Subledger Accounting (SLA) Configuration for OPM in R12
Shailendra Naithani, Principal Product Manager(OPM) Venkat Chukkapalli, Group Manager(OPM Development) 2 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
3 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? 4 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 5 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 6 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 7 Event Model - Example 8 9 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 - 10 Event Model- SLA vs MAC Event Subevent 11i Event Entity Event Class Event Type R12 11 JLTs vs. Account Titles 11i R12 12 SLA ADR vs. MAC Account Mapping 13 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 14 Subledger Journal Entry Description Line Type Account Derivation Rule 15 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
16 SLA Setup 17 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 18 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 19 Setup Applications Accounting Definition AAD created with owner User Specific to a particular application Contains all event classes and event types 20 Setup Subledger Accounting Method(SLAM) SLAM created with owner User Specific to a ledger Contains AADs from all applications 21 Assign SLAM to Primary Ledger 22 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
23 Perform a Miscellaneous Transaction 24 Run OPM accounting preprocessor 25 Run Create Accounting 26 Output of create accounting- INV and IVA accounts 27 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
28 OPM with SLA - The Process
29 Run the preliminary inventory close 30 Run Preliminary cost update process
31 Run OPM Accounting Pre-processor
32 Run Detailed Subledger Report 33 Review the accounting entries 34 Inventory Close- Final 35 Final Cost Update 36 Create accounting final mode On Submitting program, the following requests will be invoked: Create Accounting Accounting Program Journal Import and Subledger Accounting Balances Update 37 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
38 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 39 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; 40 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
41 Custom Sources Example2.continued 4. Assign Journal Entry Description to the Receive to inspection Event type
42 Custom Sources Example2.continued 5. Run the Create Accounting Procedure
43 Inventory valuation accounts using Subinventory 44 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. 45 Shailendra.naithani@oracle.com Venkat.chukkapalli@oracle.com 46