Subledger Accounting An Overview

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SUBLEDGER ACCOUNTING An Overview

AGENDA
What

is Subledger Accounting (SLA) Main Features of SLA Accounting Methods Builder Overview of Ledger setups for SLA Multiple Representations Upgrade considerations

- Manish Srivastava Oracle eBS (KPN)

What is SLA?

DefinitionOracle Subledger Accounting is a rules-based engine for generating accounting entries based on source transactions from ALL Oracle Applications.

- Manish Srivastava Oracle eBS (KPN)

What is SLA?

Subledger Accounting is a Service, not an Application Rule-based accounting engine, toolset & repository to support E-Biz modules There are no SLA responsibilities Users do not login to SLA SLA is a service provided to Oracle Applications SLA forms and programs are embedded within standard Oracle Application responsibilities (e.g. Payables Manager) SLA provides the following services to Oracle Applications:

Generation and storage of detailed accounting entries Storage of Subledger balances Subledger accounting entries (with drilldown to /from transactions) Subledger reporting
- Manish Srivastava Oracle eBS (KPN)

What is SLA?
General Ledger

Centralized Accounting Model

Subledger Accounting

Third Party Systems

Inventory, Receivables, Projects, WIP, Purchasing, Payables

- Manish Srivastava Oracle eBS (KPN)

Features Of SLA

Replaces to various disparate 11i setups, providing single source of truth for financial and management analysis Introduces a common data model and UI across Subledgers Highly granular level of detail in the Subledger accounting model retained Accounting Model separate from transactional Model Catering of custom requirements of accounting of transactions in Subledger Allows multiple accounting Representations for a single Business event

Optionally Post subledger accounting entries to secondary Ledgers Draft: Review Reports, Correct Errors Final: Transfer to GL, Post in Gl

Accounting created in Draft or Final mode


- Manish Srivastava Oracle eBS (KPN)

Features Of SLA

R11i

Subledger Modules

Project Payables Receivables

General Ledger

R12 Accounting Model is separated from Transactional Model


Subledger Modules Subledger Accounting
PA Rules & journal entries AP Rules & Journal entries AR Rules & Journal entries

Project Payables

General Ledger
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Receivables

Accounting Modes

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Accounting Modes: Online


Steps

Creates the journal entries in Final Mode Transfers the data to GL_INTERFACE Runs Journal Import and Triggers the General ledger Posting Program The Transaction can not be modified after creation in Final Mode Automatic Journal Import Journal Import Failure Data will be rolled back Journal Import and correct Forms not used Correction is always in Subledger Reconciliation is simpler
- Manish Srivastava Oracle eBS (KPN)

Features

Overview of AMB

AMB: Acronym for Accounting Method Builder Enables an organization to meet specific fiscal, regulatory and analytical requirements. Compromises of two models

Event Model Accounting Model

- Manish Srivastava Oracle eBS (KPN)

Features Of AMB

Define the way subledger transactions are accounted. Accounting options determine characteristics of JE Default setup provides startup Application Accounting Definitions - Startup definitions based on standard accounting rules in 11i - Startup definitions satisfy most needs Customization of account rules possible - Flexfield wise or Segment wise - Conditional

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- Manish Srivastava Oracle eBS (KPN)

AMB Components

Subledger Accounting method


Application Accounting Definition Oracle receivables

Journal Line Definition


Journal Entry Description Journal Line Types Account Derivation Rules

Mapping Sets

Accounting Methods Builder Predefined Components

Event Entry
Event Class Event Class

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Event type

Event Type

Event Type

Event type

- Manish Srivastava Oracle eBS (KPN)

AMB Components
Event Model

Definition of the Subledger transaction types and lifecycle Predefined Components- new components can not be defined 3 Levels

Event Entity: Highest level, often 1 per subledger Application Event Class: classifies transaction types for accounting rule purposes Event Types: for each transaction type, defines possible actions with accounting significance

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Event Model


Event Classes Payables
- Invoice - Debit Memo - Prepayment - Payments - Refunds

Assets
- Additions - Adjustments - Capitalization - Depreciation

Receivables
- Invoice - Deposit - Receipt - Bill Receivable

Purchasing
- Requisition - Purchase Order

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Event


Event Types

AP Invoice Events
Validated Adjusted Capitalization

FA Depreciation Events
Depreciation Rollback Depreciation

AR Receipts Events
Created Applied Unapplied Updated Reversed

Purchase Order Events


Created Distributed Cancelled Rejected Finally Completed

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Event


Events:

represent transactions that have a financial accounting impact captured when transactions are committed in the subledgers
i.e. when a particular action is completed

Financial accounting information can be recorded for events.

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions

Subledger Accounting method


Application Accounting Definition Oracle receivables

Journal Line Definition


Journal Entry Description Journal Line Types Account Derivation Rules

Mapping Sets

Accounting Methods Builder Predefined Components

Event Entry
Event Class Event Class

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Event type

Event Type

Event Type

Event type

- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions


Accounting Definition Model

Startup data seeded by Oracle Modify these definitions or create new ones Copy and Modify Functionality provided Comprises of following components

Subledger accounting methods Application accounting definitions Journal lines definitions Journal line types Account derivation rules Journal entry descriptions
- Manish Srivastava Oracle eBS (KPN)

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AMB Components Accounting Definitions


Accounting Definition Model

Journal Line Types: Control journal entry line options such as balance type, side and summarization Journal Entry Descriptions: Control the description for the journal entry headers and lines and provide additional information about the journal entry Account Derivation Rules: Control the derivation of Accounting Flexfield combinations for the journal entry lines to construct the accounts

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions

Highest Level: Accounting Method

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions

Journal Line Types


Control journal entry line options such as balance type, side and summarization Defined for a particular event class Determines the characteristics of the subledger journal entry lines. Define conditions for the use of the journal line type

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- Manish Srivastava Oracle eBS (KPN)

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions


Journal Line Types

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions

Journal Entry Descriptions


Provide additional information about the journal entry Ability to control the description for the journal entry headers and lines Can be defined for both Subledger Header and Line Define the elements/contents of a description that appear on the subledger journal Can define the sequence in which the elements appear Build using any of the available sources for the application. For example, an individual segment of an Accounting Flexfield can be included in the description.
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AMB Components Accounting Definitions


Journal Entry Description

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions

Account Derivation Rules


Define user specified rules to determine how a journal entry account is derived or built Define Accounting Options that determine different characteristics of the journal entry Define conditions that determine when subledger journal entry accounts and lines are created Control the derivation of Accounting Flexfield combinations for the journal entry lines Define a rule by Accounting Flexfield, segment, or value set. Can use both segment-based and flexfield-based rules to derive a single account. Uses segment-specific rules where they are defined and takes the remaining values from a flexfield-based rule
- Manish Srivastava Oracle eBS (KPN)

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions


Account Derivation Rule

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions


Journal Line Definition

Subledger Accounting method


Application Accounting Definition Oracle receivables

Journal Line Definition


Journal Entry Description Journal Line Types Account Derivation Rules

Mapping Sets

Accounting Methods Builder Predefined Components

Event Entry
Event Class Event Class

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Event type

Event Type

Event Type

Event type

- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions

Journal Lines Definition

Use journal lines definitions enable to create sets of line assignments for an event class or event type. These sets can be shared across application accounting definitions. Link Journal Types, Descriptions and Derivation rules by assigning account derivation rules and descriptions to journal line types Define multiperiod accounting rules for a journal line type

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- Manish Srivastava Oracle eBS (KPN)

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- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions


Application Accounting Definition

Subledger Accounting method


Application Accounting Definition Oracle receivables

Journal Line Definition


Journal Entry Description Journal Line Types Account Derivation Rules

Mapping Sets

Accounting Methods Builder Predefined Components

Event Entry
Event Class Event Class

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Event type

Event Type

Event Type

Event type

- Manish Srivastava Oracle eBS (KPN)

AMB Components Accounting Definitions

Application Accounting Definitions

Use application accounting definitions to group journal lines definitions and header assignments for event classes and event types. Indicate whether to create accounting for a particular event class or event type e.g., when using cash basis accounting, you would not create a journal entry to record the accrual of an invoice.

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- Manish Srivastava Oracle eBS (KPN)

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AMB For Custom Sources

Extend the list of sources available to application accounting definitions. Using standard and system source values as parameters, write PL/SQL functions that create custom sources. Define custom sources using seeded sources and constant values when sources required for the definition of accounting rules are not provided as seeded sources. Use the custom source defined in Account Derivation Rules.

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Multiple Representation

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SLA Setup
Ledger > System Options

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- Manish Srivastava Oracle eBS (KPN)

SLA Setup
Ledger> Accounting Options (Primary Ledger)

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- Manish Srivastava Oracle eBS (KPN)

SLA Setup
Ledger> Accounting Options (Secondary Ledger)

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- Manish Srivastava Oracle eBS (KPN)

SLA Setup
Primary and Secondary Ledger Mapping

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- Manish Srivastava Oracle eBS (KPN)

SLA table Structure

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- Manish Srivastava Oracle eBS (KPN)

SLA Upgrade considerations

By default, the R12 upgrade migrates 6 months of accounting entries from each application to the SLA data model. You can modify this if desired For prior periods, the historical data is preserved. You can drill from General Ledger to the historical transactions using standard GL drilldown You can upgrade prior periods by request during uptime

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- Manish Srivastava Oracle eBS (KPN)

SLA Upgrade considerations

Default SLA rules preserve the accounting rules used in 11i All seeded rules are generic not chart of accounts specific In most cases, accounts are passed from Oracle Applications into SLA as sources Users can optionally copy and then modify the seeded SLA rules No need to modify any seeded responsibilities If using custom menus or responsibilities, you may need to add SLA forms/reports/programs to the custom responsibilities

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- Manish Srivastava Oracle eBS (KPN)

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