Learnings of an Oracle Apps Consultant

SUNDAY, DECEMBER 07, 2008

Learn using Sub Ledger Accounting (SLA) in R12 Oracle Payables
Sub Ledger Accounting (SLA) is a Rule-Based accounting engine that defines how journal entries are generated in sub-ledger transactions in Oracle sub-ledger applications. However, SLA also supports external applications generating accounting information which ultimately needs to be transferred to Oracle General Ledger. Before we get into SLA we need to know few of the basic concepts like event types, event class, etc. Event Class - classifies transaction types for accounting rule purposes. E.g. in Payables, following are possible event classes: Invoice, Debit Memo, Prepayments, Refunds and Payments. Event Type - for each transaction type, defines possible actions with accounting significance. E.g. in Payables, following are possible event classes: AP Invoice Events – Validation, Adjustment and Cancellation. Similarly we will have event types for other event classes. In most of the cases we would not need to customize SLA and accounting
features will work same as 11i. Some of the typical business scenarios where we would need to customize SLA in Payables are as follows: • • • •
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. I will try and show a simple scenario of how to derive custom accounting for a business scenario using SLA in Oracle Payables. Business Scenario: We need to define different liability account (natural account segment) based on Supplier Type so that business can track the liability by supplier type. The other segment values will default from supplier site. I am limiting this example to only one supplier type “Contractor". The objective would be to have a different

natural account for Liability account for invoices of supplier type "Contractor" alone. Solution: Step1: First define a mapping set for various supplier types. while for other supplier types the normal liability account should default. Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting Methods Builders > Journal Entry Setups > Mapping Sets Step2: Define ADR (Account Derivation Rules) Navigation: Setup > Accounting Setups >Sub Ledger Accounting Setups >Accounting Methods Builders > Journal Entry Setups > Account Derivation Rules .

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Step3: Define JLD (Journal Line Definition) 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. Basic’ (Line Assignment) . 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.

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I am creating a custom AAD called ‘TEST_AAD’ for COA ‘Operations Accounting Flex’. .Step 4: Setup AAD (Application Accounting Definition) 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.

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Add the custom AAD to the Event Class ‘Payables’. .Step 5: Setup SAM (Subledger Accounting Methods) 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.

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Step 6: Assign the custom SAM to Primary Ledger Navigation: Set ups > Accounting Setups > Ledger Setup > Define > Accounting Setup .

Verification of new SLA rule: Create an invoice for supplier type ‘Contractor’ and create accounting Liability Account for Supplier Type “Contractor” is 01-000-2990-0000-000 .

Liability Account for other Supplier Types is 01-000-2210-0000-000 .

Our company (in Mexico) is implementing Oracle and I have we have an issue with payments when there is a currency gain or loss. I have an error 7 message and can't seem to change the accounting string. Is there a way once the sub ledger has been transferred to the GL to change the accounting string. From what I . I have a question. Krishanu. Subledger Accounting Reactions: 3 comments: Anonymous said...Posted by Krishanu Bose Email This BlogThis! Share to Twitter Share to Facebook Share to Google Buzz Labels: Oracle Payables. 2009 11:45 AM jesus said.. it is very informative. Hi Krishanu Bose Thank you for an excellent blog.. Thank you March 03.

I am glad I was able to visit your blog. an inside view of Oracle Apps outsource services in India.. Also. Thumbs up! Denise invoice solutions September 01.. View my complete profile CATEGORIES • • • • • • • Generic (6) Non PO invoices (1) Oracle Apps (8) Oracle E-Business Tax (1) Oracle General Ledger (1) Oracle iExpense (1) Oracle Payables (14) . Also the blog features new developments in Oracle Apps and my learning's in this field. since in Mexico by law. Tax to Collect Account 2)PAYMENT in MX Pesos (IN FULL) -PAYMENT goes to Bank account -AR_Amount is credited -Currency profit goes to Currency Profit account -Tax to Collect is credited into Tax to Pay -Tax currency profit goes to Currency Profit account 3)My problem that the tax currency profit should go to My Tax to Pay Account. Let me Explain 1)SALE -Our base currency is Mex Peso -Sale Is in Dollars with VAT (Vat is paid when payment is received) -Accounting goes AR-Client account. This is what exactly I am looking for. Thanks for the share. 2010 11:54 PM Post a Comment Newer Post Older Post Home Subscribe to: Post Comments (Atom) SUBSCRIBE TO Atom Posts Atom Comments ABOUT ME Krishanu Bose India Krishanu's Oracle Applications Blog . this gain is for the government (not Me) According to our consultants It cant be done since oracle sends all currency gains to the same account their solution is to run a process to check all payments in non mexican currencies and to post an adjustment to correct this. Income Accounts. 2010 6:15 PM Denise said. My question is can I configure a rule from SAL to GL to reclassify Currency gains from tax to a different account? Thank you February 01. The views and opinions expressed by visitors to this blog are theirs and do not necessarily reflect mine.Oracle Apps consulting services scenario in India. The views expressed are my own only and not of my employer Oracle Corporation. Hope that you'll write further articles for the Sub Ledger Accounting (SLA).understand. I believe it can be solved with reclassification of the gain at SLA to GL posting.

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