SLA Part 1 - Why SLA

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SLA Part 1 - Why SLA

Monday, 29 November 2010 00:00 Anil Passi

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In these article, we will explore the very basics of SLA and why it exists. Firstly, what exactly does SLA do? SLA is a module which now sits between the SubLedgers like AP/AR etc and the General Ledger. Have a look at this diagram below. As you will notice, SLA can act as a mediator between the subledgers and Oracle General Ledger.

Before we progress, some terminologies of R12 must be revisited. In 11i we had set of books, and in R12 we call them Ledgers. Likewise in R12 we also have secondary ledgers and reporting ledgers. Hence from 11i perspective think of Ledger as Set of Books. As for Subledger, a Subledger is nothing but a module like AP/AR/PO/Inventory etc. In the diagram below, the second scenario is explained whereby let's say that payables module generates a charge account segment combination for an invoice distribution line as A.B.C.D. In such

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2013/4/9 20:44

SLA Part 1 - Why SLA

http://apps2fusion.com/apps-training/r12-functional-docu...

Features R12 - Netting Functionality Step By Step Oracle Apps Functional Overview Oracle Payables - Step by Step functional in 11i PART 1 Oracle Payables - Step by Step functional in 11i PART 2 Oracle Payables - Step by Step functional in 11i PART 3 SLA Part 11 - Steps to Customize of SLA Subledger Accounting Control or Third Party Accounts in R12 General Ledger E Business Tax R12 EBiz Tax Implementation Steps EBiz Tax - Part 1 SLA Part 3 - Journal Line Definition SLA Part 2 Entities Event Class - Event Types Oracle Payables - Step by Step functional in 11i PART 4 SLA - Account Analysis Report - Out of memory error Generate BACS File in R12 Payables for Payment run PO to AP to Fixed Assets Order to Cash - Technical Flow in R12 Steps for Closing Period in R12 Financials - Part 1 - USE FIREFOX Steps for Closing Period in R12 Financials - Part 2 Global Consolidation R12 SLA Part 4 - Application Accounting Definitions SLA Part 5 - Subledger Accounting Methods SLA Part 6 - Overall SLA

case, if SLA module is not customized, then the very same A.B.C.D combination will be passed to Oracle General Ledger via the SLA. And before you wonder... Yes, SLA module has its own set of tables to capture these accounting entries. Please see the image below.

In the image above, SLA passes to GL whatever value is fed by the Subledger, in this case A.B.C.D

There are cases where SLA module can alter or massage the CCID or code combination that is generated in Subledger before transferring the same to Oracle General Leger. This scenario is explained whereby let's say that payables module generates a charge account segment combination for an invoice distribution line as A.B.C.D. In such case, if SLA module is customized, then the A.B.C.D code combination of Payables can be passed to Oracle General Ledger via the SLA as A.B1.C1.D instead.

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SLA Part 1 - Why SLA

http://apps2fusion.com/apps-training/r12-functional-docu...

Diagram SLA Part 7 - Creating Journal Line Definition Financials Notes R12 - Create Banks and Bank Accounts in Oracle Apps R12 SLA Part 8 - Creating Application Accounting Definition - AAD SLA Part 9 - Create Subledger Accounting Method SLA Part 10 - Testing and explaination of SLA Config The most important application however of the SLA is its ability to create shadow journals that contain different values or differing credit/debit entries for the transactions. This is the main reason why SLA module was invented/designed. Let us take an example. For company "Apps2Fusion UK", it might have operations in France, which is "Apps2Fusion France". With UK being the parent company, the French company has to do accounting journals in formats that can be reported as per French legislation and also as per UK legislation. For example, in France an inventory item is accounted as expense, whereas in UK the inventory item is accounted as an asset. In the example below, A.B.C.D is never passed to the GL. Instead to GL A.B1.C1.D is passed to the Primary Ledger FRANCE and A2.B2.C.D is passed to the Secondary Ledger UK. The picture below shows the role that SLA plays in such scenario.

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Therefore in this article you have learnt the different usages of Subledger accounting.

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Thanks for providing such a good stuff ...Really helpful for enhancing knowledge of new bies in oracle apps R12 world
written by shibu , November 29, 2010

Hi Anil, I have got an assignment in OAF of R12 cash management module. My task is of customization Bank Account Transfer Page...could you plz guide how SLA is connected to Cash management & what should be my approach for extension of "Bank Account Transfer" Page as its a seeded page i am trying to run this page in jdev but till now no success because controller class throws compilation error in jdev....plz helpp i am working without any input with strict deadlines..
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written by Anil Passi , November 30, 2010

Hi Shibu, Extension of Bank Account Transfer page has nothing to do with SLA. Please pencil your requirement, and so that I am in a position to advice. Thanks, Anil Passi
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SLA Part 1 - Why SLA

http://apps2fusion.com/apps-training/r12-functional-docu...

Great Stuff
written by Divya , December 03, 2010

The articles on SLA are really good. You just rock, Anil !!!
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Manager
written by Kavi Prabhakar , January 14, 2011

Thanks for detailing the SLA process. You made it very easy to understand.
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written by Nash , April 07, 2011

Cracking Article ... Like always

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Thanks for sharing

written by KRP , September 09, 2011

Excellent Explanation!! thanks

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Consultant
written by Jon Carr , November 11, 2011

Very useful, clear explanations. Thanks.

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Querry Regarding Accounting in AGIS

written by Satamanyu , March 01, 2012

HI Anil, Thanks a lot lot for this great article. Its very useful to have the understanding of SLA. Do we have the ability to Split between actual and Accrual w.r.t. advanced intercompany?
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written by Rajc , May 02, 2012

Very good article, keep up the good work. Thanks, Raj

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hi
written by karthikeyan palanisamy , October 25, 2012

Great very good article. I was breaking my head to learn but now i find it easy......

Thanks P.Karthikeyan
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2013/4/9 20:44

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http://apps2fusion.com/apps-training/r12-functional-docu...

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Last Updated ( Sunday, 28 November 2010 08:40 )

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