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 Enterprise Asset Management
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 Safe Harbor Statement

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 <Insert Picture Here>

Sub-Ledger Accounting (SLA) for Oracle eAM

Arunkumar Kaliappan
Principal Product Manager
 AGENDA

• SLA-Introduction
• Business Use Case for EAM
• Setup : EAM
• Setup : SLA
• Work Order Accounting Example
• Summary
• Q&A

© 2012 Oracle Corporation – Proprietary and Confidential 5

Sub Ledger Accounting(SLA) Introduction

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 Sub Ledger Accounting (SLA)

• In R12, Oracle Sub Ledger Accounting is an

intermediate step between sub-ledger products (such
as eAM) and Oracle General Ledger
• Oracle Sub Ledger Accounting allows users to comply
with corporate, local and managerial accounting and
audit requirements by providing them with the ability
to create sub-ledger journal entries tailored to their
financial reporting and analytical needs.

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 Business Use Case

• A customer budgets separately for various types of

materials used in the maintenance and repair
process.
• The customer wants to have separate expense
accounts for the each type of materials budgeted and
used.
• In this example, the customer wants separate
expense accounts for supplies and spares, in
accordance with how they have budgeted for these
categories of materials.

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 Business Use Case (Cont’d)

• Without SLA, all material on a work order will debit the

same material expense account (i.e. the WIP material
valuation account from the Accounting class
referenced)
• SLA will enable the customer to define an expense
account for each type of category (spares and
supplies), so the work order can debit one expense
account for spares, and a different expense account
for supplies

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 Setup: Pre-Requisite
• Define Item Categories: MAINTAIN.SPARE and MAINTAIN.SUPPLIES
• Define Items ‘Transmission Fluid’ and ‘Transmission Filter’ and Assign item
to the above Item categories.

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Setup: Basic Steps in SLA
Define Mapping Sets (Optional step)

Step-1 : Setup custom Account Derivation Rule (ADR)

Step-2 : Setup custom Journal Line definition (JLD)

Step-3 : Setup custom Application Accounting Definition (AAD)

Step 4: Setup custom Sub Ledger Accounting Method (SLAM)

Step 5: Associate custom Sub Ledger Accounting Method with

Primary Ledger

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 Setup: Account Derivation Rule (ADR)
• Oracle delivers standard accounting rules as default.
• SLA allows the user to override these standard
accounting rules, and instead use accounting rules
defined by the user using custom Account Derivation
Rules

• Create custom Account Derivation Rule to mandate

the following:
• If Item Category (inv.items category) = MAINTAIN.SUPPLIES,
then the valuation account should be 01-480-7110-0000-00
• If Item Category (inv.items category) = MAINTAIN.SPARES,
then the valuation account should be 01-480-7120-0000-00

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Setup: ADR
SLA -> Accounting Setup -> Journal Entry Setup ->
Account Derivation Rules

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Setup: ADR – Mapping Set example

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 Setup: ADR – Sources
ITEM_SEGMENT2
ITEM_SEGMENT1
RES_ATTRIBUTE2
RES_ATTRIBUTE1
RESOURCE_CODE
OP_RES_ATTRIBUTE2
OP_RES_ATTRIBUTE1
OP_DESCRIPTION
OP_ATTRIBUTE2
OP_ATTRIBUTE1
EMPLOYEE_NUM
DIS_JOB_WORK_ORDER_TYPE
DIS_JOB_TYPE
DIS_JOB_STATUS_TYPE
DIS_JOB_REBUILD_SERIAL_NUMBER
DIS_JOB_REBUILD_ITEM_ID
DIS_JOB_PLANNED_MAINTENANCE
DIS_JOB_PARENT_WIP_ENTITY
DIS_JOB_OWN_DEPT_MAINT_CST_CAT
DIS_JOB_OWNING_DEPARTMENT
DIS_JOB_MAINT_OBJECT_TYPE
DIS_JOB_MAINT_OBJECT_ID
DIS_JOB_ATTRIBUTE2
DIS_JOB_ATTRIBUTE1
DIS_JOB_ASSET_NUMBER
DIS_JOB_ASSET_GROUP_ID
.. more than 1000 sources available for use in ADR
Item Key Flexfield Segment2 DIS_JOB_ACTIVITY_TYPE Maintenance Activity Type
Item Key Flexfield Segment1 DIS_JOB_ACTIVITY_SOURCE Maintenance Activity Source
Resource/Overhead Descriptive Flexfield Segment2 DIS_JOB_ACTIVITY_CAUSE Maintenance Activity Cause
Resource/Overhead Descriptive Flexfield Segment1 DEPT_MAINT_COST_CAT Department Maintenance Cost Category
Resource/Overhead Code DEPT_CODE Department Code
Operation Resource Descriptive Flexfield Segment2 DEPT_ATTRIBUTE2 Department Descriptive Flexfield Segment2
Operation Resource Descriptive Flexfield Segment1 DEPT_ATTRIBUTE1 Department Descriptive Flexfield Segment1
Operation Description CHG_DEPT_MAINT_COST_CAT Charge Department Maintenance Cost Category
Operation Descriptive Flexfield Segment2 CHG_DEPT_DESCRIPTION Charge Department Description
Operation Descriptive Flexfield Segment1 ACCOUNTED_AMOUNT Accounted Amount
Employee Number ITEM_CATEGORY_SEGMENT2 Item Category Key Flexfield Segment2
Maintenance Work Order Type ITEM_CATEGORY_SEGMENT1 Item Category Key Flexfield Segment1
Discrete Job Type EAM_ITEM_TYPE EAM Asset Item Type
Discrete Job Status EAM_ENABLED_FLAG Enterprise Asset Management Enabled
Rebuild Serial Number EAM_ACT_NOTIFICATION_FLAG EAM Activity Notification Required Indicator
Discrete Job Rebuild Item Name EAM_ACTIVITY_TYPE_CODE EAM Activity Type Code
Planned Maintenance Flag EAM_ACTIVITY_SOURCE_CODE EAM Activity Item Source Code
EAM Parent Discrete Job EAM_ACTIVITY_CAUSE_CODE EAM Activity Cause Code
Owning Department Maintenance Cost Category WIP_ENTITY_TYPE WIP Entity Type
Maintenance Work Order Owning Department WIP_ENTITY_NAME WIP Entity Name
Maintenance Object Type WIP_ENTITY_DESCRIPTION WIP Entity Description
Maintenance Object Identifier DEPT_ID Department Identifier
Discrete Job Descriptive Flexfield Segment2 TASK_ID Task Name
Discrete Job Descriptive Flexfield Segment1 PROJECT_ID Project Name
DIS_JOB_ASSET_NUMBER MAINT_ORGANIZATION_ID Maintenance Organization Name
Maintenance Asset Group
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 Setup: Journal Line Definition

• SLA -> Accounting Setup -> Methods and Definitions

> Journal Line Definitions (JLD)
• This step defines how a particular event should be
accounted for on the journal entry line using SLA
• First, query existing journal line definitions for Oracle-
delivered default accounting

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Setup: Define Journal Line Definition

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 Setup: Journal Line Definition

• Copy Definition to create user-defined Account

Derivation Rule

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Setup: Journal Line Definition

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 Setup: Application Accounting Definitions
(AAD)
• The application accounting definition serves as an
umbrella to group all event class to journal line
definition at the product level (e.g. Cost Management)
• SLA -> Accounting Setup -> Accounting Methods
Builder > Methods and Definitions > Application
Accounting Definition (AAD)

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Setup: Application Accounting Definitions
(AAD)

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Setup: Application Accounting Definitions
(AAD)

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 Setup: Custom Sub-Ledger Accounting
Method (SLAM)
• Sub-ledger Accounting Methods (“SLAM”) brings
together all applications that do accounting under this
one umbrella, so you can view the accounting
definitions for all applicable products.
• This screen then enables you to turn off accounting
for a particular application if you so choose to.
• SLA -> Accounting Setup -> Accounting Methods
Builder > Methods and Definitions >Sub-ledger
Accounting Methods

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Setup: Custom Sub-Ledger Accounting
Method (SLAM)

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Setup: Custom Sub-Ledger Accounting
Method (SLAM)

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 Setup: Associate Custom Sub-Ledger
Accounting Method (SLAM) with Ledger
• Responsibility: General Ledger
• Setup > Financials > Accounting Setup Manager >
Accounting Setup

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Setup: Associate Custom Sub-Ledger
Accounting Method (SLAM) with Ledger

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Setup: Associate Custom Sub-Ledger
Accounting Method (SLAM) with Ledger

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Setup: Associate Custom Sub-Ledger
Accounting Method (SLAM) with Ledger

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 Work Order Accounting Example –
Effects of SLA override
• Org EM1 has a WIP Accounting class with following accounts:
• Material: 01-580-5320-0000-000
• MOH: 01-580-5320-0000-000
• Resource: 01-580-5321-0000-000
• Overhead: 01-580-5322-0000-000
• Outside Processing: 01-580-5323-0000-000
• Create Work Order
• Issue Material “Transmission Filter” (Item Category: Maintenance
Supply”) to the work order
• Ensure that the Cost Manager is running and the Material Issue
transaction is costed.
• Launch Create Accounting – Cost Management Program
• Check on the SLA Accounting –
• SLA would use accounts from the rules setup earlier, and not the WAC accounts.

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Work Order Accounting Example –
WAC Setup

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Work Order Accounting Example –
Create Work Order

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Work Order Accounting Example –
Issue Material

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Work Order Accounting Example –
Run Create Accounting

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Work Order Accounting Example –
SLA Accounting

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Work Order Accounting Example –
SLA Accounting

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Defining Custom rules in SLA - Summary

1. Use SLA to modify accounting of eAM transactions

based on business needs.
2. Use ADR to define your custom account derivation
logic – can be based on constant flexfield value,
mapping set for segments, etc
3. More than 1000 sources are available to define
custom ADR.
4. Use the copy function to make copies of Oracle
shipped rules and then modify the required rules.
5. eAM view of accounting refers to WAC accounts, but
Journals in GL will reflect actual accounting based on
SLA rules.

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 • To ask a question on the
phone line, select *1 on
your phone.

• To ask a question online,

use the Q&A area.

• Your question will be read

aloud in the order received.
• Question can also be asked
on the Enterprise Asset
Management Community

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 Enterprise Asset Management Advisor
Webcast Calendar (Doc ID 1167439.1)

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 THANK YOU

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