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Subledger Accounting (SLA) Configuration for OPM in R12



Shailendra Naithani, Principal Product Manager(OPM)
Venkat Chukkapalli, Group Manager(OPM Development)
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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
Manufacturing Accounting Controller(MAC) vs. SLA
Setting up SLA for OPM
SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials
SLA Advanced Configuration:
Custom Sources
Q&A

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Accounting representation strongly tied to subledger transactions
Payables
Receivables
General
Ledger
Subledger
Accounting
Subledger
Accounting
Subledger
Accounting
Payables
Receivables
Ledger
Subledger
Accounting
Subledger
Accounting
Subledger
Accounting
General
Ledger
OPM
Subledger Accounting Introduction
What is SLA?
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Subledger Accounting Replaces MAC
OPM Costing engine
generates cost
MAC processes
transactions
and creates journals
Completed material and
resource transactions
OPM Costing with MAC
OPM Costing engine
generates cost
SLA processes these
events to create
journal entries
Completed material and
resource transactions
OPM Costing with SLA
Preprocessor
creates
accounting events
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Key Changes Summary
Process Manufacturing Financials is the Subledger for all OPM
transactions
MAC Obsoletes and replaced by SLA
No need for separate accounting units and accounts
No need for Ledger mappings
Account derivation based on flexible condition based rules
Test Subledger update replaced by Create accounting-Draft
Subledger Update replaced by Create accounting- Final mode
Inventory Close for Process Organizations
Handled by OPM Costing
Preliminary Close is still supported for Process Organizations
Period Ending Balances saved in an OPM Costing Table
(GMF_PERIOD_BALANCES)
Inventory Valuation report available in OPM Costing reports
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Subledger Accounting Replaces MAC
OPM example with Order Management
Shipping
(OMSO)
Shipping Shipping, Internal Order shipments, Customer Returns
MAC-11i Event Subevent
SLA- R12 Event Class Event Type
Shipping
Customer
Returns(RMA)
Internal Order
Shipments
Order
Management
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Event Model - Example
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Subledger Accounting Replaces MAC
Equivalent functionality in SLA
OPM MAC SLA Comments
Event Event Class
Sub-Event Event Type
Account Titles Journal Line Types (JLT)
Accounting Template
Application Accounting Definitions
(AAD)
Account Mapping Attributes (SLA) Sources
Priorities and Account
Mapping
Account Derivation Rules (ADR)
OPM Currency, OPM Ledger,
OPM Exchange Rates
Use GL set ups
Subledger Program Accounting Pre-Processor
Test and Actual Subledger
Accounting
Draft and Final Accounting -
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Event Model- SLA vs MAC
Event Subevent
11i
Event Entity
Event Class
Event Type
R12
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JLTs vs. Account Titles
11i
R12
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SLA ADR vs. MAC Account Mapping
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Subledger Accounting Method Structure
Example- Vision Environment
Primary Ledger(OPM US)
Subledger Accounting Method-Standard Accrual
Application Accounting Definition (AAD for Process
Manufacturing Financials)
Journal Line
Types
Account Derivation
Rules
Journal Entry
Descriptions
Journal Line Definitions
Transaction Objects
Sources
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Subledger Journal Entry
Description
Line Type
Account Derivation Rule
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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
MAC vs. SLA
Setting up SLA for OPM
SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials(Costing and
SLA)
SLA Advanced Configuration:
Custom Sources
Q&A

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SLA Setup
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Setup Account Derivation Rules
Corresponds to Account
Mapping and Priority setup of
11i OPM MAC
Query a seeded rule and
creates custom ADR with
owner as User
Output type can be an entire
accounting flexfield or a
specific segment in the
accounting code combination
Multiple conditions can be
separated by AND/OR logic
Key Takeaways:
Do not modify seeded ADRs.
Create custom ADRs
Define custom ADRs for
rules such as AAC, AAP,
DCOGS depending on your
business needs
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Setup Journal Lines Definition
JLD created with owner
User
JLDs are created for an
Event class and Event
type combination
Multiple journal line
types (JLTs) are
associated to a JLD.
These JLTs correspond to
Account Titles of MAC
ADRs are associated to
the JLTs
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Setup Applications Accounting Definition
AAD created with owner
User
Specific to a particular
application
Contains all event
classes and event types
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Setup Subledger Accounting Method(SLAM)
SLAM created with
owner User
Specific to a ledger
Contains AADs
from all
applications
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Assign SLAM to Primary Ledger
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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
MAC vs. SLA
Setting up SLA for OPM
SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials(Costing and
SLA)
SLA Advanced Configuration:
Custom Sources
Q&A

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Perform a Miscellaneous Transaction
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Run OPM accounting preprocessor
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Run Create Accounting
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Output of create accounting- INV and IVA accounts
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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
MAC vs. SLA
Setting up SLA for OPM
SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials(Costing and
SLA)
SLA Advanced Configuration:
Custom Sources
Q&A

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OPM with SLA - The Process

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Run the preliminary inventory close
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Run Preliminary cost update process

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Run OPM Accounting Pre-processor

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Run Detailed Subledger Report
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Review the accounting entries
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Inventory Close- Final
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Final Cost Update
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Create accounting final mode
On Submitting
program, the following
requests will be
invoked:
Create Accounting
Accounting Program
Journal Import and
Subledger Accounting
Balances Update
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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview
MAC vs. SLA
Setting up SLA for OPM
SLA Use Case: Misc Receipt Accounting
OPM Period End Closing using OPM Financials(Costing and
SLA)
SLA Advanced Configuration:
Custom Sources
Q&A

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Custom Sources
Example1
Extend the list of
sources available to
application accounting
definitions
Used to derive accounts
based on non-standard
sources
PL/SQL function used
to derive the source
Return value can be a
string, an accounting
flexfield or a value set
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Custom Sources
Example2
Business Case:
Customer needs to capture purchasing details(PO Number, Line Number,
Supplier Name, Item Number, Item Description) on the journal entry descriptions
for Receive to Inspection accounting events.
Solution Approach using custom sources:

1. Create PL/SQL Functions for
Item Number, Item Description etc
create or replace FUNCTION GET_ITEM_NAME(p_inventory_item_id IN NUMBER ,
p_organization_id IN NUMBER)
return varchar2 IS
CURSOR c_item_name IS
select concatenated_segments from mtl_system_items_kfv where
inventory_item_id = p_inventory_item_id and organization_id = p_organization_id;
l_item_name VARCHAR2(100) :=' ';
BEGIN
OPEN c_item_name;
FETCH c_item_name INTO l_item_name;
CLOSE c_item_name;
RETURN l_item_name;
END GET_ITEM_NAME;
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Custom Sources
Example2.continued
2. Create Custom Sources for PO Number,
Line Number, Supplier Name, Item Number,
Item Description
3. Create Journal Entry Description using
custom sources

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Custom Sources
Example2.continued
4. Assign Journal Entry Description to the
Receive to inspection Event type

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Custom Sources
Example2.continued
5. Run the Create Accounting Procedure

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Inventory valuation accounts using Subinventory
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Changes Summing up
NO LOSS of functionality by moving to SLA model
A new sub-menu created under Cost Management for SLA
forms.
Fiscal Policy and Event Fiscal Policy screens retained with minor
modifications. Most of the fields will be read-only.
OPM Event model mapped to SLA event model.
Account Titles replaced by Journal Line Types (JLT) in SLA.
Account Mapping functionality replaced by Accounting Definition
Rules (ADRs) in SLA.
Test Account Mapping replaced with TAB Test Accounting
Builder.
Test Sub Ledger process replaced with Draft Sub Ledger
Accounting in SLA
Subledger Detail Report modified to go against SLA repository.
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Shailendra.naithani@oracle.com
Venkat.chukkapalli@oracle.com
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