R12 Oracle Subledger Accounting Fundamentals …dbmanagement.info/.../R12_Oracle_Subledger_Accounting_Fundamentals...R12 Oracle Subledger Accounting Fundamentals Table of Contents

R12 Oracle Subledger Accounting Fundamentals Student Guide

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R12 Oracle Subledger Accounting Fundamentals Table of Contents i

Table of Contents

Overview of Subledger Accounting................................................................................................................1-1 Overview of Subledger Accounting ..............................................................................................................1-2 Objectives ......................................................................................................................................................1-3 What is Subledger Accounting? ....................................................................................................................1-4 Subledger Balances........................................................................................................................................1-8 Summary........................................................................................................................................................1-9 Practice 1: Create a New User ......................................................................................................................1-10

Practice - Create a New User.....................................................................................................................1-11 Solution - Create a New User ....................................................................................................................1-12

Practice 2: Create a Supplier.........................................................................................................................1-16 Practice - Create a Supplier With Two Sites .............................................................................................1-17 Solution - Create a Supplier With Two Sites.............................................................................................1-20

Create Accounting and Transfer Journal Entries to General Ledger ........................................................2-1 Create Accounting and Transfer Journal Entries to General Ledger .............................................................2-2 Objectives ......................................................................................................................................................2-3 Create Accounting Program Overview..........................................................................................................2-4 Draft Accounting ...........................................................................................................................................2-6 Online Accounting.........................................................................................................................................2-7 Straight-Through Accounting........................................................................................................................2-8 Create Accounting Program Parameters........................................................................................................2-9 Transfer Journal Entries to GL Program Overview.......................................................................................2-12 Transfer Journal Entries to General Ledger Program ....................................................................................2-13 Oracle Subledger Accounting Program Report .............................................................................................2-14 Transfer Journal Entries to GL Report ..........................................................................................................2-16 Setting Profile Options ..................................................................................................................................2-17 Summary........................................................................................................................................................2-19 Practice 1: Entering an Invoice.....................................................................................................................2-20

Practice - Enter an Invoice with Two Lines that are Distributed to Different Departments ......................2-21 Solution - Enter an Invoice with Two Lines that are Distributed to Different Departments .....................2-22 Practice - Create an Invoice .......................................................................................................................2-25 Solution - Create an Invoice ......................................................................................................................2-26

Guided Demonstration: Run the Create Accounting Program......................................................................2-27 Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in Payables.....................................................................................................................................................2-28 Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in Receivables................................................................................................................................................2-29

Inquiries............................................................................................................................................................3-1 Inquiries.........................................................................................................................................................3-2 Objectives ......................................................................................................................................................3-3 Objectives continued .................................................................................................................................3-4 Accounting Events Inquiry Process...............................................................................................................3-5 Viewing Subledger Journal Entry Lines........................................................................................................3-7 Subledger Journal Entry Lines Inquiry Process.............................................................................................3-9 Drilldown from GL........................................................................................................................................3-11 Summary........................................................................................................................................................3-12 Summary continued...................................................................................................................................3-13 Practice 1: Inquiring on Subledger Journal Entries ......................................................................................3-14

Guided Demonstration - Inquiring on Subledger Journal Entries in Payables or Receivables ..................3-15 Practice - Inquiring on Subledger Journal Entries for Payables and Receivables......................................3-16 Solution Inquiring on Subledger Journal Entries for Payables and Receivables ....................................3-17

Accounting Methods Builder (AMB) .............................................................................................................4-1


R12 Oracle Subledger Accounting Fundamentals Table of Contents ii

Accounting Methods Builder (AMB) ............................................................................................................4-2 Objectives ......................................................................................................................................................4-3 Accounting Methods Builder (AMB) Overview ...........................................................................................4-4 AMB Process.................................................................................................................................................4-7 Accounting Methods Builder (AMB) ............................................................................................................4-9 Copy and Modify Functionality.....................................................................................................................4-11 Transaction Chart of Accounts ......................................................................................................................4-13 Accounting Chart of Accounts ......................................................................................................................4-14 Event Model ..................................................................................................................................................4-15 Event Classes.................................................................................................................................................4-17 Event Types ...................................................................................................................................................4-18 Subledger Accounting Methods ....................................................................................................................4-20 Setting Up Subledger Accounting Methods ..................................................................................................4-21 Subledger Accounting Methods ....................................................................................................................4-23 Application Accounting Definition ...............................................................................................................4-24 Application Accounting Definitions..............................................................................................................4-25 Importing Application Accounting Definitions .............................................................................................4-28 Exporting Application Accounting Definitions .............................................................................................4-30 Journal Line Types ........................................................................................................................................4-31 Account Derivation Rules .............................................................................................................................4-37 Account Derivation Rule ...............................................................................................................................4-38 Defining Account Derivation Rules ..............................................................................................................4-40 Account Derivation Rule ...............................................................................................................................4-41 Account Combination Rules..........................................................................................................................4-43 Segment Rules ...............................................................................................................................................4-45 Oracle-Owned vs. User-Owned AMB Components......................................................................................4-48 Value Set Rules .............................................................................................................................................4-49 Mapping Sets .................................................................................................................................................4-51 Journal Entry Descriptions ............................................................................................................................4-53 Journal Entry Description..............................................................................................................................4-54 Journal Lines Definition ................................................................................................................................4-57 Journal Lines Definitions...............................................................................................................................4-58 Summary........................................................................................................................................................4-60 Practice 1: Running the Create Accounting Program in Draft Mode ..........................................................4-61

Practice - Running the Create Accounting Program for Payables .............................................................4-62 Solution Running the Create Accounting Program for Payables............................................................4-64 Practice - Running the Create Accounting Program for Receivables ........................................................4-71 Solution Running the Create Accounting Program for Receivables.......................................................4-73

Practice 2: Defining Subledger Accounting Methods..................................................................................4-79 Guided Demonstration - Defining Subledger Accounting Methods in Payables.......................................4-80 Practice - Defining Subledger Accounting Methods for Payables.............................................................4-84 Solution Defining Subledger Accounting Methods for Payables ...........................................................4-86 Guided Demonstration - Defining Subledger Accounting Methods in Receivables..................................4-91 Practice - Defining Subledger Accounting Methods for Receivables........................................................4-95 Solution Defining Subledger Accounting Methods for Receivables ......................................................4-97

Practice 3: Defining Application Accounting Definitions ...........................................................................4-102 Guided Demonstration - Defining an Application Accounting Definition in Payables.............................4-103 Practice - Defining an Application Accounting Definition for Payables...................................................4-104 Solution Defining an Application Accounting Definition for Payables..................................................4-105 Guided Demonstration - Defining an Application Accounting Definition in Receivables........................4-110 Practice - Defining an Application Accounting Definition for Receivables..............................................4-111 Solution Defining an Application Accounting Definition for Receivables ............................................4-113

Practice 4: Defining Journal Line Types .....................................................................................................4-118 Guided Demonstration - Defining Journal Line Types in Payables...........................................................4-119 Practice - Defining Journal Line Types for Payables ................................................................................4-121 Solution Defining Journal Line Types for Payables ...............................................................................4-123 Guided Demonstration - Defining Journal Line Types in Receivables .....................................................4-129


R12 Oracle Subledger Accounting Fundamentals Table of Contents iii

Practice - Defining Journal Line Types for Receivables ...........................................................................4-130 Solution Defining Journal Line Types for Receivables ..........................................................................4-132

Practice 5: Defining Account Derivation Rules...........................................................................................4-139 Guided Demonstration - Defining Account Derivation Rules for Payables ..............................................4-140 Practice - Defining Account Derivation Rules for Payables......................................................................4-142 Solution Defining Account Derivation Rules for Payables ....................................................................4-144 Guided Demonstration - Defining Account Derivation Rules in Receivables...........................................4-152 Practice - Defining Account Derivation Rules for Receivables.................................................................4-154 Solution Defining Account Derivation Rules for Receivables ...............................................................4-156

Practice 6: Defining Journal Lines Definitions............................................................................................4-166 Guided Demonstration - Defining Journal Lines Definitions for Payables ...............................................4-167 Practice - Defining Journal Lines Definitions for Payables.......................................................................4-168 Solution Defining Journal Lines Definitions for Payables .....................................................................4-169 Guided Demonstration - Defining Journal Lines Definitions for Receivables ..........................................4-173 Practice - Defining Journal Lines Definitions for Receivables..................................................................4-174 Solution Defining Journal Lines Definitions for Receivables ................................................................4-175

Reports .............................................................................................................................................................5-1 Reports...........................................................................................................................................................5-2 Objectives ......................................................................................................................................................5-3 Subledger Accounting Reports Overview .....................................................................................................5-4 Custom Parameters ........................................................................................................................................5-7 Journal Entries Report ...................................................................................................................................5-8 Journal Entries Report Parameters.................................................................................................................5-9 Account Analysis Report...............................................................................................................................5-12 Account Analysis Report Parameters ............................................................................................................5-13 Third Party Balances Report..........................................................................................................................5-15 Third Party Balances Report Parameters .......................................................................................................5-16 Subledger Period Close Exceptions Report ...................................................................................................5-19 Subledger Period Close Exceptions Report Parameters ................................................................................5-20 Open Account Balances Listing Overview....................................................................................................5-22 Creating and Updating Open Account Balances Listing Definitions ............................................................5-25 Open Account Balances Listing ....................................................................................................................5-27 Open Account Balances Listing Parameters..................................................................................................5-28 Summary........................................................................................................................................................5-30 Practice 1: Generating the Journal Entries report .........................................................................................5-31

Practice - Generating the Journal Entries Report for Payables ..................................................................5-32 Solution Generating the Journal Entries Reports for Payables ...............................................................5-33 Practice - Generating the Journal Entries Report for Receivables .............................................................5-36 Solution Generating the Journal Entries Reports for Receivables ..........................................................5-37

Creating Manual Subledger Journal Entries ................................................................................................6-1 Creating Manual Subledger Journal Entries ..................................................................................................6-2 Objectives ......................................................................................................................................................6-3 Subledger Journal Entries Overview .............................................................................................................6-4 Manual Journal Entries ..................................................................................................................................6-5 Creating Subledger Journal Entries ...............................................................................................................6-6 Creating Subledger Journal Lines..................................................................................................................6-7 Summary........................................................................................................................................................6-9 Practice 1: Creating Manual Subledger Journal Entries ...............................................................................6-10

Guided Demonstration - Creating Manual Subledger Journal Entries in Payables....................................6-11 Practice - Creating Manual Subledger Journal Entries in Payables ...........................................................6-12 Solution Creating Manual Subledger Journal Entries in Payables..........................................................6-14 Guided Demonstration - Creating Manual Subledger Journal Entries in Receivables ..............................6-17 Practice - Creating Manual Subledger Journal Entries in Receivables ......................................................6-18 Solution Creating Manual Subledger Journal Entries in Receivables.....................................................6-20

Advanced Options............................................................................................................................................7-1


R12 Oracle Subledger Accounting Fundamentals Table of Contents iv

Advanced Options .........................................................................................................................................7-2 Objectives ......................................................................................................................................................7-3 Custom Sources .............................................................................................................................................7-4 Defining Custom Sources ..............................................................................................................................7-5 Custom Source Definition .............................................................................................................................7-6 Example: Custom Source in a Description ....................................................................................................7-8 Business Flows ..............................................................................................................................................7-9 Business Flow Methods.................................................................................................................................7-12 Multiperiod Accounting ................................................................................................................................7-14 Accrual Reversals ..........................................................................................................................................7-15 Third Party Control Accounts........................................................................................................................7-16 Alternative Accounts .....................................................................................................................................7-18 Diagnostic Framework Overview..................................................................................................................7-20 Diagnostic Framework Business Process ......................................................................................................7-22 __Error Handling...........................................................................................................................................7-23 Journal Entry Sequencing..............................................................................................................................7-24 Summary........................................................................................................................................................7-27


Overview of Subledger Accounting Chapter 1 - Page 1

Overview of Subledger Accounting Chapter 1



Overview of Subledger Accounting



Objectives



What is Subledger Accounting?

What is Subledger Accounting?

Subledger Accounting is a set of services for R12 that significantly enhances accounting support across the E-Business Suite.

Subledger Accounting is a data store in the same way as General Ledger but Subledger Accounting provides the detailed data whereas General Ledger provides a summarized version. Subledger Accounting is therefore a true subledger.

Introduction to Subledger Accounting

Subledger Accounting is mainly a rule-based accounting engine that centralizes accounting for Oracle E-Business Suite products in R12.

Subledger Accounting is not a separate product in itself, but is Oracles engine catering to the accounting needs of Oracle applications.



Together with the new ledger support, Subledger Accounting enables support of multiple accounting requirements concurrently in a single instance. Different accounting regulations can be satisfied by maintaining and applying different sets of rules to different sets of transactions; or accounting for the same transaction with multiple methods.

By maintaining a full link between the transaction and accounting data, Subledger Accounting allows powerful reconciliation and auditing capabilities.

Since Subledger Accounting provides the setup and inquiry user interface and data model for accounting across modules, Subledger Accounting enables consistency in reporting, analysis, and user experience.


Let us assume a US based corporation with operations in the UK and France.

The French operation is subject to French accounting regulations, and therefore must report its activities to the local authorities in Euros, according to the French business calendar, French chart of accounts, and the French interpretation of IFRS (International Financial Reporting Standards).

The UK operation, similarly, is subject to the UK regulations, which for this examples sake are not as restrictive as the French ones. Thus, the UK operation does its local reporting in the local currency, the British Pound, but according to the US business calendar, US chart of accounts (COA), and US GAAP.

The US operation reports in the USD according to the US business calendar, US COA, and GAAP.

In the R12 ledger setup, each of these operations would be defined as three separate ledgers to satisfy local reporting requirements.

The US headquarters/parent company would need to have a consolidated global visibility of the worldwide operations, however, it would not be very meaningful to consolidate or compare each of these entities with each other. Firstly, because the reporting currencies are different. Secondly, the COA and the method of accounting for the French activities may be considerably different than those in the UK and US. For example, in France, purchases or inventory will be reported as expenses, whereas in the UK and the US they will be reported as inventory items. Therefore, a simple currency conversion will not suffice. With the R12 ledger architecture and Subledger Accounting, the following model can be implemented to solve this business need:

For the UK operation, activities can be converted to the US equivalent simply by converting the currency since the calendar, COA, and accounting methods are the same. You can set this up by adding a reporting currency to the UK ledger.

For the French operation, a currency conversion alone will not work. You will need to define a secondary ledger for the French ledger, which will share the same currency, COA, calendar, and accounting method as those at HQ.



By defining the reporting currency and secondary ledgers, the three operations can satisfy local regulations, and also allow comparison and consolidation.

In the definition above, Subledger Accounting allows:

multiple accounting methods to be defined

separate accounting methods to be used on different ledgers

Journal entries to be created on multiple ledgers for a single business event (French activities accounted for on the primary ledger according to the IFRS method, and on the secondary ledger according to the US GAAP method).


You can see at a glance exactly where the accounting comes from.

This is a journal entry created upon the validation of an accounts payable invoice. Notice the description on the journal entry as well as information from the invoice itself which will help in associating the entry with the transaction.


Subledger Accounting tracks how the journal entry is built from a transaction.

On the left-hand side of the screen, you can see an invoice for two items, freight, and tax.

On the right, you can see two entries have been created: one on the US corporate ledger and the other on the FR statutory ledger.

The expense entry is created for the two line items of the invoice.

The next two lines (2 and 3) are for freight and tax respectively.

The rules have been set up to summarize all of this information and create a single liability entry. You could also configure the rule so that 3 or 4 separate liability lines are created.

Subledger Accounting stores and enables you to track how each line of the invoice contributed to the journal entry.


Let us go back to the previous example and look at a payment that pays off the invoice. The SLA data model not only allows keeping the transaction-to-accounting link, but the inherent features also allow the transaction flows to be reflected on the accounting side. You can see here that a particular payment is applied to a particular invoice liability.



Using the SLA Business Flows functionality, we are able to go back to the journal created for the invoice and view the exact liability account, at the exact rate that the invoice was converted at, if it was a foreign currency one, at the time of accounting for the payment.

What is a subledger?

Example: The Receivables subledger stores receivables by customer, but this detail is not needed in a general ledger.



Subledger Balances

Subledger Balances

Control Account: An asset or liability account (receivable or payable) to which only entries for subledger transactions with trading partners (suppliers or customers) can be booked. No manual GL adjustments are allowed. Subledger balances are tracked at an account and trading partner level.



Summary



Practice 1: Create a New User



Practice - Create a New User

Overview

In this practice, you will create a new user.

Assumptions

Replace XX with your terminal number or initials.

You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice.

Tasks

1. Switch to the System Administrator responsibility. (I) Black Hat (on toolbar) Responsibility = System Adminstrator

2. Create a New User User Name = XXUSER Password = welcome1 Person = The employee you created in the first practice

Note: You have to tab and enter the Password again.

3. Enter the responsibilities for this user. Responsibility Security Group

General Ledger, Vision Operations (USA) Standard

Payables, Vision Operations (USA) Standard

Purchasing, Vision Operations (USA) Standard

Cash Management, Vision Operations (USA) Standard

US HRMS Manager Standard

Human Resources, Vision Enterprises Standard

iExpenses Standard

System Administrator Standard

Oracle Payments Payment Administrator Standard

4. Sign on as your new user.



Solution - Create a New User

Tasks

Sign on

1. Switch to the System Administrator responsibility. (I) Black Hat (on toolbar) Responsibility = System Adminstrator

Create a New User

2. Navigate to the Define User form

(N) Security : User > Define User Name = XXUSER, where XX is your terminal ID. Password = welcome (tab, re-enter to verify) Person = The employee you created in the first practice

Add Responsibilities

3. Add the following responsibilities to your new username

Responsibility Security Group


Payables, Vision Operations (USA) Standard

Purchasing, Vision Operations (USA) Standard


US HRMS Manager Standard

Human Resources, Vision Enterprises Standard

iExpenses Standard


Oracle Payments Payment Administrator Standard



4. Save and Close Form.

Login as New User

5. Exit Oracle Applications (M) File > Exit Oracle Applications (B) OK

6. From the Oracle e-Business Suite home page: (L) Logout

7. Log back into the system with your newly created User ID and password. Old Password = welcome1 New Password = XXuser (Tab, re-enter to verify)

8. (B) Submit.



Practice - Create a New User (Required)

Overview

In this practice you will create a new user.

Assumptions



Tasks

Create a New User

1. (M) File > Switch Responsibilities Responsibility = System Administrator

2. (B) OK

3. Navigate to the Define Users window

(N) Security > User > Define User Name = XXUSER (where XX is your terminal ID) Password = welcome (tab, re-enter password to verify) Person Name = Your employee name from the previous practice

4. (I) Save

5. Add the following responsibilities to your new username:

Responsibility Security Group


Workflow Standard


Order Management Super User, Vision Operations (USA) Standard

Receivables, Vision Operations (USA) Standard


iReceivables Internal, Vision Operations (USA) Standard

6. (I) Save



7. (M) File > Exit Oracle Applications

8. (B) OK

9. Make the Personal Home Page the active page

10. (L) Logout

Login as New User

11. Enter your Username and Password Username = XXUSER Password = welcome

12. (B) Connect Old Password = welcome New Password = Oracle (Tab, re-enter to verify)

13. (B) Save Responsibility = Receivables, Vision Operations (USA)



Practice 2: Create a Supplier



Practice - Create a Supplier With Two Sites

Overview

Your supervisor has notified you that the company will be purchasing materials and services from new suppliers. In this practice, you will create a pay group and a supplier with two sites.

Assumptions



Tasks

Responsibility = Purchasing, Vision Operations

1. Create a new pay group.

(N) Setup : Purchasing > Lookup Codes

Code Meaning Description

XXPAY GROUP XXPay Group XXPay Group

2. Switch to the Payables, Vision Operations (USA) responsibility

3. Create a supplier.

(N) Suppliers > Entry

(B) Create Supplier Type = Standard supplier Organization Name = XXIBM Corporation Type = Manufacturing Party Risk Profile = No Risk Allow Tax Applicability = Checked Create Debit Memo from RTS Transaction = Checked Receipt Routing = Standard Receipt Allow Substitute Receipts = Checked Match Approval Level = 3-Way Invoice Match Option = Purchase Order Terms = Immediate Pay Group = XXPay Group



Always Take Discount = Checked Payment Method : Electronic = Checked

4. Create a pay site. Address Line 1 = 1 Main St. City = San Francisco County = San Francisco State = CA Postal Code = 94105 Address Name = San Francisco Addressee = San Francisco Phone Area Code = 415 Phone Number = 555-1234 Email Address = [email protected] Address Purpose, Payment option = Checked

5. Assign the San Francisco address to the Vision Operations operating unit.

6. Create a purchasing site. Address Line 1 = 520 Madison Ave. City = New York County = New York State = NY Postal Code = 10022 Address Name = New York Addressee = New York Phone Area Code = 212 Phone Number = 555-7703 Email Address = [email protected] Address Purpose, Purchasing option = Checked

7. Assign the New York address to the Vision Operations operating unit.

8. Create a contact for the pay site. Navigate to (L) Contact Directory (B) Create First Name = John Last Name = Doe Email Address = [email protected] Phone Area Code = 415 Phone Number = 555-1234 Phone Extension = 1234 Create User Account for this Contact = Checked iSupplier Portal Full Access = Checked

9. Create a contact for the purchasing site.



(B) Create First Name = Jane Last Name = Doe Email Address = [email protected] Phone Area Code = 212 Phone Number = 555-7703 Create User Account for this Contact = Checked iSupplier Portal Full Access = Checked

10. Set the Tolerance level for the San Francisco and New York supplier sites to Vision Operations Tolerance.



Solution - Create a Supplier With Two Sites

Tasks

Responsibility = Purchasing, Vision Operations (USA)

Create a New Pay Group

We will create a new pay group and assign it to your suppliers. The Pay Group will default to new supplier sites you enter and from your supplier sites to all invoices you enter. When we select invoices for payment during this course, you will use your pay group so you select only YOUR invoices for payment!

1. Navigate to the Oracle Purchasing lookups

(N) Setup : Purchasing > Lookup Codes

2. Query the PAY GROUP lookup code (F11) Enter search criteria P%G% in the Type field (Ctrl)+(F11)

3. Create a new pay group by inserting your cursor in the bottom of the grid, then clicking (I) Add New Row. Use the information below to create the new pay group:

Code Meaning Description

XXPAY GROUP XXPay Group XXPay Group



4. Save. Close the form to return to the Navigator.

Create a Supplier

5. Switch to the Payables, Vision Operations (USA) responsibility. (I) Black Hat (on toolbar) Responsibility = Payables, Vision Operations (USA)

6. Navigate to the Suppliers page. (N) Suppliers > Entry

7. (B) Create Supplier. Supplier Type = Standard supplier Organization Name = XXIBM Corporation



8. (B) Apply.

9. Navigate to (L) Organization. Type = Manufacturing Party Risk Profile = No Risk

10. (B) Save.



11. Navigate to (L) Tax and Reporting. Allow Tax Applicability = Checked

12. (B) Save.

13. Navigate to (L) Purchasing. Create Debit Memo from RTS Transaction = Checked



Note: Enable the Create Debit Memo From RTS Transaction option if you want the system to automatically create a Debit Memo in Payables when you enter a Return to Supplier (RTS) in Purchasing. The value for supplier site defaults from the Purchasing Options window.

14. (B) Save.

15. Navigate to (L) Receiving. Receipt Routing = Standard Receipt

Note: To find Standard Receipt: (I) Search Change the search criteria to Routing Name, not Routing Description. Receipt Routing = Standard Receipt

Match Approval Level = 3-Way Allow Substitute Receipts = Checked



16. (B) Save.

17. Navigate to (L) Invoice Management. Invoice Match Option = Purchase Order Terms = Immediate Pay Group = XXPay Group Always Take Discount = Checked



18. (B) Save.

19. Navigate to (L) Payment Details. Payment Method : Electronic = Checked

20. (B) Save.

Create a Pay Site

21. Navigate to (L) Address Book.

22. (B) Create.



23. Enter the supplier site address information as follows: Country = United States Address Line 1 = 1 Main St. City = San Francisco County = San Francisco State = CA Postal Code = 94105 Address Name = San Francisco Addressee = San Francisco Phone Area Code = 415 Phone Number = 555-1234 Email Address = [email protected] Address Purpose, Payment = Checked

Note: This address should be complete as this is the address that will appear on any checks cut to this site!

24. (B) Continue.

Note: If you get a message about the postal code, click (B) Continue to accept the Zip code.

25. Assign the address to the Vision Operations operating unit, enable the Select check box.



26. (B) Apply. This creates the basic supplier site.

27. To update the supplier site attributes, click Manage Sites.

28. (T) Uses. Pay = Checked Primary Pay = Checked



29. (T) Communication. Supplier Notification Method = Print

30. Apply.

Create a Purchasing Site

31. In the Address Book page, click (B) Create.

32. Enter the supplier site address information as follows: Country = United States Address Line 1 = 520 Madison Ave. City = New York



County = New York State = NY Postal Code = 10022 Address Name = New York Addressee = New York Phone Area Code = 212 Phone Number = 555-7703 Email Address = [email protected] Address Purpose, Purchasing option = Checked

Note: This address should be complete as this is the address that will appear on any checks cut to this site!

33. (B) Continue.

34. Assign the address to the Vision Operations operating unit, by enabling the Select check box.

35. (B) Apply. This creates the basic supplier site.

36. To update the New York supplier site attributes, click Manage Sites.



37. (T) Communication. Supplier Notification Method = Print

Note: When you enter and approve purchase orders for this supplier, the Supplier Notification Method will default. Weve chosen printed document here. However, if we chose e-Mail and specified an e-mail address, that information would default during purchase order approval so we could send the purchase order using the suppliers preferred method. Valid options are e-Mail, Fax and Printed Document.



38. Apply.

Create a Contact for the Pay Site

39. Navigate to (L) Contact Directory.

40. (B) Create. First Name = John Last Name = Doe Email Address = [email protected] Phone Area Code = 415 Phone Number = 555-1234 Phone Extension = 1234 Create User Account for this Contact = Checked iSupplier Portal Full Access = Checked

41. In the Addresses for the Contact Region, click (B) Add Another Row.

42. Type 'San Francisco' in the Address Name Field.



43. (B) Apply.

Create a Contact for the Purchasing Site

44. Navigate to (L) Contact Directory.

45. (B) Create. First Name = Jane Last Name = Doe Email Address = [email protected] Phone Area Code = 212 Phone Number = 555-7703 Create User Account for this Contact = Checked iSupplier Portal Full Access = Checked

46. In the Addresses for the Contact Region, click (B) Add Another Row.



47. Type 'New York' in the Address Name Field.

48. (B) Apply.

Set the Supplier Site Tolerance

49. (L) Invoice Management

50. Scroll to the Supplier Sites region.

51. (ST) Invoicing

52. For the New York and San Francisco sites, select Vision Operations Tolerance from the list of values.

(L) More . . . Search = Vision Operations Tolerance (B) Go (B) Select

53. (B) Save.

54. Close the form back to the Navigation menu.



Practice - Create a Customer (Required)

Overview

Before creating a customer, use the Customer Search page to determine if the customer already exists and minimize the possibility of creating a duplicate.

The Create Customer page displays differently, depending upon your customer type selection, Organization or Person, on the Customer Search page.

In this practice, you will create an Organization customer.

Assumptions


You have the Receivables, Vision Operations (USA) or Order Management Super User, Vision Operations (USA) responsibility.

Replace XX in the Practice with a unique identifier such as your initials or terminal number. (For Instructor Led Training classes, this number will be assigned to you). This is necessary in order to create unique records within the database when performing the Practice.

Tasks

Create an Organization Customer

1. Navigate to the Customer Search page.

(N) Customers > Customers > Customer Search

2. Search for the customer XXMegamart.

3. If the customer does not exist, click (B) Create Customer.

4. Enter the following data:

Enter the following customer information to create the new Organization customer: Field Name Value

Organization Name XXMegamart

Alias Platinum

Enter the following account information to create the new Organization customer: Field Name Value



Account Description XX- XXMegamart Account1

Account Number XX-7556

Profile Class XXGOOD CREDIT

Account Type External

Note: The Account Number must be unique. You need not enter a customer account number if the Automatic Customer Numbering System Option is enabled on the (T) Trans and Customers of the System Options window.

Enter the following account site information to create the new Organization customer: Field Name Value

Country United States

Address Line 1 200 E Randolph Street

City Chicago

County Cook

State IL

Postal Code 60601

Operating Unit Vision Operations

Address Description Western United States

Business Purposes Bill To

5. Click (B) Save And Add Details to go to the Account Overview page. Alternatively, click (B) Apply to go to the Customer Overview page.

6. Click Apply on the Account Overview page (or on the Customer Overview page if you clicked (B) Apply in Step 5) to save the customer and return to the Customer Search page.

7. Repeat these steps to create a second customer named XXGiant Distributors.


Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 1

Create Accounting and Transfer Journal Entries to General Ledger Chapter 2



Create Accounting and Transfer Journal Entries to General Ledger



Objectives



Create Accounting Program Overview


Eligible accounting events are defined as follows:

Event needs to be for a completed transaction

Rules must be defined to process the transaction type/event type



Draft Accounting

Draft Accounting

When you select draft accounting, Subledger Accounting creates the relevant journal entries in draft mode. Draft entries are not posted to General Ledger. You can review the resulting entries, update the transactions, or update the accounting rules. Any changes will be reflected when the transaction is processed again for accounting.



Online Accounting

Online Accounting

Final entries are ready to be transferred to General Ledger and cannot be modified. The transactions are considered as processed for accounting. Any changes to the rules will not impact final entries.



Straight-Through Accounting

Straight-Through Accounting

If you select Final Post, Subledger Accounting posts the journal entries all the way through to General Ledger. This means that you can update GL balances straight from the invoice entry (or any other transaction entry) window.



Create Accounting Program Parameters

Create Accounting Program

The Create Accounting program creates subledger journal entries. In general, the parameters described in the table above determine which accounting events are processed.

Navigation Paths

Payables: Other > Requests > Run

Receivables: View > Requests (B) Submit a New Request



Create Accounting Program Parameters

Create Accounting Program

The Create Accounting program generates one or more accounting programs depending on the volume to be processed.

The Subledger Accounting Program report is generated by the Create Accounting program and documents the results of the Create Accounting program. It lists the following:

Successful events and the subledger journal entries created for those events

Errors for failed events

You can run the report in summary, detail, or no report mode which are described as follows:

Summary mode provides a summary of events processed and detailed information about their errors.



Detail mode provides details of subledger journal entries generated from the processing of completed events and a detailed error report.

No report mode will show an error count without actually generating the report.



Transfer Journal Entries to GL Program Overview



Transfer Journal Entries to General Ledger Program



Oracle Subledger Accounting Program Report



Transfer Journal Entries to GL Report



Setting Profile Options

Setting Profile Options

The profile options listed above relate to data access and security and impact how accounting is generated through SLA in R12.

SLA: Enable Subledger Transaction Security in GL

Use this profile option to combine subledger transactions security with data access security for General Ledger responsibilities when drilling down to multi-organization enabled subledger application. Transaction security in the respective subledger application is always applied when drilling down from subledger transactions to subledger journal entries.

SLA: Enable Data Access Security in Subledger

This profile option determines whether the General Ledger Access Set security mechanism is applied for a subledger application responsibility when viewing, reporting, or creating subledger journal entries associated with a given ledger. The



General Ledger Access Set security mechanism is always applied for responsibilities associated with the General Ledger application.

The profile option enables you to combine data access security with subledger transaction security and therefore control access to subledger journal entries depending on the ledger to which they belong. For example, you can implement a Multi-Org Security Profile that allows you to create Oracle Receivables Invoices for two different operating units each associated with different ledgers but restrict drill-down from the subledger transaction to the associated subledger journal entry based upon the destination ledger contained in the Access Set.

SLA: Additional Data Access Set

The SLA: Additional Data Access Set profile option, in conjunction with the GL: Data Access Set profile option, controls which ledgers and balancing or management segment values you can access when logging onto a responsibility. If SLA: Enable Data Access Security in Subledgers is enabled for the responsibility, you have access only to the ledgers and balancing or management segment values included in the data access sets assigned to the SLA: Additional Data Access Set and GL: Data Access Set profile options.

SLA: Allow Reports Journal Source Override

This profile option applies only to the following reports: Open Account Balances Listing Third Party Balances Report

Enable this option to change the Journal Source parameter during report submission. If the option is set to No, then you cannot change the value defaulted during report submission.

For example:

Should the general ledger data access set security be enforced when generating accounting? For example, should journal entries be created if the user does not have ledger clearance even if they may have multiorg access to the operating unit?

Should the transaction security model be applied when drilling down from GL? For example, should the user be allowed to inquire on journal entries of certain operating units if they do not have MO access, but have ledger clearance?

If there are secondary ledgers and data access set security is enforced in the subledger module, then an additional data access set needs to be assigned to the user to enable access to the secondary ledger.

Should the user be able to run certain reports across data from multiple subledger applications?



Summary



Practice 1: Entering an Invoice



Practice - Enter an Invoice with Two Lines that are Distributed to Different Departments

Overview

You have received invoice XX1000 from XXIBM Corporation, which you will be entering into the Oracle Payables system. The invoice is to be distributed to two departments in your company.

Assumptions



Tasks

Responsibility: Payables, Vision Operations (USA)

1. Navigate to the Invoices window.

2. Enter the following invoice: Trading Partner

Invoice Num Invoice Amount

Description Payment terms

Payment Method

XXIBM Corporation

XX1000 10000 Promotional Giveaway

Immediate Electronic

3. Enter the invoice lines based on the following table: Num Type Amount Distribution Account

1 Item 4000 01-402-7110-0000-000

2 Item 6000 01-404-7110-0000-000

4. Save your work.



Solution - Enter an Invoice with Two Lines that are Distributed to Different Departments

Tasks

Enter Invoice

1. Navigate to the Invoices window.

(N) Invoices > Entry > Invoices

2. Enter an invoice using the following information:

Trading Partner

Invoice Num Invoice Amount

Description Payment terms

Payment Method

XXIBM Corporation

XX1000 10000 Promotional Giveaway

Immediate Electronic

Enter Two Invoice Lines and Distribute Each Line to a Different Department

3. (T) Lines

4. Enter the invoice lines according to the following table:

Num Type Amount Distribution Account

1 Item 4000 01-402-7110-0000-000

2 Item 6000 01-404-7110-0000-000



5. Save.

6. (B) All Distributions. Note that because you entered the Distribution account for each Item line, the distributions are automatically created for these lines.



7. Close the form back to the Navigation menu.



Practice - Create an Invoice

Overview

In this practice you will create a receivables invoice.

Assumptions

If you are not attending training at an Oracle University or Authorized Partner Education Center, you must have access to an Oracle Application Vision database or comparable training test instance on which to complete this Practice.

Replace XX in the Practice with a unique identifier such as your initials or a number. (For Instructor Led Training classes, this number will be assigned to you). This is necessary in order to create unique records within the database when performing the Practice.

Tasks

Create an Invoice

Responsibility = Receivables Manager

1. Navigate to the Transactions window

(N) Transactions > Transactions Source: Manual Class: Invoice Type: Invoice

2. Create an invoice for XX-Big City using the following information:

Line Number Item Number Quantity Unit Price Tax

1 CS03755 10 1500 Location

2 CS32698 5 1750 Location

3. Complete the invoice

4. Note Transaction Number: ____________________________________



Solution - Create an Invoice

Create an Invoice

Responsibility = Receivables Manager

1. Navigate to the Transactions window

(N) Transactions > Transactions Source: Manual Class: Invoice Type: Invoice

2. (T) Main Ship To Name: XX-Big City

3. (B) Line Items

Line Number Item Number Quantity Unit Price Tax

1 CS03755 10 1500 Location

2 CS32698 5 1750 Location

4. (I) Save

5. Close Lines Window

6. (B) Complete

7. Note Transaction Number: ____________________________________



Guided Demonstration: Run the Create Accounting Program



Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in Payables

Responsibility: Payables, Vision Operations (USA)

Run the Create Accounting Program

1. (N) Other > Requests > Run

2. (B) OK

3. In the Name field, select Create Accounting.

4. Enter the following information in the Parameters window: Field Name Value

Ledger Vision Operations (USA)

Process Category Invoices

End Date

Mode Final

Errors Only No

Report Detail

Transfer to General Ledger Yes

Post in General Ledger No

Include User Transaction Identifier No

5. (B) OK

6. (B) Submit

7. View - Requests.



Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in Receivables

Responsibility: Receivables, Vision Operations (USA)

Run the Create Accounting Program

1. (M) View > Requests

2. (B) Submit a New Request

3. (B) OK

4. In the Name field, select Create Accounting.

5. Enter the following information in the Parameters window: Field Name Value

Ledger Vision Operations (USA)

Process Category Transactions

End Date

Mode Final

Errors Only No

Report Detail

Transfer to General Ledger Yes

Post in General Ledger No

Include User Transaction Identifier No

6. (B) OK

7. (B) Submit

8. (B) No

9. (B) Find to view requests.


Inquiries Chapter 3 - Page 1

Inquiries Chapter 3



Inquiries



Objectives



Objectives continued



Accounting Events Inquiry Process

Accounting Events Inquiry Process

Navigate to the Accounting Events Inquiry page. Payables: Accounting > Subledger Accounting > Journal Entries (T) Accounting

Events Receivables: Inquiry > Subledger Accounting > Journal Entries (T) Accounting

Events

Execute a search for specific accounting events.

View accounting events.

View subledger journal entry information by clicking View Journal Entries.

View detailed entry information about the subledger journal entry by clicking the ledger link.

View the T-account by clicking View T-Account.



View reversing entry. Note that this button is only available if you are viewing an accrual entry that has been reversed.

View multiperiod accounting associated with the accrual journal entry by clicking the Multiperiod icon in the Lines region. Note that the Multiperiod icon is only available if you are viewing a multiperiod journal entry.

Compare two journals by clicking Compare.

Click View Transaction to view the underlying transaction.

The View Subledger Journal Entry page is displayed only if there is more than one subledger journal entry created for an accounting event. If there is only one subledger journal entry for an accounting event, the View Subledger Journal Entry page is displayed.

The following conditions apply: If the balance type is Actual, the reference date is displayed. If the balance type is Budget, the Budget Version field is displayed. If the balance type is Encumbrance, the Encumbrance Type field is displayed. If the entry is for public sector and funds approval is required, the Funds Status field

is displayed.

If viewing an accrual reversal journal entry in the View Subledger Journal Entry page, the View Accrual Entry button is displayed to view the accrual journal entry details. If viewing an accrual journal entry, the View Reversing Entry button is displayed to view the accrual reversal journal entry details.

The View Transaction button appears only if drilldown is enabled.

The Multiperiod icon on the lines is displayed only if the entry is a multiperiod journal entry.



Viewing Subledger Journal Entry Lines

Viewing Subledger Journal Entry Lines

Navigate to the Subledger Journal Entries page from a subledger application. Payables: Accounting > Subledger Accounting > Journal Entries Receivables: Inquiry > Subledger Accounting > Journal Entries You can use the subledger application responsibility for any application using

Subledger Accounting.

Execute a search.

View subledger journal entries.

Delete, update, duplicate, reverse, and complete entries.

View detailed journal entry information by selecting the ledger link.

View journal entry information in a T-account format by clicking View T-Account.



View reversing entry. If viewing an accrual reversal journal entry in the View Subledger Journal Entry page, the View Accrual Entry button is displayed to view the accrual journal entry. If viewing an accrual journal entry, the View Reversing Entry button is displayed to view the accrual reversal journal entry.

View multiperiod accounting. View multiperiod lines associated with the accrual journal entry by clicking the Multiperiod icon in the Lines region.

Create journal entry. Create journal entries page by clicking Create Journal Entry in the Subledger Journal Entries page.

Compare entries. Compare subledger journal entries by clicking Compare in the Subledger Journal Entries page.



Subledger Journal Entry Lines Inquiry Process

Subledger Journal Entry Lines Inquiry Process

Payables: Accounting > Subledger Accounting > Journal Entries (Lines)

Receivables: Accounting > Subledger Accounting > Journal Entries (Lines)

1. Navigate to the Subledger Journal Entry Lines page from a subledger application.

2. Execute a search.

3. View subledger journal entry lines in the results region.

4. View subledger journal entries for a selected journal entry line by clicking View Journal Entry.

5. View journal line information in T-account format by clicking View T-account in the View Subledger Journal Entry page.



6. View reversing entry. If viewing an accrual reversal journal entry in the View Subledger Journal Entry page, the View Accrual Entry button is displayed to view the accrual journal entry details. If viewing an accrual journal entry, the View Reversing Entry button is displayed to view the accrual reversal journal entry details.

7. View multiperiod accounting. View multiperiod lines associated with the accrual journal entry line by clicking the Multiperiod icon in the Lines region.

8. View the transaction associated with the subledger journal entry by clicking View Transaction in the Subledger Journal Entry Lines page. This button appears only if drilldown is enabled.



Drilldown from GL

Drilldown from GL

The figure above shows the drilldown from GL journal lines inquiry to subledger journal entry lines in Subledger Accounting. From here, users can navigate to the subledger journal entries or drill down to the subledger transaction.



Summary



Summary continued



Practice 1: Inquiring on Subledger Journal Entries



Guided Demonstration - Inquiring on Subledger Journal Entries in Payables or Receivables

Responsibility = Payables, Vision Operations (USA) or Receivables, Vision Operations (USA)

1. Navigate to the Subledger Journal Entries window.

In Payables: (N) Accounting > Subledger Accounting > Journal Entries

In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries

2. (T) Headers

3. In the Advanced Search window, enter the following search information: Ledger: Vision Operation (USA) From GL Date: To GL Date:

4. (B) Go

5. To view the details of an entry, click on the appropriate ledger link to display the Subledger Journal Entry window.

6. To view detailed line information, click the appropriate Show link.



Practice - Inquiring on Subledger Journal Entries for Payables and Receivables

Overview

In this practice, you will do the following:

Inquire on subledger journal entries for the Vision Operations (USA) ledger.

Note: This practice applies to both Oracle Payables and Oracle Receivables.

Assumptions


Responsibility selected to complete this practice is Payables, Vision Operations (USA) or Receivables, Vision Operations (USA).

Tasks

Log on to the system


Inquire on Subledger Journal Entries

Inquire on subledger journal entries for the Vision Operations (USA) ledger for todays date.



Solution Inquiring on Subledger Journal Entries for Payables and Receivables


1. Navigate to the Subledger Journal Entries window.

In Payables: (N) Accounting > Subledger Accounting > Journal Entries

In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries

2. Ensure that the Headers tab is selected.

3. In the Advanced Search window, enter the following search information: Ledger: Vision Operation (USA) From GL Date: To GL Date:

4. (B) Go

The subledger journal entries are displayed in the Results region.



5. To view the details of an entry, click on the appropriate ledger link to display the Subledger Journal Entry window.

6. To view detailed line information, click the appropriate Show link. For example, the screenshot below shows detailed information for the Item Expense line.


Accounting Methods Builder (AMB) Chapter 4 - Page 1

Accounting Methods Builder (AMB) Chapter 4



Accounting Methods Builder (AMB)



Objectives



Accounting Methods Builder (AMB) Overview





This diagram shows a hierarchy of the AMB, indicating how the components fit together.

The transaction objects and the sources carry transaction information into the rules defined for each component of an entry.

These components, i.e. journal line type, account derivation rule, and journal entry descriptions are grouped together as a journal line definition (JLD) for a particular event. For example, you can set up a JLD for an invoice validation event, another for payment creation, and another for payment clearing. The set of rules for a particular subledger application is called the application accounting definition (AAD). The set of AADs for multiple applications is called the subledger accounting method.

You can maintain multiple accounting methods. You can set up as many components as you like and use them for different accounting methods. You can set up an accounting method that creates entries in compliance with US GAAP, and another one that complies with IFRS. These two



methods could share components, such as entry descriptions, because the journal entry components are modular.

The accounting methods are then assigned to each ledger, which determines the rules that are applied when accounting is being generated for a particular ledger. If your setup has a primary and a secondary ledger, you could have different accounting methods attached to and used for each ledger.



AMB Process

AMB Process

The components listed above are used by the Subledger Accounting program to create subledger journal entries. Before creating or modifying any components or definitions, check whether the seeded application accounting definitions meet your requirements. You can modify existing definitions or create new definitions.

Group application accounting definitions that comply with a common set of accounting requirements into a subledger accounting method. Each subledger accounting method can be assigned to one or more ledgers.

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



Use journal lines definitions to group and assign journal line types, account derivation rules, and journal entry descriptions into a complete set of journal entries within an event class or event type. Share these sets across application accounting definitions for the same application.

Account derivation rules determine the account combinations for subledger journal entries. You can also define conditions that determine when a particular rule is used.

Use mapping sets in the account derivation rules setup. By mapping input values to different outputs, mapping sets provide flexibility in the creation of account derivation rules. The use of mapping sets is optional.

Define the journal entry description for the subledger journal entry. Descriptions are assigned to the journal header and lines.

Set up journal line types for a particular event class and determine the characteristics of the subledger journal entry lines. Also, set up conditions for the use of the journal line type.





In order to make rule setup as flexible as possible, the journal entry has been split into components, as follows:

Description of the entry or its individual lines; you can set up as many descriptions as you want by using data from the transaction and constant values. The screenshot above shows a description for an invoice, indicating the event (invoice validation), the invoice number, type, date, and description.

Line Type; defines whether this is a debit or a credit, the accounting class, and where the amount should come from. You can set up as many line types as you need for a particular entry. You can have a single invoice line or distribution create as many debits or credits as needed.

Account Derivation Rule; determines to which GL account a line is booked. There is a lot of flexibility around the account derivation rules. You can simply set up a rule for each account combination to be used, or you can provide more detail and build each



account combination segment by segment by combining multiple rules. These rules can be set up to derive the accounts or segment values from transactional data, including conditions of when to use specific rules.



Copy and Modify Functionality

Copy and Modify Functionality

The copy and modify functionality is provided for the following components of the AMB:

Subledger accounting methods

Application accounting definitions

Journal lines definitions

Journal line types

Account derivation rules

Journal entry descriptions

The copy functionality reduces the need to repeat data entry functions when there are substantial similarities between two definitions. Definitions created by users are not overwritten by upgrades



to Subledger Accounting. However, upgrades can still affect definitions if those definitions use seeded components. Use the merge analysis feature to assess whether any upgrades to the AMB impact any user-defined application accounting definitions.

Assign custom components only to custom definitions. For example, assign a custom account derivation rule (one that has been copied from an existing account derivation rule and modified) only to a custom journal lines definition. Assign a journal lines definition only to custom application accounting definitions and custom subledger accounting methods.

You can optionally mix and match custom and seeded lower-level components with custom higher-level components.



Transaction Chart of Accounts

Transaction Chart of Accounts

The transaction chart of accounts represents the INPUTs to Subledger Accounting rules, for example, if you have an SLA rule that does something based on whether the incoming account uses the cost center 410.

For example, a Receivables invoice is entered. The item, tax, freight, and other accou

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