CollaborativeSIG:

SLAAccountinginR12:Procure
toPayProcess
MohanIyer
PrincipalConsultant
FSCP Solutions Inc
mohan@fscpsolutions.com
September22nd,2011

 Agenda
AboutthePresenter
ProcuretoPayOverview
SLAOverview
Accountingtouchpoints
Accruals
BusinessCasesforSLAchanges
ReportingusingSLAdata
OthercapabilitiesofSLA
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AboutthePresenter
MohanIyer

PrincipalConsultant@FSCP Solutions Inc.

Over20yearsexperiencewithOracleApplications
FunctionalconsultantinFinanceapplications
MultiplefullcycleR12implementations
CurrentlyworkingonR12.1.3
FoundingBoardMemberofNorCalOAUGandGLSIG
BoardMemberonMNSIG

ProcuretoPayOverview
A
Start
Analyzeto
Agreement
Requisition
to
Receipt
Inspection
to
Disposition

SupplierReturn
toReplacement
Material
Passes
Inspection

Y
SupplierInvoice
toPayment

N
Supplierwill
provide
replacement?

Y
A

SupplierReturn
toDebit

Receiptto
Asset
Subledger
toPost
End

SubLedgerAccountingOverview
SLAisarulesenginethatcreatesaccounting
foralltransactionsintoGL
Thisallowsforthedisconnectbetweena
transactionanditsaccounting
Thisalsoallowsforasingleprocesstocreate
accountingentriesintoGL
ThereisalayerbetweenGLandthe
subledgers(AP,AR)
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SubLedgerAccountingOverview
Oracle Subledger
Accounting:
Oracle Subledger Accounting is a rulesbased engine for generating accounting
entries based on source transactions from
ALL Oracle Applications.

SubLedgerAccountingOverview
GL Balances
Posting
GL Journal Entry
Journal Import
SLA Journal Entry

Create Accounting
Transaction
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SubLedgerAccountingOverview
Ledger
Subledger Accounting Method (SLAM)
Application Accounting Definition (AAD)
Journal Line Definition (JLD)

Journal Line
Types (JLT)

Account Derivation
Rules (ADR)
Mapping Sets

Journal Entry
Descriptions (JED)

Sources
Transaction Objects

SubLedgerAccountingOverview

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11

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CaseforSLAchanges
Whywouldyouchangethestandardrules
ThestandardrulesforAPseemedtobeOKto
takewhatyouenteredintheDistributionLine.

Butinsomecasesthatmaynotbetrue
AsanexamplelookatAssets
Thereisadefaultthatcreatessomeaccounts
basedonacombinationofsegments
DistributionLine,CategoryandBook
Level(Default)
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BusinessCaseforSLAchanges
AssetAccounting
SourceCostCentersegmentfromnonstandard
source perstandardfunctionalityinFixedAsset

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BusinessCaseforSLAchanges
AssetsAccounting
Standard
SLAwillbookallassetrelatedjournalswiththe
followingrules:
BalancingSegmentQualifier fromtheDistribution_id
(Assignments)
NaturalAccountSegmentQualifier retrievedfrom
oneofthreeplacesAssignments,BooksorCategories
Allothersegments fromtheDefault_CCIDonthe
booksform
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BusinessCaseforSLAchanges
AssetsAccounting
BusinessCase:
Itisrequiredtobookjournalsatanotherlevelin
additiontoBalancingandNaturalAccount.For
exampleCostCenter.
RequirementtobookallP&LaccountsattheCost
Centerlevel

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SLAchanges
AssetsAccounting
Changestomakeconfigurationchangesto
achievetherequirement
AccountDerivationRule(OneforCostCenterDerivationisnow

standard)
CreateCustomJournalLineDefinitionandassigntheAccount

DerivationRule
LinkCustomJournalLineDefinitiontoApplicationAccounting

Definition
LinkApplicationAccountingDefinitiontoSubledgerAccounting

Method
LinkSubledgerAccountingMethodtoaLedger

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SLAchanges

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AccountingTouchpoints
ReceiveProductsandServices
Expenses
Receive:DRReceiving/CRExpenseA/PAccrual
Deliver:DRExpense/CRReceiving

ProjectExpenses
Receive:DRReceiving/CRExpenseA/PAccrual
Deliver:DRProjectExpense/CRReceiving

Inventory&OutsideProcessing
Receive:DRReceiving/CRInventoryA/PAccrual
Deliver:DRInventoryorWIP/CRReceiving
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AccountingTouchpoints
ReverseExpenseAccruals
Receive:DRExpenseA/PAccrual/CRExpense

InvoiceProductsandServices
Expenses
Match:DRExpense/CRAPLiability

Inventory&OutsideProcessing
Match:DRInventoryA/PAccrual/CRAPLiability

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AccrualAccounting
AccrualAccountingregistersaliabilityonyourbalancesheet
ifyouhavematerialthathasbeenreceivedbutnotinvoices
Therearetwotypesofaccruals
HardAccruals accrualsformanufacturingitemsreceived
intoInventory
PeriodEndAccruals forexpenseitemsthathavebeen
received
PeriodEndAccrualsdifferfromhardaccrualsduetothefact
thattheyarereversedatthebeginningofthenextperiod
HardAccrualsareautomaticallygeneratedwhenreceivingis
done
PeriodEndAccrualsneedaprocesstoberunaspartof
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periodendprocessing

AccrualsinR12
AccrualsinR12areaccountedaspartoftheCost
Managementaccountingevents
TheprocessesandreportsareownedbyCost
ManagementandSourceisCostManagement
TheperiodendprocessforExpenseAccrualsnow
createstwojournalbatches
Oneforthecurrentperiodaccrual
Anotherforthenextperiodreversal

Therehavebeenissueswiththereversalinearlier
releaseofR12 priorto12.0.6
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ReportingusingSLAdatatables
ManyreportsnowaregeneratedfromtheSLA
tables,givenbelowareafew
AccountAnalysis(allmodules)
AccountsPayableTrialBalance
AccountingReportwhilerunningCreate
Accounting

Allaccountquerycapabilityisnowdrilldown
throughtheSLA
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SLA ReportingfromtheSLAlayer

24

SLA ReportingfromtheSLAlayer

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OthercapabilitiesofSLA
SLATransactionsandBalances

SLAmaintainsitsownJournalEntriesandBalancesasamiddlelevel
tomaintainthesedatasetsbeforetheyflowtoGL
ThirdPartyControlAccountBalances

SupportingReferenceBalances

Storeanunlimitednumberofsourcesassupportingreferenceson the
accountingentries
Optionallytrackbalancesbyaccountandsupportingreference

OpenAccountBalances

TrackbalancesbyaccountandCustomer/Supplier
Statutoryreportingrequirementincertaincountries

Trackbalancesbyoriginatingtransactionsanddownstreamappliedtransactions

BalancescalculatedandstoredAFTERAccountingProgram
Completes
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OthercapabilitiesofSLA
GL Balances
Posting
GL Journal Entry
Journal Import
SLA Journal Entry

Balance
Calculation

SLA Balances
(Supporting References &
Open Account - AP TB)

Create Accounting
Transaction
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SLASupportingReferences
Supportingreferencesmaybeusedasfollows
Provideadditionalbusinessinformationforbalanceson
transactions
Toestablishasubledgerbalanceforaparticularsource
valueorcombinationofsourcevalues
Forfinancialandmanagerialanalysis
Balancescanbemaintained
Never nobalancesmaintainedonlyusedfortracking
purposes
BasedonAccount basedontheaccountthatissourceof
thissupportingreference
Always continouslymaintainsthebalanceforthissource

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SLASupportingReferences

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Gotchas

MakingtheupdatetoeveryEvent/EventTypecombination

Copyingtheseededdefinitionpriortomakingchanges

CoordinatingallSLAchangesintheSubledger Accounting
Methods

Forproductlinechangesyouusuallyhavetochangeover20
eventsorjournallineassignments verytimeconsuming
anderrorprone

Test,test,test

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