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Posted on November 25th, 2007 by Sanjit Anand |
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As in last post about subledger accounting we understood with this new feature:
At the data level, its a big change for all the subledgers, though there is a first
generation changes we have noticed sometime when 11i 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 likes:
With these accounting at this level the respective sub ledgers & General Ledger is tied
out, as below.
The only issues in pre R12 versions was to link summarized accounting data with source
details.
How it is resolved in Release 12 Subledger Accounting
All sub ledger accounting data generated and stored in shared SLA tables prior to transfer
to GL , and this is achieved by running Create Accounting to populate SLA
tables(Very very similar to Payable events). Once this can be done , user can View
Accounting only after Create Accounting is run and completed successfully.
Transferring Accounting information from AP/AR to GL in R12
The Create Accounting process has similar options, you can create accounting in Final or
Draft mode and if Final mode is selected, the Transfer to GL parameter can be used to
automatically transfer the accounting created by the corresponding run. When the Create
Accounting process transfers the journal entries to GL it only transfers the accounting
created by the process that calls it. If there is accounting created by the online option =
Final or a previous Create Accounting program that was not transferred, that accounting
will not be transferred. The Transfer Journal Entries to GL program needs to be ran
separately to transfer any accounting created online or created by a previous Create
Accounting process that did not transfer the entries.
Is/was link an issue in 11i?
Yes, From Distributions to SLA
Must join through to get true Distribution ==> SLA journals matches
Holds finest granularity of accounting data
Multiple distributions may be aggregated into a few SLA journal lines
SLA Key attribute :Something called Event Model ? What is all about?
Event Model are basically definition of the sub ledger transaction types and there life
cycle.
It has three levels
It is very important that applications must tell SLA when an event has occurred.When a
user runs the SLA Create Accounting program, it processes all events with the
appropriate status
we have notice some of event classes in Payable and Receivable.
Payables
o Invoice
o Debit Memo
o Prepayment
o Payments
Refunds
Receivables
o Invoice
o Deposit
o Receipt
o Bill Receivable
o
AP Invoice Events
o Validated
o Adjusted
o Cancelled
AR Receipt Events
o Created
o Applied
o Unapplied
o Updated
o Reversed
8 Responses
1. Paul Says:
December 3rd, 2007 at 2:19 pm
Thanks a lot This is great information for us. It is very very useful for all Oracle
Functional and Technical People.
Thanks
Yugandhar Appani
3. Durga Says:
February 11th, 2008 at 8:32 pm
Paul,
I guess your question is related to upgrade to R12.
Normally the upgrade should take you to the standard SLA method.Mean to say
that when you upgrade the default subledger method must be standard. So no real
changes are required from SLA point of view. However, the following may
require consideration.
1. The number of periods of past accounting data you want to upgrade to SLA
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 historical
accounting data as and when need arises.
2. Usage of account generator. All the account generator WFs like FA account
generator should work fine. However you may avoid the usage of WFs if you can
have your SLA model redesigned as per the need.
Thanks,
Durga
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SLA is an intermediate step between subledger products and the Oracle General
Ledger
Journal entries are created in Subledger Accounting and then transferred to Oracle
General Ledger
Each subledger transaction that requires accounting is represented by a complete and
balanced subledger journal entry stored in a common data model
Is this Module or what?
It is good to know ,sub ledger Accounting is a Service, not an Application .
The high points of SLA would be:
This is the typical flow within one product with SLA can be best described as:
10 Responses
1. Gareth Roberts Says:
November 17th, 2007 at 6:38 pm
Hi Anand,
Nice post, Im keen to know if subledger accounting is just the extension and
exposure of the ap_ae_headers/lines that the core financials modules have
already in 11i? Any thoughts?
Gareth
2. R12 SLA: Analyzing Subledger Accounting Says:
November 25th, 2007 at 12:53 am
[...] and 2007 report for ERP VendorsOracle OpenWorld 2007 Presentations :
Available for DownloadR12 SLA: From Product Accounting to Subledger
AccountingSCM SubsystemKNOW WHAT IS SUPPLY CHAIN
MANAGEMENT (SCM)? : An OverviewDiscrete & Process [...]
3. Release 12 : Legal Entity uptake Says:
December 7th, 2007 at 9:09 am
[...] and 2007 report for ERP VendorsOracle OpenWorld 2007 Presentations :
Available for DownloadR12 SLA: From Product Accounting to Subledger
Accounting [...]
4. Release 12: 6 New and Changed Feature in Oracle Assets Says:
January 27th, 2008 at 7:35 am
[...] we have already seen in few earlier post Oracle Subledger Accounting is a
rules-based engine for generating accounting entries based on source transactions
from [...]
5. R12 - Oracle General Ledger - New and enhanced features Says:
February 3rd, 2008 at 7:00 am
Dear Anand
it was a excellent article that has given me a good insight into the basic concepts
vis a vis the SLA in Release 12. Yet i am having more doubts in SLA Set up.
8. R12 SLA: Accounting Methods Builder Says:
April 18th, 2008 at 2:51 am
[...] is no need to explaining again , we already seen why this concept brought into
Financial application . Fixed asset though one of Application, which heavily
utilize the accounting information [...]
In Subledger Accounting, have you heard something called Accounting Methods Builder,
which is sort of toolset to define journal entry rules for the transactions and events of a
subledger application . This allows us defining multiple sets of rules to be used
concurrently for different requirements.
How AMB work?
Lets try to understand on the basis of Journal entry. Normally a journal are split into three
main components:
Descriptions
Line Types
Account Derivation rules
Description : Description can be on the entry or its individual lines. You set up
descriptions, as many as you want, by using pieces of data from the transaction and
constant values.
Purposely it identify the journal line types, descriptions, and account derivation rules that
will be used to create a journal entry for a particular event type
Type :The Line Type is another component, actually one of the two main components
of the entry. The line type defines whether this is a debit or a credit, what the accounting
class is, where the amount should come from etc. Again, you set up as many as you need
of these for a particular entry. You can have a single invoice line or distribution create as
many debits or credits as needed.
Under type you can identify the natural side of entry like Debit,Credit,Gain/Loss
This will determine the accounting class
You can set under which conditions the rule will create a line
This can be tighten by defining the values needed for entry line generation, such
as amount, currency, conversion rate information
Determine which rule will be generic or specific for a given chart of accounts
This will identify what will be derived like Accounting flexfield or there
respective segment or qualifier value or Value from a value set
This will also have a provision to define how the value will be derived for
defaulting some Constant values or any Source value or any mapping set
Take a case if you set up a Journal line description for an invoice validation event,
another one for a payment creation, another one for payment clearing. The set of such
rules for a particular sub ledger application is called the application accounting definition.
And the set of application accounting definition for multiple applications is called the sub
ledger accounting method.
In reality this accounting methods is assigned to each ledger, which determines which
rules are applied when accounting is being generated for a particular ledger. If you have a
setup with a primary and a secondary ledger, you could have different accounting
methods attached to and used for each. Sounds good.
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