E-Business Suite 2 _ Rajesh Narang _ R12 Subledger accounting - transition to R12.pdf

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R12 Sub-‐Ledger Accoun2ng (SLA) Transi2on from 11i to R12

Rajesh Narang [email protected]

The most comprehensive Oracle applications & technology content under one roof

Agenda

•  11i Sub Ledger Transac=ons Accoun=ng •  11i vs. R12 •  R12 Sub Ledger Accoun=ng Primer

–  Overview –  Accoun=ng Model –  Accoun=ng Engine

•  R12 Sub Ledger Accoun=ng Benefits •  Lessons Learnt •  Q & A


11i Sub Ledger Transac=ons Accoun=ng


Sub Ledger Transac=ons Accoun=ng Payables 11i

•  Transac=ons ac=ons create accoun=ng events like: –  invoice valida=on, invoice adjustment, invoice cancella=on, payment

entry, payment cancella=on

•  Run ‘Payables Accoun2ng Process’ to create accoun=ng entries for these accoun=ng events

•  Accoun=ng entries are created based on the payables op=ons and the accoun=ng rules defined internally for every event.

•  ‘Payables Accoun2ng Process’ creates accoun=ng entries in the sub-‐ledger accoun=ng model; introduced by Oracle in Release 11i Payables

•  Run ‘Payables Transfer to GL’ to transfer accoun=ng entries to Oracle GL


Sub Ledger Transac=ons Accoun=ng Fixed Assets 11i

•  Oracle Fixed Assets uses the Account Generator to generate accoun=ng flexfield for the different classes of asset transac=ons

•  Run ‘Create Journal Entries’ program to create journal entries •  ‘Create Journal Entries’ program u=lises the accoun=ng

flexfields generated by the account generator and pre-‐defined accoun=ng rules for crea=ng journal entries

•  Journal entries are then interfaced into GL and journal batches are created


Sub Ledger Transac=ons Accoun=ng Receivables 11i

•  For every transac=on; receivables creates default accounts using the informa=on specified in Auto Accoun2ng structure

•  Some rules are defined in accoun=ng rules setup •  Run the General Ledger Interface program •  General Ledger Interface program transfers data to the

GL_INTERFACE table •  Run Journal Import program to import data in GL_INTERFACE

table and create journal entry batches in the Oracle General Ledger


11i -‐ Constraints

•  Accoun=ng rules defined in mul=ple places and some=mes cannot be configured / changed without customiza=ons

•  Inconsistencies between sub-‐ledger transac=ons create accoun=ng procedures

•  Customiza=ons or manual adjustment journals required to meet business requirements –  e.g. account generators modifica=ons

•  Sub-‐Ledger accoun=ng entries are interfaced directly into GL –  Reconcilia=on or Drill down limita=ons for transac=ons posted to GL in

Summary –  Thin (OR Summary) GL cannot be maintained

•  Final Accoun=ng (DR/CR) is only visible in General Ledger


11i vs. R12


11i vs. R12


11i vs. R12

•  11i: –  Sub-‐ledger transac=ons accoun=ng is generated using various setups

defined at many levels •  e.g. some of the account deriva=on rules are defined in Payables Op=ons or in financial

op=ons •  some accoun=ng rules are defined in customised account generators or auto-‐accoun=ng

setups/formulas

–  Sub-‐ledger accoun=ng entries are interfaced directly into GL •  R12:

–  Sub Ledger Accoun=ng is an intermediate step between each of the Sub Ledger applica=ons and Oracle General Ledger (GL)

–  Transac=ons are entered in sub-‐ledger; BUT accoun2ng treatment for the transac=ons is derived in SLA

–  There is no direct interface from Sub-‐Ledgers to GL –  Journal entries from SLA module are then interfaced into GL


R12 SLA -‐ Overview


R12 Sub-‐Ledger Accoun=ng – Overview


R12 Sub-‐Ledger Accoun=ng – Overview

•  A centralized model -‐ that allows configura=on of many aspects of journal entries for sub-‐ledger transac=ons –  E.g. Journal Line Descrip=ons, Journal Line Amounts, Debits/Credits,

Line Types

•  An Engine – that creates accoun=ng and provides consistency for sub-‐ledgers transac=ons accoun=ng procedures –  Create Accoun=ng Program

•  A repository -‐ that stores all sub-‐ledger journal entries before they are transferred to GL


R12 SLA –Accoun=ng Model


SLA

GL

Sub-‐Ledger

R12 Sub-‐Ledger Accoun=ng Model

Transac2ons Accoun2ng Events

Accoun2ng Configura2ons

Sub-‐Ledger Journal Entries

Create Accoun=ng Program

GL Journal Entries and Balances

SLA Engine

SLA Event Model

Configura=on Model

SLA Repository


Accoun=ng Methods Builder (AMB)

Ledger

Sub-‐Ledger Accoun=ng Method

Applica=on Accoun=ng Defini=on

Journal Line Defini=on

Journal Line Types Journal Entry Descrip=ons Account Deriva=on Rules

Event En=ty

Event Class Event Class

Event Type Event Type Event Type Event Type

Event Model

Accoun=ng Model


Accoun=ng Methods Builder (AMB) – Events Model

•  Event model consists of Event En=ty, Event Class and Event Types •  Whenever a transac=on ac=on is commibed in a sub ledger; SLA captures the corresponding event

-‐AP Invoice Events -‐ FA Deprecia2on Events -‐AR Receipt Events -‐Validated -‐Deprecia=on -‐Created -‐Adjusted -‐Rollback deprecia=on -‐Applied -‐Cancelled -‐Unapplied

Events are Predefined Components; new events cannot be defined


Accoun=ng Methods Builder (AMB) – Accoun=ng Model


Accoun=ng Methods Builder (AMB) – Accoun=ng Model

•  Sub ledger accoun=ng methods –  Used to define accoun=ng method e.g. Accrual Basis, Cash, IFRS, US GAAP

•  Applica=on accoun=ng defini=ons –  Used to group journal lines defini=ons and header assignments for event classes and event types.

•  Journal lines defini=ons –  Used to link Journal Types, Descrip=ons and Deriva=on rules by assigning account deriva=on rules

and descrip=ons to journal line types •  Journal line types

–  Used to define line type op=ons such as balance type, side and summariza=on •  Account deriva=on rules

–  Used to derive Accoun=ng Flexfield combina=ons for the journal entry lines to construct the accounts

•  Journal entry descrip=ons –  Used to change the descrip=on for the journal entry headers and lines and provide addi=onal

informa=on about the journal entry Startup data is seeded by Oracle; we can copy and modify these defini2ons or create new ones


Accoun=ng Engine

•  Oracle has introduced ‘Create Accoun2ng’ program to create sub-‐ledger transac=ons accoun=ng

•  ‘Create Accoun2ng’ program: –  Checks for all

unaccounted events created by transac=on ac=ons

–  Creates accoun=ng for the event based on the setup in AMB

•  ‘Create Accoun2ng’ program parameters differ based on sub-‐ledger; but same program is used in all sub-‐ledger modules


R12 SLA – Benefits


Benefits

•  Replaces various disparate 11i setups •  Introduces a common data model and UI across Subledgers •  Retains granular level of detail in the Subledger accoun=ng model;

Realise business requirement for a thin (summary) General Ledger •  Create accoun=ng in Drad or Final mode before pos=ng to General

Ledger •  Configure most aspects of a journal entry; minimize customiza=on

requirements •  Advanced drill down func=onality using new Inquiry Screens and

Reports •  There are public APIs available to create accoun=ng entries in SLA

from external sub-‐ledgers


Lessons Learnt


Lessons Learnt

•  Understand all accoun=ng transac=ons; before configuring SLA •  Include month-‐end process as part of tes=ng for any changes done

in SLA •  Use import / export func=onality to move setup changes from test

to produc=on •  Copy seeded defini=ons to create new setups •  Allocate a significant amount of =me and resources to this part of

the implementa=on •  Educate super users about accoun=ng events, new inquiry screens

and new reports •  Proceed with cau=on, SLA is a substan=al change in R12


R12 Sub-‐Ledger Accoun=ng

Q & A

Technology

E-Business Suite 2 _ Rajesh Narang _ R12 Subledger accounting - transition to R12.pdf