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Mohan Iyer Principal Consultant FSCP Solutions Inc email@example.com Session: 8710
– About the Presenter – SLA Overview – Accounting touch points – Business Cases for SLA changes – Reporting using SLA data – Other capabilities of SLA – Gotchas – References
About the Presenter
• Mohan Iyer
– – – – – – – Principal Consultant @ FSCP Solutions Inc. Over 20 years experience with Oracle Applications Functional consultant in Finance applications Multiple full cycle R12 implementations Currently working on R12.1.3 Founding Board Member of NorCalOAUG and GL SIG Board Member on MNSIG
SubLedger Accounting Overview • SLA is a rules engine that creates accounting for all transactions into GL • This allows for the disconnect between a transaction and its accounting • This also allows for a single process to create accounting entries into GL • There is a layer between GL and the subledgers (AP. AR …) 4 .
5 .SubLedger Accounting Overview Oracle Subledger Accounting: Oracle Subledger Accounting is a rulesbased engine for generating accounting entries based on source transactions from ALL Oracle Applications.
SubLedger Accounting Overview GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Create Accounting Transaction 6 .
SubLedger Accounting Overview Ledger Subledger Accounting Method (SLAM) Application Accounting Definition (AAD) Journal Line Definition (JLD) Journal Line Types (JLT) Account Derivation Rules (ADR) Journal Entry Descriptions (JED) Sources Transaction Objects 7 .
SubLedger Accounting Overview 8 .
Quote to Cash Overview 9 .
implementation consultant and project manager – Specializing in advising on: • Efficient Cost Accounting processes • Managing Oracle implementations and post-implementation support – Currently working on R12 – Founding Board Member of OAUG Cost Management SIG – Presentations at Collaborate 2011 • 60 Inventory Orgs & 6 Ledgers? No Worries. Inc. Reconcile Your G/L to Inventory in less than 60 Minutes! • Co-Presenter: OAUG Cost Management SIG 10 .Business Case for Product Line Accounting • Presented by Douglas Volz – Principal Consultant at Douglas Volz Consulting. – 10+ years in industry in cost accounting staff & management positions – 20+ years Oracle Experience as an Oracle systems designer.
Business Case for SLA changes • Product Line Accounting – Use separate sub-accounts to denote your product line for variances. cost of goods sold and inventory 11 .
Accounting Touchpoints • Every single transaction that ships has an effect on • Shipment • Inventory Cost • Deferred COGS • Invoicing • COGS • Receivables • Revenue • Unearned Revenue 12 .
Accounting Touchpoints • Every single inventory and WIP transaction you use – PO Receipts – PO Deliveries – Material Issues – WIP Completions – Cost Updates – Subinventory Transfers – Over 20 SLA transaction events to change 13 .
Business Case for SLA changes • Cost Accounting – Standard – SLA will book purchase receipts with the following rules: • Cost Management Default – Use the same offset accounts as normally used pre-SLA – Use the same receiving. inventory and WIP valuation accounts – Use the same variance and COGS accounts 14 .
SLA changes • Two approaches: • Use Existing Sources and the Category Accounts Ø No custom sources Ø Have to set up category accounts for each subinventory or costing method • Create Custom Source for Item Master COGS Account Ø Have to set up a custom source Ø Use the item master COGS account so overall you have less setup 15 .
4. 6. 2.SLA changes • Product Line Accounting Changes to make configuration changes to achieve the requirement 1. Custom Sources (depending on the approach) or Category Accounts Setup Account Derivation Rule (default Cost Management Account Derivation is now standard) Create Custom Journal Line Definitions and assign the Account Derivation Rule (over 20 journal lines types. 3. 5. depending on which transactions you use) Link Custom Journal Line Definitions to Application Accounting Definition Link Application Accounting Definition to Subledger Accounting Method Link Subledger Accounting Method to a Ledger 16 .
SLA changes – default ADR 17 .
SLA changes – line assignments • Example for Receiving Events: – Need to change both the receipt and deliver 18 .
Business Case for SLA changes • Management Reporting – Standard reporting is delayed till close and too late to react to negative trends – Manual reporting tasks to derive trends 19 .
Healthcare. Thomas has had a wide range of roles both utilizing and implementing Oracle Financials. services and hosted Oracle software solutions with a primary focus on Oracle EBS. BizTech is an Oracle Platinum Partner based in King of Prussia Pennsylvania. and Hyperion. has 14 years Oracle Applications experience both as an end-user and implementer across many industries. Thomas has presented previously at the OAUG. and Social Services. He can be reached at Tsimkiss@biztech. 2009. BizTech provides software. 2008. Membership Organizations. team lead. and a member of the Pennsylvania and New Jersey Bar Association. MAOAUG. Pennsylvania. a mid-Atlantic Oracle Certified Advantage Partner based in King of Prussia. 2010 and Oracle Open World.com. Government.Business Case for Management Reporting • Presented by Thomas Simkiss • • • Chief Operating Officer and Lead Financials Architect at BizTech. Discoverer and Business Intelligence as a business analyst. and project manager. Collaborate 2007. including Telecom. Supply Chain. 20 • • • • • • . Thomas is a member of the New Jersey State Society of Certified Public Accountants. Retail. Business Intelligence.
Business Case for SLA changes • Management Reporting – Use secondary ledger to create a more frequent reporting analysis basis – Spread certain expenses over weekly periods to avoid unusual “spikes” – Timely reporting to support better analysis and on-time decisions to manage negative trends 21 .
Business Case Multi-period Accounting • Copy the existing Journal Line Type and set the multiperiod flag Accrual line type Recognition line type Note: No conditions may be used 22 for a recognition line type .
In the Journal Line Accounting Attributes Assignments window. In the Journal Lines Definitions window. 4. which defaults from the Journal Lines Definitions window Assign the recognition journal line types Assign account derivation rules 23 . 3. define the journal line types to be used for multiperiod accounting by setting the multiperiod option.Business Case Multi-period Accounting Ø Configuration related to Multi-Period Accounting 1. In the Line Assignments window. users define the multiperiod options. define the multiperiod line assignments as follows: – – – Update the line description for the accrual journal entry line type. In the Journal Line Types window. complete the following: – – – Assign the accrual journal line type Navigate to the Multiperiod Accounting window to define the multiperiod options In the Multiperiod Accounting window. assign sources for the following accounting attributes: – – – Multiperiod: Specifies whether a journal line type is eligible for multiperiod accounting Multiperiod Start Date: Date to begin multiperiod accounting Multiperiod End Date: Date to end multiperiod accounting 2.
Business Case Multi-period Accounting 24 .
Business Case Multi-period Accounting • Sources • Accounting Attributes • Source Assignments 25 .
Business Case Multi-period Accounting • Configure custom sources in Cost Management Cost Management – SLA: SLAà Accounting Setup à Accounting Methods Builder à Sources à Custom Sources Required Attributes: 1. MP Start Date 3. MP End Date 26 . MP Flag 2.
Business Case Multi-period Accounting • Assign custom sources to required accounting attributes 27 .
given below are a few – Account Analysis (all modules) – Accounts Payable Trial Balance – Accounting Report while running Create Accounting • All account query capability is now drill-down through the SLA 28 .Reporting using SLA data tables • Many reports now are generated from the SLA tables.
Other capabilities of SLA – SLA Transactions and Balances – SLA maintains its own Journal Entries and Balances as a middle level to maintain these data sets before they flow to GL • Third Party Control Account Balances – – Track balances by account and Customer/Supplier Statutory reporting requirement in certain countries Store an unlimited number of sources as supporting references on the accounting entries Optionally track balances by account and supporting reference Track balances by originating transactions and downstream applied transactions • Supporting Reference Balances – – • • Open Account Balances (AP Trial Balance) – Balances calculated and stored AFTER Accounting Program Completes 29 .
SLA Transactional Detail & Balances GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Balance Calculation SLA Balances (Supporting References & Open Account .AP TB) Create Accounting Transaction 30 .
SLA Supporting References • Supporting references may be used as follows Provide additional business information for balances on transactions • To establish a subledger balance for a particular source value or combination of source values • For financial and managerial analysis Balances can be maintained • Never – no balances maintained only used for tracking purposes • Based on Account – based on the account that is source of this supporting reference • Always – continously maintains the balance for this source • 31 • .
SLA Supporting References 32 .
1 Permanent Inventory Structure (CST-SLA) ID 788666.com/resources.R12 Cost Accounting with SLA http://www.html ? Metalink notes: • Setting Up Product Line Accounting Using Release 12.1.volzconsulting.1 • Supporting References in R12 (published document from Oracle Support) 33 .References – Prior OAUG papers on SLA • • Cost Accounting As You Want It .
test. test • 34 .Gotchas • • • • Making the update to every Event / Event Type combination Copying the seeded definition prior to making changes Coordinating all SLA changes in the Subledger Accounting Methods For product line changes you usually have to change over 20 events or journal line assignments – very time-consuming and error-prone Test.
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