Release 12 Field Readiness Workshop Sales Track Financials

Oracle Subledger Accounting

Copyright © 2006, Oracle. All rights reserved.

R12 Financials – Oracle Subledger Accounting
Rob Zwiebach
Financial Applications Development

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Copyright © 2006, Oracle. All rights reserved.

Purpose: This document provides an overview of features and enhancements included in Release 12. It is intended solely to help you assess the business benefits of upgrading to Release 12. Disclaimer: This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.

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Copyright © 2006, Oracle. All rights reserved.

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Copyright © 2006, Oracle. All rights reserved.

Agenda
• Introduction to Subledger Accounting
– Background – Key Business Messages – Impacted Applications

• Key Concepts and Terminology
– – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances, Inquiries, and Reports Part 4: Additional Features

• • • •
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Customer Impact / Upgrade Considerations Demo ADS Content Hands-on
Copyright © 2006, Oracle. All rights reserved.

Agenda
• Introduction to Subledger Accounting
– Background – Key Business Messages – Impacted Applications

• Key Concepts and Terminology
– – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances, Inquiries, and Reports Part 4: Additional Features

• • • •
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Customer Impact / Upgrade Considerations Demo ADS Content Hands-on
Copyright © 2006, Oracle. All rights reserved.

. 7 Copyright © 2006.Introduction to Solution . Oracle. All rights reserved.Definition Oracle Subledger Accounting: Oracle Subledger Accounting is a rulesbased engine for generating accounting entries based on source transactions from ALL Oracle Applications.

. Oracle.Background Projects Assets Receivables Payables Each Subledger Generated Accounting Entries Individually Payroll Purchasing Inventory 8 Leasing Copyright © 2006. All rights reserved.

All rights reserved. . Detail – Direct to General Ledger vs.Background Issues with this Approach: • Inconsistencies in Accounting Generation – Summary vs. Open Interface • Inconsistent Drilldown from General Ledger • Inconsistent Mechansims for Controlling Accounting – – – – FlexBuilder Account Generator Automatic Offsets Etc. • Duplication of Development Effort 9 Copyright © 2006. Oracle.

Insurance) • Global Accounting Engine (AX) introduced to address European requirement • Non-AX customers use consulting extensions and/or Global Consolidation System (GCS) 10 Copyright © 2006.Background Requirement for Multiple Accounting Representations • Certain European countries require statutory accounting in addition to corporate requirements • Similar requirement in certain regulated industries (e. Oracle. All rights reserved.g. .

.Introduction to Subledger Accounting Projects Assets Receivables Payables Subledger Accounting to the Rescue Payroll Purchasing Inventory 11 Leasing Copyright © 2006. Oracle. All rights reserved.

. All rights reserved. Oracle.Introduction to Subledger Accounting • Rule-based accounting engine. providing single source of truth for financial and management analysis • • 12 Copyright © 2006. toolset & repository supporting Oracle E-Business Suite modules • Allows multiple accounting representations for a single business event. replaces various disparate 11i setups. resolving conflicts between corporate and local fiscal accounting requirements Retains the most granular level of detail in the subledger accounting model. with different summarization options in the General Ledger. allowing full auditability and reconciliation Introduces a common data model and UI across subledgers.

Payables Manager) SLA provides the following services to Oracle Applications: – Generation and storage of detailed accounting entries – Storage of subledger balances (e. .Introduction to Subledger Accounting Subledger Accounting is a Service. open account balances listing) 13 Copyright © 2006.g. Subledger journal reports. not an Application • • • • • There are no SLA responsibilities Users do not login to SLA SLA is a service provided to Oracle Applications SLA forms and programs are embedded within standard Oracle Application responsibilities (e.g. third party control account balances) – Subledger accounting entries (with drilldown to transactions) – Subledger reporting (e. All rights reserved. Oracle.g.

Introduction to Subledger Accounting SLA and Financial Services Accounting Hub • • • • • SLA generates accounting for Oracle Applications Financial Services Accounting Hub (FSAH) generates accounting for any transaction source (Oracle or non-Oracle) SLA is included with any E-Business Suite license FSAH is a separate product that must be licensed separately FSAH was introduced last year with 11i BUT: – It is not compatible with 11i Oracle subledgers – It was essentially a pre-release of the R12 version 14 Copyright © 2006. . All rights reserved. Oracle.

. Oracle.Introduction to Subledger Accounting Transactions and Accounting Entries Ledger: FR Statutory GL Date: 2-Mar-2006 Invoice Internal Identifier: 1001 Invoice Internal Identifier: 1001 Invoice #100 ABC Networks 2 Monitors – Marketing $1000 5 Printers – Marketing $ 500 Freight Tax Total $ 100 $ 110 $1710 Invoice# 100 Ledger: US Corporate Supplier: ABC Networks GL Date: 2-Mar-2006 Invoice# 100 Supplier: ABC Networks DR CR Invoice Line 1 Invoice Line 2 Invoice Line 3 Invoice Line 4 1 Expense 01-EXP-200 2 Freight 01-FR-200 3 Tax 01-TX-200 $1500 $100 $110 4 Liability 01-LIAB-200 $1710 15 Copyright © 2006. All rights reserved.

. All rights reserved. Oracle.This is a transaction This is a transaction This is NOT an accounting entry (New Slide) 16 Copyright © 2006.

Oracle. • OK because distribution accounts are just defaults (New Slide) 17 Copyright © 2006. necessary to allow user input • Most default SLA rules just ‘pass through’ the distribution accounts (where applicable) • If you modify SLA rules.Transactions vs. All rights reserved. the ultimate accounting entry may not match the distributions. . Accounting • SLA provides a distinction between a transaction and the accounting representation of the transaction • Accounting distributions did not necessarily go away – Needed for upgrade customers – Needed as starting point for SLA (Don’t want to force customers to define their own SLA rules) – In some cases.

All rights reserved.Key Business Messages • Better. Oracle. Richer Information: Automatically capture detailed information to drive financial and management reporting – without cluttering up your general ledger Improved Control: Control every transaction that impacts your accounts and drive consistency across the enterprise • • Business Agility: React quickly to accounting rule changes. Easy Reconciliation: The link between general ledger balances and underlying transactions is maintained automatically for internal and external audit purposes Copyright © 2006. and new information requirements without involvement from IT Clear. • 18 . regulatory shifts.

All rights reserved. Oracle. industry or geography requirements concurrently in a single instance through configurable rules Streamline accounting processing Provide GL to subledger transaction reconciliation platform by maintaining link between transaction and accounting data Increase transparency and enable full auditability of the transaction and accounting data through the new data model • • • 19 Copyright © 2006. .Key Business Messages • Account for any transaction from any application and centralize accounting policies and processing • Enable compliance with multiple legislative.

All rights reserved.Key Business Messages • Centralized accounting Transaction Systems Management Framework Oracle Receivables • • • • • Oracle Projects rules Predefined Validations Date effective policies Sophisticated error handling Full audit trail Bidirectional drilldowns Information Delivery Oracle Payables Subledger Accounting • Detailed Journal Entries • Configurable Reference Information • Consistent Balances • On-line inquiries Analytics Oracle Payroll Regulatory Reporting 20 Copyright © 2006. . Oracle.

Key Business Messages • Account for any transaction from any application and centralize accounting policies and processing • Enable compliance with multiple legislative. . Oracle. industry or geography requirements concurrently in a single instance through configurable rules Streamline accounting processing Provide GL to subledger transaction reconciliation platform by maintaining link between transaction and accounting data Increase transparency and enable full auditability of the transaction and accounting data through the new data model • • • 21 Copyright © 2006. All rights reserved.

UK. France € 22 Copyright © 2006. Oracle. All rights reserved.Key Business Messages US GAAP US COA US Calendar $ Simultaneous Accounting for All Entities… US GAAP US COA US Calendar £ US GAAP US COA US Calendar …while Ensuring Corporate Visibility & Local Compliance $ French IAS Plan Comptable French Calendar Operations in US. .

All rights reserved. Oracle.Key Business Messages • Account for any transaction from any application and centralize accounting policies and processing • Enable compliance with multiple legislative. . industry or geography requirements concurrently in a single instance through configurable rules Streamlined accounting processing Provide GL to subledger transaction reconciliation platform by maintaining link between transaction and accounting data Increase transparency and enable full auditability of the transaction and accounting data through the new data model • • • 23 Copyright © 2006.

Oracle. .Key Business Messages 24 Copyright © 2006. All rights reserved.

Oracle. industry or geography requirements concurrently in a single instance through configurable rules Streamline accounting processing Provide GL to subledger transaction reconciliation platform by maintaining link between transaction and accounting data Increase transparency and enable full auditability of the transaction and accounting data through the new data model • • • 25 Copyright © 2006. All rights reserved.Key Business Messages • Account for any transaction from any application and centralize accounting policies and processing • Enable compliance with multiple legislative. .

Key Business Messages 26 Copyright © 2006. Oracle. All rights reserved. .

All rights reserved.Impacted Applications • • • • • • • • General Ledger Payables Receivables Projects Assets Costing OPM Public Sector/Federal • • • • Payroll Property Manager Loans Lease Management (Post R12) • Cash Management • Globalizations • Intercompany 27 Copyright © 2006. . Oracle.

.Agenda • Introduction to Subledger Accounting – Background – Key Business Messages – Impacted Applications • Key Concepts and Terminology – – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances. Oracle. and Reports Part 4: Additional Features • • • • 28 Customer Impact / Upgrade Considerations Demo ADS Content Hands-on Copyright © 2006. Inquiries. All rights reserved.

Subledger • A transactional application that generates accounting impact • Used to store detailed information not needed for a general ledger • Subledgers post summarized activity to a general ledger periodically to maintain centralized account balances for the company • Example: The A/R subledger stores receivables by customer. Oracle. All rights reserved. . but this detail is not needed in a general ledger 29 Copyright © 2006.

. All rights reserved.Subledger Journal Entry 30 Copyright © 2006. Oracle.

0000.0000.000.0000.0000.22100.000 11.000 EUR SLA JE #2 Invoice No: 131299 GL Date: 01/27/07 3rd Party: Gibson 101.000.000 6.000 EUR GL JE #1 GL Period: Jan-07 101.000 EUR (New Slide) 31 Copyright © 2006.000.0000. GL Journal Entries SLA JE #1 Invoice No: 136274 GL Date: 01/27/07 3rd Party: Fender 101.000 EUR 6.000 101.000.100.000 EUR 3rd Party: Kramer SLA JE #3 GL Date: 01/27/07 101.720.100.63580.100.000. .000.22100.0000.63580.63580.720.000.000 EUR 2.720.000 101.100.100.000.63580.Subledger vs.000 Invoice No: 116555 3.22100.100.22100.000.000. Oracle.000 EUR 11.0000.0000.000 Batch: AP Invoices 27-Jan-07 2.100.000. All rights reserved.000 101.000 EUR 3.720.000 101.100.000.

SLA – GL Flow GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Create Accounting Transaction (New Slide) 32 Copyright © 2006. Oracle. All rights reserved. .

. Oracle. All rights reserved.SLA – GL Flow with Subledger-Level Secondary Ledger GL Balances Posting GL Journal Entry GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Journal Import SLA Journal Entry Create Accounting Transaction (New Slide) 33 Copyright © 2006.

. All rights reserved. Oracle.SLA – GL Flow with Journal-Level Secondary Ledger GL Balances Posting GL Journal Entry Posting GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Create Accounting Transaction (New Slide) 34 Copyright © 2006.

Oracle. .SLA – GL Flow with Balance-Level Secondary Ledger GL Balances Posting GL Journal Entry GCS GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Create Accounting Transaction (New Slide) 35 Copyright © 2006. All rights reserved.

Oracle. All rights reserved.SLA – GL Flow with Subledger-Level Reporting Currency GL Balances Posting GL Journal Entry GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Journal Import SLA Journal Entry Create Accounting Transaction (New Slide) 36 Copyright © 2006. .

.SLA – GL Flow with Journal-Level Reporting Currency GL Balances Posting GL Journal Entry Posting GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Create Accounting Transaction (New Slide) 37 Copyright © 2006. All rights reserved. Oracle.

. Oracle.SLA – GL Flow with Balance-Level Reporting Currency GL Balances Posting GL Journal Entry Translation GL Balances Journal Import SLA Journal Entry Create Accounting Transaction (New Slide) 38 Copyright © 2006. All rights reserved.

. it processes all events with the appropriate status 39 Copyright © 2006. defines possible actions with accounting significance • Applications must tell SLA when an event has occurred. All rights reserved. • When a user runs the SLA Create Accounting program.Event Model • Event Model: definition of the subledger transaction types and lifecycle – Event Class: classifies transaction types for accounting rule purposes – Event Type: for each transaction type. Oracle.

. Oracle.Event Classes Payables • • • • • Invoice Debit Memo Prepayment Payments Refunds Assets • • • • Additions Adjustments Capitalization Depreciation etc. Receivables • • • • Invoice Deposit Receipt Bill Receivable 40 Copyright © 2006. All rights reserved.

. 41 Copyright © 2006. All rights reserved. Oracle.Event Types AP Invoice Events • • • Validated Adjusted Cancelled FA Depreciation Events • • Depreciation Rollback depreciation AR Receipt Events • • • • • Created Applied Unapplied Updated Reversed etc.

All rights reserved. 42 Copyright © 2006. . GL Date. etc.Sources • Identified by application development teams and made available as data in SLA for: – Deriving accounts – Inclusion in descriptions – Conditial logic: generate a journal line if distribution type = accrual • Mapped to specific SLA accounting attributes such as account. conversion rate type. Oracle. amount.

Oracle.Sources 43 Copyright © 2006. . All rights reserved.

AMOUNT (New Slide) 44 Copyright © 2006. Oracle.AMOUNT AP_INVOICE_LINES_ALL. All rights reserved. .RECEIPT_DATE AP_INVOICE_LINES_ALL.ACCOUNTING_DATE AR_CASH_RECEIPTS_ALL.Accounting Attributes AR_CASH_RECEIPTS_ALL.

. All rights reserved.Accounting Attributes 45 Copyright © 2006. Oracle.

and Reports Part 4: Additional Features • • • • 46 Customer Impact / Upgrade Considerations Demo ADS Content Hands-on Copyright © 2006.Agenda • Introduction to Subledger Accounting – Background – Key Business Messages – Impacted Applications • Key Concepts and Terminology – – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances. Oracle. . Inquiries. All rights reserved.

All rights reserved.Accounting Methods Builder (AMB) Description Account Derivation Rule Line Type 47 Copyright © 2006. Oracle. .

Journal Line Type Line Type 48 Copyright © 2006. All rights reserved. Oracle. .

currency.e. conversion rate information Control behavior for certain features i. multiperiod accounting. line merging and summarization 49 Copyright © 2006. business flows. All rights reserved. . such as amount. Oracle.Journal Line Type • Identify the natural side – Debit – Credit – Gain/Loss • • • • Determine the accounting class Set under which conditions the rule will create a line Define the values needed for entry line generation.

All rights reserved. .Journal Line Type 50 Copyright © 2006. Oracle.

. Oracle. All rights reserved.Account Derivation Rule Account Derivation Rule 51 Copyright © 2006.

. All rights reserved. Oracle.Account Derivation Rule • Determine if rule will be generic or specific for a given chart of accounts • Identify what will be derived – Accounting flexfield – Segment/qualifier value – Value from a value set • Define how the value will be derived – – – – Constant Source value Mapping Set Another account derivation rule • 52 Set under which conditions the rule will derive a value Copyright © 2006.

Oracle. All rights reserved.Account Derivation Rule 53 Copyright © 2006. .

All rights reserved. . Oracle.Account Derivation Rule 54 Copyright © 2006.

.Oracle-Owned vs. Oracle. User-Owned AMB Components Owner: Created by: Updatable? Chart of Accounts? Oracle Oracle Development No Generic User Customer Yes Generic or Specific (New Slide) 55 Copyright © 2006. All rights reserved.

Oracle. .Account Derivation Rules Chart of Accounts: Generic Specific Use Source for entire Account? Yes Yes Yes for Any Segment Use Source for individual Yes for Qualified segment? segments Use Mapping Sets? Use Specific Values? No No Yes Yes (New Slide) 56 Copyright © 2006. All rights reserved.

Journal Entry Description Description 57 Copyright © 2006. . Oracle. All rights reserved.

. Oracle.Journal Entry Description • Define how the description on a journal entry or on each of its lines will be built: – Constant – Source Value • Set under which conditions the rule will be used 58 Copyright © 2006. All rights reserved.

Journal Entry Description 59 Copyright © 2006. All rights reserved. Oracle. .

All rights reserved. . descriptions.Journal Lines Definition • Identify the journal line types. Oracle. and account derivation rules that will be used to create a journal entry for a particular event type Generic or specific for a chart of accounts Define processing options for advanced features such as Multiperiod Accounting and Business Flows • • 60 Copyright © 2006.

Journal Lines Definition 61 Copyright © 2006. Oracle. . All rights reserved.

Oracle.Application Accounting Definition Payables Accrual Application Accounting Definition Invoice Journal Line Definition Journal Line Types Account Derivation Rules Journal Entry Descriptions Sources Transaction Objects 62 Copyright © 2006. All rights reserved. .

Subledger Accounting Method Vision Operations (USA) Ledger Standard/GAAP Accrual Subledger Accounting Method Payables Accrual Application Accounting Definition Invoice Journal Line Definition Journal Line Types Account Derivation Rules Journal Entry Descriptions Sources Transaction Objects 63 Copyright © 2006. Oracle. . All rights reserved.

Inquiries. and Reports Part 4: Additional Features • • • • 64 Customer Impact / Upgrade Considerations Demo ADS Content Hands-on Copyright © 2006. All rights reserved. . Oracle.Agenda • Introduction to Subledger Accounting – Background – Key Business Messages – Impacted Applications • Key Concepts and Terminology – – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances.

Oracle.Subledger Balances • Third Party Control Account Balances – Track balances by account and Customer/Supplier – Statutory reporting requirement in certain countries • Supporting Reference Balances – Store an unlimited number of sources as supporting references on the accounting entries – Optionally track balances by account and supporting reference • Open Account Balances – Track balances by originating transactions and downstream applied transactions • Balances calculated and stored AFTER Accounting Program Completes (New Slide) 65 Copyright © 2006. . All rights reserved.

All rights reserved.Subledger Balances GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Balance Calculation SLA Balances Create Accounting Transaction (New Slide) 66 Copyright © 2006. . Oracle.

Oracle. All rights reserved. In this case: – You cannot enter manual adjustments against these accounts in General Ledger – SLA maintains balances for these accounts by third party • This typically only applies to balance sheet accounts 67 Copyright © 2006. .Third Party Control Accounts • Certain accounts can be identified as control accounts.

. Oracle. All rights reserved.Third Party Control Accounts 68 Copyright © 2006.

In this case: – SLA maintains subledger balances for each supporting reference value and account. • Formerly (in 11i FSAH) known as analytical criteria. 69 Copyright © 2006. In the latter case. Oracle. All rights reserved. subledger balances are reset automatically at fiscal year end. • This can apply to balance sheet as well as income statement accounts.Supporting References • Transaction attributes can be identified as supporting references and stored on journal entries. .

100.000 EUR 3.100. All rights reserved.000 EUR 3rd Party: Fender Product: X8F54 Buyer: Smithers SLA JE #2 Invoice No: 131299 101.100.22100… Invoice No: 116555 101.000 EUR 6.22100… GL Date: 01/27/07 6.Supporting References SLA JE #1 Invoice No: 136274 101.22100… 11.100.100.100.000 EUR 3rd Party: Gibson Product: S7000 Buyer: Siszlak 3rd Party: Kramer SLA JE #3 GL Date: 01/27/07 2.000 EUR 2.63580… 101.100.000 EUR 11.000 EUR (New Slide) 70 Copyright © 2006. Oracle.100.63580… 101.22100… GL Date: 01/27/07 3.63580… 101. .000 EUR Product: 8811920 Buyer: Flanders GL JE #1 Batch: AP Invoices 27-Jan-07 GL Period: Jan-07 101.63580… 101.

Supporting References 71 Copyright © 2006. . All rights reserved. Oracle.

All rights reserved. .Online Inquiries: Events 72 Copyright © 2006. Oracle.

.Online Inquiries: Journal Entries 73 Copyright © 2006. All rights reserved. Oracle.

Online Inquiries: Journal Lines 74 Copyright © 2006. All rights reserved. . Oracle.

New Reports • XML Publisher Reports – Journal Entries: Listing of subledger journal entries – Account Analysis: Listing of beginning and ending balances from General Ledger with merge of subledger and General Ledger journal entries – Open Account Balances (a. Oracle. Trial Balance): Listing of open balances by third party (leverages business flows) – Third Party Balances: Balances by third party control account and third party – Period Close Exceptions Report: Listing of transactions / subledger journal entries that have not yet been posted to General Ledger (New Slide) 75 Copyright © 2006.a. All rights reserved. .k.

. Oracle. All rights reserved.Account Analysis Report (New Slide) 76 Copyright © 2006.

Oracle. . All rights reserved.Journal Entries Report (New Slide) 77 Copyright © 2006.

Open Account Balances Listing (New Slide) 78 Copyright © 2006. All rights reserved. . Oracle.

i. – You must create a report definition in advance (New Slide) 79 Copyright © 2006. .e.SLA Reports Detail • All reports are native to XML Publisher • All extracts are very fat. they include a tremendous amount of data that is not displayed by default but can be added by simple template modifications • Journals and Account Analysis reports include GL journals for non-SLA sources • Open Account Balances Listing is based on Business Flows – It replaces (and genericizes) the AP Trial Balance. All rights reserved. Oracle.

New Reports • XML Publisher Reports – Journal Entries: Listing of subledger journal entries – Account Analysis: Listing of beginning and ending balances from General Ledger with merge of subledger and General Ledger journal entries – Open Account Balances (a. . All rights reserved. Trial Balance): Listing of open balances by third party (leverages business flows) – Third Party Balances: Balances by third party control account and third party – Period Close Exceptions Report: Listing of transactions / subledger journal entries that have not yet been posted to General Ledger 80 Copyright © 2006. Oracle.a.k.

Agenda • Introduction to Subledger Accounting – Background – Key Business Messages – Impacted Applications • Key Concepts and Terminology – – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances. Inquiries. All rights reserved. Oracle. and Reports Part 4: Additional Features • • • • 81 Customer Impact / Upgrade Considerations Demo ADS Content Hands-on Copyright © 2006. .

Dual Posting Ledger: FR Statutory GL Date: 2-Mar-2006 Invoice Internal Identifier: 1001 Invoice Internal Identifier: 1001 Invoice #100 ABC Networks 2 Monitors – Marketing $1000 5 Printers – Marketing $ 500 Freight Tax Total $ 100 $ 110 $1710 Invoice# 100 Ledger: US Corporate Supplier: ABC Networks GL Date: 2-Mar-2006 Invoice# 100 Supplier: ABC Networks DR CR Invoice Line 1 Invoice Line 2 Invoice Line 3 Invoice Line 4 1 Expense 01-EXP-200 2 Freight 01-FR-200 3 Tax 01-TX-200 $1500 $100 $110 4 Liability 01-LIAB-200 $1710 82 Copyright © 2006. Oracle. All rights reserved. .

Oracle.Draft Accounting 83 Copyright © 2006. All rights reserved. .

All rights reserved.Online Accounting 84 Copyright © 2006. Oracle. .

Straight-Through Accounting 85 Copyright © 2006. All rights reserved. Oracle. .

All rights reserved. Oracle.Straight-Through Accounting GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Create Accounting (Final Post) Create Accounting Transaction (New Slide) 86 Copyright © 2006. .

Oracle.Replacement Accounts • When you disable an account in General Ledger. All rights reserved. you can specify a replacement account • SLA and GL will both use the replacement account when generating a journal entry which uses the disabled account • This helps avoid a common source of errors (and Service Requests) 87 Copyright © 2006. .

. All rights reserved. Oracle.Replacement Accounts 88 Copyright © 2006.

Journal Entry Sequencing • Journal entries in GL and SLA can be assigned sequence numbers: – Accounting Sequence: Assigned at time of SLA entry creation or GL posting – Reporting Sequence: Assigned at time of period close • Intended to address statutory requirements in certain countries • This is in addition to Document Sequencing. Oracle. available in 11i 89 Copyright © 2006. . All rights reserved.

Journal Entry Sequencing 90 Copyright © 2006. Oracle. All rights reserved. .

Business Flows 01-EXP-200 DR CR 01-EXP-240 DR CR Invoice #100 $800 Invoice #100 $200 Invoice #100 $1000 01-LIAB-200 DR CR $800 Payment 1101 $400 for Invoice #100 Invoice #100 Payment 1101 for Invoice $100 #100 01-LIAB-240 DR CR $200 Invoice #100 Payment #1101 Invoice #100 $500 01-CASH-200 DR CR $400 Payment 1101 for Invoice #100 01-CASH-240 DR CR $100 Payment 1101 for Invoice #100 91 Copyright © 2006. Oracle. All rights reserved. .

for example to recognize a revenue or expense over time. 92 Copyright © 2006.Multi-period Accounting • You can spread a transaction amount across multiple periods. All rights reserved. Oracle. .

. All rights reserved. 93 Copyright © 2006. Oracle.Accrual Reversals • You can schedule the automatic reversal of accrual entries.

subledger journal entries are identified by a subledger journal source (e.g. Payables) 94 Copyright © 2006. Oracle. similar to GL journal entries • Manual subledger journal entries must be posted to GL like any other subledger journal entry • Unlike GL journal entries. All rights reserved. .Manual Journal Entries • You can enter manual entries in SLA.

All rights reserved. you can specify a replacement account 95 Copyright © 2006. it completes with status Error • The accounting program generates an execution report detailing any errors • To avoid errors. . Oracle.Error Handling • If the accounting program cannot generate any journal entry (for any ledger). keep in mind: – Accounting rules are pre-validated – When you disable an account.

96 Copyright © 2006. . so only enable it when needed. Oracle.Diagnostics Framework • The diagnostics framework captures all sources passed to the accounting program • This allows you to validate whether the Accounting Program is doing the correct thing • There is performance overhead associated with this. All rights reserved.

All rights reserved.Diagnostics Framework Accounting Program Diagnostic Extract Diagnostic tables 97 Copyright © 2006. . Oracle.

. Inquiries. and Reports Part 4: Additional Features • • • • 98 Customer Impact / Upgrade Considerations Demo ADS Content Hands-on Copyright © 2006. All rights reserved.Agenda • Introduction to Subledger Accounting – Background – Key Business Messages – Impacted Applications • Key Concepts and Terminology – – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances. Oracle.

Copyright © 2006. Oracle. accounts are passed from Oracle Applications into SLA as sources • • Users can optionally copy and then modify the seeded SLA rules Users do not need to modify any responsibilities – If using custom menus or responsibilities. seeded rules use these accounts when generating entries. then there will be a discrepancy between the transaction distribution and journal entries. If customer modifies the rules to derive a different account.Customer Impact • Default SLA rules preserve the accounting rules used in 11i – All seeded rules are generic – not chart of accounts specific – In most cases. All rights reserved. 99 . you may need to add SLA forms/reports/programs to the custom responsibilities • Accounts on transaction distributions are now default accounts.

AR. etc. Oracle. Create Accounting program. FA. balance calculation programs. etc.) • Other Oracle Development Teams (AP. • Customer: – – – – (New Slide) 100 .): – – – – Defines event model and sources for their product Inserts code in their product to raise SLA events where needed Maps sources to accounting attributes Defines default Accounting Methods Builder rules Copies and modifies default AMB rules if desired Defines supporting references if desired Enables control accounts if desired Etc. inquiries and reports. All rights reserved. Transfer to GL. Copyright © 2006.Who Does What in Deploying SLA? • SLA Development Team: – Builds SLA infrastructure (Accounting Methods Builder.

inquiries and reports. (New Slide) 101 Copyright © 2006. All rights reserved. .) • Customer – – – – – – – Defines event model and sources for each transaction source Creates code to raise FSAH events where needed Maps sources to accounting attributes Defines Accounting Methods Builder rules Defines supporting references if desired Enables control accounts if desired Etc. Create Accounting program. Transfer to GL. Oracle. balance calculation programs. etc.Who Does What in Deploying FSAH? • SLA Development Team: – Builds FSAH infrastructure (Accounting Methods Builder.

the R12 upgrade migrates at least 6 periods of accounting entries from each application to the SLA data model. • You can modify this if desired. Oracle. . the historical data is preserved. • For prior periods.Upgrade Considerations • By default. You can drill from General Ledger to the historical transactions using standard GL drilldown • You can upgrade prior periods by request during uptime 102 Copyright © 2006. All rights reserved.

Agenda
• Introduction to Subledger Accounting
– Background – Key Business Messages – Impacted Applications

• Key Concepts and Terminology
– – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances, Inquiries, and Reports Part 4: Additional Features

• • • •
103

Customer Impact / Upgrade Considerations Demo ADS Content Hands-on
Copyright © 2006, Oracle. All rights reserved.

Demonstration Flow

• • • • •

Enter an invoice and validate it Create accounting and post to GL View SLA journal entry and T-account Query entry in GL and drill back to SLA entry and to invoice Modify AMB Rules:
– Journal Line Type – Account Derivation Rule – Journal Entry Description

• Construct a rule for Invoice Validation event • Create accounting and post to GL • View SLA journal entry and compare against first entry

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Copyright © 2006, Oracle. All rights reserved.

Agenda
• Introduction to Subledger Accounting
– Background – Key Business Messages – Impacted Applications

• Key Concepts and Terminology
– – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances, Inquiries, and Reports Part 4: Additional Features

• • • •
105

Customer Impact / Upgrade Considerations Demo ADS Content Hands-on
Copyright © 2006, Oracle. All rights reserved.

and Reports Part 4: Additional Features • • • • 106 Customer Impact / Upgrade Considerations Demo ADS Content Hands-on Copyright © 2006. Oracle.Agenda • Introduction to Subledger Accounting – Background – Key Business Messages – Impacted Applications • Key Concepts and Terminology – – – – Part 1: Subledgers and Subledger Journal Entries Part 2: Accounting Methods Builder Part 3: Subledger Balances. All rights reserved. . Inquiries.

All rights reserved. . Oracle.Hands-on Lab Logistics • Use your initials to unique identify your setup to avoid testing collisions 107 Copyright © 2006.

Resources • Oracle University Recorded TOI http://ouweb. .com/ebus/prod_financials_index.us. Oracle. All rights reserved.oracle.html 108 Copyright © 2006.

.QUESTIONS ANSWERS 109 Copyright © 2006. All rights reserved. Oracle.

7.4:393  4579   7.19...0/ .0 79870807.

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