Step 1: Define Purchasing Lookups for Vendor Type

Payables Responsibility > Setup> Lookup > Purchasing

Query “VENDOR TYPE”
Create New Vendor Type as per requirement.
Eg : SLA TEST
Step 2: Define Supplier & Assign Vendor Type Code
Payables > Supplier >Entry
Create a New supplier with Vendor Type as Required
Eg : Supplier Name : TEST SUPPLIER SLA
Type: SLA TEST
3. Define Mapping Sets

Payables Responsibility > Setups > Accounting Setup> Subledger Accounting Setup > Accounting
Methods Builder > Journal Entry Setups > Mapping Sets

Create a New mapping set against the lookup.

Define a default value also.
4. Define Accounting Derivation Rule (ADR)

To meet the requirement of generating account codes based on Vendor Type, we need to define a rule to
derive the Account.

Payables Responsibility>Setup>Accounting Setup>Subledger Accounting Setup

>Accounting Methods Builder>Journal Entry Setup>Account Derivation Rule

Define ADR “SLA_ADR_SUPP_ACCT”

5. Define Journal Line Definition (JLD)

Navigation: Payables Responsibility>Setup>Accounting Setup>Subledger Accounting Setup

>Accounting Methods Builder>Methods and Definitions>Journal Line Definition

Query for Seeded Journal Line Definition

Applications: Payables
Event Class: Invoices
Owner: Oracle
Definition Code: ACCRUAL_INVOICES_ALL
Click on “Copy” button and enter the name as per your requirement (SLA_JLD_SUPPLIER)
Click on “Done” button.
Now For Journal Line Type(JLT) “Liability, Basic”, change the account derivation rules to add the new
created rule “SLA_ADR_SUPP_ACCT”.
If Automatic Offset Accounting is being used, then changes needs to be done for the below JLTs as per
the option selected –
Liability with Automatic Offsets Account Segment
Liability with Automatic Offsets Balancing Segment
6. Define Application Accounting Definitions
Payables Responsibility >Setup >Accounting Setup >Subledger Accounting Setup
>Accounting Methods Builder >Methods and Definitions>Application Accounting Definition
Query for a seeded AAD
Application: Payables
Owner: Oracle
Definition Code: ACCRUAL
Click on the “Copy” button to create User defined AAD for Payables by copying seeded AAD. The idea
is to copy the complete AAD and modify AAD suitable as per the business requirement.
New AAD : SLA_AAD_SUPPLIER

Validate the AAD by clicking on “Validate” button.

7. Define Sub ledger Accounting Methods

Navigation: Payables Responsibility->Setup->Accounting Setup->Sub ledger Accounting Setup-

>Methods
and Definitions-> Sub Ledger Accounting Method
Query for a seeded SLAM
Query for:
Method Name: Standard Accrual
Owner: Oracle
Click on “Copy” button
Click on “Done” button
New SLAM: SLA_SLAM_SUPPLIER
For application “Payables” attach the AAD: SLA_AAD_SUPPLIER
8. Assign Custom Sub ledger Accounting Methods to Ledger
Payables Responsibility>Setup>Accounting Setup>Ledger Setup>Define>Accounting Setups
Query for Respective Ledger.
Attach the User defined SLAM “SLA_SLAM_SUPPLIER” to “Sub ledger Accounting Method”
option.