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Migration From MAC To SLA PDF
Migration From MAC To SLA PDF
Author: Ramesh Kammula - Chartered Accountant from the Institute of Chartered Accountants
of India
Contributors: Krishna Mohan Achutuni, MSO Upgrade Team, Satyam Computer Services Ltd
Skill Level Rating for this Case Study: Intermediate
Case History
The OPM Manufacturing Accounting Controller (MAC) application is where we define the data
needed to derive the financial implications of several OPM applications in 11i like Purchasing
(PO), Order Management (OM), Production Management (PM), Inventory Control (IC), and
Cost Management (CM). Once this financial information is reviewed and approved in subledger
process, it will be passed to the Oracle General Ledger.
MAC has been replaced with Sub Ledger Accounting (SLA) in R12. While migrating from 11i
to R12 we have observed the following points.
When we migrated from 11i to R12 the application has taken Standard Accrual Method as SLA
method automatically.
Apart from the 3Cs in 11i, a new 4th C has been added in R12 i.e., Accounting Setup Manager
under which we have to attach subledger Accounting.Sub-ledger Accounting (SLA) is an
intermediate step between all Oracle sub-ledger products and Oracle General Ledger.
Subledger accounting options define how journal entries are generated from subledger
transactions at the subledger application level and transferred to General Ledger. When we
migrated from 11i to R12 the application has taken Standard Accrual Method as SLA method
automatically.
We found that this Standard Accrual Method is not useful for OPM Financials.
Why it is not useful? We will explain it with an example by taking one Non-OPM module and
OPM module.
In Accounts Payables (Non OPM modules)
When we saw the Account Derivation Rule of invoice in payables under Standard Accrual
Method, the source is defaulting as Invoice Distribution Account as shown in Fig: 1.1
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Fig: 1.1
From this we inferred that whenever we enter an invoice the application will pick up the account
code combination form the invoice distribution lines as shown in Fig: 1.2, which is similar to 11i
process.
Fig: 1.2
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So we can use the Same Standard Accrual Subledger Accounting Method. If we want to use
additional features of R12, then only we need to create a new Subledger Accounting Method.
But, when we saw Account derivation rules for Oracle Process Manufacturing Financials under
Standard Accrual Method, the source is defaulting as Transaction Account as shown in Fig:1.3.
Account Derivation Rule of Inventory in OPM Financials:
Fig: 1.3
From this we inferred that the application would pick up the Accounting Code Combination that
we enter while entering the Transaction.
But in OPM, most of the transactions are not associated with accounting code combination. For
example, we will not have any option for entering account in OPM batch processing, as shown in
Fig:1.4.1 and Fig:1.4.2.
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Fig: 1.4.1
Fig: 1.4.2
Further, Account will be associated to transactions only when we run subledger accounting
process. So we cant enter the account code combination while entering the transactions. Hence
we inferred that Standard Accrual Subledger Accounting Method is not useful for OPM and we
need to create a separate Subledger Accounting Method.
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Analysis
From the Oracle Subledger Accounting Implementation Guide, we found out that MAC
migration to SLA will be done by running concurrent programs Import Application
Accounting Definitions & Export Application Accounting Definitions as mentioned below
in Fig: 1.5.1 and 1.5.2
Import Application Accounting Definitions
Fig:1.5.1
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Fig: 1.5.2
With these steps, we were just able to import the Account Mappings into Account Derivation
Rules. Other setups like Journal line types, Journal line Descriptions, Application Accounting
Definitions are not imported. So we created all other setups just like as a fresh implementation.
For migrating MAC into SLA we have done the following further setups;
1.
2.
3.
4.
5.
6.
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Fig: 1.6.1
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Fig: 1.6.2
Fig: 1.6.3
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Fig: 1.7
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Fig: 1.8.1
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Fig: 1.8.2
In the new Journal Lines Definitions under Line Assignments we deleted the seeded Journal Line
Types and selected the Journal Line Types that we have created and assigned the respective
Account Derivation Rules, for each Journal Line Types, segment wise.
Fig: 1.8.3
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Fig: 1.9.1
Fig: 1.9.2
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In the new Application Accounting Definitions, for each Event class and Event types we deleted
the seeded Journal Lines Definitions and assigned the new Journal Lines Definition that we have
created
Fig: 1.9.3
4. Validate Application Accounting Definitions
We found that at the time of creating the Application Accounting Definitions, the Validation
status of Event classes is Not Validated, as shown in Fig: 1.9.3. Hence we ran the Validate
Application Accounting Program to validate the Event classes.
Fig: 1.10.1
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Fig: 1.10.2
After running the Validate Application Accounting Program, validation status of event class and
event type became valid as shown in Fig: 1.10.3
Fig: 1.10.3
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Fig: 1.11
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6. Attach the new Subledger Accounting method in the Accounting method setups
We attached the new KLM_ACCRUAL Subledger Accounting Method in the Accounting
setups under Subledger Accounting
Fig: 1.12.1
After that we got the following measge stating that Ledger has been updated and Subledger
Accounting Options have been changed as shown in Fig: 1.12.2.
Fig: 1.12.2.
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After doing all these steps we have checked wether MAC has been successfully migrted or not
by verifying the following screens.
Fig: 1.13.1
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After Migration:
Account Derivation Rules for Inventory
Fig: 1.13.2
When we migrated to R12 we observed that Account mappings have been migrated as Account
Derivation Rules, stating to hit account 20031, which is encircled in red in figure 1.13.2, when
the following conditions are satisfied
Fig: 1.13.3
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After migration also the account to be hit is 20031 when Company is KLM, Title is INV,
Warehouse is RMW as shown in Fig: 1.13.3. So we inferred that MAC has been successfully
migrated as SLA.
Fig: 1.14.1
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After Migration:
Fig: 1.14.2
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Fig: 1.14.3
Fig: 1.14.4
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Fig: 1.14.5
Fig: 1.14.6
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Fig: 1.14.7
References
1. Oracle Subledger Accounting Implementation Guide for release 12
2. Oracle Manufacturing Accounting Controller Users Guide
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