E-Business Suite 2 _ Rajesh Narang _ R12 Subledger accounting - transition to R12.pdf
- 1. R12 Sub-‐Ledger Accoun2ng (SLA) Transi2on from 11i to R12 Rajesh Narang [email protected] The most comprehensive Oracle applications & technology content under one roof
- 2. Agenda • 11i Sub Ledger Transac=ons Accoun=ng • 11i vs. R12 • R12 Sub Ledger Accoun=ng Primer – Overview – Accoun=ng Model – Accoun=ng Engine • R12 Sub Ledger Accoun=ng Benefits • Lessons Learnt • Q & A The most comprehensive Oracle applications & technology content under one roof
- 3. 11i Sub Ledger Transac=ons Accoun=ng The most comprehensive Oracle applications & technology content under one roof
- 4. Sub Ledger Transac=ons Accoun=ng Payables 11i • Transac=ons ac=ons create accoun=ng events like: – invoice valida=on, invoice adjustment, invoice cancella=on, payment entry, payment cancella=on • Run ‘Payables Accoun2ng Process’ to create accoun=ng entries for these accoun=ng events • Accoun=ng entries are created based on the payables op=ons and the accoun=ng rules defined internally for every event. • ‘Payables Accoun2ng Process’ creates accoun=ng entries in the sub-‐ledger accoun=ng model; introduced by Oracle in Release 11i Payables • Run ‘Payables Transfer to GL’ to transfer accoun=ng entries to Oracle GL The most comprehensive Oracle applications & technology content under one roof
- 5. Sub Ledger Transac=ons Accoun=ng Fixed Assets 11i • Oracle Fixed Assets uses the Account Generator to generate accoun=ng flexfield for the different classes of asset transac=ons • Run ‘Create Journal Entries’ program to create journal entries • ‘Create Journal Entries’ program u=lises the accoun=ng flexfields generated by the account generator and pre-‐ defined accoun=ng rules for crea=ng journal entries • Journal entries are then interfaced into GL and journal batches are created The most comprehensive Oracle applications & technology content under one roof
- 6. Sub Ledger Transac=ons Accoun=ng Receivables 11i • For every transac=on; receivables creates default accounts using the informa=on specified in Auto Accoun2ng structure • Some rules are defined in accoun=ng rules setup • Run the General Ledger Interface program • General Ledger Interface program transfers data to the GL_INTERFACE table • Run Journal Import program to import data in GL_INTERFACE table and create journal entry batches in the Oracle General Ledger The most comprehensive Oracle applications & technology content under one roof
- 7. 11i -‐ Constraints • Accoun=ng rules defined in mul=ple places and some=mes cannot be configured / changed without customiza=ons • Inconsistencies between sub-‐ledger transac=ons create accoun=ng procedures • Customiza=ons or manual adjustment journals required to meet business requirements – e.g. account generators modifica=ons • Sub-‐Ledger accoun=ng entries are interfaced directly into GL – Reconcilia=on or Drill down limita=ons for transac=ons posted to GL in Summary – Thin (OR Summary) GL cannot be maintained • Final Accoun=ng (DR/CR) is only visible in General Ledger The most comprehensive Oracle applications & technology content under one roof
- 8. 11i vs. R12 The most comprehensive Oracle applications & technology content under one roof
- 9. 11i vs. R12 The most comprehensive Oracle applications & technology content under one roof
- 10. 11i vs. R12 • 11i: – Sub-‐ledger transac=ons accoun=ng is generated using various setups defined at many levels • e.g. some of the account deriva=on rules are defined in Payables Op=ons or in financial op=ons • some accoun=ng rules are defined in customised account generators or auto-‐accoun=ng setups/formulas – Sub-‐ledger accoun=ng entries are interfaced directly into GL • R12: – Sub Ledger Accoun=ng is an intermediate step between each of the Sub Ledger applica=ons and Oracle General Ledger (GL) – Transac=ons are entered in sub-‐ledger; BUT accoun2ng treatment for the transac=ons is derived in SLA – There is no direct interface from Sub-‐Ledgers to GL – Journal entries from SLA module are then interfaced into GL The most comprehensive Oracle applications & technology content under one roof
- 11. R12 SLA -‐ Overview The most comprehensive Oracle applications & technology content under one roof
- 12. R12 Sub-‐Ledger Accoun=ng – Overview The most comprehensive Oracle applications & technology content under one roof
- 13. R12 Sub-‐Ledger Accoun=ng – Overview • A centralized model -‐ that allows configura=on of many aspects of journal entries for sub-‐ledger transac=ons – E.g. Journal Line Descrip=ons, Journal Line Amounts, Debits/Credits, Line Types • An Engine – that creates accoun=ng and provides consistency for sub-‐ledgers transac=ons accoun=ng procedures – Create Accoun=ng Program • A repository -‐ that stores all sub-‐ledger journal entries before they are transferred to GL The most comprehensive Oracle applications & technology content under one roof
- 14. R12 SLA –Accoun=ng Model The most comprehensive Oracle applications & technology content under one roof
- 15. R12 Sub-‐Ledger Accoun=ng Model SLA Event Model Accoun2ng Transac2ons Events SLA Engine SLA Repository Sub-‐Ledger GL Create Accoun=ng Sub-‐Ledger Journal Entries Program Journal Entries and Balances GL Accoun2ng Configura=on Configura2ons Model SLA The most comprehensive Oracle applications & technology content under one roof
- 16. Accoun=ng Methods Builder (AMB) Accoun=ng Model Ledger Sub-‐Ledger Accoun=ng Method Applica=on Accoun=ng Defini=on Journal Line Defini=on Journal Line Types Journal Entry Descrip=ons Account Deriva=on Rules Event Model Event En=ty Event Class Event Class Event Type Event Type Event Type Event Type The most comprehensive Oracle applications & technology content under one roof
- 17. Accoun=ng Methods Builder (AMB) – Events Model Events are Predefined Components; new events cannot be defined • Event model consists of Event En=ty, Event Class and Event Types • Whenever a transac=on ac=on is commibed in a sub ledger; SLA captures the corresponding event -‐AP Invoice Events -‐ FA Deprecia2on Events -‐AR Receipt Events -‐Validated -‐Deprecia=on -‐Created -‐Adjusted -‐Rollback deprecia=on -‐Applied -‐Cancelled -‐Unapplied The most comprehensive Oracle applications & technology content under one roof
- 18. Accoun=ng Methods Builder (AMB) – Accoun=ng Model The most comprehensive Oracle applications & technology content under one roof
- 19. Accoun=ng Methods Builder (AMB) – Accoun=ng Model • Sub ledger accoun=ng methods – Used to define accoun=ng method e.g. Accrual Basis, Cash, IFRS, US GAAP • Applica=on accoun=ng defini=ons – Used to group journal lines defini=ons and header assignments for event classes and event types. • Journal lines defini=ons – Used to link Journal Types, Descrip=ons and Deriva=on rules by assigning account deriva=on rules and descrip=ons to journal line types • Journal line types – Used to define line type op=ons such as balance type, side and summariza=on • Account deriva=on rules – Used to derive Accoun=ng Flexfield combina=ons for the journal entry lines to construct the accounts • Journal entry descrip=ons – Used to change the descrip=on for the journal entry headers and lines and provide addi=onal informa=on about the journal entry Startup data is seeded by Oracle; we can copy and modify these defini2ons or create new ones The most comprehensive Oracle applications & technology content under one roof
- 20. Accoun=ng Engine • Oracle has introduced ‘Create Accoun2ng’ program to create sub-‐ledger transac=ons accoun=ng • ‘Create Accoun2ng’ program: – Checks for all unaccounted events created by transac=on ac=ons – Creates accoun=ng for the event based on the setup in AMB • ‘Create Accoun2ng’ program parameters differ based on sub-‐ledger; but same program is used in all sub-‐ ledger modules The most comprehensive Oracle applications & technology content under one roof
- 21. R12 SLA – Benefits The most comprehensive Oracle applications & technology content under one roof
- 22. Benefits • Replaces various disparate 11i setups • Introduces a common data model and UI across Subledgers • Retains granular level of detail in the Subledger accoun=ng model; Realise business requirement for a thin (summary) General Ledger • Create accoun=ng in Drad or Final mode before pos=ng to General Ledger • Configure most aspects of a journal entry; minimize customiza=on requirements • Advanced drill down func=onality using new Inquiry Screens and Reports • There are public APIs available to create accoun=ng entries in SLA from external sub-‐ledgers The most comprehensive Oracle applications & technology content under one roof
- 23. Lessons Learnt The most comprehensive Oracle applications & technology content under one roof
- 24. Lessons Learnt • Understand all accoun=ng transac=ons; before configuring SLA • Include month-‐end process as part of tes=ng for any changes done in SLA • Use import / export func=onality to move setup changes from test to produc=on • Copy seeded defini=ons to create new setups • Allocate a significant amount of =me and resources to this part of the implementa=on • Educate super users about accoun=ng events, new inquiry screens and new reports • Proceed with cau=on, SLA is a substan=al change in R12 The most comprehensive Oracle applications & technology content under one roof
- 25. R12 Sub-‐Ledger Accoun=ng Q & A The most comprehensive Oracle applications & technology content under one roof