Subledger Accounting - A Complete Perspective

8/10/2019 Subledger Accounting - A Complete Perspective

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SUBLEDGER ACCOUNTING An Overview

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What is SLA?

Definition:

Oracle Subledger Accounting is a rules-based engine

for generating accounting entries based on source

transactions from ALL Oracle Applications.

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What is SLA?

Subledger Accounting is a Service , not an ApplicationRule-based accounting engine, toolset & repository to supportE-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

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. .

SLA provides the following services to Oracle Applications:Generation and storage of detailed accounting entries

Storage of Subledger balances

Subledger accounting entries (with Bidirectional drilldownto /from transactions)

Subledger reporting


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What is SLA?

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Features of SLA

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Accounting Modes

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Steps Creates the SLA journals in Final modeTransfers the data to GL_INTERFACE

Runs Journal Import andTriggers the General Ledger Posting program

Accounting Modes : Online

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The transaction cannot be modified aftercreation in Final ModeAutomatic Journal Import

Journal Import failure - Data will be rolled backJournal Import and Correct forms not usedCorrection is always in the subledger.Reconciliation is simpler


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Overview of AMB

AMB : Acronym for Accounting Methods Builder

Enables an organization to meet specific fiscal,regulatory and analytical requirements

Compromises of two modelsEvent Model

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Accounting Model


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Event Model :Definition of the Subledger transaction types and lifecycle

Predefined Components- new components cannot be defined

3 LevelsEvent Entity: Highest level, often 1 per Subledger application

Event Class: classifies transaction types for accounting rulepurposes

Event T e: for each transaction t e defines ossible actions with

AMB Components

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accounting significance


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Payables

InvoiceDebit Memo

Prepayment

Assets

AdditionsAdjustmentsCapitalizationDepreciation

Event Classes

AMB Components- Event Model

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Refunds

ReceivablesInvoice

DepositReceipt

Bill Receivable

Purchasing

RequisitionPurchase Order

etc


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Event Types

AP Invoice EventsValidated

Adjusted

Cancelled

FA Depreciation EventsDepreciation

Rollback depreciation

AMB Components- Event Model

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AR Receipt EventsCreated

Applied

Unapplied

Updated

Reversed

urc ase r er ven sCreatedDistributedCancelledRejectedFinally completed

etc


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AMB Components- Accounting Definitions

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Accounting Definition ModelStartup data seeded by Oracle

Modify these definitions or create new ones

Copy and Modify Functionality providedComprises of following components

Subledger accounting methods

Application accounting definitions


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Journal lines definitions

Journal line types

Account derivation rules

Journal entry descriptions


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Accounting Definition ModelJournal Line Types: Control journal entry lineoptions such as balance type, side and

summarizationJournal Entry Descriptions: Control thedescription for the journal entry headers and lines


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v u uentry

Account Derivation Rules: Control the derivationof Accounting Flexfield combinations for the journalentry lines to construct the accounts


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Highest Level : Accounting Method


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Journal Line TypesControl journal entry line options such as balance type, sideand summarization

Defined for a particular event classDetermines the characteristics of the subledger journal entrylines.


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Define Journal Line Types

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Journal Entry DescriptionsProvide additional information about the journal entry

Ability to control the description for the journal entry headersand lines

Can be defined for both Subledger Header and Line

Define the elements/contents of a description that appear onthe subledger journal


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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 Flexfieldcan be included in the description.


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Journal Entry Descriptions

Description


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Account Derivation RulesDefine user specified rules to determine how a journal entryaccount is derived or built

Define Accounting Options that determine differentcharacteristics of the journal entryDefine conditions that determine when subledger journal entryaccounts and lines are created


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the journal entry linesDefine a rule by Accounting Flexfield, segment, or value set.

Can use both segment-based and flexfield-based rules toderive a single account.

Uses segment-specific rules where they are defined and takesthe remaining values from a flexfield-based rule


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Account Derivation Rules


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Account Derivation Rule


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Journal Line Definitions


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Journal Lines Definition

Use journal lines definitions enable to create sets of lineassignments for an event class or event type.

These sets can be shared across application accountingdefinitions.

Link Journal Types, Descriptions and Derivation rules by


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line typesDefine multiperiod accounting rules for a journal line type


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Application Accounting DefinitionsUse application accounting definitions to group journal linesdefinitions and header assignments for event classes andevent types.

Indicate whether to create accounting for a particular eventclass or event type e.g., when using cash basis accounting,you would not create a journal entry to record the accrual ofan invoice.


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Multiple Representations

Terminologies: What are Primary and Secondary Ledgers?

What is an Accounting Representation?

Combination of a Subledger Accounting Method and Ledger

What is a Transaction Chart of Accounts?

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What is a Accounting Chart of Accounts?

M lti l R t ti


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Multiple Representations

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SLA Setup


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SLA Setup

Ledger> System Options

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SLA Setup


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SLA Setup

Ledger> Accounting Options (Primary Ledger)

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SLA Setup


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SLA Setup

Ledger> Accounting Options (Secondary Ledger)

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SLA Setup


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SLA Setup

Primary and Secondary Ledger Mapping

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Technical Architecture


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Technical Architecture

SLA Tables Structure

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SLA Upgrade Considerations


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By default, the R12 upgrade migrates 6 monthsof accounting entries from each application tothe SLA data model.

You can modify this if desired

For prior periods, the historical data ispreserved. You can drill from General Ledger

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drilldownYou can upgrade prior periods by requestduring uptime



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Default SLA rules preserve the accountingrules used in 11iAll seeded rules are generic not chart of accounts specific

In most cases, accounts are passed from Oracle Applicationsinto SLA as sources

Users can optionally copy and then modify theseeded SLA rules

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No need to modify any seeded responsibilitiesIf using custom menus or responsibilities, you may need toadd SLA forms/reports/programs to the custom responsibilities

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Subledger Accounting - A Complete Perspective