Ask Us Anything™ SeriesAsk Us Anything Series
January 20, 2010Introduction to SubledgerIntroduction to Subledger Accounting (SLA)Rob Zwiebach
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WelcomeWelcome
Moderator – Lori Hayes
Subject Matter Expert – Rob Zwiebach of Oracle CorporationOracle Corporation
Additional Moderator – Mohan Iyer of Additional Moderator Mohan Iyer of OAUG GL-SIG
Safe Harbor StatementSafe Harbor Statement
Th f ll i i i d d li R b Z i b h’ The following is intended to outline Rob Zwiebach’s impressions on Oracle’s general product direction.
This presentation is not a commitment to deliver any material This presentation is not a commitment to deliver any material, code or functionality, and should not be relied upon in making purchasing decisions.
It i i t d d f i f ti l d d t It is intended for information purposes only, and does not commit FMT Systems Incorporated, The Oracle Applications Users Group, Oracle Corporation or any other corporate entity.
The views and opinions expressed in the presentation and webinar pages are those of the page authors only.
AgendaAgenda
–Part 1: SLA Overview• Introduction to Subledger Accounting
bl d d l d• Subledgers and General Ledgers
• SLA capabilities for controlling accounting entries
• SLA capabilities for information capture• SLA capabilities for information capture and reconciliation
• SLA inquiries and reports
–Part 2: New Installation Topics–Part 3: Upgrade Topicspg p
AgendaAgenda
– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries
–SLA capabilities for information capture and reconciliation
–SLA inquiries and reports
Introduction to SLAIntroduction to SLA
Oracle Subledger Oracle Subledger A tiA ti
ggAccounting:Accounting:
Oracle Subledger Accounting is a rules-based engine for generating accounting
entries based on source transactions fromentries based on source transactions from ALL Oracle Applications.
This is a transaction
This is a transaction
This is NOT an accounting entry
Transactions and Accounting E t iEntries
Invoice #100Invoice #100Ledger: US CorporateLedger: US Corporate
GL Date: 2GL Date: 2--MarMar--20062006Invoice Internal Identifier: 1001Invoice Internal Identifier: 1001
ABC NetworksABC Networks
2 Monitors2 Monitors Marketing $1000Marketing $1000
Invoice# 100Invoice# 100
Supplier: ABC NetworksSupplier: ABC Networks
DRDR CRCRIn oice Line 1In oice Line 12 Monitors 2 Monitors –– Marketing $1000Marketing $1000
5 Printers 5 Printers –– Marketing $ 500Marketing $ 500
FreightFreight $ 100$ 100
Tax $ 110Tax $ 110
1 Expense 011 Expense 01--EXPEXP--200200 $1500 $1500
2 Freight 012 Freight 01--FRFR--200200 $100$100
3 Tax 013 Tax 01--TXTX--200 $110200 $110
Invoice Line 1Invoice Line 1
Invoice Line 2Invoice Line 2
Invoice Line 3Invoice Line 3
Invoice Line 4Invoice Line 4Tax $ 110Tax $ 110
TotalTotal $1710$17104 Liability 014 Liability 01--LIABLIAB--200200 $1710$1710
Transactions vs. Accounting
– SLA provides a distinction between a transaction and the
Transactions vs. Accounting
SLA provides a distinction between a transaction and the accounting representation of the transaction
– Accounting distributions did not necessarily go away• Needed for upgrade customers
• Needed as starting point for SLA (Don’t want to force customers to define their own SLA rules)
• In some cases, necessary to allow user input
– Most default SLA rules just ‘pass through’ the distribution accounts (where applicable)accounts (where applicable)
– If you modify SLA rules, the ultimate accounting entry may not match the distributions.
– OK because distribution accounts are just defaults
AgendaAgenda
– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries
–SLA capabilities for information capture and reconciliation
–SLA inquiries and reports
Subledger Journal EntrySubledger Journal Entry
Subledger vs. GL Journal Entries
Invoice No: 136274 GL Date: 01/27/07 3rd Party: FenderSLA
Subledger vs. GL Journal Entries
101.100.63580.0000.720.000.000 6,000 EUR101.100.22100.0000.000.000.000 6,000 EUR
SLA JE #1
Invoice No: 131299 GL Date: 01/27/07 3rd Party: Gibson
101.100.63580.0000.720.000.000 3,000 EUR101.100.22100.0000.000.000.000 3,000 EUR
SLA JE #2
Invoice No: 116555 GL Date: 01/27/07 3rd Party: Kramer
101 100 63580 0000 720 000 000 2 000 EURSLA
JE #3 101.100.63580.0000.720.000.000 2,000 EUR101.100.22100.0000.000.000.000 2,000 EUR
Batch: AP Invoices 27-Jan-07 GL Period: Jan-07
JE #3
Batch: AP Invoices 27-Jan-07 GL Period: Jan-07
101.100.63580.0000.720.000.000 11,000 EUR101.100.22100.0000.000.000.000 11,000 EUR
GL JE #1
SLA – GL Flow
GL Balances
SLA GL Flow
Posting
GL Journal Entry
Journal Import
SLA Journal Entry
Journal Import
Create Accounting
Transaction
Subledger Balances
– Third Party Control Account Balances
Subledger Balances
Third Party Control Account Balances• Track balances by account and Customer/Supplier
• Statutory reporting requirement in certain countries
f l– Supporting Reference Balances• Store an unlimited number of sources as supporting references on
the accounting entries
• Optionally track balances by account and supporting reference
– Open Account Balances• Track balances by originating transactions and downstream applied• Track balances by originating transactions and downstream applied
transactions
– Balances calculated and stored AFTER Accounting Program Completes
Subledger Balances
GL Balances
Subledger Balances
Posting
GL Journal Entry
Journal Import
SLA Journal Entry
Journal Import
SLA BalancesBalance Calculation
Create Accounting
Transaction
AgendaAgenda
– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries
–SLA capabilities for information capture and reconciliation
–SLA inquiries and reports
Accounting Methods Builder C t
Vision Operations (USA) Ledger
Components
Standard/GAAP Accrual Subledger Accounting Method
Payables Accrual Application Accounting Definitiony pp g
Invoice Journal Line Definition
Journal Line Types
Account Derivation Rules
Journal Entry Descriptions
Transaction Objects
Sources
Transaction Objects
AMB: Shipped by Oracle, C t C t Ch
Vision Operations (USA) Ledger
Customers Cannot Change
Standard/GAAP Accrual Subledger Accounting Method
Payables Accrual Application Accounting Definitiony pp g
Invoice Journal Line Definition
Journal Line Types
Account Derivation Rules
Journal Entry Descriptions
Transaction Objects
Sources
Transaction Objects
AMB: Shipped by Oracle, C t C C t Th i O
Vision Operations (USA) Ledger
Customers Can Create Their Own
Standard/GAAP Accrual Subledger Accounting Method
Payables Accrual Application Accounting Definitiony pp g
Invoice Journal Line Definition
Journal Line Types
Account Derivation Rules
Journal Entry Descriptions
Transaction Objects
Sources
Transaction Objects
AMB: Grouping Components
SSC France Ledger
AMB: Grouping Components
PLFA Standard Accrual Subledger Accounting Method
PLFA Accrual Basis Application Accounting Definitionpp g
Invoice Journal Line Definition
Journal Line Types
Account Derivation Rules
Journal Entry Descriptions
Transaction Objects
Sources
Transaction Objects
Grouping Component: S bl d A ti M th dSubledger Accounting Method
Grouping Component: A li ti A ti D fi itiApplication Accounting Definition
AMB: Shipped by Oracle, C t C C t Th i OCustomers Can Create Their Own
Accounting Methods Builder (AMB)Accounting Methods Builder (AMB)
Description
Account Derivation Rule
Line Type
Journal Line Type (JLT)Journal Line Type (JLT)
Line Type
Journal Line Type (JLT)
– Identify the natural side
Journal Line Type (JLT)
y• Debit
• Credit
• Gain/Loss• 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 y g ,as amount, currency, conversion rate information
– Control behavior for certain features i.e. multiperiodControl behavior for certain features i.e. multiperiod accounting, business flows, line merging and summarization
Journal Line Type (JLT)Journal Line Type (JLT)
Account Derivation Rule (ADR)Account Derivation Rule (ADR)
Account Derivation Rule
Account Derivation Rule (ADR)
– Determine if rule will be generic or specific for a given
Account Derivation Rule (ADR)
g p gchart 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
ADR ExamplesADR Examples
1. Shipped rule, account combination
2. Shipped rule, with conditions
3 Shi d l i l t3. Shipped rule, single segment
4. Custom rule, fixed combination
5 Custom rule fixed segment5. Custom rule, fixed segment
6. Custom rule, with conditions
ADR Example 1: Shipped Rule, A t C bi tiAccount Combination
ADR Example 2: Shipped Rule, With C ditiWith Conditions
ADR Example 3: Shipped Rule, Si l S tSingle Segment
ADR Example 4: Custom Rule, Fi d C bi tiFixed Combination
ADR Example 5: Custom Rule, Fi d S tFixed Segment
ADR Example 6: Custom Rule, With C ditiWith Conditions
ADR Example 6 (cont.)ADR Example 6 (cont.)
ADR Example 6 (cont.)ADR Example 6 (cont.)
Oracle-owned vs. User-owned AMB C tComponents
Owner: Oracle User
Created by: Oracle CustomerDevelopment
Updatable? No Yes
Ch t f A t ? G i G iChart of Accounts? Generic Generic or Specific
Account Derivation RulesAccount Derivation Rules
Chart of Accounts: Generic Specific
Use Source for entire Account?
Yes YesAccount?
Use Source for individual segment?
Yes for Qualified segments
Yes for Any Segment
Use Mapping Sets? No Yes
Use Specific Values? No Yes
Journal Entry DescriptionJournal Entry Description
D i tiDescription
Journal Entry Description
– Define how the description on a journal entry or on
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
Journal Entry DescriptionJournal Entry Description
AgendaAgenda
– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries
–SLA capabilities for information capture and reconciliation
–SLA inquiries and reports
Third Party Control Accounts
– Certain accounts can be identified as control
Third Party Control Accounts
Certain accounts can be identified as control accounts. In this case:• You cannot enter manual adjustments against these j g
accounts in General Ledger
• SLA maintains balances for these accounts by third party
– This typically only applies to balance sheet accounts
Third Party Control AccountsThird Party Control Accounts
Supporting References
– Transaction attributes can be identified as
Supporting References
Transaction attributes can be identified as supporting references and stored on journal entries. In this case:• SLA maintains subledger balances for each supporting
reference value and account.
– This can apply to balance sheet as well as income statement accounts. In the latter case, subledger balances are reset automatically at fiscal year endbalances are reset automatically at fiscal year end.
– Formerly (in 11i FSAH) known as analytical criteria.
Supporting References
Invoice No: 136274 GL Date: 01/27/07 3rd Party: FenderSLA
Supporting References
101.100.63580… 6,000 EUR Product: X8F54101.100.22100… 6,000 EUR Buyer: Smithers
SLA JE #1
Invoice No: 131299 GL Date: 01/27/07 3rd Party: Gibson
101.100.63580… 3,000 EUR Product: S7000101.100.22100… 3,000 EUR Buyer: Siszlak
SLA JE #2
Invoice No: 116555 GL Date: 01/27/07 3rd Party: Kramer
101 100 63580 2 000 EUR Product: 8811920SLA
JE #3 101.100.63580… 2,000 EUR Product: 8811920101.100.22100… 2,000 EUR Buyer: Flanders
Batch: AP Invoices 27-Jan-07 GL Period: Jan-07
JE #3
Batch: AP Invoices 27-Jan-07 GL Period: Jan-07
101.100.63580… 11,000 EUR101.100.22100… 11,000 EUR
GL JE #1
AgendaAgenda
– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries
–SLA capabilities for information capture and reconciliation
–SLA inquiries and reports
Supporting ReferencesSupporting References
Online Inquiries: EventsOnline Inquiries: Events
Online Inquiries: Journal EntriesOnline Inquiries: Journal Entries
Online Inquiries: Journal LinesOnline Inquiries: Journal Lines
New Reports
BI P bli h R
New Reports
– BI Publisher Reports• Journal Entries: Listing of subledger journal entries
• Account Analysis: Listing of beginning and ending balances fromAccount Analysis: Listing of beginning and ending balances from General Ledger with merge of subledger and General Ledger journal entries
• Open Account Balances (a.k.a. Trial Balance): Listing of open Ope ccou t a a ces (a. .a. a a a ce): st g o opebalances by third party (leverages business flows)
• Third Party Balances: Balances by third party control account and third partyp y
• Period Close Exceptions Report: Listing of transactions / subledger journal entries that have not yet been posted to General Ledger
Account Analysis ReportAccount Analysis Report
Journal Entries ReportJournal Entries Report
Open Account Balances ListingOpen Account Balances Listing
SLA Reports Detail
– All reports are native to BI Publisher
SLA Reports Detail
All reports are native to BI Publisher
– All extracts are very fat, i.e. they include a tremendous amount of data that is not displayedtremendous amount of data that is not displayed by default but can be added by simple template modifications
– Journals and Account Analysis reports include GL journals for non‐SLA sources
– Open Account Balances Listing is based on Business Flows• It replaces (and genericizes) the AP Trial Balance.
• You must create a report definition in advance
QuestionsQuestions
FMT Systems EventsFMT Systems Events
OAUG GL SIG Webinar Series ContinuesOAUG GL SIG Webinar Series Continues
January 27th –Deep Dive into the Functionality and Capability of SLADeep Dive into the Functionality and Capability of SLA
February 3rd –February 3rd Case Study on SLA usage
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