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Oracle SLA PDF
Oracle SLA PDF
Release12.1.1
Oracle SLA
White Paper
Oracle Sub Ledger Accounting is a set of services for R12 that significantly enhances accounting support
across the E-Business Suite.
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 the Standard Oracle Application responsibilities
(Eg. Payable Manager)
SLA is :
• Simply a rule-based engine, tool set & repository supporting Oracle E-Business Suite Modules
• Allows multiple accounting representations for a single business event, resolving conflicts between
corporate and local fiscal accounting requirement
• Retains the most granular level of detail in Subledger accounting model, with different summarization
options in General Ledger, allowing full audibility and reconciliation
• Introduces a common data model and UT across Sub-ledger, replacing disparate 11i setups, proving a
Single source of truth for financial and management Analysis
• Payables
• Receivables
• Projects
• Assets
• Cash Management
• Purchasing
• Cost Management
• Process Manufacturing
Transaction
Creation
Create Accounting
Journal Import
GL Journal Entry
Posting
GL Balances
Account Generators are special workflows which automatically construct Accounting Flexfield combination
using Oracle or User-defined business rules. Seeded Account Generators can be utilized to generate
accounts. If special business needs exists, Users can modify the Account Generator based on Oracle rules
that must be followed when customizing the Account Generators.
• Most of the sub-ledgers continue to use their existing (11i) methods to derive the accounting which
users see in Distribution windows. For example:
- Receivables still uses Auto Accounting to default invoice accounting
- Projects still use Auto Accounting to default revenue accounting and an Account Generator to default
P2P expenditure accounting
- Assets may use an Account Generator to derive its account codes
• In most cases SLA picks up this account code as the default source for its account derivation rules. By
default, it will simply pass this through to GL, however SLA also allows you to modify this if you wish to
• In cases where you have a choice between methods (for example in Assets where the profile option
FA: Use Workflow Account Generation allows you to opt to bypass the use of the Account Generator),
its recommend to consider going directly to the ‘newer’ technology i.e. SLA, (rather than investing
further in a workflow based method whilst knowing that workflow technology will not be used in the next
generation Fusion Applications)
What:
Define how journal entries are generated from subledger transactions at the subledger application level for
both Primary and Secondary Ledgers
Why :
To customize basic accounting attributes like entered amount, accounted amount, Date, Currency code etc and the complex attributes
like Ledger, Code Combination ID, Periods etc. and there interface to GL from SLA
How :
Below are the Subledger Accounting Options Setup Pages which are accessed from General Ledger :
1. Subledger Applications
(N): Setup > Financials > Accounting Setup Manager > Accounting Setups
In this page, select the application to update and the Update Subledger Accounting Options page opens. You
can choose to disable Subledger Accounting for a particular application in the Update Accounting Options
page of a secondary ledger
(N): Setup > Financials > Accounting Setup Manager > Accounting Setups > Accounting Options > Subledger
Applications > Click on Update
This page displays the Subledger Accounting options for the ledger and the Subledger application. Review and
update the options. The view for this page depends on the Subledger application type (valuation method or
nonvaluation method) and the ledger type (primary or secondary).
Click on Update Accounting Options against the relevant Application to update the Accounting Options.
Rounding Rule: Determines the option for rounding to Up/ Down / Nearest value
Third Party Merge Accounting Options: Determine the option of merging third party account
Accounting Program Mode: Determines a default value for the parameter in the standard report submission
window to determines how subledger journal entries are created
Allow Mode Override: Determines whether users can override the value specified in the Accounting Mode
parameter
Transfer to GL: Predefines whether the Transfer to GL and the General Ledger Import should occur
automatically
Allow Transfer Override : Determines whether users can override the value specified in the Transfer to GL
parameter in the previous field
Allow Post override : Determines whether users can override the value specified in the Post in GL
Accounting Report Level : Determines whether the Create Accounting report is generated in Detail or
Summary mode
Stop at Error Limit : Controls the execution of the Create Accounting program. Users can set the Create
Accounting program to stop when a certain number of events, specified in the Error Limit field, fail to create
subledger journal entries
Error Limit : Specifies the maximum number of failed events allowed before the Create Accounting program
stops creating subledger journal entries when submitting a batch of documents
Defines the processing unit size at the event class level to process a large number of items in one commit
cycle.The
Create Accounting program processes the default processing unit size at the application level.
Enables to create and modify subledger Journal line setups and application accounting definitions. These
Definitions define the Journal Entries that enable the organization to meet the fiscal, regulatory and analytical
requirements. It Supports logic such as prioritization and conditional statements without using SQL. Also, User-
define SAM retained can be during patching and upgrades
It’s a collection of accounting definition for all the applications that you will be generating accounting for.Each
Primary and Subledger Level or Secondary Ledger is associated with a SLAM, which determines the rules and
standards that will be applied when generating entries for a ledger
Example:
Use the Application Accounting Definition to Assign Journal Line Definitions and headers to event classes and
event types. AAD’s must be included in a SLAM and assigned to Ledger. You can group AAD from multiple
products, such as Oracle Payables, Receivables Assets into a Single Accounting Method
Journal Line Type, description, account derivation rules grouped together as a Journal Line Definition to create
the rule for a particular event type
Business Flow method determines of and how a journal line should inherit journal entry values
Switch Debit/Credit is Yes, always keep positive amounts in Journal lines.For example, Dr -500 is
displayed as Cr +500
ADR are used to determine the account combination for Subledger journal entries. We can various rules to
determine how a journal entry account is derived. The account code combination can be derived segment by
segment or as a complete account code combination.
The below accounting derivation rule is placed 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 the priority 2 (if it’s available)
This is useful in finding the the actual transaction object details (Ex. Invoice/Payment details from Journal line)
Transaction Objects
Transaction object is nothing but a view which all the transaction information required to create Journal line
for particular event class
Each Column in the transaction object is define as source in the AMB. AMB uses these sources to get the
transaction information from transaction objects.
Sources are mapped with accounting attributes. Accounting attributes is the bridge between JLT and Sources.
For example, GL Date, Entered currency code, Entered amount , Accounted amount, Conversion rate date
3. Create a new Application Accounting Definition by copying the existing one for Receivables.
4. Create a new Journal Line Definitions by copying the seeded one. Provide the chart of accounts name
in the Accounting Field.
6. Attach the new Journal Line Definitions to the Application Accounting Definition and remove the seeded
value.
7. End date the existing Application Accounting Definition assigned to the Subledger Accounting Method
and attach the new Application Accounting Definition.
Note – Pre Work: Before customizing the subledger definition, ensure that new Subledger Accounting Method,
Application Accounting Definition and Journal Line Definitions are created. It is best to copy the seeded
definitions given by Oracle. Ensure that the Accounting Chart of Accounts is given in each of the three
definitions.
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.
Solution:
(N): Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting Methods Builders > Journal
Entry Setups > Mapping Sets
Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting Methods Builders >
Journal Entry Setups > Account Derivation Rules
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)
Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups > 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’.
Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups > 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’.
Navigation: Set ups > Accounting Setups > Ledger Setup > Define > Accounting Setup
XLA_AE_HEADERS: The table stores Subledger Journal Entries. There is one-to-many relationship between
accounting events and journal entry headers
XLA_AE_DISTRIBUTION_LINKS: The table stores detailed distribution for Journal Entries. This table Stores
the data at the most granular level and represents data contained in the respective subledger product’s
distribution tables. The detailed distribution 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.
XLA_AE_LINES : The table stores the Subledger Journal Entry lines. There is one-to-many relationship
between the 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 merging matching lines then these will
be merged into Single line.The unmerged granular level of detail for each accounting line will be available in
XLA_DISTRIBUTION_LINKS table
Processing Unit
A processing unit is the number of transactions processed by the Create Accounting program in one commit
cycle
Event Model:
Event Entity:
Group event classes into technical transaction models called Event Entities. For instance, group the event
classes invoices and prepayments into the event entity – Invoices, because both classes of transaction are
stored in 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:
It classifies transaction types for accounting rule purposes. For example, group the event types invoice
approved, invoice adjusted and invoice cancelled into event class invoices. Then assign AMB components,
such as JLT, by event class within the application accounting definition. This assignment simplifies setup when
the accounting requirement for all the event types in a class is the same. Also, sources assigned to an event
class are available for accounting of all event types in that event class
For example – Payables: Invoices, Debit Memo, Credit Memo, Prepayments and Refunds
Event Type:
Each accounting event should be represented by an accounting event type. These types are registered in
AMB. When subledger journal entries are 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, description, accounts and other elements of Subledger journal entries
The transaction chart of accounts is the chart of accounts for the primary ledger and is referenced when users
enter Accounting Flexfields for their transactions. This chart of accounts is employed when users enter and
maintain the data required to support the daily operations of a company
Use the accounting chart of accounts to create the Accounting Flexfields for subledger journal entries. It is
taken from the ledger for which the journal entries are created. Account derivation rules derive accounts for a
specific accounting chart of accounts. The creation of all journal entries by Subledger Accounting is therefore
done in the context of the accounting chart of accounts.
The transaction and accounting charts of accounts are always the same for the primary ledger. They can be
different in cases where users create secondary multiple representations
Mapping Set :
Mapping sets helps to associate a specific output value for an Accounting Flexfield or Accounting Flexfield
segment. Based on the input value, a specific value can be assigned to a single segment or to the entire
Accounting Flexfield. Use mapping sets in account derivation rules to build the Accounting Flexfield
Multiperiod Accounting:
Multiperiod accounting enables users to create accounting for a single accounting event for more than one GL
period. The functionality is primarily used to recognize revenue or a prepaid expense or revenue across
multiple GL periods