3.3 Partner Training - Accounting

Oracle Fusion Project Portfolio
Management
Subledger Accounting for Project Financial Management applications
Release 10
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Objectives
After completing this session, you should be able to:

 Explain the main features of the Subledger Accounting (SLA)
 Understand how Project Financial Management transactions are accounted
 Implement Subledger Accounting for Project Financial Management

Session Agenda
 Subledger Accounting Overview

 Account Derivation Example
 Project Accounting Features
 Period Processing
 Implementation Considerations

Subledger Accounting
Overview

E-Business Suite Challenges
• Inconsistent account derivation methods

– AutoAccounting
– Account Generator
– Subledger Accounting
• Difficult to learn multiple tools
• Discrepancies between distribution and final accounts
• Limited visibility to account overrides
• Difficult to customize
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Key Differences between Fusion and EBS
• All accounting derived in Oracle Subledger Accounting

• AutoAccounting and Account Generator are eliminated
• Accounts removed from cost and revenue distributions
• Exception: Imported accounts from third-party applications
• Sources expanded – approximately 500

• Project sources available to derive accounts in other subledger applications
(PO, AP, AR, Cost Management, Receipt Accounting)
Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | CONFIDENTIAL: All capabilities and dates are for planning purposes only and may n
Key Differences between Fusion and EBS (continued)
• Visibility to cost transactions before accounting is created

• Accounting events generated automatically
• Single cost distribution and accounting event for raw, burden, and
burdened costs
• Project-specific accounts not sent to Oracle Fusion Receivables
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract Copyright © 2015 Oracle and/or its affiliates. All rights reserved. |
Subledger Accounting
• Accounting setup and creation is centralized

• Oracle Fusion Subledger Accounting (SLA) is the single source of truth
Fusion Subledger Accounting Fusion
Fusion General Ledger
Subledgers
Subledger Accounting Subledger Journals GL Journals

Dr Cr Dr Cr
Engine
Subledger GL Balances
Balances
Subledger Accounting Feature
• Centrally maintain powerful and highly configurable rule-based accounting.
• Flexibly produce alternative accounting representations by chart of accounts, currency,
calendar and conventions.
• Retain a granular level of detail in the subledger accounting model, with different
summarization options in the General Ledger, allowing full audit capabilities and
reconciliation.
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Comparison to E-Business Suite
E-Business Suite Fusion

Account Segments Account Segments
Account Derivation Rule Account Rule
Journal Line type Journal Line Rule
Journal Line Definition Journal Line Definition
Application Accounting Definition (Header Assignments) Subledger Journal Template
Accounting Method Accounting Method
Source Source
Journal Description Description Rule
Journal Entry Components
Account Derivation Example

• Chart of account structure: Company – Cost Center – Natural Account – Product
– Company: Only one company, which is taken from a default account
– Cost Center: Cost center assigned to the expenditure organization (department)
– Natural Account: Descriptive flexfield on the expenditure type
– Product: Mapped from the project classification
Company – Cost Center – Natural Account – Product
101-121-67500-239
Use default company segment

Value mapped from the project classification
Cost center assigned to the expenditure

organization department
Descriptive flexfield entered on the expenditure type
Default Account
• Define account rule for the default account used in the journal entry rule set.
Cost Center Segment
• Assign a cost center to the department that is classified as the expenditure
organization
Cost Center Segment (continued)
• Create segment account rule to use the cost center accounting source
Natural Account Segment
• Assign the Natural Account value set to a descriptive flexfield on the expenditure
type
Natural Account Segment (continued)
• Enter the natural account in an expenditure type descriptive flexfield
Natural Account Segment (continued)
• Create value set rule that uses the expenditure type descriptive flexfield accounting
source
Product Segment
• Create mapping set between

project classification class code and
the product segment value
Product Segment
• Create account rule that using the product mapping set
Journal Entry Rule Set
• Create a journal entry rule set for supplier cost journal entries that uses the new
segment account rules.
Project Accounting Features

Imported Accounts
• Import the raw, burden, and burdened cost accounts from third-party applications
or Oracle Desktop Integrator.
Create Accounting Options
• Set up accounting options for raw

cost and cost adjustments on the
transaction source document.
• Set up accounting options for

burden costs on the project type.
Accounting for Burden Transactions
• Capture raw cost, burden cost, and total burdened cost accounting entries on the
same accounting event.
Create Accounting Online
• Create accounting entries online for a single transaction.
Create Accounting in Batch
• Create accounting entries in batch mode at any

time from the task pane in the cost and revenue
work areas.
View Accounting
• View all accounting entries created by Project Financial Management, created by
another Oracle Fusion application, or imported from a third-party application in a
single window.
View Accounting
• View all accounting entries created by Oracle Fusion Projects, created by another
Oracle Fusion application, or imported from a third-party application in a single
window.
View Accounting: Source Accounting Lines
• View the accounting generated by Oracle Fusion Payables, Oracle Fusion Receipt
Accounting, and Oracle Fusion Cost Management.
View Accounting: Imported Accounts
• View the accounting imported from a third-party application
View Accounting: Project Accounting Lines
• View accounting entries created by Oracle Fusion Projects
Period Processing

Date Derivation: Cost Base Dates
Transaction Base Date
Accounted Transactions:
• Supplier Invoices
GL date from source application
• Inventory Transactions
• External Accounted Transactions
Timecards
Usage Transactions Expenditure item date
Miscellaneous unaccounted transactions
Cost Adjustments GL/PA date of the latest cost distribution line
Cross-Charge Transactions GL/PA Date of source expenditure item
Burden Cost Transactions Latest GL/PA date of source expenditure items
Date Derivation: Billing Base Dates
Transaction Base Date
Event Revenue Event date
Cost-Based External Revenue
GL/PA date of earliest receiver’s cost distribution line
Cost-Based Interproject Revenue
Cost-Based Intercompany Revenue GL/PA date of earliest provider’s cost distribution line
Invoices Invoice Date
Date Derivation: Logic
• Active Periods Definition
– Project Costing
• Project transactions: Open, Future Enterable
• External accounted transactions: Open, Close Pending, Future Enterable
– Project Billing
• All transactions: Open, Close Pending, Future Enterable
• Date Derivation
– Active period: Base date
– Inactive period: Start date of the earliest active period following the base date
Common Accounting and Project Accounting Periods
• Use the accounting period as the project accounting period
Update Accounting Period Statuses
• Maintain the periods used by Oracle Fusion Projects to assign account periods and
dates to transactions
Update Project Accounting Period Statuses
• Maintain the periods used by Oracle Fusion Projects for project planning, costing,
billing, budgeting, forecasting, and performance reporting.
Future-Enterable Project Accounting Periods
• The number of future-enterable accounting periods is the same as the ledger
setting.
• The number of future-enterable project accounting periods is derived to ensure
future-enterable project accounting periods span the corresponding future-
enterable accounting periods.
Sweep Transaction Accounting Events
• Sweep unaccounted transactions into the next
open or future enterable accounting period
Period Close Validations
• Validate the accounting and project accounting periods can be closed.
Accounting
Project Accounting Period
Period
Exception Close Pending Close Close Pending Close
Transactions entered in an integrating Oracle Fusion application are not accounted. Warning Warning Warning Warning
Unaccounted transactions are not imported. Warning Warning Warning Warning
The corresponding Oracle Fusion Payables accounting period has not been closed. Warning Warning Warning Warning
Revenue is not generated for a billable cost transaction, an invoiced cost transaction, or
Warning Warning Warning Warning
a completed revenue event.
Transactions entered in an integration Oracle Fusion application are accounted but not
Warning Warning Warning Error
yet transferred and imported into Oracle Fusion Projects.
Pending burden summarization items have not been processed. Warning Warning Warning Warning
Unaccounted transactions have not been swept to the next period. Warning Warning Warning Error
Implementation Considerations

Job Roles & Associated Duty Roles
Job Role Associated Duty Role
Project Application Administrator Project Foundation Administration Duty
Project Administrator Project Period Status Review Duty
Project Accountant Project Period Maintenance Duty

Project Cost Processing Duty
Subledger Accounting Duty
Subledger Accounting Reporting Duty
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Duty Roles & Tasks
Duty Role Associated Tasks
Project Foundation Administration Duty Update Accounting and Project Accounting
Period Statuses
Project Period Status Review Duty Update Accounting and Project Accounting
Period Statuses
Project Period Maintenance Duty Update Accounting and Project Accounting
Period Statuses
Duty Roles & Tasks
Duty Role Associated Tasks

Sweep Cost Transaction Accounting Events
Project Cost Processing Duty
Sweep Revenue Transaction Accounting Events
Subledger Accounting Duty Manage Subledgers
Subledger Accounting Reporting Duty Manage Subledgers
Key Implementation Decisions
• Accounting methods
– Method assigned to the ledger must specify the COA.
– Seeded methods cannot be used for Oracle Fusion Projects.
• Account Rules
– Seeded rules provided to use imported adjusted accounts.
– Share the same account rules across applications.
– Use value set rules if source contains segment values.
Feature Limitations
• Imported accounts cannot be modified on expenditure items.

• Accounts generated by Oracle Fusion Subledger Accounting should not
be overridden.
• Accounting status and accounting creation errors are not visible in the
Cost and Revenue Work Areas.
• Only the debit side of accounting entries created by Oracle Fusion Cost
Management and Oracle Fusion Receipt Accounting is displayed in the
View Accounting window.
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Oracle Fusion Project Portfolio

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After completing this session, you should be able to:

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 Subledger Accounting Overview

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• Inconsistent account derivation methods

• All accounting derived in Oracle Subledger Accounting

• Sources expanded – approximately 500

• Visibility to cost transactions before accounting is created

• Accounting setup and creation is centralized

Subledger Accounting Subledger Journals GL Journals

E-Business Suite Fusion

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 14

Use default company segment

Cost center assigned to the expenditure

Descriptive flexfield entered on the expenditure type

• Create mapping set between

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• Set up accounting options for raw

• Set up accounting options for

• Create accounting entries in batch mode at any

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Unaccounted transactions are not imported. Warning Warning Warning Warning

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Job Role Associated Duty Role

Project Application Administrator Project Foundation Administration Duty

Project Administrator Project Period Status Review Duty

Project Accountant Project Period Maintenance Duty

Duty Role Associated Tasks

• Imported accounts cannot be modified on expenditure items.

Copyright © 2015 Oracle and/or its affiliates. All rights reserved. | 53

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