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WHAT IS SLA? SLA is not a module or is an application It is not separately licensed Embedded in Application Responsibilities – no separate log in It is a service – Event and Rule based Accounting Engine. tool set and repository Common data model across all modules (XLA) Consolidates and Standardize Accounting across various sub ledgers .
legislative and industry requirements To provide flexibility while maintaining necessary transparency.WHY SLA? To enable compliance with different geographic. audit trial and control To support user defined Accounting Rules To enable balancing at sub ledger level To minimize customization and manual journal entries To facilitate simultaneous multiple representation of a single accounting event .
WHAT SLA DO? Generate and store detailed Accounting Entries Store Sub-ledger balances (Third Party Control Accounts) Provide drill down from Ledger(s) to Sub ledger and from Sub ledger to Ledger(s) Enables maintaining two sequences – Accounting and Reporting Enables definition of “Reconciliation Accounts” Facilitates 4th “C” – Accounting Convention .
FROM RELEASE 11i Features that were available in individual sub ledger modules of R11i have been consolidated in to a common data model across modules with enhanced features Events based Accounting features of Payables 11i has been extended to all sub ledgers Global Accounting Engine of 11i has been enhanced and replaced by SLA Account Generators in 11i which was used to automatically construct Accounting flexfield based on Oracle Seeded Rules or user defined rules has been enhanced and built into SLA .
R 11i Vs R12 SLA Release 11i process SUBLEDGER Payable Sub ledger Receivable Sub ledger Project Sub ledger Costing Sub ledger Export Temp Table GL INTERFACE TABLE Import & Posting Generation of Journal GENERAL LEDGER Transactions are exported to interface table and imported into GL from interface table Journal Balancing occurs in General Ledger Error transactions get trapped in interface table until it is cleared – often causing delay in closing books .
R 11i Vs R12 SLA Release 12 process SUBLEDGER Payable Sub ledger Receivable Sub ledger Project Sub ledger Costing Sub ledger Create Accounting SLA AP SLAM AR SLAM PA SLAM CS SLAM GL INTERFACE Generation of Journal GENERAL LEDGER Journals are created in the sub ledger Error transactions are reported at SLA level itself and no journal gets created GL Interface table contains only error free entries .
IMPACT OF SLA ON GL – Drilldown Drilldown from GL to SLA to Transaction Drilldown from summarized posting in Primary. Secondary and Consolidation Ledger is possible Preview effect of a journal in Primary / Secondary Ledger(s) Drilldown in web-based and not form based No change in drilldown navigation Security can be enabled as a combination of SL and GL .
there is no need to run Journal Import in the same language as the language used for exporting journal .IMPACT OF SLA ON GL – Journal Import The way journal import is triggered has undergone a major change in R12 Journal Import process has been standardized across all sub ledger applications. “Create Accounting” concurrent request from the respective Application will generate Journal in the SL Transfer to GL option will always triggers Journal Import In case of any error. the error journal is rolled back to SL Unlike 11i.
IMPACT ON PO ACCOUNTING Unlike 11i. encumbrance entries are generated “Create Accounting” concurrent Request from purchasing responsibility will transfer encumbrance entries to GL Accounting entries created can be viewed from SLA menu in Purchase responsibility Credit for Reserve for Encumbrance is created while reserving encumbrance (PO Reservation) . Encumbrance to be specifically opted while choosing SLAM for a Ledger On reserving and approving PO.
Create Accounting will happen and SL & GL will get populated In case of Inventory Destination with period end accrual. RTP will create entries on in SL. when PO is received and delivered. PO Receipt will fire Create Accounting process and SL & GL will get populated In case of Inventory Destination with online accrual. Receiving Transaction processor will create receipt accounting entry in Receiving sub ledger as well as GL Interface. Receipt Accrual Period End program will create entries only when Receipt Qty is greater than Bill Quantity. Create Accounting Program to be run for generating Actual and encumbrance entries .Impact on Receiving In 11i. Create Accounting Program to be run In case of expense destination. In R12.
the accrual entry will be reversed automatically In 11i. the Accrual Rebuild Reconciliation Report which was required to be run to populate the accrual reconciliation table is now replaced by "Accrual Reconciliation Load Run" program in R12 In R12 there are 3 different reports. In 11i.Impact on Accrual Accounting In the case of period end accrual. where as in R12. Create Accounting program will create the accrual entry for the write off transaction in SLA as well as in GL and hence manual adjustment of accrual entry is not required. . accounting will not get created for the write off transaction and accrual entry has to be manually adjusted in GL whereas in R12. one for Miscellaneous transactions showing the individual transaction details for source INV and AP and one for showing the summarized accrual balance for all transaction types as against one Accrual Reconciliation Report in 11i. one for AP-PO individual transactions. the accrual entry should be reversed manually in 11i.
SLA AND RECEIVABLES In Release 11i AutoAccounting is used by SLA in R12 to facilitate definition of code combination AutoAccounting is used to generate Code Combination with limited sources and limited flexibility. R12 provides more sources and flexibility Receipts can be applied at line level Event based Revenue Management enables definition Revenue deferral rules. Contingency based Revenue Recognition is built into SLA COGS and Revenue Matching feature is enhanced .
SLA AND COSTING Oracle ships 3 application definitions for Cost Management • Cost Management – US GAPP (Standard Accrual) • Cost Management with encumbrance – US GAPP with encumbrance • Federal up is US Default set Costing GAPP All setups to use pre-R12 functionality are migrated automatically SLA removes11i pain points regarding revenue recognition SLA replaces MAC .
MODULES USING SLA PAYABLE RECEIVABLE CASH MANAGEMENT ASSETS COSTING PROJECTS PAYROLL PROPERTY MANAGEMENT LEASE MANAGEMENT GLOBALISATION PUBLIC SECTOR FINANCIALS FEDERAL FINANCIALS .
Refer Chapter 12 of FSAH Implementation Manual.JOURNAL IMPORT Journal can be imported directly into GL from nonoracle feeder system by using GL Interface table. Refer Metalink Note: 737370. No FSAH Licensing is required for using the tables. There is no change in the functionality Journal can be imported into SLA by using tables provided by under Financial Services Accounting Hub.1 dated 30/03/09 .
LEDGER SLAM Entity / Events AAD AAD AAD PAYABLE AAD AAD Event Class Event Type Credit Memo Invoice Prepayment Payment Modify Validate Cancel Journal Header Assignment Journal Line Definition Journal Entry Description Journal Line Type Account Derivation Rule AAD: Application Accounting Definition SLAM: Sub ledger Accounting Method .
Requisition. Event class groups together similar event types and enable sharing of Accounting definitions An Event Type is a business operation that can be performed on an Even Class – Eg. Invoice Validated. Invoice. Credit Memo. PO.g. Invoice modified or Invoice Cancelled are Event Types for the Event Class Invoice One or more Event Classes are associated with Even Entities – Example Payables . Event based accounting has been extended to all sub ledger modules An Event is a business activity having an accounting effect – Example creation of PO in Purchasing and life cycle of a Transaction is defined in the event model An Event Class is a category of business events for a particular transaction type or document – e. Prepayment Payment – In other words..SLA CONCEPTS With SLA.
Merge Analysis feature is provided to verify the effect Definitions can Exported and Imported to enable testing before migrating to Production environment .SLA CONCEPTS Oracle provides seeded components for each level of the SLA hierarchy to meet standard requirement Seeded components cannot be modified but can be copied with another name and modified to suite requirements Users have the flexibility of using seeded components with user defined components Definitions created by users are not overwritten during upgrade. in case seeded components are used as part of user defined components. However.
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