Lab 04 Create a New Flow

Objective: To understand how to modify a standard SLA

to meet client specific requirements. 20-30 minutes

Exercise 2 Create Flow

Task
Define an AAD for the accounting chart of accounts Operations Accounting
Flex, such that it will generate a journal entry:
- Only for the validation of AP invoices,
- with only item expense and liability lines i.e. no tax, freight etc,
- booking the liability line to the account: 01-000-2220-0000-000,
- booking the expense line to the distribution account on the
invoice line, but with the account segment value overwritten with
7740.

Detailed Steps
Define the following components and build your SLAM:
1. Liability JLT: Copy your liability JLT defined in the previous exercise
and modify it such that lines with matching criteria are merged. Call
your Liability JLT <FIN_XX>_LIABILITY_MERGED
2. Expense JLT: to create a line for invoice lines of type Item,
Field Value
Event Class Invoices
Line Type Code Enter <FIN_XX>_INVOICE_EXPENSE
Accounting Class - Item Expense.
- This value will be on the entry line and is
used to categorize lines, primarily for
reporting purposes.
Name Enter a name.
Rounding Class - Enter the same value as in Accounting
Class.
- Along with the Rounding Reference, this
value is used to determine at what level
transaction rounding should be performed
(advanced topic).
Description Enter a description for the component you are
defining; can leave null.
Enabled Yes
Balance Type Actual, as we are not looking to create budget
or encumbrance entries.
Side Debit. Expense amount should be debited to
the expense account.
Switch Debit/Credit - No.
- Determines if the side on a line with a
negative amount should be switched and
the negative made positive, or both the
negative and the side preserved. For
example, an amount of -100 may
generate an entry line with DR -100 or
CR 100.
Merge Matching Lines - No.
- Determines if lines with matching criteria
should be merged into a single line.
Subledger Gain/Loss - No.
- Will this JLT be used to create an
exchange gain/loss line calculated by the
transacting application for the primary
ledger (advanced topic)?
Transaction Chart of - Null.
Accounts - Used in interpreting or converting an
accounting flexfield source carrying a
value from the transaction for the primary
ledger (advanced topic).
Business Flow Method - None.
- Determines if certain attributes of the
journal line should be inherited from
another line. For example, for a liability
line, copy the BSV from the
corresponding expense line in the same
entry; or, on a payment, back out from the
same liability account that was used on
the invoice of this payment (advanced
topic).
Business Flow Class - Null.
- Used together with the above when Prior
Entry is selected.
Multiperiod - None.
- Determines if/how a payment should be
recognized as expense over multiple
accounting periods (advanced topic).
Transfer to GL - Summary.
- Determines whether the lines should be
transferred to GL in the same level of
granularity as in SLA or summarized by
accounting flexfield and other criteria.
Conditions Define a condition such that this JLT is used
only for invoice lines with distribution type =
Item.
Accounting Attribute - Review the sources assigned to the
Assignments accounting attributes to be used in
deriving values for this journal entry line.
- Uncheck the Event Class Default box for
the attribute Party Identifier, and select
Invoice Supplier Site Identifier from the
list of values. This will result in the
journal entry line showing the party site
identifier as both the party and the party
site. Note that you can change the event
class default only if there have been
multiple source assignments to an
accounting attribute on the event class
level.
Note: This may not work in our current
training environment

3. Liability ADR: a constant based ADR deriving accounting flexfield

01-000-2220-0000-000, defined for accounting chart of accounts
Operations Accounting Flex,
Field Value
Rule Code Enter a code. <FIN_XX>_LIABILITY
Rule Name Enter a name. <FIN_XX> Liability Account
Enabled Yes
Description Enter a description for the component you
are defining; can leave null.
Chart of Accounts- - Null
Transaction - Used in interpreting or converting an
accounting flexfield source carrying a
value from the transaction for the
primary ledger (advanced topic).
Chart of Accounts- - Operations Accounting Flex
Accounting - Will allow defining constant values by
validating against the COA.
Output Type Flexfield
Priority 1
Value Type Constant
Value 01-000-2220-0000-000

4. ADR for invoice distribution account: already exists as seeded rule

(see the ADR Invoice Distribution Account attached on the JLT Item
Expense JLT on seeded JLD Accrual, Invoices All),

5. ADR for account segment: a constant based ADR deriving value

7740 for account segment, defined for accounting chart of accounts
Operations Accounting Flex,
Field Value
Rule Code Enter a code. <FIN_XX>_EXPENSE
Rule Name Enter a name. <FIN_XX> Expense Account
Enabled Yes
Description Enter a description for the component you
are defining; can leave null.
Chart of Accounts- - Null
Transaction - Used in interpreting or converting an
accounting flexfield source carrying a
value from the transaction for the
primary ledger (advanced topic).
Chart of Accounts- - Operations Accounting Flex
Accounting - Will allow defining constant values by
validating against the COA.
Output Type Segment – Account
Priority 1
Value Type Constant
Value 7740

6. JED (optional): you can use the JED already defined in the previous
exercise,
7. JLD for invoice validation event type: defined for accounting chart of
accounts Operations Accounting Flex:
- Assign the liability JLT from step #1 and the liability
ADR from step #3. Note that this ADR will determine
the value for all the segments of the accounting
flexfield.
- Assign the expense JLT from step #2 and the ADR for
invoice distribution account from step #4 and ADR for
account segment from step #5. Note that the former
 will determine the value for all the segments of the
accounting flexfield, and the latter will overwrite the
account segment value.
-
8. Payables AAD: defined for accounting chart of accounts Operations
Accounting Flex, to generate an entry only for invoice validation
events. Assign the JLD from step #7. Use the Definition Code
<FIN_XX> OPERATIONS_COA_AAD.
Hit the Header Assignments button, and check the source assigned
to the GL Date accounting attribute. The value of this source from
the transaction will determine what the GL date will be on the
accounting entry. Optionally, assign a description for the header of
the entry.
Remember to Validate your AAD.
9. SLAM: defined for accounting chart of accounts Operations
Accounting Flex, to generate accounting only for Payables
application. Note that you can also assign your COA-specific AAD
on a COA-generic SLAM. However, for the purposes of this
exercise, define a new one, called
<FIN_XX>_OPERATIONS_SLAM.

Solution
Navigation: Setup -> Accounting Setup -> Subledger Accounting Setup -
> Accounting Methods Builder -> Journal Entry Setup -> Journal Line
Types
1. Your new liability JLT should be similar to below:

Figure 1 - New Liability JLT

2. Your JLT for the expense line should be similar to below:
(Note: You may have to set the Subledger Gain/Loss field to NO)

Figure 2 - New Expense JLT

Figure 3 - Expense JLT Condition

 Figure 4 - Expense JLT Accounting Attributes

3. Your liability ADR should be similar to below:

Setup -> Accounting Setup -> Subledger Accounting Setup ->
Accounting Methods Builder -> Journal Entry Setups -> Account
Derivation Rules

Figure 5 - Liability ADR

4. Seeded ADR Invoice Distribution Account will read the value of the
source Invoice Distribution Account from the transaction, and will
use the same account on the journal line.

Figure 6 - Seeded ADR for Invoice Distribution Account

5. Expense account ADR should be similar to below:

Figure 7 - Expense ADR for Account Segment

6. The JED is defined in the previous exercise.
7. Your JLD should be similar to below:
Setup -> Accounting Setups -> Subledger Accounting Setup ->
Accounting Methods Builder -> Methods and Definitions -> Journal
Lines Definitions

Figure 8 - JLD for Invoice Validation Event

8. Your AAD should look like below:
Setup -> Accounting Setups -> Subledger Accounting Setup ->
Accounting Methods Builder -> Methods & Definitions -> Application
Accounting Definition

Figure 9 - AAD for Operations Accounting Flex

 Figure 10 - AAD Header Assignments
9. Your SLAM should be similar to below:
Setup -> Accounting Setups -> Subledger Accounting Setup ->
Accounting Methods Builder -> Methods and Definitions ->
Subledger Accounting Method

Figure 11 - SLAM for Services Accounting Flex