Meet your SLA with SLA

(Meet your Service Level Agreement with Subledger Accounting)

Lakshmi Sampath
Enterprise Architect
Dell, Inc.

Lakshmi_sampath@dell.com
Session ID - 8149

Global Marketing
Speaker Background
• Enterprise Architect at Strategy, Technology and Governance Office (ST&GO)
at Dell, Inc.

• Techno-Functional Expert/Architect in implementing Oracle EBusiness Suite

10.7, 11.0.3, 11i & R12 – including iStore, iSupplier, iPayment, CRM – Incentive
Compensation, Resource Manager, Territory Manager, Quote to Cash,
Procure to Pay, Project Accounting, Financials & HRMS/Payroll modules.

• Presented several Papers and hosted several Panels at the COLLABORATE ,

Oracle Open World, Austin Oracle Users Group etc.

• Presentation Selection Committee for COLLABORATE - OAUG Forum

• Member of the OAUG Customer Support Council

• ENCORE Presenter @COLLABORATE-2006

• Board of Director for the Oracle Business Intelligence Special Interest Group
(OBISIG) and Austin Oracle Users Group (AOUG)

Global Marketing
 Agenda
• Oracle EBS R12 SubLedger Accounting (SLA) Overview
• Accounting in 11i Vs R12
• Functional Architecture
• SLA Components Overview
• Case-study on Dell
• Technical Architecture
• Implementation Tips and tricks
• Common Issues after Go-Live
• Q&A

Global Marketing
SLA Overview
• SLA is a powerful yet flexible rules-based accounting engine,
with centralized data model and repository, which generates
accounting entries based on source transactions for all Oracle
Applications transactions.
• SLA works with Oracle General Ledger to provide an
accounting system tailored to your requirements.
• SLA supports user-defined accounting rules.
• SLA allows multiple accounting representations for a single
transaction
• Common data model and interface for all subledgers.

Global Marketing
Flexible Rules Based Accounting

Transaction Centralized Primary Ledger

Accounting US GAAP
US COA
Dr Cr
US Calendar
USD

Take Source
System Accounting Conversion Table Nested Condition Statements
Source
01-402-7620-0000-000 Field Result Rule Result
Risk Debtor IF Source System = Online WIP
Class Account AND Customer Type = Related Party Account
01-402-7620-0000-000 High 2301 AND Country = USA
1550
Med 2302 OR Customer Type = Internal
Single segments, or Low 2301
complete string

Global Marketing
Sub Ledger Accounting: Multiple Accounting
Representations for Parallel Financial
Reporting
Transaction Centralized Primary Ledger
Accounting US GAAP
US COA
Dr Cr
US Calendar
USD
Secondary Ledger
Translation Table
Account Account
French Rules
100.001.2120.000 10.000.100.000 Plan Comptable
French Calendar
120.001.2120.000 15.000.101.000
130.001.2120.000 18.000.102.000

EUR
140.001.2120.000 22.000.212.000
150.001.2120.000 65.000.267.000

Global Marketing
Accounting in 11i vs R12

11i -Accounting Model and Transaction In R12, Accounting Model is separated from
Model are tightly integrated the transaction model.

Global Marketing
11i vs R12 – Accounting Structure
11i
Receivables Payables Projects Fixed Assets Purchasing iProcurement

GL
Primary Set of Books

R12
Receivables Payables Projects Fixed Assets Purchasing iProcurement

XLA
GL
Primary Ledger
Secondary Ledger

Global Marketing
SLA Functional Overview
• SLA is a service within a product and not a module or
application or a product.
• No separate responsibility for SLA
• Single step posting to all ledgers.
• Real time/online accounting.
• Provides audit-trail for all transactions.

Global Marketing
SLA keeps the Subledgers & GL tied out

Subledger Accounting General

Journal Entry
Applications Configurations Setup Ledger

Subledger
Accounting Accounting Journal Entries
Events Program

Subledger Accounting GL Journal

Service Entries and
Balances

Reconciled:
Subledger
Transactions Docs, SLA, GL in synch
Balances

Global Marketing
 Opening Closing
Balance Debit Credit Balance

SLA Controls that GL

GENERAL LEDGER
Balances and SLA Cash 100 3,500,000 2,750,000 750,100
Receivables 1,000,000 3,000,000 3,500,000 500,000
Balances tie, and that Inventory 500,000 1,200,000 1,500,000 200,000
Assets 100,000 100,000
both tie to the document Prepayments 1,000 1,000

(invoice, payment, etc.) Payables

Accruals
(750,000)
(250,000)
2,800,000 2,700,000
50,000
(650,000)
(300,000)
sources Shares
Previous Results
(100,000)
(501,100)
(100,000)
(501,100)
Balance Sheet - 10,500,000 10,500,000 -
Sales 3,000,000 (3,000,000)
COGS 1,500,000 1,500,000
R&D 300,000 300,000
Opening Closing S&M 300,000 300,000
Balance Debit Credit Balance G&A-Fin 300,000 300,000
G&A-IT 150,000 150,000
SUBLEDGER ACCOUNTING
G&A-HR 150,000 150,000
Receivables
Period Income 300,000 300,000
Customer One 250,000 150,000 400,000 - Income Statement - 24,000,000 24,000,000 -
Customer Two 350,000 250,000 450,000 150,000
Customer Three 100,000 1,500,000 1,400,000 200,000
Customer Four 100,000 800,000 750,000 150,000
Customer Five 200,000 300,000 500,000 -
Total 1,000,000 3,000,000 3,500,000 500,000 Sub Ledger Details

Payables
Vendor I (250,000) 1,000,000 900,000 (150,000) General Ledger Balance
Vendor II (100,000) 75,000 50,000 (75,000)
Vendor III (150,000) 725,000 775,000 (200,000)
Vendor IX (250,000) 1,000,000 975,000 (225,000)
Total (750,000) 2,800,000 2,700,000 (650,000)

Global Marketing
Transaction Flow through SLA to GL

Transaction
Create Accounting Process

SLA Journal Entry

Journal Import

GL Journal Entry
Posting

GL Balances

Global Marketing
SLA Components at a Glance

Global Marketing
SLA Accounting Components at a Glance
Subledger Application Journal Line
Accounting Accounting
Ledger Definitions Sources
Method Definition
(AAD) (JLD)
(SLAM)

SLA Supporting
component Components
(AMB)

Global Marketing
Types of Subledger Accounting Method
Five Sub ledger Accounting Methods are seeded in the
Application.
• Accrual with Encumbrance accounting
• Cash with Encumbrance Accounting
• Standard Accrual
• Standard Cash
• US Federal Accounting

Global Marketing
 SLA Event Model
Event Classes Event Types
Classifies transaction types for accounting rule For each transaction type, defines possible actions with
purposes. accounting significance.

Global Marketing
Event Model
Event Classes Event Types
Receipt
Receivables Created
Transactions Applied
Receipts Unapplied
Reversal
Updated
Bills Receivable
Adjustments Reversed

Payables Payables Invoice

Invoice
Validated
Debit Memo
Prepayment Adjusted
Payments Cancelled
Refunds

Purchasing Purchase Order

Created
Requisition
Distributed
Purchase Order
Cancelled
Rejected
Finally completed

Global Marketing
Journal Line Definitions
Journal Entry Descriptions

Line Type
Account Derivation Rule (ADR)

Global Marketing
Case-Study
Requirement:
Ensure that the create accounting process derives the correct Accounting Flexfield segments based
on the receipts applied to the customer based on the sales channel to Accounting Flexfield mapping.

This should work for any cash application – Receipt applied, Receipt unapplied, Receipt reversed etc.

Global Marketing
Case-study

Global Marketing
Solution Steps
• Create/Define a PL/SQL code
• Define Custom Sources
• Define Mapping Sets (Optional)
• Define Account Derivation Rules
• Define Journal Line Types (JLT)
• Define Journal Entry Descriptions
• Define Journal Line Definitions (JLD)
• Define Application Accounting Definition (AAD)
• Define Subledger Accounting Method (SLAM)
• Assign SLAM to Ledger

Global Marketing
Subledger Accounting Definition Steps - Review

Global Marketing
Step 1 – Creation of Custom Source

This must be a backend

function in APPS
schema, (function in a
package or a stand
alone function).

These are the

parameters in the
function – usually
mapped to available
sources in SLA

Global Marketing
Step 2 – Account Derivation Rule
Account Derivation
Rule Name

Custom Source
Code/Name

Global Marketing
Step 3 – Create Journal Line Types
Journal Line Type
copied from seeded

Journal Line
Type with
Transfer to GL
set to
Summary

Global Marketing
Step 4 – Create Journal Entry Descriptions
Journal Description
Name

Global Marketing
Step 5 – Associate JE Description and ADR to
Journal Line Definitions at the Journal Line type
Journal Line Definition
copied from seeded

Journal Entry
Description
Journal Line
Type

Account
Derivation Rule

Global Marketing
Step 6 –Validate Application Accounting Definition

After attaching
the JLD to the
Event Class, you
have to click on
Validate and
validate the
Accounting
Definition

Attach Journal Line

Definition to the Event
Class

Global Marketing
Step 7 –Attach the Application Accounting Method
to the Subledger Accounting Method (SLAM)
Subledger Accounting Method
copied from seeded

Attach AAD to
Subledger Accounting
Method

Global Marketing
Step 8 –Assign SLAM to the Ledger

Attach Subledger
Accounting Method
to Ledger

Global Marketing
Run the Create Accounting Process

Create Accounting gives 3

options to create accounting

Global Marketing
View Accounting JE from Receipts window

Global Marketing
View T-Accounts

Global Marketing
View Supporting References

This can be configured in SLA

to capture additional
information

Global Marketing
Subledger Accounting Definition Steps - Review

Global Marketing
Technical Architecture of SLA

Global Marketing
 TRANSACTIONS ACCOUNTING

Transaction ( AR )
Headers
( RA_CUSTOMER_TRX_ALL Accounting Events
Entities
& ( XLA_EVENTS )
( XLA_TRANSACTION_ENTITIES )
AR_CASH_RECEIPTS_ALL
&
AR_ADJUSTMENTS_ALL )

Accounting Headers
( XLA_AE_HEADERS )

LEDGER Accounting Lines

TABLES GL_IMPORT_REFERENCES
( XLA_AE_LINES )

Distributions
(
Distribution Links
RA_CUST_TRX_LINE_GL_DIST
( XLA_DISTRIBUTION_LINKS )
_ALL
&
AR_DISTRIBUTIONS_ALL )

Global Marketing
Technical Architecture
The important tables that store data of SLA are given below:

• XLA_SUBLEDGERS

• XLA_SOURCES_B

• XLA_EVENT_SOURCES

• XLA_CONDITIONS

• XLA_ACCTG_METHOD_RULES

• XLA_EVENTS

• XLA_AE_HEADERS

• XLA_AE_LINES

• XLA_ACCOUNTING_ERRORS

• XLA_DISTRIBUTION_LINKS
Global Marketing
Auto-accounting vs Subledger Accounting
Auto Accounting Subledger Accounting

Lookup Sets Mapping Sets

Intermediate Value Input value
Auto Accounting Rules Account Derivation Rules

Parameter Source
Functions Journal Line Types
Auto Accounting Rule Journal Line Definitions
Assignment

Global Marketing
Implementation Considerations

Global Marketing
Tips and Tricks
• Subledger accounting rules and definitions of one module can
not be accessed from any other module.
• Seeded Subledger Accounting Methods can not be modified.
They need to be copied before they can be modified.
• Any change made to a Sub ledger accounting setup invalidates
the accounting process. Before running the “Create
Accounting” process, Application Accounting Definition must
be validated in order to make sure that the changes are logical.

Global Marketing
Reconciliation
Accounts Reconciliation has improved with the introduction of
SLA. This is possible mainly because of the following:
• Transaction Level Journals
• Transaction Details
• Drilldown Facility
• Reports

Global Marketing
SLA Standard Reports
• Account Analysis Report

• Journal Lines Report

• Open Account AP Balances Listing

• Open Period Balances

• Subledger Multi period Accounting and Accrual Reversal Report

• Standard Reports for SLA

• Subledger Period Close Exceptions Report

• Third Party Balances Report

• Trading Partner Summary Report

Global Marketing
Upgrade Considerations
• By default, the R12 upgrade migrates current fiscal year accounting
entries from each application to the SLA data model. This can be
modified if needed.

• For prior periods, the historical data is preserved. You can drill down
from General Ledger to the historical transactions using standard GL
drilldown.

• You can upgrade prior periods by request during upgrade

Global Marketing
Issues after Go-Live

Global Marketing
Issues after Go-live
• Journals going missing between subledgers and GL (Negative
Ledger id bug)
• Incomplete transactions preventing close

Global Marketing
Issue 1: Negative ledger_id
Bug 883557.1
Data transfer happens from subledger to GL through SLA, during the transfer,
some data corruption issues have been reported on the SLA to GL bridge.
These issues could be categorised into four categories :
1. Data with Negative Ledger_id in GL tables.
2. Data Marked as transferred in SLA but not reached GL.
3. Data Marked as Not transferred in SLA, but reached GL.
4. Multiple posting issues.
Solution: All the patches are applied, but still having this issue.
No standard report available to highlight differences between SLA and GL
layer. We are using custom reports to identify those data corruption issues.

Global Marketing
Issue 2: Incomplete transactions preventing Close
Bug 7623057
Subledger Period Close Exceptions Report is used to review exceptions
Incomplete: Not ready for accounting. This will be seen in the below
scenarios:
a) There are incomplete invoices / credit memos or unapproved adjustments
Solution: The invoices / Credit Memos need to be completed or deleted in
order to have the period closed.
But we are on 12.1.3, on the latest patch set, and we were still unable to close
due to incomplete transactions every month.
We had to develop a fix to overcome this.

Global Marketing
Epilogue
• The purpose of this paper is to give a high-level overview
of R12 Subledger Accounting, functional and technical
architecture and case-study.
• Hope the information shared in this paper will be more
than beneficial to the Oracle Applications User
community as a whole.

Global Marketing
Acknowledgements
Special thanks to the following people at Dell who made this
presentation possible.
Hemal Shah, IT Director
Jason Wallis, Executive Director
Rhonda Gass, Vice President of IT
Richard Welch, Solution Architect
Kadey Cochran, Solution Architect
Ed Warren, Solution Architect
Imtiaz Saiyed, Enterprise Architect

Global Marketing
 Acknowledgements

• A very special thanks to OAUG GL SIG and Rob Zwiebach for

the informative webinars on SLA.
• Last but not the least, Special thanks to my husband Ram
Ganapathy for his full support and encouragement in writing
this paper.

Global Marketing