Tax & Create Accounting

Learn using Sub Ledger Accounting (SLA) in R12 Oracle Payables
Thanks to Krishanu Bose for this story

7 Dec - 10:03am
Applications
Sub Ledger Accounting (SLA) is a Rule-Based accounting engine that defines how
journal entries are generated in sub-ledger transactions in Oracle sub-ledger
applications. However, SLA also supports external applications generating accounting
information which ultimately needs to be transferred to Oracle General Ledger.
Before we get into SLA we need to know few of the basic concepts like event types,
event class, etc.
Event Class - classifies transaction types for accounting rule purposes. E.g. in
Payables, following are possible event classes: Invoice, Debit Memo, Prepayments,
Refunds and Payments.
Event Type - for each transaction type, defines possible actions with accounting
significance. E.g. in Payables, following are possible event classes: AP Invoice Events
Validation, Adjustment and Cancellation. Similarly we will have event types for
other event classes.
In most of the cases we would not need to customize SLA and accounting features will work
same as 11i. Some of the typical business scenarios where we would need to customize SLA in Payables are as follows:
To have a different Liability account based on Operating Unit for which the
invoice is entered.
To have different natural account (expense) based on different Invoice Type

and Invoice Line type.
To have different natural account (expense) and different liability account

based on different criteria like supplier type, entering currency, pay group,
etc.
The cost center segment of Invoice distribution Liability account shall be

picked from the Invoice distribution Account while the other segment values
from the Liability account defined at supplier site.
To cater to some of the above requirements we can use other alternatives like using
distribution sets also. But setting up a custom SLA for such scenarios is an easier
approach with lower user maintenance. I will try and show a simple scenario of how
to derive custom accounting for a business scenario using SLA in Oracle Payables.
Business Scenario: We need to define different liability account (natural account
segment) based on Supplier Type so that business can track the liability by supplier
type. The other segment values will default from supplier site. I am limiting this
example to only one supplier type Contractor". The objective would be to have a
different natural account for Liability account for invoices of supplier type
"Contractor" alone, while for other supplier types the normal liability account should
default.
Solution:
Step1: First define a mapping set for various supplier types.
Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting
Methods Builders > Journal Entry Setups > Mapping Sets
Step2: Define ADR (Account Derivation Rules)

Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting
Methods Builders > Journal Entry Setups > Account Derivation Rules
Step3: Define JLD (Journal Line Definition)

Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >
Accounting Methods Builder > Methods and Definitions > Journal Line Definitions
Always create a copy of the seeded JLD and do not modify a seeded JLD. We will
create a copy of ACCRUAL_INVOICES_ALL for our Chart of Accounts Operations
Accounting Flex only. Add the custom ADR created to Liability, Basic (Line
Assignment)
Step 4: Setup AAD (Application Accounting Definition)

Accounting Methods Builder > Methods and Definitions > Application Accounting
Definition
Create a copy of seeded AAD only and do not modify existing AAD. I am creating a
custom AAD called TEST_AAD for COA Operations Accounting Flex.
Step 5: Setup SAM (Subledger Accounting Methods)

Accounting Methods Builder > Methods and Definitions > Subledger Accounting
Methods
Create a copy of a seeded SAM and do not modify seeded SAM. Add the custom AAD
to the Event Class Payables.
Step 6: Assign the custom SAM to Primary Ledger

Navigation: Set ups > Accounting Setups > Ledger Setup > Define > Accounting
Setup
Verification of new SLA rule:

Create an invoice for supplier type Contractor and create accounting
Liability Account for Supplier Type Contractor is 01-000-2990-0000-000
Liability Account for other Supplier Types is 01-000-2210-0000-000
R12 Encumbrance Accrual Accounting for PO and Invoice

What is Budgetary Control?
A method of systematically enforcing spending limits by ensuring
availability of budgeted funds before approval of transactions,
including pre-expenditures.
What is Encumbrance?
A method of tracking and controlling an organizations spending from
the very early stage of initial documented evidence showing intention
to buy to the final stage of actual expenditure. It is a management tool
used to reflect commitments in the accounting system and attempt to
prevent overspending. Mostly Used by Government and Non-Profit
Firms
How it works?
Once an encumbrance document(PO, Invoice..etc) is created, funds
are set aside for the sole purpose of enabling the organization to pay
for it. If funds are insufficient due to budget or previous commitments
and expenditures, no new encumbrances can be entered, ensuring that
budget will not be exceeded.
Calculation of fund available
F.A. = Budget (Encumbrance + Actual)
F.A. - Amount of money left in the account to spend
Budget Maximum amount that can be spend for the account
Encumbrance Reserved amount (Requisition, PO, invoice, and
others)
Actual Amount liable to another party
Encumbrance Accounting for documents PO and Invoice When
accounting method Encumbrance Accrual is set
Example:
Budget is $1000
Purchasing an item which costs $200
Assume encumbrance is enabled for Purchase Orders and Invoices
Fund available before transaction
F.A. = 1000 (0+0) = 1000
Create a PO for $200.
Application RESERVES the fund of $200 for PO
PO A/C------------------------200-----Dr
RFE A/C------------------------200-----Cr
F.A. = 1000 - (200+0) = 800
Created an Invoice for $200 and matched it to the above said
PO and validate Invoice(bc_event and validation event get created).
Step 1: Application REVERSES PO encumbrance accounting.
PO A/C------------------------200-----Cr
RFE A/C------------------------200-----Dr
Step 2: Application RESERVES the fund of $200 for

Invoice(bc_event)
Inv A/C------------------------200-----Dr
RFE A/C------------------------200-----Cr
F.A. = 1000 - (200+0) = 800
Run accounting for invoice actuals(Invoice Validation event).
Step 1: Application REVERSES above Invoice encumbrances
accounting(bc_event).
Inv A/C------------------------200-----Cr
RFE A/C-----------------------200-----Dr
Step 2: Application creates original entries for invoice(Invoice
Validation event).
ItemExpenseA/C----------------200-----Dr
LiabilityA/C---------------------200-----Cr
F.A. = 1000 - (0+200) = 800
Note: Payment accounting may happen in two stages based on option
selected in Payables->Setup->Options->PayablesOptions>AccountingOption tab->PaymentAccounting.
Payment Accounting:
Direct Pay-No Clearance
Payment Time
LiabilityA/C-------------------200----Dr
CashA/C----------------------200----Cr
Or
Pay and Clear
Payment Time
LiabilityA/C-------------------200----Dr
CashClearingA/C--------------200----Cr
Clearing Time
CashClearingA/C--------------200----Dr
CashA/C----------------------200----Cr
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Labels: General, Payables, PSA, SLA

Standard Accrual
In case of Standard Accrual, Invoice and Payment Accounting will be
there.
Reason: Transaction happens in two phases.
1)Order goods and receive goods(Create PO, Create Receipt, Create
Invoice and account it)
2)Pay the amount for received goods within due time set by the
supplier( Pay the invoice and account it)
Since you are not paying the amount immediately, you need to keep
track of the amount needs to pay to the supplier after phase one. You
maintain this amount in LiabilityA/C(Cr). After second phase, you debit
your LiabilityA/C and credit your CachA/C which shows your cash flow
from your organization to the supplier.
Here are the details of accounting for an item purchase of cost 100
dollars.
Accounting Method: Standard Accrual
Invoice Accounting:
ItemExpenseA/C----------------------100----Dr
LiabilityA/C---------------------------100----Cr
Payment Accounting:
Payment Time
LiabilityA/C------------------------100----Dr
CashA/C--------------------------100----Cr
Or
Pay and Clear
Payment Time
LiabilityA/C------------------------100----Dr
CashClearingA/C-------------------100----Cr
Clearing Time
CashClearingA/C------------------100----Dr
CashA/C--------------------------100----Cr
Standard Cash
In case of Standard Cash, only payment accounting will be there.
Reason: While purchasing an item you pay amount immediately to
the supplier. So you don't have any debt to the supplier to record. so
there is nothing to record in LiabiltyA/C.
dollars.
Accounting Method: Standard Cash
No Invoice Accounting..
No LiabiltiyA/C
Payment Accounting:
Direct Pay - No Clearance
Payment Time
ItemExpneseA/C------------------100----Dr
CashA/C-------------------------100----Cr
Or
Pay and Clear
Payment Time
CashClearingA/C-----------------100----Cr
Clearing Time
CashClearingA/C-----------------100----Dr
CashA/C-------------------------100----Cr
Deferred Tax In AP

What is Revaluation in GL
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Labels: General, Payables, SLA
Saturday, November 21, 2009

R12 Subledger Accounting (SLA)
What is Subledger Accounting?
#Subledger Accounting is a Service, not an Application.
#There are no SLA responsibilities and there is no direct login to SLA.
#SLA forms and programs are embedded within standard Oracle
Application responsibilities(e.g. Payables Manager).
o Simply, It is a rule-based accounting engine, toolset & repository
supporting Oracle E-Business Suite modules.
o Allows multiple accounting representations for a single business
event, resolving conflicts between corporate and local fiscal accounting
requirements.
o Retains the most granular level of detail in the subledger accounting
model, with different summarization options in the General Ledger,
allowing full auditability and reconciliation.
o Introduces a common data model and UI across subledgers, replaces
various disparate 11i setups, providing single source of truth for
financial and management analysis.
Screen shots of sample Invoice Distribution and It's
Accounting Journal Entries
Simple Illustration on Journal Line Creation in SLA

Please go thorough the AMB components explained below to
understand more about this picture.
What is Accounting Methods Builder(AMB) in SLA?

A set of screens which provides flexibility to create your own subledger
accounting set up or use seeded subledger accounting setup.
You can use the AMB to define the way in which subledger transactions
are accounted. This enables you to create and modify subledger
journal line setups and application accounting definitions. These
definitions define the journal entries that enable an organization to
meet specific fiscal, regulatory, and analytical requirements. These
definitions are grouped into subledger accounting methods and
assigned collectively to the ledger.
Following picture shows hierarchy of the components in the AMB.
o Each ledger is assigned with SLAM.

o Subledger accounting method(SLAM) which tells what type of
accounting method you are using(Ex: Cash or Accrual) in your ledger.
o Under SLAM, you will find set of Application Accounting
Definitions(AAD) for different subledgers(Ex: Payables, Receivables)
o Under AAD, you will find set of journal line definitions(JLD) for each
Event Class(Ex: Invoices, Prepayments, Payments) and Event Type(Ex:
Invoice Validated, Prepay Application, Payment Created) combination.
o Each journal line definitions(JLD) holds group of JLT's(Ex: Name it
Liability, Item Expense, Gain, Loss, etc), ADR(rules), JED(description)
for each Event Class and Event Type combination.
o Journal Line Types(JLT) contains..
1. Accounting Attributes(Ex: Accounting Date, Entered Amount,
Accounted Amount, Party Id, etc )
2. Basic Info which determines journal line properties( Ex: Side(Cr
or Dr), Balance Type(Actual or Encum), TransferToGL(Summary
or Detail), etc)
3. Conditions(This condition need to be satisfied to use this JLT)
o Account Derivation Rules(ADR) (Ex: Accounting segment values.
It is nothing but GL account)
o Journal Entry Descriptions(JED): Which give more information
about transaction (Ex: Invoice/Check details)
Navigation Paths to SLA Forms
Explain AMB Components?

Event Model(Definition of the subledger transaction types and
lifecycle)
Event Entities
Group event classes into technical transaction models called event
entities. For example, group the event classes Invoices and

Prepayments into the event entity Invoices because both classes of
transaction are stored in the Payables invoice transaction table
(AP_INVOICES_ALL). Event entities enable you to treat events for a
single transaction model in the same way. The event entity often
logically corresponds to a single document used as a basis for several
related transactions.
Event Class
Group accounting event types into user-orientated transaction
categories called event classes. For example, group the event types
Invoice Approved, Invoice Adjusted, and Invoice Canceled into the
event class Invoices. Then assign AMB components, such as journal
line types, by event class within the application accounting definition.
This assignment simplifies setup when the accounting requirements for
all event types in a class are the same. Also, sources assigned to an
event class are available for the accounting of all event types in that
event class.
Example
Payables: Invoice, Debit Memo, Prepayment, Payments, Refunds
Receivables: Invoice, Deposit, Receipt, Bill Receivable
Event Type
Each accounting event should be represented by an accounting event
type. These types are registered in the AMB. When subledger journal
entries need to be created, the event type determines which
application accounting definitions should be used to process the
accounting event. Application accounting definitions created in the
AMB determine the lines, descriptions, accounts, and other elements of
subledger journal entries.
Example
AP Invoice Events: Validated, Adjusted, Cancelled
AR Receipt Events: Created, Applied, Unapplied, Updated, Reversed
Subledger Accounting Method(SLAM)

The subledger accounting method(SLAM) is a collection of accounting
definitions for all the applications that you will be generating
accounting for. Each primary and subledger level or adjustment
secondary ledger is associated with a SLAM, which determines the
accounting rules and standards that will be applied when generating
entries for that ledger.
Example:
Standard Accrual, Standard Cash, etc
Application Accounting Definition(AAD)

Use Application Accounting Definitions(AADs) to assign journal line
definitions and header descriptions to event classes and event types.
AADs must be included in a subledger accounting method and
assigned to a ledger. You can group accounting definitions from
multiple products, such as Oracle Payables, receivables Assets into a
single accounting method.
Journal Line Definition(JLD)

Journal line type, description, account derivations rules grouped
together as a journal line definition to create the rule for particular
event type.
Journal Line Type(JLT)

-Identify the natural side: Debit, Credit, Gain/Loss
-Determine the accounting class
-Set under which conditions the rule will create a line
-Define the values needed for entry line generation, such as amount,
currency, conversion rate information
-Control behavior for certain features i.e. multi period accounting,
business flows, line merging and summarization
Account Derivation Rules(ADR)

Account derivation rules are used to determine the account
combinations for subledger journal entries. You can define various
rules in te AMB to determine how a journal entry account is derived.
You can derive accounts segment by segment or as a complete
account combination. This picture shows an Account Derivation Rule
with conditional logic. If the condition holds for priority 1, then this
source (Invoice Liability Account) is used. If not, SLA uses the source
for priority 2(If it is available).
Journal Entry Description

This is useful in finding the actual transaction object details(Ex:
Invoice/Payment details from journal line)
Transaction Object
Example for transaction objects:
ap_invoice_extract_details_v.xdf
ap_invoice_extract_header_v.xdf
ap_payment_extract_details_v.xdf
ap_payment_extract_header_v.xdf
ap_prepayapp_extract_details_v.xdf
ap_system_parameters_extract_v.xdf
Transaction Object is nothing but a view which fetches all transaction
information required to create journal line for particular event class.
AP_INVOICE_EXTRACT_HEADER_V,
AP_INVOICE_EXTRACT_DETAILS_V are transaction objects for event
class Invoices. So, accounting for all invoice type events

get transaction information from these transaction objects.
Sources
Each column in the transaction object is defined as Source in the AMB.
AMB uses these sources to get transaction information from
Transaction Objects.
Accounting Attributes
Sources are mapped with Accounting Attributes. Accounting Attributes
are bridge between JLT and Sources.
Example
GL Date, Entered Currency Code, Entered Amount, Accounted Amount,
Conversion Rate Date, Conversion Rate Type, Conversion Rate,
Distribution Type, Party Type, Party Identifier, Party Site Identifier
What are the important tables in SLA Accounting?

The XLA_EVENTS table stores records for accounting events
generated by subledger applications. Each product team populates this
table by calling Subledger Accounting API and the respective product
team will decide when this table is to be populated during the
transaction life cycle.
The XLA_AE_HEADERS table stores subledger journal entries. There
is a one-to-many relationship between accounting events and journal
entry headers.
The XLA_DISTRIBUTION_LINKS table stores detailed distributions
for journal entries. This table stores the data at most granular level
and represents data contained in respective subledger products
distribution tables. The detailed distributions stored in this table are
merged into accounting lines and stored in XLA_AE_LINES table.
Subledger Accounting uses this table for processing reversals and
business flows.
The XLA_AE_LINES table stores the subledger journal entry lines.
There is a one-to-many relationship between subledger journal entry
headers and subledger journal entry lines. This table will store at least
one row for debit and one row for credit for each accounting entry
created. If multiple debit or credit journal entry lines exists for any
specific event type and if the journal line type allows merge matching
lines then these lines will be merged into single line. The unmerged
granular level of detail for each accounting line will be available in
XLA_DISTRIBUTION_LINKS table.
What are the Accounting Methods seeded in SLA?
Standard Accrual
Standard Cash
Encumbrance Accrual and Encumbrance Cash
United States Federal
China Standard Accrual
What are the reports available in SLA?
Journal Entries Report
Account Analysis Report
Third Party Balances Report
Period Close Exceptions Report
Open Account Balances Listing
Prepayment Invoices
A prepayment is a type of invoice you enter to make an advance
payment to a supplier or employee. You can enter two types of
prepayments: Temporary and Permanent.
Temporary prepayments can be applied to invoices or expense
reports you receive. For example, you use a Temporary prepayment to
pay a hotel a catering deposit. When the hotel's invoice arrives, apply
the prepayment to the invoice to reduce the invoice amount you pay.
Permanent prepayments cannot be applied to invoices. For
example, you use a Permanent prepayment to pay a lease deposit for
which you do not expect to be invoiced.
Include Prepayment in Invoice:
You can enter supplier invoices where the invoice amount includes
prepayments. If you receive a supplier invoice, and the invoice amount
has been reduced because of prepayments that the supplier has
received, you need to indicate that the invoice amount includes one or
more prepayments.
Example:
Prepay Invoice: 200$
Standard Invoice: 500$
Case 1: If you apply Prepay on Standard invoice with 'Apply'
check box checked in Apply/Unapply window
Result on Standard Invoice after apply Prepay

Header
Invoice Amount: 500$
Paid Amount : 200$
Distributions
Item
500$
Prepay
-200$
In this case distribution total is 500 not 300 and amount paid is 200,
remaining amount to pay is 300.
Case 2: If you apply Prepay on Standard invoice with both
check boxes selected in Apply/Unapply window
Result on Standard Invoice after apply Prepay

Header
Invoice Amount: 300$
Paid Amount :
0$
Distributions
Item
500$
Prepay
-200$ 'Prepayment on Invoice'-Checked
In this case distribution total is 300 because prepay is part of Std
invoice. Amount to pay is 300.
Note: Because the Distribution Total includes prepayments, you need
to ensure that you have applied prepayments before you submit the
invoice for Invoice Validation.
Points To Note:
1. Settlement date: The date after which the prepayment can be
applied to an invoice.
2. On a prepayment, you can enter any number of distributions,

either manually, or automatically by purchase order matching,
distribution sets, or allocating.
3. You can take discounts on prepayments.
4. You can create Foreign Currency Prepayments.
5. You cannot partially pay a prepayment. you must fully pay it.
6. You can apply prepay on the invoice type is Standard, Mixed, or
Expense Report.
7. You can apply only Item distributions from the prepayment.
8. You must fully pay a prepayment before you can apply the
prepayment to an invoice.
9. If you want to apply Permanent type prepay then you can
change the Prepayment Type to Temporary.
10.
Supplier, invoice currency and payment currency must be
same on prepay and to invoice.
11.
If the prepayment has a value in the Prepayment PO
Number field, then the invoice must be matched to the same
purchase order.
12.
GL Date on Apply/Unapply window, which is the accounting
date for the new Prepayment distributions that Payables creates
when you apply a prepayment. This date must be after the latest
accounting date on any distribution for either prepayment or
invoice and must be in an open period.
Deferred Tax In AP

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Friday, December 4, 2009

What is Budgetary Control?
A method of systematically enforcing spending limits by ensuring
availability of budgeted funds before approval of transactions,
including pre-expenditures.
What is Encumbrance?
A method of tracking and controlling an organizations spending from
the very early stage of initial documented evidence showing intention

to buy to the final stage of actual expenditure. It is a management tool
used to reflect commitments in the accounting system and attempt to
prevent overspending. Mostly Used by Government and Non-Profit
Firms
How it works?
Once an encumbrance document(PO, Invoice..etc) is created, funds
are set aside for the sole purpose of enabling the organization to pay
for it. If funds are insufficient due to budget or previous commitments
and expenditures, no new encumbrances can be entered, ensuring that
budget will not be exceeded.
Calculation of fund available
F.A. - Amount of money left in the account to spend
Budget Maximum amount that can be spend for the account
Encumbrance Reserved amount (Requisition, PO, invoice, and
others)
Actual Amount liable to another party
Encumbrance Accounting for documents PO and Invoice When
accounting method Encumbrance Accrual is set
Example:
Budget is $1000
Purchasing an item which costs $200
Assume encumbrance is enabled for Purchase Orders and Invoices
Fund available before transaction
F.A. = 1000 (0+0) = 1000
Create a PO for $200.
Application RESERVES the fund of $200 for PO
PO A/C------------------------200-----Dr
RFE A/C------------------------200-----Cr
F.A. = 1000 - (200+0) = 800
Created an Invoice for $200 and matched it to the above said
PO and validate Invoice(bc_event and validation event get created).
Step 1: Application REVERSES PO encumbrance accounting.

PO A/C------------------------200-----Cr
RFE A/C------------------------200-----Dr
Step 2: Application RESERVES the fund of $200 for
Invoice(bc_event)
Inv A/C------------------------200-----Dr
RFE A/C------------------------200-----Cr
F.A. = 1000 - (200+0) = 800
Run accounting for invoice actuals(Invoice Validation event).
Step 1: Application REVERSES above Invoice encumbrances
accounting(bc_event).
Inv A/C------------------------200-----Cr
RFE A/C-----------------------200-----Dr
Step 2: Application creates original entries for invoice(Invoice
Validation event).
ItemExpenseA/C----------------200-----Dr
LiabilityA/C---------------------200-----Cr
F.A. = 1000 - (0+200) = 800
Payment Accounting:
Payment Time
LiabilityA/C-------------------200----Dr
CashA/C----------------------200----Cr
Or
Pay and Clear
Payment Time
LiabilityA/C-------------------200----Dr
CashClearingA/C--------------200----Cr
Clearing Time
CashClearingA/C--------------200----Dr
CashA/C----------------------200----Cr
Deferred Tax In AP
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Labels: General, Payables, PSA, SLA

Standard Accrual
In case of Standard Accrual, Invoice and Payment Accounting will be
there.
Reason: Transaction happens in two phases.
1)Order goods and receive goods(Create PO, Create Receipt, Create
Invoice and account it)
2)Pay the amount for received goods within due time set by the
supplier( Pay the invoice and account it)
Since you are not paying the amount immediately, you need to keep
track of the amount needs to pay to the supplier after phase one. You
maintain this amount in LiabilityA/C(Cr). After second phase, you debit
your LiabilityA/C and credit your CachA/C which shows your cash flow
from your organization to the supplier.
dollars.
Accounting Method: Standard Accrual
Invoice Accounting:
ItemExpenseA/C----------------------100----Dr
LiabilityA/C---------------------------100----Cr
Payment Accounting:
Payment Time
LiabilityA/C------------------------100----Dr
CashA/C--------------------------100----Cr
Or
Pay and Clear
Payment Time
LiabilityA/C------------------------100----Dr
CashClearingA/C-------------------100----Cr
Clearing Time
CashClearingA/C------------------100----Dr
CashA/C--------------------------100----Cr
Standard Cash
In case of Standard Cash, only payment accounting will be there.
Reason: While purchasing an item you pay amount immediately to
the supplier. So you don't have any debt to the supplier to record. so
there is nothing to record in LiabiltyA/C.
dollars.
Accounting Method: Standard Cash
No Invoice Accounting..
No LiabiltiyA/C
Payment Accounting:
Direct Pay - No Clearance
Payment Time
CashA/C-------------------------100----Cr
Or
Pay and Clear
Payment Time
CashClearingA/C-----------------100----Cr
Clearing Time
CashClearingA/C-----------------100----Dr
CashA/C-------------------------100----Cr
Deferred Tax In AP
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Labels: General, Payables, SLA
Wednesday, December 2, 2009

Invoice Price Corrections In Payables
Corrections enable you to adjust the invoiced price, quantity, or
amount of previously matched purchase order shipments,
distributions, or receipts. You can use a correction when a supplier
sends an invoice for a change for an invoice you have already matched
to a purchase order. Price corrections adjust the invoiced unit price of
previously matched purchase order shipments, distributions, or
receipts, without adjusting the quantity billed.
The type of correction that you can make depends on the type of
purchase order line you are correcting:
Goods. You can make price or quantity corrections.
Services. You can make amount corrections on all services, with the
exception of Rate Services.
Rate Services. You can only make Quantity corrections for Rate
Services.
If the purchase order line is a Milestone, then you cannot enter
corrections. In this case, you must completely reverse the invoice.
To record a correction enter a Standard invoice to record a price
increase, or enter a Credit Memo or Debit Memo to record a price
decrease.
For example, if the original unit price was $100.00 and quantity is 2
and the supplier is decreasing the price by $10.00, enter -10.00 in Unit
Price field. If the invoice Type is Credit or Debit Memo, the value in the
Unit Price field must be negative.
Enter PO with quantity 2 and unit price 100
Enter invoice HG-Std, match to PO 5765, validate and pay.
To correct the unit price to 90, enter credit memo for same supplier
and click Correction button. Provide standard invoice num HG-Std and
click Find.
In Price Corrections window, change Unit Price to -10 and tab out.
Click Correct button.
See the results in Invoice Lines and Invoice Distributions.
System Created Invoices/Creating Invoices Automatically in

Payables
What is Tolerance in Payables and How to define Tolerances?
Prepayment Invoices
Create Complex PO and Invoice With Retainage

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Tuesday, December 1, 2009

System Created Invoices/Creating Invoices Automatically
in Payables
Recurring Invoices
You can set up your system to automatically create periodic invoices,
for example, rent invoices.
RTS Invoices
If you use Return to Supplier feature in Oracle Purchasing, the system
creates these debit memos directly in your Payables system.

Retroactive Price Adjustment Invoices
If Oracle Purchasing users use the Retroactive Pricing of Purchase
Orders feature, the system automatically creates Adjustment and PO
Price Adjustment invoices.
PO Price Adjustment Invoice: This invoice is for the
difference in price between the original invoice and the new
purchase order price. PO price adjustment invoices can be
matched to both purchase orders and invoices.
Adjustment Invoice: This invoice effectively reverses any
outstanding regular Payables price corrections and PO Price
Adjustment invoices. This is so the PO Price Adjustment
document can be for only the price difference between the
original invoice and the new PO price.
Prepayment Invoices

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Labels: Payables
Monday, November 30, 2009

What is Tolerance in Payables and How to define
Tolerances?
In Payables, You can set tolerance for Purchase Order Matching and
Tax Override.
Purchase Order Matching/Invoice Tolerances
Use the Invoice Tolerances window to define the matching tolerances
you want to allow for variances between invoice, purchase order, and
receipt information. You can define both percentage-based and
amount-based tolerances.
If you enter a zero for a percentage tolerance and enable the check
box for that tolerance, Payables will not allow any variance at all. If
you want a low tolerance, you can enter a very small percentage. If
you enter no value, then Payables will allow infinite variance. If you
enter an amount-based tolerance, enter all amounts in your ledger
currency. If an invoice exceeds these tolerances, Invoice Validation will

apply a hold to it.
Navigation Path: Payables->Setup->Invoice->Tolerances
Tax Tolerances
Tax tolerances are used to determine whether E-Business Tax places a
tax hold on an invoice due to the
override of calculated tax lines.
A tax tolerance is the acceptable variance between the calculated tax
amount on an invoice and the override tax amount entered by the
user. If the variance between these two amounts exceeds the
tolerances you specify, then E-Business Tax places the invoice on hold.
To define tax tolerances, you must first set the Allow Override for
Calculated Tax Lines option.
Navigation Path: Payables->Setup->Options->Payables Options>Invoice->Tax Tolerances

What is Distribution Set and How to define Distribution ...
What is Payment Terms and How to define Payment Terms?
Prepayment Invoices
LinkWithin

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Labels: Payables
What is Distribution Set and How to define Distribution

Sets?
Specify a distribution set for the invoice. A distribution set is a
template for invoice distributions. When you specify a distribution set
for an invoice, Payables automatically creates invoice distributions
based on the distribution set.
There are two types distribution sets
Full Distribution Set
Skeleton Distribution Set
Creating Full and Skeleton Distribution Sets

Navigation Path: Payables->Setup->Invoice->Distribution Sets

Types of Value Sets
What is Payment Terms and How to define Payment Terms?
Prepayment Invoices
LinkWithin

comments
Labels: Payables
What is Payment Terms and How to define Payment

Terms?
Payables uses payment terms to automatically calculate due dates,
discount dates, and discount amounts for each invoice you enter.
Payment terms will default from the supplier site. If you need to
change the payment terms and the terms you want to use are not on
the list of values, you can define additional terms in the Payment
Terms window.
Defining Payment Terms
Example: Payement Term - 10/30 Net 45
Your supplier has just notified you that they are going to offer 10%
discount if you pay their invoices in 30 days. The entire invoice amount
will be due in 45 days. In this case, you will set up payment terms as
follows.
Navigation Path: Payables->Setup->Invoice->Payment Terms

Create XML Publisher Report(With out RDF file)
LinkWithin

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Labels: Payables
Monday, November 23, 2009

Accounting and Reconciliation Reports in AP
Accounts Payable Trial Balance Report
Accounts Payable Negative Supplier Balance Report
Posted Invoice Register
Posted Payment Register
Unaccounted Transactions Report
Use the Accounts Payable Trial Balance Report to verify that total
accounts payable liabilities in Payables equal those in the general
ledger. To reconcile these balances you can compare the cumulative
total liability provided by this report with the total liability provided by
your general ledger. The Accounts Payable Trial Balance report is a
Payables-specific version of the Open Account Balances Listing report.
By running this report from Payables, you can run this report for a
specific operating unit.
Accounts Payable Negative Supplier Balance Report
The Accounts Payable Negative Supplier Balance report allows you to
run a Payables-specific version of the Open Account Balances Listing
report. By running this report from Payables, you can view the
negative supplier balances for a specific operating unit.
Submit this report to review a complete list of exceptions that are
preventing you from closing a Payables accounting period. This report
lists, for each organization within the ledger, the following exceptions:
Outstanding Payment Batches
Accounting Entries not Transferred to General Ledger
Bills Payable Requiring Maturity Event and Accounting
Unaccounted Invoices
Unaccounted Payments
Use the Posted Invoice Register to review accounting lines for invoices
that have been transferred to your general ledger. Because it presents
amounts that have been charged to liability accounts, this report is
valid only for an accrual ledger.
The Posted Invoice Register is primarily a reconciliation tool. Use this

report along with the Posted Payment Register and the Accounts
Payable Trial Balance Report to reconcile balances between Payables
and your general ledger. To make their output easier to read, each of
these reports can be generated for a single liability account. For
example, if you are using Automatic Offsets and the liability for your
invoices is allocated across multiple balancing segments, then you can
use the Liability Account parameter to limit your reports to a single
balancing organization.
You can generate the report in summary or in detail. When generated
in detail, the report displays invoices charged to liability accounts and
the accounting information that has been transferred to the general
ledger. Also included is the supplier and amount information for each
invoice listed. Payables displays the total invoice amount in the invoice
currency, and the transferred distribution amount in both the invoice
currency and accounted currency for easier reconciliation with your
general ledger.
Use the Posted Payment Register to review accounting lines for
payments that have been transferred to general ledger. Because it
presents amounts that have been charged to liability accounts, this
report is valid only for an accrual ledger. You can submit the Posted
Payment Register for one payment journal entry batch or all payment
journal entry batches.
The Posted Payment Register is primarily a reconciliation tool. Use this
report along with the Posted Invoice Register and the Accounts Payable
Trial Balance Report to reconcile balances between Payables and your
general ledger. To make the output easier to read, each of these
reports can be generated for a single liability account. For example, if
you are using Automatic Offsets and the liability for your invoices is
allocated across multiple balancing segments, then you can use the
Liability Account parameter to limit your reports to a single balancing
organization.
You can generate the report in summary or in detail. When generated
in detail, the report displays payments that relieve liability accounts
and that have had their accounting information transferred to the
general ledger. Also included is the supplier and amount information
for each payment listed. Payables displays the payment amount in the
entered currency and the liability amount relieved in the accounted
currency. In detail mode, the report also displays the payment
document and disbursement type for each batch of payments. It

provides a report total and subtotals for each payment document and
bank account.
Unaccounted Transactions Report
Use this report to identify and review all unaccounted invoice and
payment transactions and see the reason that Payables cannot account
for a transaction. Payables sorts the report by transaction type (invoice
or payment), exception, supplier, transaction currency, and transaction
number. Run this report after you create accounting entries. The report
will then show only transactions that had problems that prevented
accounting. You can then correct the problems and resubmit the
accounting process. Note that this report does not include invoices that
have no distributions.
How to Set R12 Supplier Page in Read Only Mode?
Types of Value Sets
LinkWithin

comments
Labels: Payables
R12 Trial Balance report in AP and Reconciling AP to GL

Trial Balance report in AP
In R12, there are 4 Concurrent Programs related to the trial balance.
1.Report Name = "Accounts Payable Trial Balance (Old) " Short Name
= APXTRBAL
This is the R11i Accounts Payable Trial Balance, it should be disabled
in R12.
2.Report Name = "Accounts Payable Trial Balance" Short Name =
APTBRPT
This is the R12 Accounts Payable Trial Balance, this is the correct
report name to run if Trial Balance Remodel Phase 4 or higher has
been applied. This report is a modified version of the Open Account
Balance Listing report.
3.Report Name = "Open Account Balance Listing" Short Name =

XLATBRPT
This is a Subledger Accounting report. This report should NOT be used
for Payables. Instead, use the applicable Payables modified version of
the report.
4.Report Name = "Open Account AP Balance Listing" Short Name =
XLAAPRPT
This is the subledger Open Account Balance Listing report modified for
Payables and should be used with Trial Balance Remodel Phases 1 - 3.
Note: Currently, the Trial Balance documentation and notes refer to
the Accounts Payable Trial Balance and Open Account AP Balance
Listing report interchangeably. The name change was due to a change
in Phase 1 - 3, going forward all Payables Trial Balance patches should
retain the name "Accounts Payable Trial Balance". Please make sure
you run the correct report based on your Trial Balance remodel
phase and do NOT run the Open Account Balance Listing report
for Payables.
Reconciling AP to GL
1.Run Accounts Payables Trial Balance report for current period with
following details:
Start Date = Begin Date for first period you started using Oracle
(This parameter is hidden as of Trial Balance Remodel phase
4, with default date 01-Jan-1950)
As of Date = End Date for Period to be reconciled
Show Transaction Detail = Yes
Include Write Offs = No
Include SLA Manuals/Other Sources = Yes (This parameter is
only applicable for the "Group by Account, Summary" template.
Select report template
Accounts Payables Trial Balance - Group by Account, Detail
Accounts Payables Trial Balance - Group by Account, Summary
2.Run Invoice and Payment posting reports.
Payables Posted Invoice Register
Payables Posted Payment Register
3.The correct method for reconciling AP to GL is as follows:
Last Months Accounts Payable Trial Balance
+ This months Payables Posted Invoice Register

- This months Payables Posted Payment Register
= This months Accounts Payable Trial Balance
Note: The Accounts Payable Trial Balance report output shows a GL
total. That GL total includes manual and non Liability class entries from
the Payables subledger, and non-Payables source entries in GL. Use the
given method to reconcile, and the Trial Balance amount remaining
total should equal the GL total excluding the manual and non Liability
class entries from the Payables subledger, and non-Payables source
entries in GL.
Source=>
Refer Note 553484.1 on R12 Steps In Reconciling AP to GL Balance
Refer Note 823043.1 on R12 Steps In Reconciling GL Balance And AP
And PO
XML Publisher Template(RTF) Creation and Grouping Data ...
LinkWithin

comments
Labels: Payables
Wednesday, November 18, 2009

Types of Invoices in Payables

comments
Labels: Payables
Friday, November 6, 2009

3rd Party Payments in Payables
Financial settlement is one of the key components of the business
process. This is the final step in completing the business transactions.
In procure to pay cycle, the suppliers send the invoices to the
customers after delivering the goods or rendering the services. Once
the invoices are received, the accounts payables department of the
customer validates the invoices and approves the payments. The
payments made to the suppliers during the settlement process are

generally dependent on the agreement entered into between the
customers and suppliers for carrying on the business transactions.
Payments are generally made to the original supplier providing the
goods or services, however there can be specific arrangements made
wherein the suppliers can specify a different party to be paid on their
behalf. The payments made to other parties on behalf of the suppliers
are termed as 3rd party payments.
3rd party payments help parties involved in business to set off their
liabilities without directly paying them. This reduces the direct funds
movements and transactions can be settled easily.
Some situations where payments are to be made to a 3rd Party
1)When supplier is having cash flow problems. They sell all their
receivables to a 3rd Party to whom all dues are to be paid.
2)When supplier files for bankruptcy. All dues are paid to the Court or
a 3rd Party collection agency.
For supporting 3rd party payments, Payables providing functionality to
create Invoices with the provided remit to supplier details using
Invoice Workbench, Recurring Invoices, Quick Invoices and Payables
Open Interface Import. Also while making payment through Payment
Workbench remit to account should be populated for selected remit to
supplier and supplier site.
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Labels: Payables
Wednesday, October 28, 2009

Check List for Closing Accounting Period
You close a Payables period after you have completed accounting for
transactions for the period and you have transferred the accounting
entries to general ledger.
You cannot close a period in Payables if any of the following
conditions exist:
1. Outstanding payment batches Confirm or cancel all incomplete
payment batches.
2. Future dated payments for which the Maturity Date is within the
period but that still have a status of Issued. Submit the Update
Matured Future Payment Status Program.
3. Unaccounted transactions Submit the Payables Accounting Process
to account for transactions, or submit the Unaccounted Transaction

Sweep to move any remaining unaccounted transactions from one
period to another.
4. Accounted transactions that have not been transferred to general
ledger. Submit the Payables Transfer to General Ledger process to
transfer accounting entries.
To complete the close process in Payables:
1. Validate all invoices.
2. Confirm or cancel all incomplete payment batches.
3. If you use future dated payments, submit the Update Matured
Future Dated Payment Status Program. This will update the status of
matured future dated payments to Negotiable so you can account for
them.
4. Resolve all unaccounted transactions. Submit the Payables
Accounting Process to account for all unaccounted transactions. Review
the Unaccounted Transactions Report. Review any unaccounted
transactions and correct data as necessary. Then resubmit the
Payables Accounting Process to account for transactions you corrected.
Or move any unresolved accounting transaction exceptions to another
period(optional). Submit the Unaccounted Transactions Sweep
Program.
5. Transfer invoices and payments to the General Ledger and resolve
any problems you see on the output report: Payables Transfer to
General Ledger Program.
6. In the Control Payables Periods window, close the period in
Payables.
7. Reconcile Payables activity for the period. You will need the
following reports:
8. If you use Oracle Purchasing, accrue uninvoiced receipts.
9. If you use Oracle Assets, run the Mass Additions Create Program
transfer capital invoice line distributions from Oracle Payables to Oracle
Assets.
10. Post journal entries to the general ledger and reconcile the trial
balance to the General Ledger.
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Labels: Payables
Withhold Tax and Withholding Tax Invoices

Withhold Taxes in Payables
You may be required to withhold taxes from your employee expense

reports and supplier invoices. Once you set up Payables to
automatically withhold tax, you can withhold tax either during Invoice
Validation or during payment processing. You can control all
withholding tax options in the Withholding Tax region of the
Payables Options window.
Companies that use withholding taxes calculate these taxes and
deposit them to the corresponding fiscal authority. There can be
various regimes applicable to a single transaction. These regimes have
different rates that are predefined when the withholding tax is
deducted. The time when the withholding taxes are deducted could be
at invoice time, payment time, or both. Companies must apply the
withholding taxes at the specified time and deposit the amount to the
corresponding fiscal authority.
Oracle Payables allows you to calculate withholding taxes at invoice
validation time, at payment time, or both invoice validation and
payment time. In addition, you can create a withholding tax invoice at
the following times:
At invoice validation time if withholding taxes are calculated at
invoice time.
At payment time if withholding taxes are calculated at payment time.
At withholding application time if withholding taxes are calculated at
both invoice validation and payment time. This means that withholding
invoices will be created at both invoice validation and payment time
since the withholding taxes would be calculated at both these times.
For example, assume that withholding tax is calculated at Invoice
Validation and the withholding tax rate is 20%. If you have a
Prepayment Invoice for $250 with no withholding tax, an Invoice for
$1555, and a Payment Amount of $1305. Then the calculated
withholding tax is $311 (1555 * 20%). However, if the withholding tax
is calculated at Payment Time, then the calculated withholding tax is
$261 ($1305 * 20%).
To enable the requirement of applying withholding taxes at the time of
invoice and payment, an option, At Invoice Validation and Payment
Time, is included in the Apply Withholding Tax region of the
Withholding Tax Tab of Payables window which when selected lets you
apply the tax both at the time of Invoice and Payment. Another
option, At Withholding Application, is added in the Create Withholding
Invoice region. This option can be selected only when the Apply
Withholding Tax option is selected At Invoice and Payment time.
Withholding tax invoice

Payables can automatically create withholding tax invoices, or you can
perform this task manually. If you choose to automatically create
withholding tax invoices, you must choose whether to do this during
Invoice Validation or during payment processing. Indicate this choice in
the Withholding Tax region of the Payables Options window.
Important: Payables does not give invoice detail on the Tax
Authority Remittance Advice for manually created withholding
amounts.
If you choose to create withholding tax invoices manually, create an
invoice for each Withholding Tax type invoice distribution on an
invoice. Create the invoice for the taxauthority supplier and site
assigned to the Withholding Tax type tax code and for the amount of
the Withholding Tax type invoice distribution.
If you specify that you want to create withholding tax invoices during
Invoice Validation, Payables creates unvalidated withholding tax
invoices for tax authority suppliers assigned to tax codes.
If you specify that you want to create withholding tax invoices during
payment processing, Payables creates unvalidated withholding
tax invoices (for those invoices where you have applied withholding
tax) during the Confirm program of payment batch processing, or
during processing of a Quick payment.
Important: Payables does not automatically withhold taxes if you
pay with a manual payment or a refund.
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Labels: EBTax, Payables
Thursday, October 15, 2009

Open/Close AP Period
Payables does not allow transaction processing in a period that is
closed.
You can enter and account for transaction open accounting periods.
The periods statuses available in Payables are:
-Never Opened
-Future
-Open
-Closed
-Permanently Closed
After you change the status to Future or Open you can not change it
back to Never Opened.

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Labels: GL, Payables
Tuesday, October 13, 2009

Budgetary Control in Payables
If you use Oracle Public Sector General Ledger's Budgetary Control
feature, you can check funds before you save a transaction and you
can have Payables Approval automatically create encumbrances to
reserve funds for your transactions. For example, when you enter an
invoice, you can use the Funds Check program to check if you have
available budgeted funds to pay for an invoice or invoice distribution.
If you select absolute budgetary control in General Ledger, Payables
Approval places an Insufficient Funds hold on any invoice that fails
funds checking. If you use advisory budgetary control, Payables will
allow the invoice to pass Approval, even if it fails funds checking.
During Approval, Payables creates encumbrances to reserve funds
against the budgets you define in Oracle Public Sector General Ledger.
When you create the accounting entries for the transactions, it relieves
the encumbrances.
As the final step of budgetary control in Payables, if you enable Use PO
Encumbrance in the Financials Options window, Oracle Public Sector
Purchasing automatically creates encumbrance entries to reserve funds
for invoice expenditures against the budgets you define in Oracle
Public Sector General Ledger.
Funds checking and budgetary control include nonrecoverable tax as
part of the item cost to fully recognize the commitment because
nonrecoverable tax becomes part of the acquisition cost of the item.
Setup=>http://sbllc3.solutionbeacon.net/pls/a159vis2/fndgfm/fnd_hel
p.get/US@PSA_US/gl/@p_bc_setup@PSA_US#p_bc_setup
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Labels: Payables, PSA
Friday, October 9, 2009

Tax Variances in Payables
A tax variance occurs when there is a difference between the tax on
the invoice and the tax on the PO matched to the invoice. When you
match a PO to an invoice, there are three tax-related variances that
can occur:
Tax Exchange Rate Variance (TERV) when there is a difference
between the invoice and PO distributions due to exchange rate

variance.
Tax Invoice Price Tax Rate Variance (TIPV) when there is a
difference between the invoice and PO distributions due to price
variance.
Tax Rate Variance (TRV) when there is a difference between
invoice and PO distributions due to difference in tax applicability.
In addition, Tax Quantity Variance (TQV) is calculated, but is shown as
a non-variance distribution.
Variances are calculated for all taxes that are enabled in E-Business
Tax.
The following example illustrates how variances are determined.
Note that the exchange rate and tax amounts differ between the PO
and the Invoice. The distributions for the invoice show a Tax Exchange
Rate Variance of 0.3 and a Tax Rate Variance of $20.00.
To illustrate an Invoice Price Tax Rate Variance, assume that the
invoice is the same as above, but the Unit Price changes from
$100.00, as shown on the Purchase Order, to $200.00. The Tax
Amount also changes as a result of the change in Unit Price.

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Tax Variances in Payables
A tax variance occurs when there is a difference between the tax on
the invoice and the tax on the PO matched to the invoice. When you
match a PO to an invoice, there are three tax-related variances that
can occur:
Tax Exchange Rate Variance (TERV) when there is a difference
between the invoice and PO distributions due to exchange rate
variance.
Tax Invoice Price Tax Rate Variance (TIPV) when there is a
difference between the invoice and PO distributions due to price
variance.
Tax Rate Variance (TRV) when there is a difference between
invoice and PO distributions due to difference in tax applicability.
In addition, Tax Quantity Variance (TQV) is calculated, but is shown as
a non-variance distribution.
Variances are calculated for all taxes that are enabled in E-Business
Tax.
The following example illustrates how variances are determined.
Note that the exchange rate and tax amounts differ between the PO
and the Invoice. The distributions for the invoice show a Tax Exchange
Rate Variance of 0.3 and a Tax Rate Variance of $20.00.
To illustrate an Invoice Price Tax Rate Variance, assume that the
invoice is the same as above, but the Unit Price changes from
$100.00, as shown on the Purchase Order, to $200.00. The Tax
Amount also changes as a result of the change in Unit Price.
+++++++++++++++++++++++++++++++++++++++++++++++++
Learn using Sub Ledger Accounting (SLA) in R12 Oracle Payables

Sub Ledger Accounting (SLA) is a Rule-Based accounting engine that
defines how journal entries are generated in sub-ledger transactions in
Oracle sub-ledger applications. However, SLA also supports external
applications generating accounting information which ultimately needs

to be transferred to Oracle General Ledger. Before we get into SLA we
need to know few of the basic concepts like event types, event class,
etc.
Event Class - classifies transaction types for accounting rule purposes.
E.g. in Payables, following are possible event classes: Invoice, Debit
Memo, Prepayments, Refunds and Payments.
Event Type - for each transaction type, defines possible actions with
accounting significance. E.g. in Payables, following are possible event
classes: AP Invoice Events Validation, Adjustment and Cancellation.
Similarly we will have event types for other event classes.
In most of the cases we would not need to customize SLA and accounting
features will work same as 11i. Some of the typical business scenarios where we would need to customize
SLA in Payables are as follows:
To have a different Liability account based on Operating Unit for which the invoice is
entered.
To have different natural account (expense) based on different Invoice Type and Invoice
Line type.
To have different natural account (expense) and different liability account based on
different criteria like supplier type, entering currency, pay group, etc.
The cost center segment of Invoice distribution Liability account shall be picked from
the Invoice distribution Account while the other segment values from the Liability
account defined at supplier site.
To cater to some of the above requirements we can use other

alternatives like using distribution sets also. But setting up a custom
SLA for such scenarios is an easier approach with lower user
maintenance. I will try and show a simple scenario of how to derive
custom accounting for a business scenario using SLA in Oracle
Payables.
Business Scenario: We need to define different liability account (natural
account segment) based on Supplier Type so that business can track
the liability by supplier type. The other segment values will default
from supplier site. I am limiting this example to only one supplier type
Contractor". The objective would be to have a different natural
account for Liability account for invoices of supplier type "Contractor"
alone, while for other supplier types the normal liability account should
default.
Solution:
Step1: First define a mapping set for various supplier types.

Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting Methods
Builders > Journal Entry Setups > Mapping Sets
Step2: Define ADR (Account Derivation Rules)

Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting Methods
Builders > Journal Entry Setups > Account Derivation Rules
Step3: Define JLD (Journal Line Definition)

Navigation: Setup > Accounting Setups >Sub Ledger Accounting
Setups > Accounting Methods Builder > Methods and Definitions >
Journal Line Definitions
Always create a copy of the seeded JLD and do not modify a seeded JLD. We will create a copy
of ACCRUAL_INVOICES_ALL for our Chart of Accounts Operations Accounting Flex only. Add the
custom ADR created to Liability, Basic (Line Assignment)
Step 4: Setup AAD (Application Accounting Definition)

Application Accounting Definition
Create a copy of seeded AAD only and do not modify existing AAD. I am creating a custom AAD
called TEST_AAD for COA Operations Accounting Flex.
Step 5: Setup SAM (Subledger Accounting Methods)

Subledger Accounting Methods
Create a copy of a seeded SAM and do not modify seeded SAM. Add the custom AAD to the
Event Class Payables.
Step 6: Assign the custom SAM to Primary Ledger

Navigation: Set ups > Accounting Setups > Ledger Setup > Define > Accounting Setup
Verification of new SLA rule:

Create an invoice for supplier type Contractor and create accounting
Liability Account for Supplier Type Contractor is 01-000-2990-0000-000
Liability Account for other Supplier Types is 01-000-2210-0000-000

Tax & Create Accounting

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Learn using Sub Ledger Accounting (SLA) in R12 Oracle Payables

Thanks to Krishanu Bose for this story

To have different natural account (expense) based on different Invoice Type

To have different natural account (expense) and different liability account

The cost center segment of Invoice distribution Liability account shall be

Step2: Define ADR (Account Derivation Rules)

Step3: Define JLD (Journal Line Definition)

Step 4: Setup AAD (Application Accounting Definition)

Step 5: Setup SAM (Subledger Accounting Methods)

Step 6: Assign the custom SAM to Primary Ledger

Verification of new SLA rule:

Liability Account for other Supplier Types is 01-000-2210-0000-000

R12 Encumbrance Accrual Accounting for PO and Invoice

Step 2: Application RESERVES the fund of $200 for

R12 Standard Accrual and Cash Accounting in Payables

Create XML Publisher Report Using Oracle Reports(RDF)

Posted by Contact: highbrow.admin@gmail.com at 2:59 PM 7

R12 Standard Accrual and Cash Accounting in Payables

R12 Encumbrance Accrual Accounting for PO and Invoice

Create XML Publisher Report Using Oracle Reports(RDF)

Posted by Contact: highbrow.admin@gmail.com at 11:58 AM 0

Saturday, November 21, 2009

Simple Illustration on Journal Line Creation in SLA

What is Accounting Methods Builder(AMB) in SLA?

o Each ledger is assigned with SLAM.

Navigation Paths to SLA Forms

Explain AMB Components?

entities. For example, group the event classes Invoices and

Subledger Accounting Method(SLAM)

Application Accounting Definition(AAD)

Journal Line Definition(JLD)

Journal Line Type(JLT)

Account Derivation Rules(ADR)

Journal Entry Description

class Invoices. So, accounting for all invoice type events

What are the important tables in SLA Accounting?

Result on Standard Invoice after apply Prepay

Result on Standard Invoice after apply Prepay

2. On a prepayment, you can enter any number of distributions,

R12 Encumbrance Accrual Accounting for PO and Invoice

Create XML Publisher Report Using Oracle Reports(RDF)

R12 Standard Accrual and Cash Accounting in Payables

Posted by Contact: highbrow.admin@gmail.com at 10:26 PM 1

Friday, December 4, 2009

the very early stage of initial documented evidence showing intention

Step 1: Application REVERSES PO encumbrance accounting.

R12 Standard Accrual and Cash Accounting in Payables

Create XML Publisher Report Using Oracle Reports(RDF)

Posted by Contact: highbrow.admin@gmail.com at 2:59 PM 7

R12 Standard Accrual and Cash Accounting in Payables

R12 Encumbrance Accrual Accounting for PO and Invoice

Create XML Publisher Report Using Oracle Reports(RDF)

Posted by Contact: highbrow.admin@gmail.com at 11:58 AM 0

Wednesday, December 2, 2009

Enter invoice HG-Std, match to PO 5765, validate and pay.

See the results in Invoice Lines and Invoice Distributions.

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System Created Invoices/Creating Invoices Automatically in

What is Tolerance in Payables and How to define Tolerances?

Create Complex PO and Invoice With Retainage

Posted by Contact: highbrow.admin@gmail.com at 9:27 AM 0

Tuesday, December 1, 2009