Oracle EBS Release 12 Subledger Accounting What It Is, What It Does, How It Works Alyssa Johnson April 2008

Agenda
What It Is Setup
Accounting Setup Manager Accounting Methods Builder (AMB) Customizing Journal Entries

How it works
Create Accounting Personalizing Journal Views Drilldown from GL Subledger Control Accounts Reporting

What Happens in an Upgrade More Information

2

What It Is

What It Is
Powerful rules-based accounting engine with a centralized data model and repository Schema XLA Supports user-defined accounting rules Provides flexibility while maintaining necessary control Enables compliance with multiple geographic, legislative, or industry requirements
4

What It Is
Consolidates and Standardizes Accounting Across the Subledgers Supports Shared Service Centers Improves Control & Transparency Separates processing from accounting Performs Balancing at Subledger Level Minimizes manual journal entries and customization Streamlines Reconciliation Resulting in Faster Close
5

What It Is
Company ABC has operations in both US and France
Corporate Accounting Structure
- US Chart of Accounts - US Calendar - USD - US GAAP

Regulatory Accounting in France

- Plan Comptable - French Calendar - EUR - IAS/IFRS Accounting

SLA can book a single transaction to both ledgers

What It Is
GENERAL LEDGER
Primary Ledger Secondary Ledger(s)

Accounting

Drilldown to Subledger Accounting Details

Subledger Accounting (SLA) Subledger Accounting Subledgers

7

Drilldown to Transaction Details

What It Is
Purchasing Payables Assets Receivables Cash Management Intercompany Cost Management Process Manufacturing Projects Payroll Loans Lease Management Property Manager Public Sector/Federal Globalizations

What It Is?
SLA setup contained within subledgers responsibility

Purchasing

Payables

Receivables
9

Setup Accounting Setup Manager

10

Setup Accounting Setup Manager

The 4Cs of the Ledger

The Subledger Accounting Engine utilizes the Accounting Method to generate the correct accounting
11

Setup Accounting Setup Manager

Seeded Subledger Accounting Methods User-defined Accounting Methods can be added using the Accounting Methods Builder

12

Setup Subledger Accounting Options

Subledgers assigned to a ledger inherit its subledger accounting method Users can define alternate accounting rules for any subledger
Define Subledger Accounting Options
13

Setup Subledger Accounting Options

14

Setup Update Accounting Options

Receivables Module

User can control parameter options of Create Accounting process

Users can define Journal Category

15

Setup Update System Options

Number of processors can be increased to improve efficiency by event

16

Setup Accounting Methods Builder (AMB)

17

Accounting Methods Builder (AMB)

The functionality of AMB enables a user to create a Subledger Accounting Method

Enables users to defined customized accounting rules

18

Setup Accounting Methods Builder

GL Date Account Derivation Rules
Journal Lines

Journal Header Descriptio n

Journal Lines

19

Setup AMB Flow

20

AMB Subledger Accounting Methods

Subledger Accounting Method

Application Accounting Definitions

21

Setup Subledger Accounting Methods

Link to Accounting Setup Manager

Not updateable but can be copied

22

Setup Chart of Accounts

Transaction Chart of Accounts
Chart of Accounts for Primary Ledger CoA user views and enters at transactional level

Accounting Chart of Accounts

Journal entries are created using this CoA Transaction CoA always equals Accounting CoA for Primary Ledger Transaction CoA might not equal Accounting CoA for Secondary Ledgers

23

Setup AMB Flow

24

AMB Application Accounting Definitions

Security

Event Class and Type

Journal Header Assignments

Journal Line Definitions

25

Journal Header Assignments

View and Customize Journal Header Descriptions

26

Journal Entry Descriptions

Click on Details to update Journal Entry Description

Conditions to utilize specific description

27

Application Accounting Definition

Journal Header Assignments

Journal Line Definitions

28

Journal Line Definition

Journal Line Types Journal Entry Description

Account Derivation Rules

29

Journal Line Types

30

Conditions

31

Conditions Another Example

32

Journal Entry Description

Journal Line Types Journal Entry Description

Account Derivation Rules

33

Journal Entry Description

34

Account Derivation Rules

Journal Line Types Journal Entry Description Account Derivation Rules

35

Account Derivation Rules

Value Type: Source, Constant, Account Derivation Rules, Mapping Set

36

Mapping Sets

Input Validatio n Output Validatio n

37

Setup Example Customizing Journal Entries

38

Default Journal Entry

39

Subledger Accounting Method Copy

40

Application Accounting Definition Copy

41

Now Values Can Be Updated

Click to modify Journal Header Descriptio n

42

Journal Entry Description Copy

Note Owne r On copy, Enter New Header values

43

Journal Entry Description Details

44

Validate Changes

Event will not account if not validated

Click to Validate Accounting Definitions

45

Validate Changes
Can also use concurrent program to validate

46

User-defined Accounting Method

User defined Accountin g Definition

47

Modify Accounting Options

Update Subledger Accounting Method

48

Update Subledger Accounting Method

User-defined Subledger Accounting Method

49

Customized Header Description

50

How It Works Create Accounting

51

How It Works Create Accounting

Final Accounting Entries cannot be changed; Transferred to GL Users can now choose the mode in which to create accounting Draft Use to determine accounting impact of journal entries

Final Post Accounting Entries Transferred and Posted to GL

52

How It Works Create Accounting

Draft Mode
Determine accounting impact of journal entries Can be deleted and recreated Transaction or accounting definition can be altered Can be included on accounting reports Cannot be transferred to General Ledger Does not update balances or reserve funds

53

How It Works Create Accounting

54

How It Works View Accounting

View Accounting Events, Journal Entries, and Journal Lines from the Subledger

55

How It Works Create Accounting

Drilldown

Draft Mode Entries Can Be Deleted Create Manual Journal Entries Journal Entry Status
56

How It Works Create Accounting

Users can view both the Journal Entry and the Transaction Information together

57

How It Works Create Accounting

58

How It Works Create Accounting

Also View As Accounting Event

Show Details

Note: Event Status

59

How It Works Create Accounting

60

How It Works Personalizing Journal Views

61

How It Works Personalizing Journal Views In addition to searching on default criteria, users can create specific views
Toggle between Search and View Modes

62

How It Works Personalizing Journal Views

63

How It Works Personalizing Journal Views

Document, accounting, and reporting Seq Num; Total Accounted Credit, Debit

64

How It Works Personalizing Journal Views

Specify Sorting Personalize Search

65

How It Works Personalizing Journal Views

Items user can search on

66

How It Works Personalizing Journal Views

Ability to Compare Journal Entries

Note: Total
67

How It Works Personalizing Journal Views

68

How It Works Drilldown From GL

69

Drilldown from GL

Review Journal

70

Drilldown from GL

Line Drilldown

71

Drilldown from GL

Further Drilldown s

72

Drilldown from GL Transaction

73

Drilldown from GL Journal Entry

74

Account Analysis and Drilldown

Personalized View

Drilldown to Journal Lines and Summary Accounts

75

Account Analysis and Drilldown

Drilldown to Journal Lines

76

How It Works Subledger Control Accounts

77

How It Works Subledger Control Accounts

Supplier Payables Natural Account only updatable by the Payables Subledger Customer Receivables Natural Account only updatable by the Receivables Subledger General Ledger cannot post to a Subledger Control Account Improve reconciliation eliminate common source of subledger control account discrepancies Less time spent identifying and correcting issues resulting in faster close

78

How It Works Subledger Control Accounts

Flexfield Segment Qualifier

79

How It Works Reporting

80

How It Works - Reporting

Account Analysis Report Complete Multiperiod Accounting Create Accounting Import/Export/Validate Application Accounting Definitions Journal Entries Report Open Account Balances Data Manager Open Account Balance Listing Subledger Accounting Balances Update Subledger Period Close Exceptions Report Transfer Journal Entries to GL Update Subledger Accounting Options
81

Journal Entries Report

XML Report Data Extract More than 100 columns of data

82

Account Analysis Report

XML Report Over 100 Data Elements in Extract

83

Subledger Period Close Exceptions Report

84

What Happens in an Upgrade?

85

What Happens in an Upgrade?

Automated upgrade Product accounting programs become subledger accounting definitions Existing account derivation mechanisms respected
Workflow Account Generator Receivable Auto-Accounting Projects Auto-Accounting Accounting flexfields stored on setups and transactions Passed as defaults

86

Summary

87

Summary
Streamlined reconciliation
Transaction level journals Transaction Details Reporting and drilldown Integration with XML publisher Reconciliation reference

88

Summary
Period Close Processing
Online Accounting Straight through processing Draft Accounting Subledger control accounts

User-defined accounting rules maintained in future upgrades

89

Available at www.solutionbeacon.com

Got Oracle?

Get the Books!

Order or Reserve Your Copy Today!

Installing, Upgrading and Maintaining Oracle EBusiness Suite Applications 11.5.10.2+

The Release 12 Primer Shining a Light on the Release 12 World

The ABCs of Workflow for Oracle E-Business Suite Release 11i and Release 12

90

Oracle Applications Users Group (OAUG)

THE worlds largest knowledgebase for Oracle Applications users Networking opportunities with over 118,000 members worldwide Access to over 50,000 white papers in the online OAUG Conference Paper Database FREE online training every Tuesday, Wednesday and Thursday for OAUG members

91

COLLABORATE 08, featuring the OAUG Forum, offers more than 500 presentations facilitated by industry experts and members of the OAUG. Early Registration Save $400 Registration Early Bird Deadline Exhibitor Showcase Sales Open Now March 13, 2008 Now open
92

For additional information and to register visit http://oaug.collaborate08.com

Questions and Answers

Thank You! Alyssa Johnson ajohnson@solutionbeacon.com
www.solutionbeacon.com
Real Solutions for the Real World

Copyright 2008 Solution Beacon, LLC All Rights Reserved Any other commercial product names herein are trademark, registered trademarks or service marks of their respective owners.

93

Q/A
Dff at line level to determine receivables. 3000 sources that can be used for line level accounting rules. SLA fixed assets tax books depreciation; yes; each book can feed a ledger directly; multiple representation for both corporate and tax books Discussed disabled groups of accounts or account segments; cant do that currently Specific feature in FA to switch off workflow account generator
94

95

96

SLA: Application Accounting Definitions

validate

97

 Configurable accounting rules Transaction automated processing replace manual journal entries Screenshot Handle exceptions and overrides Eliminate customizations

98

 GL Interface Table; Can still use for external interfaces US GAAP; French GAAP; can the accounting combo change. YES. French dictates chart of accounts FA Account Generator workflow; Upgrade; SLA respects the (AR (Auto Accounting), Projects, FA (Account Generator)) kept account generator methods; becomes the default account the SLA takes; Final accounting is done in SLA; Defaults accounts can come from subledgers

99

 Major shift in how accounting has been performed Multiple ERPs in one corporation Maintenance is straightforward No longer have to account by exception Clear ownership of the ledgers

100