-- Subledger Accounting Oracle Subledger Accounting SLA is a new product that comes with the applications release R12. In many ways, it is seen as a service. that is all the subledger applications like AP,AR, PA, FA,Cash Management etc use the SLA modules to create Journals. Oracle Subledger Acocunting module (SLA) goes under the product code XLA. That is all the objects corresponding to SLA are stored in the XLA database schema at the database level. These are the typical features of the SLA. -- Oracle Subledger Accounting (SLA) works with Oracle General Ledger. -- Oracle Subledger Accounting (SLA) replaces the 11i Oracle Global Accounting engine,which is used for conforming to the European accounting standards. -- Oracle SLA is a new rule-based centralized accounting engine, in the sense that all the applications can use this module and the account combinations are decided by the pre-defined rules. -- SLA is a global accounting repository with user driven reporting. -- Corporate Accounting Policy is documented in the form of user-defined accounting rules in SLA. So you could define rules which conform to your Govt (GAAP),Non-GAAP or to IASB(Intl Actg Services Board) -- We know in 11i, that in AP(workflow account generator) and in AR (Autoaccounting) is responsbile for account generation.Now SLA acts as a complementary to both the above. -- SLA combined with FSAH(Financial Services Accounting Hub) enables you to centralize accounting data from any third party transactional system. -- In 11i, each product had its own accounting engine and they posted transactions according to each individual product. In R12, there is a single accounting engine across all the products. Complete accounting is maintained for every appropriate event, and all subledger entries are fully balanced and detailed. As an ex; see the followiong in 11i and R12(where you wont find accounting method field in R12 while you find the same in 11i). Payables => setups => Options > payables options Receivables => setups => system => system options The most important fact about the SLA module is that it is not meant for the transaction level data. It is only meant for setups. Hence you will not see any responsibility to enter the transaction data. -- With SLA, the journal creation happens even before the GL(General Ledger). Event Model : ------------- R12 comes with a new concept called the Event Model. Basically what event model does is in each application like AP,AR,PA,FA etc, it classifies major objects into entities. So the model is Event Entity => Event Classes => Event Types. As an ex, in AR, the major entities are Transactions, Adjustments, Receipts. And for transactions , the even classes are Invoices,credit memos, etc. For a specific event class, say Invoice, the different event types are INvoice Created ,Invoice Completed, Invoice Deleted etc. So the examples of the event model hierarchy are Transaction => Invoices => Invoice Created. Adjustment => Adjustment=> Adjustment Created. Receipts => Standard Receipt => Receipt Completed. R12 comes shipped with all the above event model. However we can also define our own custom event model for any additional events,although it is not required. We can view events from the menu, Accounting Methods Builder => Events => Event Model. So the Accounting Methods Builder is a very important tool with in the Release 12 SLA module. Difference between Create Accounting and Submit Accounting. ----------------------------------------------------------- Submit Accounting corresponds to AR Module, while Create Accounting corresponds to SLA module Submit Accounting always submits the Revenue Recognition program,while the stand-alone Create accounting program never submits the revenue recognition. Actually I have seenCreate Accounting program also present in the AP ,and hence wecan logically conclude that it does not submit rev rec. Think about Submit Accounting program as an analogy of "Transfer to GL" program ,which will automatically submit the rev rec program. In the submit Accounting conc program you have an option to choose the Create Accounting as Yes/No. If you choose Yes, the Create Accounting Program is run and it will generate the journal entries in the SLA module. If you do Choose No then the Create Accounting program will not run. Irrespective of the above choice, you could still choose the transfer to GL option as Yes/No. If Create Accounting is chosen as No and GL transfer as Yes, then Create Accounting will not run for any new transactions/entities but the submit Accounting will still transfer the existing journal entries in the SLA to GL.s If you just run the Create Accounting Program in AR, then it will just generate the necessary journal entries in SLA. So apparently, Revenue recognition and creating journal entries in SLA are two independent things. ????? What are the major tables that are there in XLA module and how the jouranls are stored there. XLA_GL_HEADERS XLA_GL_LINES. Is Create Accounting Program there in all the Applications Module ; Yes, if we look at the Subledger Accounting module (SLA), it is being seen as a service oriented architecture and hence the same program is used in different modules. And since differnt modules can use different ledgers, the parameter ledger is provided so that they can give any ledger they want. Just like there is autoaccounting which decides the distribtuions in AR, we have what is called Account Derivation rules in SLA for each kind of journal source and category. You could optionally use this once the journals get transferred to SLA,however it is not required. ----- so essentially the rev rec and create accounting are two indenpendent component and they act independently. ------ Actually we can create Subledger Journal Entries in the SLA,but the trickiest part is that we can create them only in the subledger modules not with in the General Ledger or SLA. Subledger accounting features are not available to the General Ledger and Subledger Accounting responsibilities. To access this feature, please use a responsibility that creates subledger accounting such as Payables or Receivables. ---- ** Can we create Subledger journal entries in SLA module ?? Yes. First of all I was of the opinion that Subledger Accounting module is only used for doing setups etc i.e we can use the tools like AMB and TAB to setup accounting definitions and build transaction accounts etc but not enter transactions / journals etc. However when I was going thru the SLA Imp Guide, then I saw a chapter which explains how to enter the Subledger Journal ,although the guide did not explain the functionality of that. And so I investigated and I found that the menu "Subledger Journal Entries" was missing and when I added that menu I could create Subledger journal entries and adding supporting references etc. My question is what is the use of such created Subledger Journal Entries and what is the intended functionality of such journals. Which means that we are using the SLA not just for setups but also to enter the journals isn't it?? Is it similar to entering one-off journals earlier in 11i just to balance out the other journals. Manual entries are adjustments. If the adjustments are due to specific subledger activity such as Payables, then you may want to enter an SLA manual entry instead of a GL entry. (doc id 452748.1 can help) Here are the reasons why you would add a manual subledger journal entry ; -- Addiing a manual subledger journal in SLA ensures the synchronization of the primary and secondar ledgers. -- FSAH/SLA does not allow posting to adjustment as the adjustments are considered as the GL functionality and so SLA only allows posting to real periods, i.e periods that exist in SLA. -- ** What are sequences, Sequencing Contexts, Assignments in R12?? The steps are; Create a sequence Create a sequence version Create a Sequencing context ;This basically means that we are going to use a sequence in the context of ,say,subledger journals creation,i.e the subledger journal that are going to be created will be sequenced. This is not same as creating a sequence. Actually you will see that there are 4 sequencing entity like "Accounting -Subledger Journal Entry" etc. You can pick one of them and press Create. Then what this does is that for that particular ledger you are adding a sequencing context of "Accounting -Subledger Journal Entry". In the same step, we will also assign a pre-created sequence for this(say from step 1) context. Also we can use the same sequence for more than one sequencing context. I believe this whole point of creating the sequence contexts is to use different sequences for different purposes in SLA and GL. It is very important to create sequencing contexts, otherwise the Create Accounting program will fail. ** what is Transaction Account Builder in R12 -- ** What are sources and source assignments in R12?? Sources and accounting attributes are a new concept in R12. With R12,you will have a number of seeded sources. Basically what I found is that for a given application, there will be a lot of entities. As an example lets take receivables. In receivables we have entities like Transactions, Receipts, Adjustments, Bill Receivables. All the transactions are stored in ra_customer_trx_all, lines, distributions etc All the receipts are stored in ar_cash_receipts_all, history etc All the adjustments are stored in ra_adjustments_all, etc So the sources will be a collection of all the columns in all the above tables. So basically for transaction columns, there will be apt prefix, for a transaction batch source column, the source will be like "Transaction Batch source description". Similarly for accounting rule, you have "Transaction Line Accounting Rule Name",which will source from the accounting rule column in the invoice lines table. For defining, first go to the sources menu define a source id and name. Come to source assignment and for each source defn,pick the table header or detail table,from where this particular source (defined in above step) will be sourced. -- ** What are accounting attributes ?? Accounting attributes are those predefined attributes/columns which are - named columns in journal entry headers and lines.(ex, entered currency code) - columns that control the behaviour of subledger program when processing a specific accounting event or trx object line. - Each accounting attribute is associated to a level(header and line for creating journal entry headers and lines respectively) -- ** How is Journal Entry Setups done from the Sources ?? Lets see, in general for any journal (called here as "Journal Line Definition") you will have the following features Journal Entry Description (eg. for student fees etc) Journal Line Types (Cr/Dr, amounts etc) Account Derivation Rules Each of the above will refer to what is called the Sources which are already defined again by the setup. In the above, Account Derivation Rules mean basically how the account combination should be derived for that particular journal. So one can define an accounting derivation rule here. Say for ex, Oracle ships one such rule for Receivables , "Transaction Distribution GL Account" and the value type is "Source". I am not sure, where these particular rules are being referenced elsewhere??? i.e how does the SLA know that this rule should be used. So as an ex, let us say you created a transaction in AR,completed it. Now The Autoaccounting will generate the distributions for this. Now when this transaction is transferred, you could optionally ask the SLA to change the accounting combination ,which it does based on the Accountin Derivation rule. Otherwise the same combination is preserved. -- ** What is an Accounting Representation ?? The combination of subledger accounting method and Ledger is called accounting representation. The primary ledger represents the primary accounting representation. In primary ledger, the transaction and accounting charts of accounts are always same. -- ** What is the difference between Primary Ledger and Secondary Ledger ??? The primary ledger is the main accounting representation of the financials system. A secondary ledger can be associated with Primary Ledger and can serve several purpuses A secondary ledger is an alternative accounting representation for geographic,legislative ,industry requirements or a consolidated accounting representation or an adjustment ledger The data in the subledger can be stored at different levels depending on the data conversion level selected by the user. When you create a secondary ledger usually you are picking a conversion level of data. for ex subledger level, Journal level, Balance level or adjustments only level. -- ** What is the difference between using reporting currencies and a secondary ledger ??? An alternate reporting currency can be used instead of a secondary ledger when the only part of the ledger that is different is currency. -- ** When you create a secondary ledger you are creating another accounting representation. So you can have a secondary ledger which has a different subledger accounting method and hence corresponds to a secondary accounting representation. -- ** What is the difference between Transaction COA and Accounting COA ??? To explain the difference consider a Primary Ledger and Secondary Ledger. In the primary Ledger you have Trx COA 1 and Actg COA 1. In the secondary Ledger, you have Trx COA 1 and Actg COA 2. Hence when a trx is entered in SEcondary Ledger, the trx COA is the same, however the Actg COA is different, i.e the same trx is converted into a different Actg COA.
Showing posts with label Subledger Accounting (SLA). Show all posts
Showing posts with label Subledger Accounting (SLA). Show all posts
