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Subledger Accounting (SLA) Configuration for OPM in R12

Shailendra Naithani, Principal Product Manager(OPM)
Venkat Chukkapalli, Group Manager(OPM Development)

Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
Manufacturing Accounting Controller(MAC) vs. SLA

Setting up SLA for OPM

SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials
SLA Advanced Configuration:
Custom Sources

Q&A

Subledger Accounting Introduction

What is SLA?

Ledger
Payables

Subledger
Accounting

Receivables

Subledger
Accounting

OPM

Subledger
Accounting

General
Ledger

Accounting representation strongly tied to subledger transactions

Subledger Accounting Replaces MAC

OPM Costing with MAC

OPM Costing with SLA

Completed material and

resource transactions

Completed material and

resource transactions

OPM Costing engine

generates cost

OPM Costing engine

generates cost

Preprocessor
creates
accounting events
MAC processes
transactions
and creates journals

SLA processes these

events to create
journal entries

Key Changes Summary

Process Manufacturing Financials is the Subledger for all OPM
transactions
MAC Obsoletes and replaced by SLA
No need for separate accounting units and accounts
No need for Ledger mappings

Account derivation based on flexible condition based rules

Test Subledger update replaced by Create accounting-Draft
Subledger Update replaced by Create accounting- Final mode
Inventory Close for Process Organizations
Handled by OPM Costing
Preliminary Close is still supported for Process Organizations
Period Ending Balances saved in an OPM Costing Table
(GMF_PERIOD_BALANCES)
Inventory Valuation report available in OPM Costing reports
5

Subledger Accounting Replaces MAC

OPM example with Order Management

Shipping

Shipping
(OMSO)

Internal Order
Shipments

Order
Management

Customer
Returns(RMA)

Shipping

Shipping, Internal Order shipments, Customer Returns

MAC-11i

Event

Subevent

SLA- R12

Event Class

Event Type

Event Model - Example

Subledger Accounting Replaces MAC

Equivalent functionality in SLA
OPM MAC

SLA

Event

Event Class

Sub-Event

Event Type

Account Titles

Journal Line Types (JLT)

Accounting Template

Application Accounting Definitions

(AAD)

Account Mapping Attributes

(SLA) Sources

Priorities and Account

Mapping

Account Derivation Rules (ADR)

OPM Currency, OPM Ledger,

OPM Exchange Rates

Comments

Use GL set ups

Subledger Program

Accounting Pre-Processor

Test and Actual Subledger

Accounting

Draft and Final Accounting

Event Model- SLA vs MAC

Event Entity

Event Class

Event Type
Event

Subevent

11i

R12
10

JLTs vs. Account Titles

11i

R12

11

SLA ADR vs. MAC Account Mapping

12

Subledger Accounting Method Structure

Example- Vision Environment
Primary Ledger(OPM US)
Subledger Accounting Method-Standard Accrual
Application Accounting Definition (AAD for Process
Manufacturing Financials)
Journal Line Definitions

Journal Line
Types

Account Derivation
Rules

Journal Entry
Descriptions

Sources
Transaction Objects
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Subledger Journal Entry

Description

Account Derivation Rule

Line Type
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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
MAC vs. SLA

Setting up SLA for OPM

SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials(Costing and
SLA)
SLA Advanced Configuration:
Custom Sources

Q&A

15

SLA Setup

16

Setup Account Derivation Rules

Corresponds to Account
Mapping and Priority setup of
11i OPM MAC
Query a seeded rule and
creates custom ADR with
owner as User
Output type can be an entire
accounting flexfield or a
specific segment in the
accounting code combination
Multiple conditions can be
separated by AND/OR logic

Key Takeaways:
Do not modify seeded ADRs.
Create custom ADRs
Define custom ADRs for
rules such as AAC, AAP,
DCOGS depending on your
business needs
17

Setup Journal Lines Definition

JLD created with owner
User
JLDs are created for an
Event class and Event
type combination
Multiple journal line
types (JLTs) are
associated to a JLD.
These JLTs correspond to
Account Titles of MAC
ADRs are associated to
the JLTs

18

Setup Applications Accounting Definition

AAD created with owner

User
Specific to a particular
application
Contains all event
classes and event types

19

Setup Subledger Accounting Method(SLAM)

SLAM created with
owner User
Specific to a ledger
Contains AADs
from all
applications

20

Assign SLAM to Primary Ledger

21

Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
MAC vs. SLA

Setting up SLA for OPM

SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials(Costing and
SLA)
SLA Advanced Configuration:
Custom Sources

Q&A

22

Perform a Miscellaneous Transaction

23

Run OPM accounting preprocessor

24

Run Create Accounting

25

Output of create accounting- INV and IVA accounts

26

Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
MAC vs. SLA

Setting up SLA for OPM

SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials(Costing and
SLA)
SLA Advanced Configuration:
Custom Sources

Q&A

27

OPM with SLA - The Process

28

Run the preliminary inventory close

29

Run Preliminary cost update process

30

Run OPM Accounting Pre-processor

31

Run Detailed Subledger Report

32

Review the accounting entries

33

Inventory Close- Final

34

Final Cost Update

35

Create accounting final mode

On Submitting
program, the following
requests will be
invoked:
Create Accounting
Accounting Program
Journal Import and
Subledger Accounting

Balances Update

36

Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
MAC vs. SLA

Setting up SLA for OPM

SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials(Costing and
SLA)
SLA Advanced Configuration:
Custom Sources

Q&A

37

Custom Sources
Example1
Extend the list of
sources available to
application accounting
definitions
Used to derive accounts
based on non-standard
sources
PL/SQL function used
to derive the source
Return value can be a
string, an accounting
flexfield or a value set

38

Custom Sources
Example2
Business Case:
Customer needs to capture purchasing details(PO Number, Line Number,
Supplier Name, Item Number, Item Description) on the journal entry descriptions
for Receive to Inspection accounting events.
Solution Approach using custom sources:

1. Create PL/SQL Functions for

Item Number, Item Description etc

create or replace FUNCTION GET_ITEM_NAME(p_inventory_item_id IN NUMBER ,

p_organization_id IN NUMBER)
return varchar2 IS
CURSOR c_item_name IS
select concatenated_segments from mtl_system_items_kfv where
inventory_item_id = p_inventory_item_id and organization_id = p_organization_id;
l_item_name VARCHAR2(100) :=' ';
BEGIN
OPEN c_item_name;
FETCH c_item_name INTO l_item_name;
CLOSE c_item_name;
RETURN l_item_name;
END GET_ITEM_NAME;

39

Custom Sources
Example2.continued
2. Create Custom Sources for PO Number,
Line Number, Supplier Name, Item Number,
Item Description

3. Create Journal Entry Description using

custom sources

40

Custom Sources
Example2.continued
4. Assign Journal Entry Description to the
Receive to inspection Event type

41

Custom Sources
Example2.continued
5. Run the Create Accounting Procedure

42

Inventory valuation accounts using Subinventory

43

Changes Summing up
NO LOSS of functionality by moving to SLA model
A new sub-menu created under Cost Management for SLA
forms.
Fiscal Policy and Event Fiscal Policy screens retained with minor
modifications. Most of the fields will be read-only.
OPM Event model mapped to SLA event model.
Account Titles replaced by Journal Line Types (JLT) in SLA.
Account Mapping functionality replaced by Accounting Definition
Rules (ADRs) in SLA.
Test Account Mapping replaced with TAB Test Accounting
Builder.
Test Sub Ledger process replaced with Draft Sub Ledger
Accounting in SLA
Subledger Detail Report modified to go against SLA repository.

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Shailendra.naithani@oracle.com
Venkat.chukkapalli@oracle.com
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