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Lsampath WP 1 PDF
Lsampath WP 1 PDF
Lsampath WP 1 PDF
The article also highlights how Dell, Inc. used the SLA functionality to automate and control
various accounting entries using specific business rules.
Introduction
With the introduction of Oracle EBS R12, accounting-related functions and structures change
significantly from previous releases. Many of the original design limitations, such as the
inability to journal easily across ledgers (sets of books) as well as the existence of complex
setups, the use of global shared service centers, separate business tax sub-systems, and
separate customer and supplier masters have been resolved.
SLA is a new functionality introduced in EBS R12. SLA is a powerful and flexible rules-based
accounting engine, with a centralized data model and repository that generates accounting
entries based on source transactions for all Oracle Applications transactions. With the
introduction of SLA, customers now have a unified view of all the Oracle Application
Subledgers across all modules with accounting entries. SLA helps to do a single step posting
to all ledgers and also provides real-time/online accounting information as well as an audit
trail for all transactions.
SLA works with Oracle General Ledger (GL) to provide an accounting system tailored
to your requirements.
SLA establishes a common data model and interface for all subledgers.
Figure 1
SLA also keeps the Subledgers and GL tied out. SLA controls that the GL balances and SLA
balances tie together and that both tie to the document sources for e.g. AR Invoices, AP
payments etc. Here is how the transaction flows all the way through GL via the SLA
module.
1. Ledger
There are two sets of Ledgers: Primary and Secondary Ledgers (Set of books in 11i). Legal
Entities are associated with Primary ledgers and Primary ledger typically reflects
transactional accounting. Secondary ledgers can be utilized for statutory, management,
and/or consolidation reporting. Mapping from Primary to Secondary Ledger(s) is defined in
General Ledger and is assigned in the Accounting Setup Manager.
Standard Accrual.
Standard Cash.
US Federal Accounting.
Standard Accrual is used more commonly. Federal Customers use the US Federal Accounting
method.
Application Accounting Definition (AAD) comprises Event Classes and Event Types. Event
Classes define the transaction types for accounting rule purposes, e.g., Adjustments, Bills
Receivable, Receipts, and Transactions etc. Event Types define possible actions for each
transaction type with accounting significance, e.g., Receipt Created, Receipt Reversed,
Receipt Unapplied, etc.
Journal Line Definitions are the heart and soul of the Subledger Accounting Engine. This has
Journal Line Types, Account Derivation Rules and Journal Entry Description.
5. Sources
This constitutes the optional information that you can configure. For example, Supporting
References can be configured to capture additional information.
As a part of R12 Upgrade, using Subledger accounting rules, we wanted to automate this and
make the system automatically apply the receipts to the correct cost center for the
Customer.
Basically, our requirement was to ensure that the create accounting process derives the
correct Accounting Flexfield segments based on the receipts applied to the customer based
on the sales channel to Accounting Flexfield mapping. We wanted this to work for any cash
application Receipt applied, Receipt unapplied, Receipt reversed etc.
The Event type for this case-study is Receipt and Event Class is applied, unapplied, reversed
etc. Here is the solution summary.
1. Create a PL/SQL code to derive the correct AFF Segments based on receipt and
other input parameters.
6. Define Journal Line Definitions (JLD) Associate the ADR, JLT and JED together
Navigate to Setup, Accounting, Accounting Methods Builder, Journal Entry Setups, Journal
Line Definitions and click on copy definition to create a new Journal line definition and
rename it (e.g. XXG Receipts Default Accrual). For each Journal Line type that you want to
derive using your accounting rule, associate the Account Derivation rule and the line
description.
Note You can use both segment-based and flexfield-based rules to derive a single account.
Subledger Accounting uses segment-specific rules where they are defined and takes the
remaining values from a flexfield-based rule. For example, a user can select an account
derivation rule which is for All Segments and also separately select a rule which is for one
particular segment. Subledger Accounting derives accounts based upon segment-specific
rules and then fills in the remaining segments with the rule that specifies All Segments.
Segment-specific rules take precedence over the All Segments flexfield-based rule.
Transaction ( AR )
Headers
( RA_CUSTOMER_TRX_ALL Accounting Events
Entities
& ( XLA_EVENTS )
( XLA_TRANSACTION_ENTITIES )
AR_CASH_RECEIPTS_ALL
&
AR_ADJUSTMENTS_ALL )
Accounting Headers
( XLA_AE_HEADERS )
Distributions
(
Distribution Links
RA_CUST_TRX_LINE_GL_DIST
( XLA_DISTRIBUTION_LINKS )
_ALL
&
AR_DISTRIBUTIONS_ALL )
XLA_SUBLEDGERS
XLA_SOURCES_B
XLA_EVENT_SOURCES
XLA_CONDITIONS
XLA_ACCTG_METHOD_RULES
XLA_EVENTS
XLA_AE_HEADERS
XLA_AE_LINES
XLA_ACCOUNTING_ERRORS
XLA_DISTRIBUTION_LINKS
Seeded Subledger Accounting Methods cant be modified. They need to be copied before
they can be modified.
Any change made to a Subledger accounting setup invalidates the accounting process.
Before running the Create Accounting process, Application Accounting Definition must be
validated in order to make sure that the changes are logical.
Reconciliation
Accounts Reconciliation has improved with the introduction of SLA. This is possible mainly
because of the following:
Transaction Details
Drilldown Facility
Reports
For prior periods, the historical data is preserved. You can drill down from General Ledger to
the historical transactions using standard GL drilldown.
With assistance from Oracle Support, we obtained fixes to the above issues.
Conclusion
With the introduction of R12s Subledger Accounting functionality (SLA), we now have a
unified view of all the Oracle Application Subledgers across all modules with accounting
entries. We are now able to get real-time/online accounting information as well as an audit
trail for all transactions. SLA certainly offers a powerful and flexible rules-based accounting
engine.
Although we had a few issues with SLA after going live, we have certainly made advantage
of this new functionality in various unique ways within Dell.
Lakshmi has presented several papers and hosted several panels at the COLLABORATE,
Oracle OpenWorld and Austin Oracle Users Group events. She was selected as an ENCORE
Presenter at COLLABORATE 2006 and 2011. She is also the Vice-chair of the OAUG
Customer Support Council and a member of the OAUG Education Committee and a director
for both the Oracle Business Intelligence Big Data Special Interest Group (OBI-BD SIG) and
General Ledger Special Interest Group (GLSIG)