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27 February 2016 What is Subledger Accounting –Rule-based accounting engine, toolset & repository supporting Oracle E-Business Suite modules –Allows multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements –Retains the most granular level of detail in the subledger accounting model, with different summarization options in the General Ledger, allowing full auditability and reconciliation –Introduces a common data model and UI across subledgers, replaces various disparate 11i setups, providing single source of truth for financial and management analysis
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Subledger Accounting Functional Overview
TCS Oracle Practice
May 8, 2023
Agenda– Product Overview
–What is Subledger Accounting–Market Drivers–Business Benefits–Key Concepts–11i vs. R12 Daily User Interaction–Demo 1: R12 Payables Daily User Interaction–New/Improved Accounting Features in R12–Accounting Methods Builder - Close Up–Demo 2: Configuring the Accounting Methods Builder
– Technical Deep Dive– Implementation Considerations– Upgrade Considerations– Global Considerations– Trouble Shooting
May 8, 2023
What is Subledger Accounting
– Rule-based accounting engine, toolset & repository supporting Oracle E-Business Suite modules
– Allows multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements
– Retains the most granular level of detail in the subledger accounting model, with different summarization options in the General Ledger, allowing full auditability and reconciliation
– Introduces a common data model and UI across subledgers, replaces various disparate 11i setups, providing single source of truth for financial and management analysis
May 8, 2023
Market Drivers
– Varying legislative, industry, and geography accounting standards and requirements
– Customizations to standard products not supported
– Disparate setups and processing across products
– Need for uniform data model for auditability, reconciliation, and consistent reporting and analysis
– Increasing emphasis on operational excellence, compliance, and audit
May 8, 2023
Business Benefits
– Account for any transaction from any application and centralize accounting policies and processing
– Enable compliance with multiple legislative, industry or geography requirements concurrently in a single instance through configurable rules
– Streamline accounting processing– Provide GL to subledger transaction reconciliation platform by maintaining
link between transaction and accounting data– Increase transparency and enable full auditability of the transaction and
accounting data through the new data model
May 8, 2023
Business Benefits
Management Framework
Information Information DeliveryDelivery
Regulatory Regulatory ReportingReporting
Subledger Accountin
g
Transaction Systems
Oracle Payroll
Oracle Projects
Oracle Payables
Oracle Receivables
• Centralized Centralized accounting accounting rulesrules
• Predefined Predefined ValidationsValidations
• Date effective Date effective policiespolicies
• Sophisticated error Sophisticated error handlinghandling
• Full audit trailFull audit trail• Bidirectional Bidirectional
drilldownsdrilldowns
• Detailed Journal Detailed Journal EntriesEntries
• Configurable Configurable Reference InformationReference Information
• Consistent BalancesConsistent Balances• On-line inquiriesOn-line inquiries
AnalyticsAnalytics
Account for any transaction from any application and centralize accounting policies and processing
May 8, 2023
Business Benefits
US GAAPUS GAAPUS COAUS COA
US CalendarUS Calendar$$
US GAAPUS GAAPUS COAUS COA
US CalendarUS Calendar££
Simultaneous Simultaneous AccountingAccounting
for All Entities…for All Entities…
US GAAPUS GAAPUS COAUS COA
US CalendarUS Calendar$$
……while Ensuringwhile EnsuringCorporate VisibilityCorporate Visibility& Local Compliance& Local Compliance
French IASFrench IASPlan ComptablePlan ComptableFrench CalendarFrench Calendar
€€Operations in US, UK, France
Enable compliance with multiple legislative, industry or geography requirements concurrently in a single instance through configurable rules
May 8, 2023
Business BenefitsStreamline accounting processing
May 8, 2023
Business BenefitsProvide GL to subledger transaction reconciliation platform by maintaining link between transaction and accounting dataIncrease transparency and enable full auditability of the transaction and accounting data through the new data model
May 8, 2023
Key Concepts: Event Classes
• Payables– Invoice– Debit Memo– Prepayment– Payments– Refunds
• Receivables
– Invoice– Deposit– Receipt– Bill Receivable
• Assets
– Additions– Adjustments– Capitalization– Depreciation
• etc.
May 8, 2023
Key Concepts
• Event Model: definition of the subledger transaction types and lifecycle–Event Class: classifies transaction types for accounting rule purposes–Event Type: for each transaction type, defines possible actions with accounting
significance
• Transaction object: data model containing transaction information to be used in accounting
• Source: any attribute of a transaction that can be used in defining the journal entry rules and when generating an entry
• Accounting Attribute: elements required to create a valid journal entry
May 8, 2023
Key Concepts: Event Types
• AP Invoice Events
– Validated– Adjusted– Cancelled
• AR Receipt Events
– Created– Applied– Unapplied– Updated– Reversed
• FA Depreciation Events
– Depreciation
– Rollback depreciation
– etc.
May 8, 2023
Key Concepts: Transaction Object
AP_INVOICES_ALL AP_INVOICE_LINES_ALL
INVOICE_ID INVOICE_LINE_ID
SUPPLIER_ID AMOUNT
TAX_CODE GL_DATE
LINE_TYPE
CCID
AP_INVOICE_EXTRACT_HEADER_V (header object)AP_INVOICE_EXTRACT_DETAILS_V (line object)SELECT ai.invoice_id, ai.supplier_id, ai.tax_code, al.invoice_line_id, al.amount, al,gl_date, al.line_type, al.ccid……FROM ap_invoices_all ai, ap_invoice_lines_all alWHERE…
May 8, 2023
Key Concepts: Sources
May 8, 2023
Key Concepts: Accounting Attributes
– GL Date– Entered Currency Code– Entered Amount– Accounted Amount– Conversion Rate Date– Conversion Rate Type– Conversion Rate– Distribution Type– Party Type– Party Identifier– Party Site Identifier
– Statistical Amount– Exchange Gain Account– Exchange Loss Account– Applied to Attributes– Multiperiod Accounting
Attributes– Accrual Reversal GL Date– Document Sequence Attributes
May 8, 2023
Key Concepts: Accounting Attribute Mapping
May 8, 2023
Key Concepts: Journal Entry and Accounting Attributes
• Header information:• Accounting date• Sequence• Journal id• Reference
• One header
• Detail information:• Entered amount• Accounted amount• CCID• Curency information• Description
• Multiple lines
May 8, 2023
11i vs. R12 Daily User Interaction
11i
END USER
Enter/validate/approve transaction
END USER
Create accounting and transfer to GL
Import into GL
END USER END USER
Post in GL
Financial Options
System Options
AccountingOptions
May 8, 2023
11i vs. R12 Daily User Interaction
New in R12
Accounting event created
Enter/validate/approve transaction
END USER
Create accounting, transfer, and import into GL
END USER END USER
Post in GL
SLA Setup Transaction Data Accounting Event11i
May 8, 2023
R12 Subledger Accounting General Architecture
Transactions
Create Accounting
GL Posting
May 8, 2023
Demo: R12 Payables Daily User Interaction
– Enter an invoice and validate it– Create accounting and post to GL– View SLA journal entry and t-account– Query entry in GL and drill back to SLA entry and to invoice
May 8, 2023
Demonstration Scenario Summary
• Enhancements with R12:
–Ability to create accounting real-time, directly from the transaction views, and post to GL seamlessly
–Draft accounting for what-if analysis prior to final accounting
–Bi-directional drilldown
May 8, 2023
New/Improved Accounting Features in R12• Accounting Methods Builder
–Configurable and auditable rules–Centralized setup–Date effective definitions–Versioning
• Streamlined Processing–Online accounting–Straight through processing to GL–Accounting per process category–Replacement of disabled accounts–Draft accounting
• Multiple Accounting Representations• Bi-directional Inquiries and Drilldown
May 8, 2023
New/Improved Accounting Features in R12– Manual Subledger Journal Entries– Sophisticated Processing to Ensure Accuracy
–Centralized and consistent currency conversion and gain/loss calculations–Business flows–Multiperiod Accounting–Automatic scheduling of accrual reversals–Accounting and transaction reversals
– User-friendly Troubleshooting Capabilities–Detailed error reporting–Diagnostics tool
– Advanced Compliance and Reporting Features–Control accounts–Journal entry sequencing–Period close validation
May 8, 2023
New/Improved Accounting Features in R12• XML Reports
–Journal Entries–Open Account Balances (a.k.a. Trial Balance)–Account Analysis–Third Party Balances
May 8, 2023
Accounting Methods Builder
Description
Line Type
Account Derivation Rule
May 8, 2023
Journal Line Type
Line Type
May 8, 2023
Journal Line Type
• Identify the natural side–Debit–Credit–Gain/Loss
• Determine the accounting class
• Set under which conditions the rule will create a line
• Define the values needed for entry line generation, such as amount, currency, conversion rate information
• Control behavior for certain features i.e. multiperiod accounting, business flows, line merging and summarization
May 8, 2023
Journal Line Type
May 8, 2023
Account Derivation Rule
Account Derivation Rule
May 8, 2023
Account Derivation Rule
• Determine if rule will be generic or specific for a given chart of accounts
• Identify what will be derived–Accounting flexfield–Segment/qualifier value–Value from a value set
• Define how the value will be derived–Constant–Source value–Mapping Set–Another account derivation rule
• Set under which conditions the rule will derive a value
May 8, 2023
Account Derivation Rule
May 8, 2023
Journal Entry Description
Description
May 8, 2023
Journal Entry Description
• Define how the description on a journal entry or on each of its lines will be built:–Constant–Source Value
• Set under which conditions the rule will be used
May 8, 2023
Journal Entry Description
May 8, 2023
Journal Lines Definition
May 8, 2023
Journal Lines Definition
• Identify the journal line types, descriptions, and account derivation rules that will be used to create a journal entry for a particular event type
• Generic or specific for a chart of accounts
• Define processing options for advanced features such as Multiperiod Accounting and Business Flows
May 8, 2023
Journal Lines Definition
May 8, 2023
Accounting Methods Builder
Vision Operations (USA) Ledger
Standard/GAAP Accrual Subledger Accounting Method
Payables Accrual Application Accounting Definition
Journal Line Types
Account Derivation Rules
Journal Entry Descriptions
Invoice Journal Line Definition
Transaction Objects
Sources
May 8, 2023
Demo: Configuring the Accounting Methods Builder
– Define–Journal Line Type–Account Derivation Rule–Journal Entry Description
– Construct a rule for Invoice Validation event– Create accounting and post to GL– View SLA journal entry and compare against Demo 1 entry
May 8, 2023
Application Accounting Definitions
… the data is retrieved from the transaction objects…
… to create the journal entries.
The Create Accounting program processes the events…
May 8, 2023
Compilation
Working environment (AMB)
Archive environment
Installation process
Create Accounting
Compilation
May 8, 2023
Accounting Program
Accounting
Program
May 8, 2023
Implementation Considerations– No need to fix anything if seeded definitions already working:
–Standard Accrual–Standard Cash–Accrual with Encumbrance Accounting–Cash with Encumbrance Accounting–US Federal Accounting
– Accounting customizations to be re-defined in SLA
– Custom accounting reports need to be re-visited
– Account generator type of account derivation mechanisms continue to live in R12
– Who should have access to SLA setup?
– Data access security (ledger access) can be enabled in subledgers for accounting
May 8, 2023
Implementation ConsiderationsKey Profile Options
– SLA: Enable Subledger Transaction Security in GL– SLA: Enable Data Access Set Security in Subledger – SLA: Additional Data Access Set– SLA: Allow Reports Journal Source Override
May 8, 2023
Integrations
– Payables– Receivables– Projects– Assets– Costing– OPM– Public Sector/Federal
– Payroll– Property Manager– Loans– Lease Management– Cash Management– Globalizations– Intercompany
May 8, 2023
Upgrade Considerations
– Full historic data upgrade–Property Manager–Loans–Payables–Global Accounting Engine
– Current fiscal year data upgrade–Receivables–Assets–Projects–Costing (including Purchasing and Inventory)
– No upgrade–OPM–Public Sector/Federal
– Optional pre-upgrade step– Upgrade by request
May 8, 2023
Global Considerations• Latin America Globalizations (Brazil): accounting requirements supported
through additional rules in core product
• Global Accounting Engine: obsolete; functionality supported through rules in core products
• Global Accounting Reports: AX, JE, JG reports obsolete and replaced by following, based on SLA data extracts with product templates
–Global Third Party Balances Summary Report–Global Third Party Detail and Balances Report–Global Third Party Account Balance Report–Global Journals and Third Party Report–Global Daily Journals Report–Global Subledger Detail Journal Report–Global Journal Ledger Report–Global Account Analysis Report
May 8, 2023
Troubleshooting: Diagnostics
Accounting Program
Diagnostic Extract Diagnostic
tables
Detailed error reporting by accounting program, also providing guides to fix
Diagnostics tool: analysis of transaction data used in accounting
