO based on OKL_TRX_TYPES_V Referred in STAccTrxTypesSrchPG.xml and STAeTemplateSerchPG.xml STAccTrxTypesUpCrPG.xml UI Existing Used to create/update non-seeded transaction

types. STAccTransactionTypesUpCrCO.java Java Existing CO for STAccTrxTypesUpCrPG.xml STAccTransactionTypesAM.xml AM Existing AM for Accounting Transaction Type Pages STAccTransactionTypesExpVO.xml VO Existing VO based on OKL_TRX_TYPES_V Referred in STAccTrxTypesSrchPG.xml and STAccTrxTypesUpCrPG.xml STAeTmpltSetSerchPG.xml UI New Screen to search Accounting Template Sets STAeTmpltSetSerchCO.java Java New CO for STAeTmpltSetSerchPG.xml STAeTmpltSetNameExpVO.xml VO New VO referred in STAeTmpltSetSerchPG.xml STAeTmpltSetCrUpdPG.xml UI New Screen to create/update Accounting or Accounting Template Sets

Name Type New? Brief Description STAeTmpltSetCrUpdCO.java Java New CO for STAeTmpltSetCrUpdPG.xml STAeTmpltSetEO.xml EO New EO for STAeTmpltSetCrUpdPG.xml STAeTemplateSetExpVO.xml VO New VO based on OKL_AE_TMPT_SETS_V referred in STAeTmpltSetCrUpdPG.xml and STAeTmpltSetSerchPG.xml STAeTmpltSetDtlsPG.xml UI New Screen to View details of the Accounting or Accoun ting Template Sets STAeTmpltSetDtlsCO.java Java New CO for STAeTmpltSetDtlsPG.xml STAeTmpltSetAM.xml AM New AM for Accounting Template Set Pages STAeTmpltSetVO.xml VO New VO referred in STAeTmpltSetCrUpdPG.xml and STAeTmpltSetDtlsPG.xml STAeTmpltSetExpVO.xml VO New VO referred in STAeTmpltSetSerchPG.xml and STAeTmpltSetDtlsPG.xml STAeTemplateSerchPG.xml UI New Screen to Search Accounting or Accounting Templat es. STAeTemplateSerchCO.java Java New CO for STAeTemplateSerchPG.xml STAeTemplateExpVO.xml VO for STAeTemplateSerchPG.xml STAeTemplateNameExpVO.xml VO New VO based on OKL_AE_TEMPLATES_UV referred in STAeTemplateSerchPG.xml STStrmTypeNameVO.xml VO Existing VO based on OKL_STRM_TYPE_V In STAeTemplateSerchPG.xml STStrmTypesPurposeLOVRN.xml RN Existing RN referred in STAeTemplateSerchPG.xml STStrmTypesLovAM.xml AM Existing AM for STStrmTypesPurposeLOVRN.xml STStrmTypesPurposeLOVCO.java CO Existing CO for STStrmTypesPurposeLOVRN.xml STAeTemplateCrUpdPG.xml UI New Screen to create/update Accounting or Accounting Templates. STAeTemplateCrUpdCO.java Java New CO for STAeTemplateCrUpdPG.xml STAeTemplateAM.xml AM New AM for Accounting Template Pages STAeTemplateVO.xml VO New VO for STAeTemplateCrUpdPG.xml STAeTemplateLnsVO.xml VO New VO for STAeTemplateCrUpdPG.xml STAeTemplateLnsEO.xml EO New EO for STAeTemplateCrUpdPG.xml STAeTemplateEO.xml EO New EO for STAeTemplateCrUpdPG.xml STTemplateExpVO.xml VO New VO based on OKL_AE_TEMPLATES_UV for STAeTemplateCrUpdPG.xml Standard Flex Field KFF Existing KFF on STAeTemplateCrUpdPG.xml STStrmTypeNameVO.xml VO Existing VO based on OKL_STRM_TYPE_V For STAeTemplateCrUpdPG.xml STAgrLinesSrchPG.xml UI New Used to search for account generator rules STAgrLinesSrchCO.java Java New CO for STAgrLinesSrchPG.xml STAgrLinesExpVO.xml VO New VO for STAgrLinesSrchPG.xml STAgrLinesSegExpVo.xml VO New VO for STAgrLinesSrchPG.xml STAgrLinesUpdPG.xml UI New Used to update segments for an account generator rule . STAgrLinesUpdCO.java Java New CO for STAgrLinesUpdPG.xml STAgrLinesAM.xml AM New AM for STAgrLinesSrchPG.xml and STAgrLinesUpdPG.xml STAgrLinesVO.xml VO New VO for STAgrLinesUpdPG.xml STAgrLinesEO.xml EO New EO for STAgrLinesUpdPG.xml STAccGenSrcsSrchPG.xml UI New Search for the account generator sources. STAccGenSrcsSrchCO.java CO New CO for STAccGenSrcsSrchPG.xml STAccGenSrcsExpVO.xml VO New VO for STAccGenSrcsSrchPG.xml STAccGenSrcsCrUpdPG.xml UI New Used to create/update sources for account generat or rules. STAccGenSrcsCrUpdCO.java Java New CO for STAccGenSrcsCrUpdPG.xml STAccGenSrcsAM.xml AM New AM for STAccGenSrcsSrchPG.xml, STAccGenSrcsCrUpdPG.xml STAccGenSrcsVO.xml VO New VO for STAccGenSrcsCrUpdPG.xml STAccGenSrcsEO.xml EO New EO for STAccGenSrcsCrUpdPG.xml STPerdStatusSrchPG.xml UI New Used to search accounting period based on the repr esentation name and

Name Type New? Brief Description status. STPerdStatusSrchCO.java Java New CO for STPerdStatusSrchPG.xml STPerdStatusExpVO.xml VO New VO based on OKL_PERIOD_STATUSES_UV for STPerdStatusSrchPG.xml STRepresentationExpVO.xml VO New VO for STPerdStatusSrchPG.xml STPerdStatusUpdPG.xml UI New Used to update accounting period for a representati on STPerdStatusUpdCO.java Java New CO for STPerdStatusUpdPG.xml STPerdStatusAM.xml AM New AM for STPerdStatusUpdPG.xml, STPerdStatusSrchPG.xml STPerdStatusVO.xml VO New VO for STPerdStatusUpdPG.xml STPerdStatusEO.xml EO New EO for STPerdStatusUpdPG.xml MOACExpVO.xml VO Existing VO for Operating unit and referred in multiple pages listed above LookupsExpVO.xml VO Existing VO based on FND_LOOKUPS and referred in multiple pa ges listed above OKL_PAY_INVOICES_CONS_PV T API Existing Consolidates invoices for import into AP. OKL_PAY_INVOICES_TRANS_P VT API Existing Transfer disbursement invoices into the AP interface for import into AP. OKL_SLA_TRX_INFO_V Schema New View to display user transaction identifiers for O KL Event Classes seeded in SLA.

9. Scenarios 9.1 Scenario A This scenario will ccount codes using Derivation Option, les for derivation codes and amounts, ew the journals.

demonstrate how to use lease contract information to derive a the Account Account Method Builder. It will define ledgers, accounting ru of account record transactions that generate accounting, generate and vi

Use lease contract information to derive account codes using the Account Method Builder to setup and account for booking transaction. A primary and secondary ledgers will be setup to replac e the set of books that was used in 11i. Then setup subledger accounting, including Journal Line Types, Account D erivation Rules, Journal Entry Descriptions, Journal Line Definitions, Application Accounting Definitions and the Subledger Accounting Method. To setup lease accounting, define an Account Derivation Optio n and setup Accounting Templates. With setups complete, you can record transactions and view the related accountin g event. At month-end, we can Generate and view the Subledger Journals and then generate and View General Ledg er Journals. A critical month-end close activity is the ability to drill down and view the subledger jou rnal entry line and source transaction details. We will setup a primary ledger to replace the set of books that was used in 11i. Then you will create multiple secondary ledgers for the primary ledger to enable accounting of transactions fo r multiple business units with different accounting standards and currencies. Key Steps: 1. 2. 3. 4. Define ledgers Define accounting rules for derivation of account codes and amounts Record transactions that generate accounting Generate and view the journals

9.1.1 Setup Ledgers You will need to setup a primary ledger to replace the set of books that was use d in 11i. Then create multiple secondary ledgers for the primary ledger to enable accounting of transactions for multiple business units with different accounting standards and currencies. 9.1.1.1 Define Primary Ledger (R) General Ledger (N) Setup > Financials > Accounting Setup Manager > Accounting Setups o The Accounting Setups process train in the Accounting Setup Manager leads you th rough the process to assign legal entities and define accounting representations. Create t he Primary Ledger Name and assign a Chart of Accounts, Accounting Calendar, Currency, Subledger Ac counting Method, and Reporting Currency.

9.1.1.2 Define Secondary Ledgers Once you complete the Primary Ledger details, add multiple secondary ledgers. o Click on 'Secondary Ledger' button o Create a Secondary Ledger, enter Name, Chart of Accounts, Accounting Flex Accoun ting Calendar, Currency, Method o Click 'Add Reporting Currency' link o Add Currency, Currency Conversion Level, Description

9.1.2 Setup Subledger Accounting Now that you have added Subledgers, you can setup subledger accounting, includin g Journal Line Types, Account Derivation Rules, Journal Entry Descriptions, Journal Line D efinitions, Application Accounting Definitions, and selecting the Subledger Accounting Metho d. 9.1.2.1 Setup Journal Line Type (N) Subledger Accounting Setup > Accounting Method Builder > Journal Entry Setups > Journal Line Types. o Create the debit Journal Line Types for the debit line Event Class of Booking by entering the line type details. o Click Conditions button to define the conditions for a debit.

o Now, you can define the conditions for use of the Debit Journal Line Type for the Event Class, Booking, using Leasing and Finance Management sources from the contract.

o Create the credit Journal Line Types for the credit line Event Class of Booking by entering the line type details. o Click Conditions button to define the conditions for a credit. o Define the conditions for use of the Credit Journal Line Type for the Event Cl ass, Booking, using Leasing and Finance Management sources from the contract.

9.1.2.2 Setup Account Derivation Rules (N) Subledger Accounting Setup > Accounting Method Builder > Journal Entry Setups > Account Derivation Rules o Ensure that fixed accounts for the Booking is defined and the debit account an d priority are created.

o Ensure that fixed accounts for the Booking is defined and the debit account an d priority are created.

9.1.2.3 Setup Journal Entry Description (N) Subledger Accounting Setup > Accounting Method Builder > Journal Entry Setups > Journal Entry Description o Ensure that the "Contract Number & Contract Product Name" are captured for OKL journal line descriptions.

9.1.2.4 Setup Journal Line Definition (N) Subledger Accounting Setup > Accounting Method Builder > Methods and Definitions > Journal Line Definitions o Ensure that OKL Journal Line Types are associated with the Account Derivation Rule and the Booking Journal Line are created.

9.1.2.5 Setup (N) Subledger Definitions > o Ensure that Event Type.

Application Accounting Definitions Accounting Setup > Accounting Method Builder > Methods and Application Accounting Definitions OKL Journal Line Definitions are assigned to each Event Class and

9.1.2.6 Setup Subledger Accounting Method (N) Subledger Accounting Setup > Accounting Method Builder > Methods and Definitions > Subledger Accounting Method o Ensure that the Subledger Accounting Method is associated to the Ledger and ea ch Oracle Application is assigned to the Application Accounting Definition.

Finally, go to: (R) Oracle General Ledger (N) Setup > Financials > Accounting Setup Manager > Accounting Setups o Associate the Subledger Accounting Method to each Ledger.

9.1.3 Setup Lease Accounting To setup lease accounting, first define Account Derivation Options. When we defi ne Account Derivation Options, Leasing and Finance Management displays representation Name and Codes from the Ledger setup. Select Account Method Builder as the Account Derivation O ption and select the default distribution set name for liability account in Payables. Then setup Accounting Templates. You do not have to setup Accounting Template Lines when you use the A ccount Derivation Option, Account Method Builder. 9.1.3.1 Define Account Derivation Option (R) Lease Super User (N) Setup > System Options > Accounting Options o Select the Ledger. Then assign the Account Derivation Options to the Ledger.

9.1.3.2 Setup Accounting Templates (R) Lease Super User (N) Setup > Accounting Template Set > Accounting Template Set Details o You do not have to setup Accounting Template Lines for the Account Derivation Option, Account Method Builder.

9.1.4 Record Transactions To record transactions that generate accounting, we will activate a contract to generate a booking transaction and view the transaction details. Once processed, we can view the ac counting events for the transaction. 9.1.4.1 Record Transaction (N) Customers > Contracts o Create a contract to record the first transaction o Activate the contract to generate a booking transaction. o Now you can view the transaction details in the Accounting Transactions page.

(N) Finance > Accounting Transactions o Search for the contract. o Click the Transaction Number (H) to view the transaction details.

9.1.4.2 View Accounting Event (N) Finance > Accounting Transactions o Click View Accounting Event (T) for the selected transaction to view the accou nting events generated for each transaction in the Accounting Events page.

9.1.5 Generate Subledger Journal To generate the subledger journal, run the program, Create Accounting Leasing an d Finance Management and review the Subledger Accounting Program Report to identify any er rors. Once errors are corrected, view the Subledger Journal details. 9.1.5.1 Generate Subledger Journal (N) Finance > Processing o Run 'Create Accounting -Leasing and Finance Management' o You have multiple options including select Mode, Errors Only, Report format, and whether you want to transfer the journals to the General Ledger or post the journals to the General Ledger. o Complete the concurrent program process train.

o Review the Journal Import Execution Report to identify any errors.

9.1.5.2 View Subledger Journal (N) Finance > Accounting Transactions

9.1.6 Generate General Ledger Journal To generate General Ledger Journals, run the Transfer Journal Entries to GL Leas ing and Finance Management program to create journals in Oracle General Ledger. Review t he Journal Import Execution Report to identify any errors. Once errors are corrected, you c an view the General Ledger Journal details. 9.1.6.1 Generate General Ledger Journal (N) Finance > Processing > Schedule o Run "Transfer Journal Entries to GL Leasing and Finance Management" program to create journals in Oracle General Ledger.

o Once you run the Transfer Journal Entries to GL Leasing and Finance Management , you can review the Journal Import Execution Report to identify any errors.

9.1.6.2 View General Ledger Journal (N) Journals > Enter o Enter and query the required journals to view the General Ledger Journal detai ls. o Click Line details (B) to view the Subledger Journal Entry Line and Source Tra nsaction details.

9.1.6.3 Drilldown From the View Journal Entry Lines page, you can drill down to view the Subledger Journal Entry Line and Source Transaction details. o Click Subledger Journal (B) to view the subledger journal detail o Click the Source Transaction (B) to view the source transaction details.

9.2 Scenario B This scenario will demonstrate how to reconcile accounts and close a ledger set, setup Reconciliation Templates and generate the Reconciliation Report to review and analyze differences between ending balances reported on the ledger and streams. To generate Trial Balances for contracts to aide reconciliations and management reporting, setup the contract number as a supporting reference and enable it for the Subledger Accounting Meth od. To make the month-end close process more efficient, define a ledger set to group ledgers and ledger sets and run them as one in the Periods Close Period program and select the ledger or led ger set you want to close Key Steps: 1. Generate Reconciliation Report 2. Generate Contract Trial Balance 3. Close Ledger Set

9.2.1 Setup Reconciliation Templates You will need to setup Reconciliation Templates then generate a Reconciliation R eport to review and analyze differences between ending balances reported on the ledger and strea ms. To generate a Contract Trial Balance, enable supporting references, for contract numbers and enable it for the Subledger Accounting Method. This will enable you to generate a contract trial b alance to aide reconciliations and management reporting. Define Ledger Sets and run the Periods Close Period program to close periods more efficiently. 9.2.1.1 Define Reconciliation Template To reconcile accounts, setup Reconciliation Templates that define the elements t o be reconciled, including account codes, book classifications, financial products, s tream types and transactions, in a reconciliation template. (N) Setup > Accounting > Reconciliation Templates o Click Create. o In the Create Reconciliation Template page, select a Natural Account, Book Class ification, Financial Products, Stream Types and Transactions to be included in the reconcil iation.

9.2.2 Reconcile To reconcile accounts, run the Reconciliation Report to review and analyze diffe rences between ending balances reported on the ledger and streams. To generate a contract trial balance, create supporting references and setup contract numbers as a supporting reference and e nable the Subledger Accounting Method. Create a supporting reference with details and asso ciate it with Account Derivation Rules. This will enable you to generate a contract trial bala nce to aide reconciliations and management reporting. 9.2.2.1 Generate Reconciliation Report (N) Operations > Processes o Run the Generate Reconciliation Report . o Select the Report Definition Name, Display Name and Drill-Downs.

9.2.2.2 Enable Supporting References The first step to generate Contract Trial Balance is to setup contract numbers a s supporting reference and enable it for the Subledger Accounting Method. (N) Subledger Accounting Setup > Accounting Method Builder > Journal Entry Setup > o o . o o o Supporting References Click Create. In the Create Supporting Reference page enter the Supporting Reference details Open the Journal Lines Definitions page Select the desired Journal Line Definition Click Supporting References (T) to associate it with the Supporting Reference.

9.2.2.3 Generate Contract Trial Balance (N) Finance > Trail Balance View o Select the Ledger, Periods, and Contract Number.

9.2.3 Close Period To make the month-end close process more efficient, define a ledger set to group ledgers and ledger sets and run them as one in the Periods Close Period program and select t he ledger or ledger set you want to close. 9.2.3.1 Define Ledger Set (R) Oracle General Ledger (N) Setup > Financials > Ledger Set o Define a ledger set and select ledgers and ledger sets to be included when you run the Periods Close Period program to close periods.

9.2.3.2 Close Period o To close the period, run a request for the Periods lect the ledger or ledger set you want to close.

Close Period program and se