E-Business Suite Release 12 Subledger Accounting Applications.
Learnings of an Subledger Accounting Method
19
Learnings of an Oracle Apps Consultant SUNDAY, DECEMBER 07, 2008 Learn using Sub Ledger Accounting (SLA) in R12 Oracle Payables Sub Ledger Accounting (SLA) is a Rule-Based accounting engine that defines how journal entries are generated in sub-ledger transactions in Oracle sub-ledger applications. However, SLA also supports external applications generating accounting information which ultimately needs to be transferred to Oracle General Ledger. Before we get into SLA we need to know few of the basic concepts like event types, event class, etc. Event Class - classifies transaction types for accounting rule purposes. E.g. in Payables, following are possible event classes: Invoice, Debit Memo, Prepayments, Refunds and Payments. Event Type - for each transaction type, defines possible actions with accounting significance. E.g. in Payables, following are possible event classes: AP Invoice Events – Validation, Adjustment and Cancellation. Similarly we will have event types for other event classes. In most of the cases we would not need to customize SLA and accounting features will work same as 11i. Some of the typical business scenarios where we would need to customize SLA in Payables are as follows: To have a different Liability account based on Operating Unit for which the invoice is entered. To have different natural account (expense) based on different Invoice Type and Invoice Line type. To have different natural account (expense) and different liability account based on different criteria like supplier type, entering currency, pay group, etc. The cost center segment of Invoice distribution Liability account shall be picked from the Invoice distribution Account while the other segment values from the Liability account defined at supplier site. To cater to some of the above requirements we can use other alternatives like using distribution sets also. But setting up a custom SLA for such scenarios is an easier approach
Transcript of Learnings of an Subledger Accounting Method
Learnings of an Oracle Apps Consultant SUNDAY, DECEMBER 07, 2008
Learn using Sub Ledger Accounting (SLA) in R12 Oracle Payables Sub Ledger Accounting (SLA) is a Rule-Based accounting engine that defines how journal entries are generated in sub-ledger transactions in Oracle sub-ledger applications. However, SLA also supports external applications generating accounting information which ultimately needs to be transferred to Oracle General Ledger. Before we get into SLA we need to know few of the basic concepts like event types, event class, etc.
Event Class - classifies transaction types for accounting rule purposes. E.g. in Payables, following are possible event classes: Invoice, Debit Memo, Prepayments, Refunds and Payments.
Event Type - for each transaction type, defines possible actions with accounting significance. E.g. in Payables, following are possible event classes: AP Invoice Events – Validation, Adjustment and Cancellation. Similarly we will have event types for other event classes.
In most of the cases we would not need to customize SLA and accounting features will work same as 11i. Some of the typical business scenarios where we would need to customize SLA in Payables are as follows:
To have a different Liability account based on Operating Unit for which the invoice is entered.
To have different natural account (expense) based on different Invoice Type and Invoice Line type.
To have different natural account (expense) and different liability account based on different criteria like supplier type, entering currency, pay group, etc.
The cost center segment of Invoice distribution Liability account shall be picked from the Invoice distribution Account while the other segment values from the Liability account defined at supplier site.
To cater to some of the above requirements we can use other alternatives like using distribution sets also. But setting up a custom SLA for such scenarios is an easier approach with lower user maintenance. I will try and show a simple scenario of how to derive custom accounting for a business scenario using SLA in Oracle Payables.
Business Scenario: We need to define different liability account (natural account segment) based on Supplier Type so that business can track the liability by supplier type. The other segment values will default from supplier site. I am limiting this example to only one supplier type “Contractor". The objective would be to have a different natural account for Liability account for invoices of supplier type "Contractor" alone, while for other supplier types the normal liability account should default.
Solution:
Step1: First define a mapping set for various supplier types.
Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting Methods Builders > Journal Entry Setups > Mapping Sets
Step2: Define ADR (Account Derivation Rules)
Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting Methods Builders > Journal Entry Setups > Account Derivation Rules
Step3: Define JLD (Journal Line Definition)
Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups > Accounting Methods Builder > Methods and Definitions > Journal Line Definitions
Always create a copy of the seeded JLD and do not modify a seeded JLD. We will create a copy of ACCRUAL_INVOICES_ALL for our Chart of Accounts ‘Operations Accounting Flex’ only. Add the custom ADR created to ‘Liability, Basic’ (Line Assignment)
Step 4: Setup AAD (Application Accounting Definition)
Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups > Accounting Methods Builder > Methods and Definitions > Application Accounting Definition
Create a copy of seeded AAD only and do not modify existing AAD. I am creating a custom AAD called ‘TEST_AAD’ for COA ‘Operations Accounting Flex’.
Step 5: Setup SAM (Subledger Accounting Methods)
Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods
Create a copy of a seeded SAM and do not modify seeded SAM. Add the custom AAD to the Event Class ‘Payables’.
Step 6: Assign the custom SAM to Primary Ledger
Navigation: Set ups > Accounting Setups > Ledger Setup > Define > Accounting Setup
Verification of new SLA rule:
Create an invoice for supplier type ‘Contractor’ and create accounting
Liability Account for Supplier Type “Contractor” is 01-000-2990-0000-000
Liability Account for other Supplier Types is 01-000-2210-0000-000
Posted by Krishanu Bose Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz Labels: Oracle Payables, Subledger Accounting
Reactions:
3 comments:
Anonymous said... Krishanu,Is there a way once the sub ledger has been transferred to the GL to change the accounting string. I have an error 7 message and can't seem to change the accounting string.
Thank you
March 03, 2009 11:45 AM
jesus said... Hi Krishanu Bose
Thank you for an excellent blog, it is very informative.
I have a question.
Our company (in Mexico) is implementing Oracle and I have we have an issue with payments when there is a currency gain or loss. From what I
understand, I believe it can be solved with reclassification of the gain at SLA to GL posting.Let me Explain1)SALE-Our base currency is Mex Peso-Sale Is in Dollars with VAT (Vat is paid when payment is received)-Accounting goes AR-Client account, Income Accounts, Tax to Collect Account2)PAYMENT in MX Pesos (IN FULL)-PAYMENT goes to Bank account-AR_Amount is credited-Currency profit goes to Currency Profit account-Tax to Collect is credited into Tax to Pay -Tax currency profit goes to Currency Profit account3)My problem that the tax currency profit should go to My Tax to Pay Account, since in Mexico by law, this gain is for the government (not Me)According to our consultants It cant be done since oracle sends all currency gains to the same accounttheir solution is to run a process to check all payments in non mexican currencies and to post an adjustment to correct this.My question is can I configure a rule from SAL to GL to reclassify Currency gains from tax to a different account?Thank you
February 01, 2010 6:15 PM
Denise said... I am glad I was able to visit your blog. This is what exactly I am looking for. Hope that you'll write further articles for the Sub Ledger Accounting (SLA). Thanks for the share. Thumbs up!
Denise
invoice solutions
September 01, 2010 11:54 PM
Post a Comment
Newer Post Older Post Home Subscribe to: Post Comments (Atom)
SUBSCRIBE TO
Atom
Posts
Atom
Comments
ABOUT ME
Krishanu Bose India
Krishanu's Oracle Applications Blog - Oracle Apps consulting services scenario in India. Also, an inside view of Oracle Apps outsource services in India. Also the blog features new developments in Oracle Apps and my learning's in this field. The views expressed are my own only and not of my employer Oracle Corporation. The views and opinions expressed by visitors to this blog are theirs and do not necessarily reflect mine.
View my complete profile
CATEGORIES
Generic (6)
Non PO invoices (1)
Oracle Apps (8)
Oracle E-Business Tax (1)
Oracle General Ledger (1)
Oracle iExpense (1)
Oracle Payables (14)
Oracle Projects (2)
Oracle Purchasing (1)
Oracle Receivables (4)
Subledger Accounting (1)
Withholding Tax (1)
BLOG ARCHIVE
► 2011 (2)
o ► April (1)
Payables Hold Release Workflow
o ► February (1)
Open Account AP Balance Listing
► 2010 (3)
o ► November (1)
R12: You can make a payment run across multiple OU...
o ► August (1)
What to Convert in GL: Balance or Transaction Deta...
o ► January (1)
Retainage and Retainage Release in Or...
► 2009 (2)
o ► November (1)
Recording a Refund of a Prepayment or Advance
o ► July (1)
Too many Managers spoil the project
▼ 2008 (14)
o ▼ December (1)
Learn using Sub Ledger Accounting (SLA) in R12 Ora...
o ► November (1)
Payables Duplicate Invoices
o ► September (1)
Indian Megavendors
o ► August (2)
Importing Payments and Paid Invoices into Oracle -...
Oracle E-Business Tax: Regime to Rate Flow in Orac...
o ► July (1)
New Features in Approving Expense Reports in Oracl...
o ► May (1)
Conversion (Data Migration) of Invoices in Receiva...
o ► April (4)
Business case - Customer on Credit Hold
Customer Refund in Receivables
Oracle Apps Marketing for Upgrade projects - A sma...
Configuring Accounts Payable in Oracle 11i
o ► March (1)
Business case on using Withholding Tax
o ► February (1)
Sample Accounts Receivable Questionnaire
o ► January (1)
Gathering missing information for Non-PO invoices ...
► 2007 (2)
o ► June (1)
Sample Accounts Payable Questionnaire for Client
o ► March (1)
Oracle acquires Hyperion
► 2006 (17)
o ► November (2)
List of Oracle E-Business Suite's Business Service...
Exploring Oracle Self Billing (Payment on Receipt)...
o ► October (1)
Sales and After Sales No-Support
o ► September (1)
Wedding Invitation.....
o ► August (1)
Companies providing Oracle Apps and Oracle BI Cons...
o ► July (1)
Typical Business Requirements while setting up Inv...
o ► June (1)
Oracle to Buy Demantra
o ► May (1)
Purchasing Card (P Card) in Accounts Payable
o ► April (2)
Oracle Apps Implementation Methodologies
Clients insisting on using Standard Oracle feature...
o ► March (6)
Oracle announces Future BI strategy
Medieval policies of Indian Bodyshopping companies...
US Army website on ERP implementation consideratio...
Oracle Projects – Part 2
Are Oracle Apps departments over staffed in Indian...
Oracle Projects – Part 1
o ► February (1)
How important is industry experience for an Oracle...
LINKS
blogs.oracle.com
Dilbert
Mark Rittman
Oracle Applications Home
Oracle Intercompany and Financials Blog
oracle.anilpassi.com
OracleApps Epicenter
oraclebi.blogspot.com
Richard Byrom
Ripul's Usability Blog
Seetharaman's Oracle Apps Blog
Steven Chan
The Feature
Simple template. Powered by Blogger.
