Oracle EBS Release 12

Subledger Accounting
What It Is, What It Does, How It Works

Alyssa Johnson
April 2008
 Agenda

• What It Is
• Setup
– Accounting Setup Manager
– Accounting Methods Builder (AMB)
– Customizing Journal Entries
• How it works
– Create Accounting
– Personalizing Journal Views
– Drilldown from GL
– Subledger Control Accounts
– Reporting
• What Happens in an Upgrade
• More Information

2
What It Is

3
 What It Is

• Powerful rules-based accounting engine with a

centralized data model and repository
• Schema XLA
• Supports user-defined accounting rules
• Provides flexibility while maintaining necessary
control
• Enables compliance with multiple geographic,
legislative, or industry requirements
4
 What It Is

• Consolidates and Standardizes Accounting Across

the Subledgers
• Supports Shared Service Centers
• Improves Control & Transparency
• Separates processing from accounting
• Performs Balancing at Subledger Level
• Minimizes manual journal entries and
customization
• Streamlines Reconciliation Resulting in Faster Close
5
 What It Is

• Company ABC has operations in both US

and France
Corporate Accounting Regulatory Accounting
Structure in France
- US Chart of Accounts - Plan Comptable
- US Calendar - French Calendar
- USD - EUR
- US GAAP - IAS/IFRS Accounting

• SLA can book a single transaction to both ledgers

6
 What It Is

GENERAL LEDGER
Primary Ledger

Secondary Ledger(s)

Drilldown to Subledger
Accounting
Accounting Details
Subledger Accounting (SLA)

Drilldown to
Subledger Accounting
Transaction Details

Subledgers

7
 What It Is

• Purchasing • Projects
• Payables • Payroll
• Assets • Loans
• Receivables • Lease Management
• Cash Management
• Property Manager
• Intercompany
• Public Sector/Federal
• Cost Management
• Globalizations
• Process
Manufacturing

8
 What It Is?

SLA setup contained within subledger’s

responsibility

Purchasing Payables Receivables

9
9
 Setup
Accounting Setup Manager

10
 Setup
Accounting Setup Manager

The 4Cs of the Ledger

• The Subledger Accounting Engine utilizes the

Accounting Method to generate the correct
accounting
11
 Setup
Accounting Setup Manager

• Seeded Subledger Accounting Methods

• User-defined Accounting Methods can be added
using the Accounting Methods Builder

12
 Setup
Subledger Accounting Options

• Subledgers
assigned to a
ledger inherit its
subledger
accounting
method
• Users can define
alternate
accounting rules
for any
subledger
Define Subledger
Accounting
Options

13
Setup – Subledger Accounting
Options

14
 Setup – Update Accounting
Options

Receivables
Module

User can control

parameter options
of
Create Accounting
process

Users can define

Journal Category
15
 Setup
Update System Options

Number of processors
can be increased to
improve efficiency by
event

16
 Setup
Accounting Methods Builder
(AMB)

17
 Accounting Methods Builder
(AMB)

The functionality of AMB

enables a user to create a
Subledger Accounting
Method

• Enables users to defined customized

accounting rules
18
 Setup
Accounting Methods Builder
Journal
Header
GL Descriptio
Date n

Account
Derivation
Rules
Journal
Journal Lines Lines

19
Setup – AMB Flow

20
 AMB
Subledger Accounting Methods
Subledger Accounting Method

Application Accounting Definitions

21
 Setup
Subledger Accounting Methods

Link to Not updateable

Accounting but can be copied
Setup
Manager

22
 Setup – Chart of Accounts

• Transaction Chart of Accounts

– Chart of Accounts for Primary Ledger
– CoA user views and enters at transactional level
• Accounting Chart of Accounts
– Journal entries are created using this CoA
– Transaction CoA always equals Accounting CoA
for Primary Ledger
– Transaction CoA might not equal Accounting
CoA for Secondary Ledgers

23
Setup – AMB Flow

24
 AMB
Application Accounting
Definitions

Security

Event
Class and Journal
Type Header
Assignments

Journal Line
Definitions

25
 Journal Header Assignments

View and Customize

Journal Header
Descriptions

26
 Journal Entry Descriptions

Click on Details to
update Journal Entry
Description

Conditions to utilize
specific description 27
 Application Accounting
Definition

Journal
Header
Assignments

Journal Line
Definitions

28
 Journal Line Definition

Journal Line
Types

Journal Entry
Description
Account
Derivation
Rules

29
Journal Line Types

30
Conditions

31
Conditions – Another Example

32
 Journal Entry Description

Journal Line
Types

Journal Entry
Account Description
Derivation
Rules

33
Journal Entry Description

34
 Account Derivation Rules

Journal Line
Types
Journal
Entry
Description
Account
Derivation
Rules

35
 Account Derivation Rules

Value Type:
Source,
Constant,
Account
Derivation
Rules,
Mapping Set

36
 Mapping Sets

Input
Validatio
n

Output
Validatio
n

37
 Setup Example
Customizing Journal Entries

38
Default Journal Entry

39
Subledger Accounting Method
Copy

40
Application Accounting
Definition Copy

41
Now Values Can Be Updated

Click to
modify
Journal
Header
Descriptio
n

42
 Journal Entry Description Copy

Note
Owne
r
On copy,
Enter New
Header
values

43
Journal Entry Description
Details

44
Validate Changes

Event will
not account
if not
validated

Click to Validate
Accounting
Definitions

45
 Validate Changes

• Can also use concurrent program to validate

46
 User-defined Accounting
Method

User
defined
Accountin
g
Definition

47
Modify Accounting Options

Update Subledger
Accounting
Method

48
Update Subledger Accounting
Method

User-defined
Subledger Accounting
Method

49
Customized Header
Description

50
 How It Works
Create Accounting

51
 How It Works
Create Accounting

Final
Accounting Entries
cannot be changed;
Transferred to GL
Users can now
choose the
mode in which
to create Final Post
accounting Accounting Entries
Transferred and
Draft Posted to GL
Use to determine
accounting
impact of journal
entries

52
 How It Works
Create Accounting

• Draft Mode
– Determine accounting impact of journal entries
– Can be deleted and recreated
– Transaction or accounting definition can be
altered
– Can be included on accounting reports
– Cannot be transferred to General Ledger
– Does not update balances or reserve funds

53
 How It Works
Create Accounting

54
 How It Works – View
Accounting

View Accounting
Events, Journal
Entries, and
Journal Lines
from the
Subledger

55
 How It Works
Create Accounting

Draft Mode
Entries Can
Be Deleted
Create
Manual
Drilldown Journal
Entries

Journal
Entry
Status
56
 How It Works
Create Accounting

Users can view

both the Journal
Entry and the
Transaction
Information
together

57
 How It Works
Create Accounting

58
 How It Works
Create Accounting

Also View As
Accounting
Event

Show Details
Note:
Event
Status
59
 How It Works
Create Accounting

60
 How It Works
Personalizing Journal Views

61
 How It Works
Personalizing Journal Views

• In addition to searching on default criteria,

users can create specific views

Toggle
between
Search and
View Modes

62
How It Works – Personalizing
Journal Views

63
How It Works – Personalizing
Journal Views

Document,
accounting, and
reporting Seq Num;
Total Accounted
Credit, Debit

64
How It Works – Personalizing
Journal Views

Specify Sorting

Personalize
Search

65
How It Works – Personalizing
Journal Views

Items user can

search on

66
How It Works – Personalizing
Journal Views

Ability to Compare
Journal Entries

Note: Total

67
How It Works – Personalizing
Journal Views

68
 How It Works
Drilldown From GL

69
 Drilldown from GL

Review Journal

70
 Drilldown from GL

Line Drilldown

71
Drilldown from GL

Further
Drilldown
s

72
Drilldown from GL -
Transaction

73
Drilldown from GL – Journal
Entry

74
Account Analysis and
Drilldown

Personalized View

Drilldown to Journal
Lines and Summary
Accounts

75
Account Analysis and
Drilldown

Drilldown to
Journal Lines

76
 How It Works
Subledger Control Accounts

77
 How It Works – Subledger Control
Accounts

• Supplier Payables Natural Account only updatable

by the Payables Subledger
• Customer Receivables Natural Account only
updatable by the Receivables Subledger
• General Ledger cannot post to a Subledger Control
Account
• Improve reconciliation – eliminate common source
of subledger control account discrepancies
• Less time spent identifying and correcting issues
resulting in faster close

78
How It Works – Subledger Control
Accounts

Flexfield
Segment
Qualifier

79
How It Works
Reporting

80
 How It Works - Reporting

• Account Analysis Report

• Complete Multiperiod Accounting
• Create Accounting
• Import/Export/Validate Application Accounting
Definitions
• Journal Entries Report
• Open Account Balances Data Manager
• Open Account Balance Listing
• Subledger Accounting Balances Update
• Subledger Period Close Exceptions Report
• Transfer Journal Entries to GL
• Update Subledger Accounting Options
81
 Journal Entries Report

• XML Report
• Data
Extract
More than
100
columns of
data

82
 Account Analysis Report

• XML Report
• Over 100
Data
Elements in
Extract

83
Subledger Period Close Exceptions
Report

84
What Happens in an
Upgrade?

85
 What Happens in an Upgrade?

• Automated upgrade
• Product accounting programs become subledger
accounting definitions
• Existing account derivation mechanisms respected
– Workflow Account Generator
– Receivable Auto-Accounting
– Projects Auto-Accounting
– Accounting flexfields stored on setups and transactions
– Passed as defaults

86
Summary

87
 Summary

• Streamlined reconciliation
– Transaction level journals
– Transaction Details
– Reporting and drilldown
– Integration with XML publisher
– Reconciliation reference

88
 Summary

• Period Close Processing

– Online Accounting
– Straight through processing
– Draft Accounting
– Subledger control accounts
• User-defined accounting rules maintained
in future upgrades

89
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 Questions and Answers

Thank You!

Alyssa Johnson
ajohnson@solutionbeacon.com

www.solutionbeacon.com
Real Solutions for the Real World ®

Copyright 2008 Solution Beacon, LLC All Rights Reserved Any other commercial
product names herein are trademark, registered trademarks or service marks of 93
their respective owners.
 Q/A

• Dff at line level to determine receivables.

3000 sources that can be used for line level
accounting rules.
• SLA fixed assets tax books depreciation;
yes; each book can feed a ledger directly;
multiple representation for both corporate
and tax books
• Discussed disabled groups of accounts or
account segments; can’t do that currently
• Specific feature in FA to switch off workflow
account generator
94
95
96
 SLA: Application Accounting
Definitions

• validate

97
• Configurable accounting rules
• Transaction automated processing replace
manual journal entries
• Screenshot
• Handle exceptions and overrides
• Eliminate customizations

98
• GL Interface Table; Can still use for external
interfaces
• US GAAP; French GAAP; can the accounting
combo change. YES. French dictates chart
of accounts
• FA Account Generator workflow; Upgrade;
SLA respects the (AR (Auto Accounting),
Projects, FA (Account Generator)) kept
account generator methods; becomes the
default account the SLA takes; Final
accounting is done in SLA; Defaults
accounts can come from subledgers 99
• Major shift in how accounting has been
performed
• Multiple ERPs in one corporation
• Maintenance is straightforward
• No longer have to account by exception
• Clear ownership of the ledgers

100