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E-Business Suite R12 Cost Accounting Integrated with SLA
Diane Streubel ± Schreiber Foods Cost Manager Douglas Volz ± OAUG Discrete Cost SIG Sub-Committee Herve Yu ± Oracle Costing Development

Costing Accounting Integrated with SLA
Agenda ‡ Oracle Process Costing MAC transitioning to SLA ‡ Oracle Discrete Costing SLA enhancements ‡ Case example: Discrete Costing-Product Line Accounting

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Schreiber Foods
Diane Streubel Manager - Cost & System Development

Oracle Process Costing MAC transitioning to SLA

Costing Accounting Integrated with SLA OPM MAC transitioning to SLA ‡ Converged inventory model ‡ Inventory Organizations that are Process will use Process Costing ‡ Process users are denied access to Discrete Costing forms ‡ Process Enabled organizations can not setup costs in the Discrete Costing application ‡ Sub Ledger Architecture (SLA) replaces MAC .

GME Cost Setup Calculate Cost Store Costs MAC Oracle GL .Costing Accounting Integrated with SLA OPM MAC transitioning to SLA 11i OPM GMI (OPM Inventory) Purchasing Order Management GMD.

Costing Accounting Integrated with SLA OPM MAC transitioning to SLA R12 OPM Oracle Inventory Purchasing Order Management GMD. GME Cost Setup Calculate Cost Store Costs SLA Oracle GL .

Costing Accounting Integrated with SLA OPM MAC transitioning to SLA ‡ Subledger accounting is an intermediate step between subledger products and the Oracle General Ledger ‡ Each transaction that requires accounting is represented by a complete and balanced subledger journal entry. stored in a common data model. .

discrete costing works the same as OPM costing .Costing Accounting Integrated with SLA OPM MAC transitioning to SLA 11i OPM General Ledger Subledger GL Export I n t e r f a c e Journal Import Journal Posting For G/L integration.

discrete costing works the same as OPM costing .Costing Accounting Integrated with SLA OPM MAC transitioning to SLA R12 OPM OPM Payables Oracle Subledger Accounting Receivables Oracle General Ledger Projects For G/L integration.

OPM Costing Engine generates costs. Cost Pre-processor will create accounting Events OPM Subledger process processes these transactions to create Journal entries SLA accounting program processes the events to create the journal entries .Costing Accounting Integrated with SLA OPM MAC transitioning to SLA OPM MAC Completed material and/or resource transactions. SLA Completed material and/or resource transactions. OPM Costing Engine generates costs.

Mapping can be done at Accounting flexfield level as well as segment level SLA COMMENTS Retained with few modifications Retained with few modifications Test Accounting Builder (TAB) Use GL setups . OPM Ledger. OPM Exchange Rates Process Category Event Entity Event Class Journal Line Types (JLT) Application Accounting Definitions (AAD) (SLA) Sources Account Derivation Rules (ADR) Users can define their own AADs or modify seeded information SLA sources are used in ADRs More flexible.Costing Accounting Integrated with SLA OPM MAC transitioning to SLA ± Setup Forms OPM MAC Fiscal Policy Event Fiscal Policy Source Event Sub-Event Account Titles Accounting Template Account Mapping Attributes Priorities and Account Mapping Test Mapping OPM Currency.

Reports OPM MAC Test and Actual Subledger Accounting Subledger Program SLA Draft and Final Accounting COMMENTS Accounting Pre-Processor Run Subledger for multiple valuation/cost methods for a ledger Supports multiple valuation methods In OPM there can only be one representation at a time. User can have any number of categories.Costing Accounting Integrated with SLA OPM MAC transitioning to SLA . SLA supports multiple representations at the same time Flexible. Assigned to one or more event classes Is retained and has been modified to use SLA repository Run Subledger process for a functional area Run Pre-Processor by Process Category Detailed Subledger Report .

Costing Accounting Integrated with SLA OPM MAC transitioning to SLA ‡ Most of the steps are automated using migration scripts ‡ All the Account Definitions would be migrated as ADRs ‡ Manual Steps to be completed are: ‡ Assign Account Derivation Rules to Journal Line Definitions ‡ Validate Application Accounting Definition ‡ Assign User Subledger Accounting Method to Ledger .

Costing Accounting Integrated with SLA OPM MAC transitioning to SLA . Ex: Add Item/Item Class/Organizations Validate the Application Accounting Definition Run OPM Accounting Pre-Processor Run OPM Accounting Pre-Processor Run Create Accounting in Draft mode Check Create Accounting report and Journal Entries report Run Create Accounting in Final mode to create GL accounting entries .Process Update the Account Derivation Rule conditions.

Summary ‡ NO LOSS of functionality by moving to SLA model ‡ A new sub-menu created under Cost Management for SLA forms. ‡ OPM Event model mapped to SLA event model.Costing Accounting Integrated with SLA OPM MAC transitioning to SLA . ‡ Fiscal Policy and Event Fiscal Policy screens retained with minor modifications. Most of the fields will be read-only. .

Oracle Discrete Costing SLA Enhancements . Inc.<Insert Picture Here> OAUG Discrete Cost SIG Sub-Committee Douglas Volz Douglas Volz Consulting.

Costing Accounting Integrated with SLA Increased Flexibility: Oracle Discrete Costing SLA Release 11i account recognition ³pain points´ eliminated by SLA: ‡ SLA removes limitations for recording COGS and Revenue (still uses Cost Account Generator/workflow and A/R AutoAccounting) ‡ Recording inventory and WIP accounts with more flexibility ‡ Flexible variance account recognition for: ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Invoice price variance Purchase price variance Average cost adjustment Standard cost adjustment Manufacturing variances Account aliases Freight charges And most other inventory. manufacturing and related account entries .

Sub Ledger Accounting(SLA) Key Concepts ‡ Event Model: definition of the subledger transaction types and lifecycle ‡ Entity : Classification of source of transaction ‡ Event Class: Classifies transaction types for accounting rule purposes ‡ Event Type: for each transaction type. defines possible actions with accounting significance ENTITY Material Transaction. Receiving or WIP or Write Off Logical grouping of events which have similar kind of accounting The most granular level of business event which has accounting impact EVENT CLASS EVENT TYPE .

A separate process is also available. Receiving Accounting can be generated in the Purchasing responsibilities using the Create Accounting Receiving concurrent request. These requests have an option to transfer the entries created to General Ledger. .Sub Ledger Accounting(SLA) Setup and Process JOURNAL ENTRY SETUPS Define/copy and modify journal line types PROCESS Enter Transaction(s) Cost Manager Define/copy and modify account derivation rules Create Accounting* Define/copy and modify descriptions Transfer Journal Entries to GL *Run Create Accounting Cost Management concurrent request for accounting all transactions from the Cost Management SLA responsibility.

Sub Ledger Accounting(SLA) Setup and Process Accounting Configurations Transactions Subledger Journal Entries GL Journal Entries and Balances Subledger Balances Journal Entry Setup Accounting Program Accounting Events Cost Management SLA .

Discrete Costing Development Herve Yu Senior Principal Engineer Case Example: Discrete CostingProduct Line Accounting .<Insert Picture Here> Oracle Corporation .

Samsung and Nokia ‡ We want to track variances by cell phone brands ‡ We are going to use 2 different ways to address this same requirement ‡ Cost/SLA mapping set capability ‡ Category Accounting ± Cost/Global Accounting migrated to SLA in R12.1 ‡ A word for Inventory period close and Cost/SLA upgrade .Costing Accounting Integrated with SLA Case Example: Purchase Price Variance product Line Example: Record Purchase Price Variance by Product Line ‡ We have two brands of cell phones.

Cost/SLA mapping set capability .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Product Line Setup Steps Set up your product line using SLA mapping set 1. Associate the new account derivation rule to your Journal Line Type 3. Enter your SLA account derivation rule for Purchase Price Variance accounts 2. Associate the Application Accounting Definition with Subledger Accounting Method .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Product Line Accounting ± Descriptive flexfield .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Product Line Accounting ± Descriptive flexfield .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Mapping set ± Account Derivation Rule .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Mapping set ± Account Derivation Rule .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ SLA Journal Line / Derivation Rule .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Associate Journal Lines Definition to the Event Class .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Note the same ADR is usable for Standard Cost Update .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Note the same ADR is usable for Standard Cost Update .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Associate SLA Definition to the SLA Method/Ledger .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ Assign product line code to the inventory item .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ The material subledger from 11i still exists Inventory Inventory Receiving Matl Overhead Absorption PPV .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ SLA Entries That Go to Your G/L .

Costing Accounting Integrated with SLA Cost/SLA mapping set capability:PPV by product Line ‡ For the Standard Cost Update That Go to Your G/L .

Category Accounting ± Cost/Global Accounting migrated to SLA in R12.1 .

Costing Accounting Integrated with SLA Product Line Category Accounting:Global Accounting ‡ Create a new structure under the key flexfield ³Item Category´ .

Costing Accounting Integrated with SLA Product Line Category Accounting:Global Accounting ‡ Create a new structure under the key flexfield ³Item Category´ ‡ Create category codes .

Costing Accounting Integrated with SLA Product Line Category Accounting:Global Accounting ‡ Create a new structure under the key flexfield ³Item Category´ ‡ Create category codes ‡ Create category set .

Costing Accounting Integrated with SLA Product Line Category Accounting:Global Accounting ‡ Create a new structure under the key flexfield ³Item Category´ ‡ Create category codes ‡ Create category set ‡ Assign ³Product Line Accounting´ functional area category set .

Costing Accounting Integrated with SLA Product Line Category Accounting:Global Accounting ‡ Product Line category account .

Costing Accounting Integrated with SLA Product Line Category Accounting:Global Accounting ‡ Account Derivation Rule would have used a source directly .

WIP.Conclusion ‡ Summary Notes ‡ Product line accounting can be achieved in many ways without using Costing Hook. SLA provides a set of new accounting reports (such as Journal Entries Report. .RCV« to build the accounting journals.Costing Accounting Integrated with SLA Case Example . Those reports will not show SLA journals. ‡ One caveat: Pre-Release 12 subledger accounting reports are reading data from Costing distribution layer (such as the Material Account Distribution Summary or Detail Reports). Accounting Analysis Report«) which can be modified as desire using BI Publisher. ‡ In R12 SLA is the Oracle R12 accounting platform and Costing supplies application sources from INV.

. ‡ Customers get option to either upgrade in downtime when upgrading or anytime after the upgrade process.Costing Accounting Integrated with SLA Inventory Period Close and Upgrade ‡ Inventory Period Close Process ‡ Inventory interim G/L transfer has been replaced by SLA ‡ The Inventory Accounting Period close works just like it did before. SLA now sends accounting information to the general ledger ‡ Upgrade Process ‡ Customers have option of migrating the whole historical data to SLA or choose which periods data to be migrated. however. ‡ Default for Cost management is to migrate the present calendar year data to SLA.

Costing Accounting Integrated with SLA Additional information are available: ‡ R12 Oracle Subledger Accounting ± Implementation Guide ‡ R12 Oracle Cost Management ± User Guide ‡ R12 Oracle Process Manufacturing Cost Management .User Guide .

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