R12 SLA.doc

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R12 SLA: Analyzing Subledger

Accounting

Posted on November 25th, 2007 by Sanit Anand ! Print This Post ! Email ThisPost

As in last post about subledger accounting we understood with this new feature:

• All accounting performed before transfer to the GL.

• and this is achieved by user setup who can do by definable accounting rules.

At the data level, it!"s a big change for all the subledgers, though there is a first

generation changes we have noticed sometime when ##i Payables where concept of

!$ Accounting Events ! introduced first time and accounting performed at subledger

level first before moving into GL.

The same idea has been incorporated in new sub ledger accounting model , indeed a was

a real need because of some uneven functionality li%es:

• &nconsistencies in Accounting Generation li%e 'ummary vs. (etail

• (irect to General Ledger vs. )pen &nterface

• &nconsistent (rilldown from General Ledger

• Also it has been seen inconsistent *echanisms for controlling Accounting as

certain options has been used in e+isting version:

o fle+ builder

o Account Generatoro Automatic )ffsets

"hat i# #ub ledger mean $or a non $inance %er#on&

• A new transactional application that generates accounting impact

• sed to store detailed information not needed for a general ledger

• 'ub ledgers post summari-ed activity to a general ledger periodically to maintain

centrali-ed account balances for the company

ith these accounting at this level the respective sub ledgers / General Ledger is tied

out, as below.

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'o( Receivable# Accounting ha%%en in 11i

As we %now the final accounting data not generated prior to transfer to GL as onlydistribution level information is passed to GL.

&n ##i , we %now three distinct distributions tables for invoices 0 1redit *emos 0 (ebit*emos have to capture accounting class / amounts information but not debits / credits.

•

o 2eceipts / Ad3ustments

napplied, applied

4oth debits / credits

o *isc. 1ash 2eceipts

4oth debits / credits• As we %now 56iew Accounting! is a report against distributions to see the

accounting information.

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'o( )ayable# Accounting ha%%en in 11i

e %now accounting data generated and stored in !$Accounting Events! tables priorto transfer to GL in Payable. )nce Transaction get completed it was need to run the

!$*reate Accounting! process which basically populate data into accounting events

tables.Then the actual line information move ta%es place from accounting events table toGeneral Ledger Tables.The e+isting ##i accounting Process is can be best understood by

figure below.

Subledger to Ledger Re%orting in 11i

&t means complete, final accounting only available in the GL

• All debits and credits

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• All 3ournal entries

• All balances

The only issues in pre 2#7 versions was to lin% summari-ed accounting data with source

details.

'o( it i# re#olved in Relea#e 12 Subledger Accounting

All sub ledger accounting data generated and stored in shared 'LA tables prior to transfer

to GL , and this is achieved by running !$1reate Accounting! to populate 'LA

tables86ery very similar to Payable events9. )nce this can be done , user can !$6iewAccounting! only after !$1reate Accounting! is run and completed successfully.

+ran#$erring Accounting in$ormation $rom A)AR to -L in R12

The 1reate Accounting process has similar options, you can create accounting in inal or

(raft mode and if inal mode is selected, the Transfer to GL parameter can be used toautomatically transfer the accounting created by the corresponding run. hen the 1reateAccounting process transfers the 3ournal entries to GL it only transfers the accounting

created by the process that calls it. &f there is accounting created by the online option ;

inal or a previous 1reate Accounting program that was not transferred, that accountingwill not be transferred. The Transfer 'LA 3ournals matches

• ?olds finest granularity of accounting data

• *ultiple distributions may be aggregated into a few 'LA 3ournal lines

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and inal picture loo%s li%e:

SLA ey attribute :Something called 3vent 4odel & "hat i# all about&

Event *odel are basically definition of the sub ledger transaction types and there life

cycle.

&t has three levels

• 3vent 3ntity: ?ighest level, often # per sub ledger application

• 3vent *la##: classifies transaction types for accounting rule purposes

• 3vent +y%e: for each transaction type, defines possible actions with accounting

significance.

&t is very important that applications must tell 'LA when an event has occurred.hen a

user runs the 'LA 1reate Accounting program, it processes all events with the

appropriate status

we have notice some of event classes in Payable and 2eceivable.

• )ayable#

o &nvoice

o (ebit *emo

o Prepayment

o Payments

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o 2efunds

• Receivable#

o &nvoice

o (eposit

o 2eceipt

o 4ill 2eceivable

and typical event Types are li%e

• A) .nvoice 3vent#

o 6alidated

o Ad3usted

o 1ancelled

• AR Recei%t 3vent#

o 1reated

o Applied

o nappliedo pdated

o 2eversed

Posted in E4' 'uite, 2#7, 2elease#7 ! Email This Post ! Print This Post

@ 2esponses#. Paul 'ays:

(ecember rd, 7BBC at 7:#D pm

Than% you for all your articles, great source of information.

&n our organi-ation we have over B countries 8global9, set of boo% for each entity,multiple currencies, and configuration and setup for each. 6ery comple+.

Fuestion e are going to run the 'LA on our set of boo%s 8testing9 on our P)1

instance. AH( would li%e to %now of any important changes we should pay

attention.

Than% you.

Paul

7. Yugandhar A 'ays:(ecember #th, 7BBC at I:JI am

Than%s a lot This is great information for us. &t is very very useful for all )racleunctional and Technical People.

Than%s

=ugandhar Appani

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. Durga 'ays:ebruary ##th, 7BB@ at @:7 pm

Paul,

& guess your Kuestion is related to upgrade to 2#7. Hormally the upgrade should ta%e you to the standard 'LA method.*ean to say

that when you upgrade the default subledger method must be standard. 'o no real

changes are reKuired from 'LA point of view. ?owever, the following mayreKuire consideration.

#. The number of periods of past accounting data you want to upgrade to 'LA

model. This has to be determinied in advance to upgrade. There is also a post

upgrade process which can be run after actual upgrade to upgrade the historicalaccounting data as and when need arises.

7. sage of account generator. All the account generator s li%e A account

generator should wor% fine. ?owever you may avoid the usage of s if you can

have your 'LA model redesigned as per the need.

Than%s,(urga

R12 SLA: rom )roduct Accounting toSubledger Accounting

Posted on November 1th, 2007 by Sanit Anand ! Print This Post ! Email ThisPost

*ost of us are well aware that in 2elease #7 of )racle Applications, 'ubledger

Accounting 8'LA9 has been introduced, which is a 2ulebased accounting engine, toolset

/ repository which is supporting most of )racle business 'uite modules. As we %nowdriver for introduction this is to have an option of allowing multiple accounting

representations for a single business event, resolving conflicts between corporate and

local fiscal accounting reKuirements. The unctionality is somehow very similar toGlobal accounting engine, which oracle does offer for European reporting Heed.

So "hat i# Subledger Accounting&

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! 'LA is an intermediate step between subledger products and the )racle General

Ledger

!

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-L lo( (ith Subledger6Level Secondary Ledger

Lets ta%e a case , with a scenario with basic inance module, you can find how tightly

accounting model is separated with transaction model in release #7.

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This is the typical flow within one product with 'LA can be best described as:

Posted in E4' 'uite, 2#7, 2elease#7 ! Email This Post ! Print This Post

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#B 2esponses

#. Gareth Roberts 'ays: Hovember #Cth, 7BBC at I:@ pm

?i Anand,

Hice post, &Mm %een to %now if subledger accounting is 3ust the e+tension and

5e+posureN of the apOaeOheaders0lines that the core financials modules have

already in ##i Any thoughtsGareth

7. R12 SLA: Analyzing Subledger Accounting 'ays: Hovember 7Jth, 7BBC at #7:J am

Q...R and 7BBC report for E2P 6endors)racle )penorld 7BBC Presentations :Available for (ownload2#7 'LA: rom Product Accounting to 'ubledger

Accounting'1* 'ubsystemSH) ?AT &' 'PPL= 1?A&H

*AHAGE*EHT 8'1*9 : An )verview(iscrete / Process Q...R

. Release 12 : Legal Entity uta!e 'ays:(ecember Cth, 7BBC at D:BD am

Q...R and 7BBC report for E2P 6endors)racle )penorld 7BBC Presentations :

Available for (ownload2#7 'LA: rom Product Accounting to 'ubledger

Accounting Q...R

. Release 12: " #e$ and %hanged &eature in '(racle Assets) 'ays:

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(ear Anand

it was a e+cellent article that has given me a good insight into the basic concepts

vis a vis the 'LA in 2elease #7. =et i am having more doubts in 'LA 'et up.

@. R12 SLA: Accounting .ethods /uilder 'ays:April #@th, 7BB@ at 7:J# am

Q...R 2#7 'LA: rom Product Accounting to 'ubledger Accounting Q...R

D. 0hite Paer : R12 (racle Subledger Accounting 'ays:*ay 7nd, 7BB@ at :BB am

Q...R 2#7 'LA: rom Product Accounting to 'ubledger Accounting Q...R

#B. &ied Asset SLA 'ays:

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A particular

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• (etermine which rule will be generic or specific for a given chart of accounts

• This will identify what will be derived li%e Accounting fle+field or there

respective segment or Kualifier value or 6alue from a value set

• This will also have a provision to define how the value will be derived for

defaulting some 1onstant values or any 'ource value or any mapping set

Accounting 4ethod# uilder

The transaction ob3ects and the sources carry transaction information into the rulesdefined for each component of an entry.

These components, for e+ample, 3ournal line type, account derivation rule, 3ournal entry

descriptions, are attached together as a 3ournal line definition for a particular event.

Ta%e a case if you set up a

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9our Navigation

• Setu% 6 A%%lication Accounting e$inition Havigation9

o 'etup > Accounting 'etups > 'ubledger Accounting 'etup > Accounting

*ethods 4uilder > *ethods and (efinitions > Application Accounting

(efinitions

• Setu% 6 Subledger Accounting 4ethod Navigation;


*ethods 4uilder > *ethods and (efinitions > 'ubledger Accounting

*ethods

• Setu% 6 Account erivation Rule Navigation;


*ethods 4uilder >

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