FA_SLA Customization White Paper

ORACLE APPLICATIONS

White Paper – Subledger Accounting Setup for Oracle Assets

Written by Oracle Support Services

Author: Harriet Reissenberger

Date Created: 04.04.2008

Date Changed: 25.09.2008

Version: 1.1

Subledger Accounting Setup for Oracle Assets ii FA_SLA.doc Oracle/Client Confidential - For internal use only

Content

Introduction.............................................................................................................................................................................4 Goal ......................................................................................................................................................................................4

Definitions................................................................................................................................................................................5 Accounting Methods Builder ............................................................................................................................................5 Account Derivation Rule ..................................................................................................................................................5 Event .................................................................................................................................................................................5 Application Accounting Definition...................................................................................................................................5 Subledger Accounting Method .........................................................................................................................................5 Ledger ...............................................................................................................................................................................5

General Overview of the setup steps .....................................................................................................................................6 What are the setup steps that need to be made in FA? ......................................................................................................6

Subledger Accounting Setup..................................................................................................................................................8 What does the default setup look like that Oracle Assets uses to generate accounting?...................................................8

Upgrading from Release 11/11i Workflow .........................................................................................................................10

Subledger Accounting Customization – Account Derivation Rules .................................................................................11 Case 1: Cost Center value from Expense Account (also seeded as: FA_EXPENSE_ACCT_COST_CTR_SEG).........11 Case 2: 'Unqualified segment' value from the code combination in the Define Categories form (Account CCID) .......12 Case 3: A constant value for an 'Unqualified segment' ...................................................................................................13 Case 4: Cost Center value from several different locations depending on the Retirement Type ....................................15 Case 5: Segment Value derived from a Descriptive Flexfield Value..............................................................................17 Case 6: Natural Account taken from the category for tax books ....................................................................................19

Subledger Accounting Customization – Journal Line Definitions ...................................................................................21 How are the custom ADRs now linked to the JLDs?......................................................................................................21 How to set up a Journal Line Definition (JLD)?.............................................................................................................26

Subledger Accounting Customization – Application Accounting Definition...................................................................27 How are the custom JLDs now linked to the AAD? .......................................................................................................27 How to set up an Application Accounting Definition (AAD)?.......................................................................................28

Subledger Accounting Customization – Subledger Accounting Method .........................................................................29 How is the custom AAD now linked to the SLAM?.......................................................................................................29 How to set up the Subledger Accounting Method(SLAM)?...........................................................................................30

Subledger Accounting Customization – Link with the Ledger.........................................................................................31 How to link the Subledger Accounting Method(SLAM) with the Ledger? ....................................................................31

Intracompany Balancing Rules ...........................................................................................................................................33 How to set up the Intracompany Balancing Rules? ........................................................................................................33

GL Reconciliation .................................................................................................................................................................36 How to set up GL Reconciliation for FA accounts with SLA?.......................................................................................36

Testing the Definition ...........................................................................................................................................................41

Appendices.............................................................................................................................................................................43 List of seeded Account Derivation Rules ..................................................................................................................43 List of seeded Sources ................................................................................................................................................45 List of seeded Event Types ........................................................................................................................................53

Subledger Accounting Setup for Oracle Assets iii FA_SLA.doc Oracle/Client Confidential - For internal use only

Document Control

Change Record

Date Author Version Change Reference

04-Apr-08

Harriet Reissenberger A First draft

20-May-08 Harriet Reissenberger 1.0 First published version

25-Sep-08 Harriet Reissenberger 1.1 Added second way for Case 5: Segment Value derived from a Descriptive

Flexfield Value

Contributors

Name Organization Title

Reviewers

Name Role Title Date Reviewed

Bradford Ridgway Senior Manager, Assets Development

Louise Gareau Senior Principal Support Engineer

Document References

Document Title Type of Reference Document Location

Oracle Assets User Guide Release 12, Part No. B31177-01

Reference Manual Metalink

Oracle Subledger Accounting Implementation

Guide, Part No. B13984-02

Reference Manual Metalink

Subledger Accounting Setup for Oracle Assets 4

FA_SLA.doc Oracle/Client Confidential - For internal use only

Introduction

Goal

THE PURPOSE OF THIS DOCUMENT IS TO PROVIDE AN OVERVIEW on possible Subledger Accounting setup for Fixed Assets. We will discuss various scenarios and explain the necessary setup steps.

What is Subledger Accounting (SLA)?

Subledger Accounting (SLA) is a rule-based accounting engine that centralizes accounting for Oracle E-Business Suite products in R12. Subledger Accounting is not a separate product in itself, but is Oracle’s engine catering to the accounting needs of both Oracle and external modules. Together with the new ledger support, Subledger Accounting enables support of multiple accounting requirements concurrently in a single instance. Different accounting regulations can be satisfied by maintaining and applying different sets of rules to different sets of transactions, or accounting for the same transaction with multiple methods. Subledger accounting options define how journal entries are generated from subledger transactions at the subledger application level. Note: SLA replaces the different accounting engines available in 11i e.g., the AP accounting engine, FA accounting engine, Global Accounting Engine (AX), and so forth.



Definitions

Accounting Methods Builder

The Accounting Methods Builder (AMB) comprises of three elements: The Journal Line Type (JLT), the Journal Entry Description (JED) and the Account Derivation Rule (ADR). It allows a user to create and modify journal entry setups determining the Debit and Credit

Account Derivation Rule

These are the rules that determine from where an accounting flexfield value is taken or how it is derived. Oracle does provide seeded rules, however one can create one’s own rules to derive accounting flexfield segment values.

Event

Events are used to process transactions, i.e. the transaction drives the accounting event. E.g. the SLA setup for the transaction Addition, e.g. is built under the event Addition and the event CIP Addition.

Application Accounting Definition The components created under the Accounting Methods Builder are now combined under the Application Accounting Definition to form the complete set of rules per event for the subledger. This summary of the set of rules needs to be validated before it can be linked to the Subledger Accounting Method for the subledger. The Application Accounting Definition can be assigned only to a Subledger Accounting Method with the same chart of accounts.

Subledger Accounting Method The Subledger Accounting Method is the list of Application Accounting Definitions per subledger that can then be linked to the ledger. Only one Application Accounting Definition can be assigned to a Subledger Accounting Method with the same chart of accounts.

Ledger The Ledger is what used to be called the General Ledger Set of Books. It consists of the currency, chart of accounts, accounting calendar, ledger processing options and subledger accounting method.



General Overview of the setup steps

What are the setup steps that need to be made in FA?

The very first step is to design the setup. This is best done via a spreadsheet listing the accounting flexfield segment in columns and the different transactions and the accounts needed for them in rows. Then one would determine for each segment for each account needed when creating journals for a transaction where the segment values should be taken or derived from. This task should be performed before the first asset is added to the system. The journal schema per transaction is pretty much fixed in Fixed Assets. So even though one can alter the Journal Entry Descriptions (JEDs) and also create Journal Line Types (JLTs) and this may be necessary for other subledgers, in Fixed Assets we do start with the Account Derivation Rules (ADRs). We will also concentrate on them throughout this document. Once the necessary Account Derivation Rules are set up, then the Journal Line Definitions need to be set up, determining which Account Derivation Rule is needed per account for an event. Note: It can be a mixture of seeded Account Derivation Rules as well as newly created ones and not every event needs to be customized if the seeded setup covers the requirement. When the Journal Line Definitions are set up, then one needs to set up the Application Accounting Definition (AAD), which needs to be validated when the setup is completed. The Application Accounting Definition is then linked with the Subledger Accounting Method (SLAM), which in turn is then assigned to the Ledger. Note: The Subledger Accounting setup is valid for ALL depreciation books belonging to the ledger that is linked.

The setup approach is ‘from the bottom up’, i.e. starting with the lowest level element until the elements are linked together validated and assigned to a ledger. The flow of the setup steps can be seen in the diagram below:



ADRs

JEDs

JLTs

JLDs

AAD

SLAM

LEDGER



Subledger Accounting Setup

What does the default setup look like that Oracle Assets uses to generate accounting?

Oracle does provide a default setup for subledger accounting. If that default setup satisfies the requirements, then no further setup needs to be made. However, if some changes have to be made, then it should occur before an asset is entered in the system as unlike workflow, changes take effect as soon as they are validated and therefore no ‘dummy’ transaction can be performed to move the balances to the new accounts. This would have to be done via a manual adjusting journal in GL.

The seeded SLA setup for Oracle Assets The seeded SLA setup for Oracle Assets takes the balancing segment value from the Expense Account combination entered in the Assignments window of the Asset Workbench, the natural account segment value from the Define Categories or Book Controls form – depending on the account – and all other segment values from the Account Generator Default combination in the Book Controls form under the Natural Accounts tab.



Example How does the Depreciation Reserve Account get derived via the seeded Subledger Accounting setup for an Accounting Flexfield consisting of the following 3 segments: Company-Cost Center-Account : Depreciation Book Default combination 01-000-1000 Category – Depreciation Reserve Account 01-100-2000 Expense Account- Assignment Window 02-200-3000 Company Company Segment from Expense Account - Assignment Form 02 Cost Center Cost Center from Book Controls Account Generator Default Account 000 Account Account value from Account Segment – defined in the Category form 2000 The Depreciation Reserve Account will be created with: 02-000-2000.



Upgrading from Release 11/11i Workflow

One can use the Oracle Workflow definition used in Release 11 or 11i, however, Development does not recommend it for 2 reasons: a. There could be performance issues with the Create Accounting Program and b. The debugging in case Create Accounting fails is by far more difficult. In order to use the FA Account Generator workflow instead of SLA, the profile option FA: Use Workflow Account Generation must be set to Yes. Please make sure that you have applied the latest patches if you decide to continue to use workflow. Please contact Oracle Support or check the latest patchset information in the Metalink Knowledge Browser for advice on the latest relevant patches. From the Manual, Oracle Assets User Guide Release 12, page 6-2:

Note: If you are upgrading from Release 11i and you have asset books

set up, then the upgrade program automatically sets the value of the

FA: Use Workflow Account Generation profile option to Yes, meaning

the account generation rules set up in Oracle Workflow will be used.

You should analyze your current customizations in the Oracle

Workflow setup. If you need to use the rules in Oracle Workflow for

generating code combinations for asset transactions, do one of the

following:

• Re-implement the custom rules in Oracle Subledger Accounting.

• Use the Workflow rules as they are, using the default value upon upgrade.



Subledger Accounting Customization – Account Derivation Rules

The way the SLA setup forms have been designed make alterations easy as one can query a seeded definition and copy it and then make the changes in the copy. The only form where that may not always be the quickest way is the Account Derivation Rules form.

We will not discuss the use of Mapping Sets here as there is currently no Lookup Type seeded for application Assets. We will also not look into custom sources.

We are, however, discussing six common setup cases below.

Note: Make sure that a clear and logical syntax for the naming convention is used so that one can quickly see the purpose of a definition.

Case 1: Cost Center value from Expense Account (also seeded as: FA_EXPENSE_ACCT_COST_CTR_SEG)

This has by now been seeded as the rule code FA_EXPENSE_ACCT_COST_CTR_SEG, description Depreciation Expense Account for Cost Center Segment but in case one is using the seeded version older then FAXLAAAD.ldt 120.19.12000000.4 / 120.22 or higher, one can easily set it up as follows:



1. Navigation: Setup > Financials > Subledger Accounting > Accounting Methods Builder > Journal Entry Setups > Account Derivation Rules 2. Give your ADR rule code, name, and description a meaningful name. 3. The accounting flexfield needs to be picked if the ADR is to be on a rule for segments that do not have a flexfield qualifier and if no constant value is to be used. As the cost center segment does have a qualifier and we do not want to use a constant value here, it is not necessary to assign an accounting flexfield to the rule. The output type is therefore segment and the segment chosen is the Cost Center Segment. The Expense Account Code Combination Identifier is the complete account code combination for the expense account in the Assignments window of the Asset Workbench/Prepare Mass Additions form. 4. In the Priorities zone of the form assign a priority. The Value Type is Source and the Value is Expense Account Code Combination Identifier for the Segment Cost Center Segment. 5. No Condition is necessary here. 6. Save. This ADR is later used when doing the Journal Line definitions.

Case 2: 'Unqualified segment' value from the code combination in the Define Categories form (Account CCID)



1. Navigation: Setup > Financials > Subledger Accounting > Accounting Methods Builder > Journal Entry Setups > Account Derivation Rules

2. Give your ADR rule code, name, and description a meaningful name. 3. The accounting flexfield needs to be picked if the ADR is to be on a rule for segments that do not have a flexfield qualifier and if no constant value is to be used. As the product segment does not have a qualifier, it is necessary to assign an accounting flexfield to the rule. The output type is segment and the segment chosen is the Product Segment. This segment will only be available in the pick list if the appropriate accounting flexfield is chosen. 4. In the Priorities zone of the form assign a priority. The Value Type is Source and the Value is Reserve Account Code Combination CCID for the Segment Product. The Reserve Account Code Combination CCID is the complete account code combination for the reserve account in the Define Categories form. 5. No Condition is necessary here. 6. Save. This ADR is later used when doing the Journal Line definitions.

Case 3: A constant value for an 'Unqualified segment'




2. Give your ADR rule code, name, and description a meaningful name. 3. The accounting flexfield needs to be picked if the ADR is to be on a rule for segments that do not have a flexfield qualifier or if a constant value is to be chosen. As the product segment does not have a qualifier and we do intend to use a constant value, it is necessary to assign an accounting flexfield to the rule. The output type is segment and the segment chosen is the Product Segment. This segment will only be available in the pick list if the appropriate accounting flexfield is chosen. 4. In the Priorities zone of the form assign a priority. The Value Type is Constant and the Value is 150, which is a valid segment value for this segment. 5. No Condition is necessary here. 6. Save. This ADR is later used when doing the Journal Line definitions.



Case 4: Cost Center value from several different locations depending on the Retirement Type

We will now also introduce conditions. With this example we want to show not only the conditions, but also the various ‘locations’ a segment value can be taken/derived from. We will use a constant value, the expense account from the Assignments window and also from the Define Categories from as well as the Default combination from the Book Controls window. 1. Navigation: Setup > Financials > Subledger Accounting > Accounting Methods Builder > Journal Entry Setups > Account Derivation Rules

2. Give your ADR rule code, name, and description a meaningful name. 3. The accounting flexfield needs to be picked if the ADR is to be on a rule for segments that do not have a flexfield qualifier or if a constant value is to be chosen. As the Cost Center segment does have a qualifier but we do intend to use a constant value, it is not necessary to assign an accounting flexfield to the rule. The output type is segment and the segment chosen is the Cost Center Segment. This segment will only be available in the pick list if the appropriate accounting flexfield is chosen. 4. In the Priorities zone of the form assign a priority. The Value Type is Constant and the Value is 402, which is a valid segment value for this segment.



5. In the Condition window assign a priority. Pick the source Retirement Type, the operator =, the value type Constant and the value THEFT. The system will set the quotes when saving the record. 6. In the Priorities zone of the form assign a priority. The Value Type is Source and the Value is Expense Account Code Combination Identifier for the Segment Cost Center Segment. The Expense Account Code Combination Identifier is the complete account code combination for the expense account in the Assignments window of the Asset Workbench/Prepare Mass Additions form. 7. In the Condition window assign a priority. Pick the source Retirement Type, the operator =, the value type Constant and the value CASUALTY. The system will set the quotes when saving the record. 8. In the Priorities zone of the form assign a priority. The Value Type is Source and the Value is Default Code Combination Identifier for the Segment Cost Center Segment. The Default Code Combination Identifier is the complete account code combination for the Account Generator Default account in the Book Controls form. 9. In the Condition window assign a priority. Pick the source Retirement Type, the operator =, the value type Constant and the value EXTRAORDINARY. The system will set the quotes when saving the record. 10. In the Priorities zone of the form assign a priority. The Value Type is Source and the Value is Depreciation Expense Account Ccid for the Segment Cost Center Segment. The Depreciation Expense Account Ccid is the complete account code combination for the Expense account in the Define Categories form. 11. In the Condition window assign a priority. Pick the source Retirement Type, the operator =, the value type Constant and the value SALE. The system will set the quotes when saving the record. 12. Save. This ADR is later used when doing the Journal Line definitions.



Case 5: Segment Value derived from a Descriptive Flexfield Value

There are 2 ways of setting up an Account Derivation Rule to derive an accounting flexfield value from a descriptive flexfield value.

Option 1: The requirement here was to take a different segment value depending on the value entered in a descriptive flexfield in case of a reclassification. The setup done prior to defining this ADR was to set up the Asset Category Descriptive Flexfield, which is accessed in the Open window of the Assets workbench. Behind ATTRIBUTE10 is a value set containing value RECLASS and behind ATTRIBUTE11 is a value set containing some values also used for the Product segment. 1. Navigation: Setup > Financials > Subledger Accounting > Accounting Methods Builder > Journal Entry Setups > Account Derivation Rules



2. Give your ADR rule code, name, and description a meaningful name. 3. The accounting flexfield needs to be picked if the ADR is to be on a rule for segments that do not have a flexfield qualifier or if a constant value is to be chosen. As the product segment does not have a qualifier and we do intend to use a constant value, it is necessary to assign an accounting flexfield to the rule. The output type is segment and the segment chosen is the Product Segment. This segment will only be available in the pick list if the appropriate accounting flexfield is chosen. 4. In the Priorities zone of the form assign a priority. The Value Type is Constant and the Value is 100, which is a valid segment value for this segment. 5. In the Condition window assign a priority. Pick the source Asset Category Attribute10, the operator =, the value type Constant and the value RECLASS. The system will set the quotes when saving the record. Chose AND and assign a priority in the next row, pick the source Asset Category Attribute11, the operator =, the value type Constant and the value 100. 6. In the Priorities zone of the form assign a priority. The Value Type is Constant and the Value is 110, which is a valid segment value for this segment. 7. In the Condition window assign a priority. Pick the source Asset Category Attribute10, the operator =, the value type Constant and the value RECLASS. The system will set the quotes when saving the record. Chose AND and assign a priority in the next row, pick the source Asset Category Attribute11, the operator =, the value type Constant and the value 110. 8. Continue steps 4./5., i.e. 6./7. until all valid values and their conditions are set up. There is currently no possibility to handle this differently as there is no validation for the correlation of the segment values with the entered descriptive flexfield values. 9. Save. This ADR is later used when doing the Journal Line definitions. Option 2: Covering the same requirement, we are using the same descriptive flexfield setup.




2. Give your ADR rule code, name, and description a meaningful name. 3. The accounting flexfield does not have to be picked as instead of Flexfield or Segment, the output type Value Set is chosen. The value set behind the Product segment of the accounting flexfield is picked. 4. In the Priorities zone of the form assign a priority. The Value Type is Source and the Value is Asset Category Attribute 11, which is the attribute of the descriptive flexfield linked with the Product segment. 5. In the Condition window assign a priority. Pick the source Asset Category Attribute10, the operator =, the value type Constant and the value RECLASS. The system will set the quotes when saving the record. Chose AND and assign a priority in the next row, pick the source Asset Category Attribute11, the operator IS NOT NULL. This means that only a value is used if there is one stored for an asset. 6. Save. This ADR can also be used later when doing the Journal Line definitions.

Case 6: Natural Account taken from the category for tax books

The seeded expense account definition takes the complete account combination from the Assignments window of the Asset Workbench. If one would want to create standard accounting also for tax books, then the corporate book expense account would be used.


2. Give your ADR rule code, name, and description a meaningful name.



3. The accounting flexfield needs to be picked if the ADR is to be on a rule for segments that do not have a flexfield qualifier or if a constant value is to be chosen. The natural account segment, in this case, however, can only be chosen if the accounting flexfield is used. 4. In the Priorities zone of the form assign a priority. The Value Type is Source and the Value is Depreciation Expense Account, which is the natural account segment from the Define Categories form. 5. In the Condition window assign a priority. Pick the source Book Type Code, the operator != for not equal, the value type Constant and the value VISION DE HB as the book type code. If more corporate books exist for the ledger, they would have to be added here as well. The system will set the quotes when saving the record. Note: We have chosen the route over the source Book Type Code as the source Book Class is currently not yet available. 6. Save. This ADR is later used when doing the Journal Line definitions.



Subledger Accounting Customization – Journal Line Definitions

Now that we have set up the necessary ADRs for our 6 cases, we have to set up the Journal Line Definitions (JLDs) . We are starting with the example of the event Category Reclassification, then we will go on with the example event Retirement and finally recap the steps to set up a JLD.

How are the custom ADRs now linked to the JLDs?

This is the ADR from Case 1 where we want to take the Cost Center segment value from the entered Expense Account Combination in the Assignments window of the asset workbench. This is the ADR from Case 5 where we want to take the Product segment value from the Descriptive Segment Value in case of a Reclassification.



This is the ADR from Case 1 where we want to take the Cost Center segment value from the entered

Expense Account Combination in the Assignments window of the asset workbench.

This is the ADR from Case 3 where we want to take constant value 100 for the Product segment.



This is the ADR from Case 6 where want to take a different natural account segment value for the

depreciation expense account for the tax book(s).



This is the ADR from Case 4 where we wanted to take the Cost Center segment value from various

locations depending on the Retirement Type.

This is the ADR from Case 3 where we want to take constant value 100 for the Product segment.



This is the ADR from Case 1 where we want to take the Cost Center segment value from the entered

Expense Account Combination in the Assignments window of the asset workbench. This is the ADR from Case 2 where we wanted to take the Product segment value from the

Depreciation Reserve Account combination in the Define Categories form.



How to set up a Journal Line Definition (JLD)?

1. Navigation: Setup > Financials > Subledger Accounting > Accounting Methods Builder > Methods and Definitions > Journal Line Definitions

2. Query the seeded Event Class or Event Type of the JLD to be customized. Click on the Copy Definition button at the bottom left. Give your JLD definition code, name, and description a meaningful name. 3. The accounting flexfield needs to be picked, if for the JLD, any ADR to be chosen uses it. 4. For each line assignment review the seeded ADRs and add the ones defined earlier as appropriate. Note: The seeded definition covers each segment either for the qualified segments or via the All Segments rule. A segment or all segments can be chosen only once and so in some cases a seeded ADR would have to be deleted from the Account Derivation Rule section before the segment can be chosen again with a custom ADR.

5. Save. The JLD is later used when doing the Application Accounting Definition.



Subledger Accounting Customization – Application Accounting Definition

We will now see the Application Accounting Definition using the 6 cases and then discuss how to set up an Application Accounting Definition (AAD).

How are the custom JLDs now linked to the AAD?

This is the custom JLD containing the custom ADRs set up earlier.



How to set up an Application Accounting Definition (AAD)?

1. Navigation: Setup > Financials > Subledger Accounting > Accounting Methods Builder > Methods and Definitions > Application Accounting Definition

2. Query the seeded Application Accounting Definition ‘Standard Accounting for Assets’ . Click on the Copy button at the bottom right. Give your AAD definition code, name, and description a meaningful name. 3. The accounting flexfield needs to be picked for the AAD if any JLD to be chosen uses it. 4. For each line assignment add the JLDs defined earlier as needed. Note: There should only be one JLD assignment per event class/event type, either the seeded one or the custom one as otherwise Create Accounting will create duplicate lines per JLD assignment.

5. Save.

6. Click on the Validate button to validate the Application Accounting Definition. The AAD is later used when doing the Subledger Accounting Method.

Note: One can alternatively run concurrent program ‘Validate Application Accounting Definitions’.

The Event Classes / Event Types are now all valid after Validate Application Accounting Definition completes successfully.



Subledger Accounting Customization – Subledger Accounting Method

We will now see the Subledger Accounting Method for our example setup and then discuss how to set up the Subledger Accounting Method (SLAM).

How is the custom AAD now linked to the SLAM?

This is the custom SLAM containing the custom AAD for the demo SLA setup.



How to set up the Subledger Accounting Method(SLAM)?

1. Navigation: Setup > Financials > Subledger Accounting > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Method

2. Query the seeded Subledger Accounting Method ‘Standard Accrual’. Click on the Copy button at the bottom right. Give your SLAM method code, name, and description a meaningful name. 3. The accounting flexfield needs to be picked for the SLAM if it has been chosen for the custom AAD. 4. Pick the custom AAD for application Assets. Note: The Subledger Accounting Method contains the SLA setup for all subledgers. As one can link only one Subledger Accounting Method to a Ledger, one needs to make sure that all subledger use the same SLAM per ledger.

5. Save. The SLAM is later used when it is linked to the ledger.



Subledger Accounting Customization – Link with the Ledger

The custom Subledger Accounting Setup is now complete and only the last step now needs to be performed:

How to link the Subledger Accounting Method(SLAM) with the Ledger?

1. Navigation: Setup > Financials > Accounting Setup Manager > Accounting Setups

2. Query the Ledger to which the SLAM should be attached

3. Choose to update the Subledger Accounting Options



4. Pick the custom Subledger Accounting Method.

5. Save.



Intracompany Balancing Rules

In Release 12, the Intercompany Accounts Payable and the Intercompany Accounts Receivable accounts can no longer be found in the Accounts tab of the Book Controls form. They are replaced by the Intracompany Balancing Rules to be set up via the Accounting Setup Manager. This allows more flexibility as for each journal category, one can decide to use a different intracompany account.

How to set up the Intracompany Balancing Rules?

1. Navigation: Setup > Financials > Accounting Setup Manager > Accounting Setups

2. Query the Ledger to which the SLAM is attached

3. Choose to update the Subledger Accounting Options and then the Intracompany Balancing Rules



4. If you do not have the legal entity assigned then chose to define rules under No Legal Entity. Else choose to define rules under your legal entity.

5. Choose Source: Assets, Category Transfer. This is the same as the Event Class Category in the AAD. Choose All Other for the Debit and Credit Balancing Segment and pick the Debit and Credit Account. Then click on the Options tab

6. Choose the Level of Summarization, the Clearing Balancing Segment Value, and the Default Options. Save.



7. Running Create Accounting then will show this result for an ‘Intracompany Transfer’, i.e. a transfer transaction for an asset between balancing segments:

Debit Intracompany Receivables Credit Intracompany Payables

Note: One may have to set up Intracompany Balancing Rules for more journal categories, depending on the requirements. An example would be an invoice in AP with company 03 as the balancing segment and added to company 02 when the asset is created. This would require also a rule for category Addition or Adjustment as well as Journal Line Types and Journal Line Definitions for the Event Class Additions, respectively Adjustments.



GL Reconciliation

In Release 12, the reconciliation functionality that was part of localization has been incorporated in the core General Ledger. In order to use it in GL for accounts created by the subledger, there are some setup steps necessary.

How to set up GL Reconciliation for FA accounts with SLA?

1. Navigation: Setup > Financials > Subledger Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Line Types

2. Give your JLT rule code, name, and description a meaningful name when you copy the seeded JLT. Click on Accounting Attribute Assignments and pick the account as the source for the Reconciliation Reference. Save.



3. Navigation: Setup > Financials > Subledger Accounting > Accounting Methods Builder > Methods and Definitions > Journal Line Definitions Query your JLD. Do not forget to deactivate the default Journal Line Type:



4. Add the newly created Journal Line Types

5. Validate the AAD



6. Submit Create Accounting, this time in Final mode.

7. Switch to the General Ledger responsibility and navigate to the Reconcile Journal Lines form. Enter the selection criteria. You will find the Assets lines and can now manually reconcile them.





Testing the Definition

We will now check our definition on a reclassification. The Create Accounting output shows:

Cost Center from the Expense account combination in the Assignments window of the asset workbench. Constant value 150 for the Product segment. Product 100 from the Asset Category Descriptive Flexfield in the event of a Reclassification.

After having entered all event triggering transactions, one can run Create Accounting in Draft mode with transaction detail, review the result, make necessary changes and run Create Accounting in Draft mode again until the SLA setup is completely as intended.

Note: Every time a JLD is updated, the AAD needs to be validated again before Create Accounting can be resubmitted.

The Subledger Accounting setup needs to be done on a Test instance first and tested thoroughly entering all transactions to verify that the setup meets the requirements and no setup mistake has been made before exporting the setup (program: Export Application Accounting Definitions and importing it on production (program: Import Application Accounting Definitions).

Export Application Accounting Definitions program parameters: AMB Context: Default Source File Pathname: <path on the server>/<filename>.ldt Versioning Mode: Standard User Version: <Optional, not required, can be left at NULL> Comment: <Optional, not required, can be left at NULL> Then the file can be FTP on to another server. Import Application Accounting Definitions program parameters:



AMB Context: Default Source File Pathname: <path on the server>/<filename>.ldt Merge Analysis: No Batch Name: <Optional, not required, can be left at NULL> Import Option: Overwrite Validate: Yes - This will automatically validate the imported Application Accounting Definitions Force Overwrite: Yes Please note that this will only import the definitions up to the AAD. The steps to set up the SLAM and the link to the ledger may still have to be performed, if not already done, as well as the setup of the Intracompany Balancing Rules. The concurrent programs Validate Application Accounting Definitions Import Application Accounting Definitions Export Application Accounting Definitions Belong to application Subledger Accounting and will have to be added manually to the request group for the Fixed Assets responsibility by the System Administrator responsibility before then can be submitted in the Fixed Assets responsibility via Other > Requests > Submit.



Appendices

List of seeded Account Derivation Rules

FA_DEFAULT_ACCOUNT Assets Book Default Account

FA_DEFAULT_OFFSET_ACCOUNT Assets Book Default Account for Offset

FA_IC_PAYABLE_ACCOUNT Assets Book Intercompany Payable Account Segment

FA_NBV_RETIRED_GAIN_SEGMENT Assets Books NBV Retired Gain Account Segment

FA_NBV_RETIRED_LOSS_SEGMENT Assets Books NBV Retired Loss Account Segment

FA_CAT_CIP_COST_CLEARING Assets CIP Cost Clearing Account

FA_CAT_COST_ACCOUNT_SEGMENT Assets Categories Cost Account Segment

FA_BONUS_DEPRN_EXPENSE_SEGMENT Assets Category Bonus Depreciation Expense Account Segment

FA_BONUS_RES_ACCOUNT_SEGMENT Assets Category Bonus Reserve Account Segment

FA_CAT_CIP_COST_SEGMENT Assets Category CIP Cost Account Segment

FA_CAT_CIP_CLR_SEGMENT Assets Category CIP Cost Clearing Account Segment

FA_CAT_CLR_ACCOUNT_SEGMENT Assets Category Cost Clearing Account Segment

FA_CAT_RES_ACCOUNT_SEGMENT Assets Category Reserve Account Segment

FA_REVAL_AMORT_SEGMENT Assets Category Revaluation Amortization Account Segment

FA_CAT_COST_CLEARING Assets Cost Clearing Account

FA_COST_OF_REMOVAL_CLR_SEGMENT Assets Cost of Removal Clearing Account Segment

FA_COST_OF_REM_GAIN_SEGMENT Assets Cost of Removal Gain Account Segment

FA_COST_OF_REM_LOSS_SEGMENT Assets Cost of Removal Loss Account Segment

FA_DEF_DEPRN_EXPENSE_SEGMENT Assets Deferred Depreciation Expense Account Segment

FA_DEF_DEPRN_RESERVE_SEGMENT Assets Deferred Depreciation Reserve Account Segment

FA_DEPRN_ADJUSTMENT_SEGMENT Assets Depreciation Adjustment Account Segment

FA_EXPENSE_ACCOUNT Assets Depreciation Expense Account

FA_EXPENSE_ACCT_COST_CTR_SEG Assets Expense Account Cost Center Segment

FA_EXPENSE_ACCT Assets Expense Account Segment

FA_IC_RECEIVABLE_ACCOUNT Assets Intercompany Receivable Account Segment

FA_PER_BONUS_DEPRN_EXPENSE Assets Periodic Bonus Depreciation Expense

FA_PER_BONUS_DEPRN_RESERVE Assets Periodic Bonus Depreciation Reserve

FA_PROC_OF_SALE_CLR_SEGMENT Assets Proceeds of Sale Clearing Account Segment

FA_PROC_OF_SALE_GAIN_SEGMENT Assets Proceeds of Sale Gain Account Segment

FA_PROC_OF_SALE_LOSS_SEGMENT Assets Proceeds of Sale Loss Account Segment

FA_PER_REVAL_AMORTIZATION Assets Revaluation Amortization for Periodic Depreciation

FA_CAT_REVAL_RES_SEGMENT Assets Revaluation Reserve Account Segment

FA_REVAL_RES_RET_GAIN_SEGMENT Assets Revaluation Reserve Retired Gain Account Segment

FA_REVAL_RES_RET_LOSS_SEGMENT Assets Revaluation Reserve Retired Loss Account Segment

FA_PER_REVAL_RESERVE Assets Revaluation Reserve for Periodic Depreciation

FA_UPL_EXP_ACCOUNT Assets Unplanned Expense Account

FA_UPL_RESERVE Assets Unplanned Reserve Account

FA_UPL_CAT_RES_ACCOUNT_SEGMENT Assets Unplanned Reserve Account Segment

IAC_ASSET_COST_AC Inflation Asset Cost Account

IAC_BACKLOG_RESERVE_AC Inflation Backlog Reserve Account

IAC_DEPRECIATION_EXPENSE_AC Inflation Depreciation Expense Account

IAC_GENERAL_FUND_AC Inflation General Fund Account

IAC_INTERCOMPANY_AP_AC Inflation Intercompany Payable Account

IAC_INTERCOMPANY_AR Inflation Intercompany Receivable Account

IAC_NBV_RETIRED_GAIN_AC Inflation Net Book Value Retired Gain Account

IAC_OPERATING_EXPENSE_AC Inflation Operating Expense Account



IAC_REVALUATION_RESERVE_AC Inflation Revaluation Reserve Account

IAC_REVAL_RESERVE_RETIRE_AC Inflation Revaluation Reserve Retired Account



List of seeded Sources SOURCE_CODE NAME

------------------------------ --------------------------------------------------

ACCOUNTING_DATE Accounting Date

ADJUSTMENT_LINE_ID Adjustment Line Identifier

ADJUSTMENT_TYPE Adjustment Type

ALT_COST_ACCOUNT_CCID Alternate Cost Account Ccid

ALT_COST_ACCT Alternate Cost Account

AMORTIZATION_START_DATE Amortization Start Date

AP_DISTRIBUTION_LINE_NUMBER AP Distribution Line Number

AP_INTERCOMPANY_ACCT Intercompany Payables Account

AR_INTERCOMPANY_ACCT Intercompany Receivables Account

ASSET_CAT_ATTR_CAT_CODE Asset Category Attribute Category Code

ASSET_CAT_ATTR1 Asset Category Attribute1






























ASSET_CAT_GLOBAL_ATTR1 Asset Category Global Attribute1

ASSET_CAT_GLOBAL_ATTR2 Asset Category Global Attribute2

ASSET_CLEARING_ACCOUNT_CCID Asset Clearing Account Code Combination Identifier

ASSET_CLEARING_ACCT Asset Clearing Account

ASSET_COST_ACCOUNT_CCID Asset Cost Account Code Combination Identifier

ASSET_COST_ACCT Asset Cost Account

ASSET_DESCRIPTION Asset Description



ASSET_ID Asset Identifier

ASSET_INVOICE_ID Asset Invoice Identifier

ASSET_INVOICES_ATTR1 Asset Invoices Attribute1















ASSET_KEY_CCID Asset Key Code Combination Identifier

ASSET_KEY_SEGMENT1 Asset Key Segment1










ASSET_NUMBER Asset Number

ASSET_TYPE Asset Type

BONUS_DEPRN_EXPENSE_ACCT Bonus Depreciation Expense Account

BONUS_ENTERED_AMOUNT Bonus Entered Amount

BONUS_EXPENSE_ACCOUNT_CCID Bonus Depreciation Expense Account Ccid

BONUS_GENERATED_CCID Bonus Generated Code Combination Identifier

BONUS_GENERATED_OFFSET_CCID Bonus Generated Offset Code Combination Identifier

BONUS_RESERVE_ACCT Bonus Reserve Account

BONUS_RESERVE_ACCT_CCID Bonus Reserve Account Code Combination Identifier

BONUS_RESERVE_RETIRED Bonus Reserve Retired

BONUS_RULE Bonus Rule

BOOK_CONTROLS_ATTR1 Book Controls Attribute1

















BOOK_CONTROLS_GLOBAL_ATTR1 Book Controls Global Attribute1




















BOOK_DESCRIPTION Book Description

BOOK_TYPE_CODE Book Type Code

CALLING_INTERFACE Calling Interface

CAT_ATTR1 Category Attribute1















CAT_BOOKS_ATTR1 Category Books Attribute1

















CAT_DESCRIPTION Category Description

CAT_FLEXFIELD_SEGMENT1 Category Flexfield Segment1







CAT_GLOBAL_ATTR1 Category Global Attribute1
















CAT_ID Category Identifier

CAT_TYPE Category Type

CIP_CLEARING_ACCOUNT_CCID CIP Clearing Account Code Combination Identifier

CIP_CLEARING_ACCT CIP Clearing Account

CIP_COST_ACCOUNT_CCID CIP Cost Account Code Combination Identifier

CIP_COST_ACCT CIP Cost Account

CONVERSION_DATE Conversion Date

COST Cost

COST_OF_REMOVAL_AMOUNT Cost Of Removal Amount

COST_OF_REMOVAL_CLEARING_ACCT Cost Of Removal Clearing Account

COST_OF_REMOVAL_GAIN_ACCT Cost Of Removal Gain Account

COST_OF_REMOVAL_LOSS_ACCT Cost Of Removal Loss Account

COST_RETIRED Cost Retired

CURRENCY_CODE Currency Code

CURRENT_UNITS Current Units

DATE_PLACED_IN_SERVICE Date Placed In Service

DEFAULT_CCID Default Code Combination Identifier

DEFERRED_DEPRN_EXPENSE_ACCT Deferred Depreciation Expense Account

DEFERRED_DEPRN_RESERVE_ACCT Deferred Depreciation Reserve Account

DEPRN_ADJUSTMENT_ACCT Depreciation Adjustment Account

DEPRN_BASIS_RULE_ID Depreciation Basis Rule Identifier

DEPRN_EXPENSE_ACCOUNT_CCID Depreciation Expense Account Ccid

DEPRN_EXPENSE_ACCT Depreciation Expense Account

DEPRN_OVERRIDE_FLAG Depreciation Override Flag

DEPRN_RESERVE_ACCT Depreciation Reserve Account



DEPRN_RUN_ID Depreciation Run Identifier

DISTRIBUTION_ID Distribution Identifier

DISTRIBUTION_TYPE_CODE Distribution Type Code

DRY_HOLE_FLAG Dry Hole Flag

EMPLOYEE_ID Employee Identifier

ENTERED_AMOUNT Entered Amount

EVENT_ID Event Identifier

EVENT_LINE_NUMBER Event Line Number

EXPENSE_ACCOUNT_CCID Expense Account Code Combination Identifier

FEEDER_SYSTEM_NAME Feeder System Name

GAIN_LOSS_AMOUNT Gain Loss Amount

GENERATED_CCID Generated Code Combination Identifier

GENERATED_OFFSET_CCID Generated Offset Code Combination Identifier

GROUP_ASSET_ID Group Asset Identifier

IN_USE In Use

INVENTORIAL Inventorial

INVOICE_DATE Invoice Date

INVOICE_DISTRIBUTION_ID Invoice Distribution Identifier

INVOICE_ID Invoice Identifier

INVOICE_LINE_NUMBER Invoice Line Number

INVOICE_NUMBER Invoice Number

LANGUAGE Language

LEASE_ID Lease Identifier

LEASE_NUMBER Lease Number

LEASES_ATTR1 Leases Attribute1















LEDGER_ID Ledger Identifier

LESSOR_SITE_ID Lessor Site Identifier

LINE_NUMBER Line Number

LOCATION_ID Location Identifier

LOCATION_KEY_SEGMENT1 Location Key Segment1







LOCATIONS_ATTR1 Locations Attribute1

















MANUFACTURER_NAME Manufacturer Name

METHOD_CODE Method Code

MODEL_NUMBER Model Number

NBV_RETIRED Net Book Value Retired

NBV_RETIRED_GAIN_ACCT Net Book Value Retired Gain Account

NBV_RETIRED_LOSS_ACCT Net Book Value Retired Loss Account

NEW_USED New Used

ORG_ID Organization Identifier

OWNED_LEASED Owned Leased

PAYABLES_CCID Payables Code Combination Identifier

PERIOD_CLOSE_DATE Period Close Date

PERIOD_COUNTER Period Counter

PERIOD_NAME Period Name

PO_NUMBER Purchase Order Number

PO_VENDOR_ID Purchase Order Vendor Identifier

PROCEEDS_OF_SALE_AMOUNT Proceeds Of Sale Amount

PROCEEDS_OF_SALE_CLEARING_ACCT Proceeds Of Sale Clearing Account

PROCEEDS_OF_SALE_GAIN_ACCT Proceeds Of Sale Gain Account

PROCEEDS_OF_SALE_LOSS_ACCT Proceeds Of Sale Loss Account

PRODUCTION Production

PRODUCTION_CAPACITY Production Capacity

PROJECT_ASSET_LINE_ID Project Asset Line Identifier

PROJECT_ID Project Identifier

PROJECT_NUMBER Project Number

PROPERTY_CLASS Property Class

PROPERTY_TYPE Property Type

PRORATE_CONVENTION_CODE Prorate Convention Code

PRORATE_DATE Prorate Date

REFERENCE_NUM Reference Number

RESERVE_ACCOUNT_CCID Reserve Account Code Combination Identifier

RETIREMENT_TYPE Retirement Type

RETIREMENTS_ATTR1 Retirements Attribute1

















REVAL_AMORT_ACCOUNT_CCID Revaluation Amortization Account Code Combination Identifier

REVAL_AMORT_ACCT Revaluation Amortization Account

REVAL_ENTERED_AMOUNT Revaluation Entered Amount

REVAL_GENERATED_CCID Revaluation Generated Code Combination Identifier

REVAL_GENERATED_OFFSET_CCID Revaluation Generated Offset Code Combination Identifier

REVAL_RESERVE_ACCOUNT_CCID Revaluation Reserve Account Code Combination Identifier

REVAL_RESERVE_ACCT Revaluation Reserve Account

REVAL_RESERVE_RETIRED_AMOUNT Revaluation Reserve Retired Amount

REVAL_RSV_RETIRED_GAIN_ACCT Revaluation Reserve Retired Gain Account

REVAL_RSV_RETIRED_LOSS_ACCT Revaluation Reserve Retired Loss Account

REVERSAL_FLAG Reversal Flag

SERIAL_NUMBER Serial Number

SHORT_FISCAL_YEAR_FLAG Short Fiscal Year Flag

SOLD_TO Sold To

SOURCE_DEST_CODE Source Destination Code

SOURCE_LINE_ID Source Line Identifier

SOURCE_TRANSACTION_HEADER_ID Source Transaction Header Identifier

SOURCE_TYPE_CODE Source Type Code

SUPER_GROUP_ID Super Group Identifier

TAG_NUMBER Tag Number

TASK_ID Task Identifier

TAX_BOOK_TYPE_CODE Tax Book Type Code

TRACKING_METHOD Tracking Method

TRADE_IN_ASSET_ID Trade In Asset Identifier

TRANSACTION_HEADER_ID Transaction Header Identifier

TRANSACTION_KEY Transaction Key

TRANSACTION_NAME Transaction Name

TRANSACTION_REFERENCE_ID Transaction Reference Identifier

TRANSACTION_SUBTYPE Transaction Subtype

TRANSACTION_TYPE_CODE Transaction Type Code

TRANSACTIONS_ATTR1 Transactions Attribute1

















TRANSFER_TO_GL_FLAG Transfer To General Ledger Flag

UNITS_ASSIGNED Units Assigned

UNPLAN_EXPENSE_ACCOUNT_CCID Unplanned Expense Account Ccid

UNPLAN_EXPENSE_ACCT Unplanned Expense Account

UNREVALUED_COST_RETIRED Unrevalued Cost Retired

VENDOR_NAME Vendor Name

WRITE_OFF_ACCOUNT_CCID Write-off Account Ccid

WRITE_OFF_ACCT Write-off Account



List of seeded Event Types

EVENT_CLASS_CODE EVENT_TYPE_CODE

------------------------------ ------------------------------

ADDITIONS ADDITIONS

ADDITIONS ADDITIONS_ALL

ADJUSTMENTS ADJUSTMENTS

ADJUSTMENTS ADJUSTMENTS_ALL

CAPITALIZATION CAPITALIZATION

CAPITALIZATION CAPITALIZATION_ALL

CATEGORY_RECLASS CATEGORY_RECLASS

CATEGORY_RECLASS CATEGORY_RECLASS_ALL

CIP_ADDITIONS CIP_ADDITIONS

CIP_ADDITIONS CIP_ADDITIONS_ALL

CIP_ADJUSTMENTS CIP_ADJUSTMENTS

CIP_ADJUSTMENTS CIP_ADJUSTMENTS_ALL

CIP_CATEGORY_RECLASS CIP_CATEGORY_RECLASS

CIP_CATEGORY_RECLASS CIP_CATEGORY_RECLASS_ALL

CIP_RETIREMENTS CIP_REINSTATEMENTS

CIP_RETIREMENTS CIP_RETIREMENTS

CIP_RETIREMENTS CIP_RETIREMENTS_ALL

CIP_REVALUATION CIP_REVALUATION

CIP_REVALUATION CIP_REVALUATION_ALL

CIP_SOURCE_LINE_TRANSFERS CIP_SOURCE_LINE_TRANSFERS

CIP_SOURCE_LINE_TRANSFERS CIP_SOURCE_LINE_TRANSFERS_ALL

CIP_TRANSFERS CIP_TRANSFERS

CIP_TRANSFERS CIP_TRANSFERS_ALL

CIP_UNIT_ADJUSTMENTS CIP_UNIT_ADJUSTMENTS

CIP_UNIT_ADJUSTMENTS CIP_UNIT_ADJUSTMENTS_ALL

DEFERRED_DEPRECIATION DEFERRED_DEPRECIATION

DEFERRED_DEPRECIATION DEFERRED_DEPRECIATION_ALL

DEPRECIATION DEPRECIATION

DEPRECIATION_ADJUSTMENTS DEPRECIATION_ADJUSTMENTS

DEPRECIATION_ADJUSTMENTS DEPRECIATION_ADJUSTMENTS_ALL

DEPRECIATION DEPRECIATION_ALL

THIRD_PARTY_MERGE FULL_MERGE

INFLATION_REVALUATION INFLATION_REVALUATION

INFLATION_REVALUATION INFLATION_REVALUATION_ALL

MANUAL MANUAL

THIRD_PARTY_MERGE PARTIAL_MERGE

RETIREMENTS REINSTATEMENTS

RESERVE_TRANSFERS RESERVE_TRANSFERS

RESERVE_TRANSFERS RESERVE_TRANSFERS_ALL

RETIREMENTS RETIREMENTS

RETIREMENTS RETIREMENTS_ALL

RETIREMENT_ADJUSTMENTS RETIREMENT_ADJUSTMENTS

RETIREMENT_ADJUSTMENTS RETIREMENT_ADJUSTMENTS_ALL

REVALUATION REVALUATION

REVALUATION REVALUATION_ALL

CAPITALIZATION REVERSE_CAPITALIZATION

DEPRECIATION ROLLBACK_DEPRECIATION



TERMINAL_GAIN_LOSS ROLLBACK_TERMINAL_GAIN_LOSS

SOURCE_LINE_TRANSFERS SOURCE_LINE_TRANSFERS

SOURCE_LINE_TRANSFERS SOURCE_LINE_TRANSFERS_ALL

TERMINAL_GAIN_LOSS TERMINAL_GAIN_LOSS

TERMINAL_GAIN_LOSS TERMINAL_GAIN_LOSS_ALL

TRANSFERS TRANSFERS

TRANSFERS TRANSFERS_ALL

UNIT_ADJUSTMENTS UNIT_ADJUSTMENTS

UNIT_ADJUSTMENTS UNIT_ADJUSTMENTS_ALL

UNPLANNED_DEPRECIATION UNPLANNED_DEPRECIATION

UNPLANNED_DEPRECIATION UNPLANNED_DEPRECIATION_ALL

Documents

FA_SLA Customization White Paper