build an sla rule exercice

8/6/2019 Build an SLA Rule Exercice

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Case Study Sub-Ledger Accounting

Introduction

This section is aimed to guide you through the definition of rules toaccount for a Payables invoice. The environment to be used doesnot have the adequate ledger setup to accommodate each user tobe able to create accounting using her/his own rules. Rememberthat a primary or secondary ledger can have a single accountingmethod effective at any given date for a given application.

Therefore, with a single primary ledger definition (VisionOperations, USA), it will not be possible for all users to createaccounting concurrently for the same ledger. We will beconcentrating on the definition of the rules in this class.

Define Rules to Account for Payables InvoicesExercise 1 - Copy and Modify Flow

Task

Using the seeded Payables definitions, copy and create your ownrule to account for an invoice. Your rule should:

- Have your own description on the liability line,

- Have a separate liability line for each invoice line, i.e. notsummarized.

Detailed Steps

Copy the seeded journal line definition Accrual, Invoices All andperform the following changes for your copy:

1. Define a journal entry description to be used on the liabilityline. The description should contain your name as a constantand the supplier name. It should appear only on invoiceshaving invoice date of February 21, 2007.

Responsibility: Payables, Vision Operations

Navigation: Setup -> Accounting Setups -> SubledgerAccounting Setup -> Accounting Methods Builder -> JournalEntry Setups -> Journal Entry Descriptions

Field Value Journal Description Code Enter a code. Journal Description Name Enter a name.Enabled Yes

Transaction Chart of Accounts

Null

Description Enter a description for thiscomponent you are defining; canleave null.

Priority 1Details This is what will show on the liability

line as the description. Define such

that your name as well as yoursuppliers name is displayed.


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2. Liability lines of the entry should not be summarized i.e. thereshould be a liability entry for each invoice line. To accomplishthis, copy the seeded journal line type Liability, Basic, andmodify it such that journal entry lines with matching criteria arenot merged.

To ensure that liability lines with matching criteria (GL account,

accounting class being a few of many. For the full list, pleaserefer to the SLA Implementation guide) are not merged into asingle line and that the granularity of the invoice lines arepreserved, set the Merge Matching Lines option to No on your

JLT. In order to make the definition easier, instead of creatingthe JLT from scratch, use the copy functionality on the seeded

JLT Liability, Basic and change the desired option. Your JLTshould be similar to below:

Figure 4 New Liability JLT


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3. Modify your copied JLD to use above components.Remove or de-activate the seeded Liability, Basic JLT from yourcopied JLD, and assign your JLT, instead. Do not forget toassign your description to this JLT, as well as the same accountderivation rule as was on the seeded JLT that you removed/de-activated.

Your JLD should look like below:

Figure 5 New Invoice JLD


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4. Copy and modify the seeded AP Application AccountingDefinition Accrual Basis ; replace the JLD for the event classInvoice with your own. Remember to validate your AAD; thevalidation will check for inaccuracies in the setup and compilethe code to create accounting per these rules.

Your AAD should look like below:

Figure 6 New AP AAD


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5. Copy the seeded Standard Accrual SLAM, put an end-date of July 31 st , 2007 on the seeded Payables AAD. Add a new rowand activate your AAD as of August 1 st , 2007. The SLAM shouldlook like below:

Figure 7 - Modified SLAM


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Exercise 2 Create Flow

Task Define an AAD for the accounting chart of accounts Operations

Accounting Flex , such that it will generate a journal entry:

- Only for the validation of AP invoices,

- with only item expense and liability lines i.e. no tax,freight etc,

- booking the liability line to the account: 01-000-2220-0000-000,

- booking the expense line to the distribution account onthe invoice line, but with the account segment value

overwritten with 7740.Detailed Steps

Navigation: Setup -> Accounting Setup -> SubledgerAccounting Setup -> Accounting Methods Builder -> JournalEntry Setup -> Journal Line Types

1. Liability JLT: Copy your liability JLT defined in the previousexercise and modify it such that lines with matching criteriaare merged. Call your Liability JLT_LIABILITY_MERGED Your new liability JLT shouldbe similar to below:

Figure 8 - New Liability JLT


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2. Expense JLT: to create a line for invoice lines of type Item,

Field ValueEvent Class InvoicesLine Type Code Enter _INVOICE_EXPENSEAccounting Class - Item Expense.

- This value will be on the entry lineand is used to categorize lines,primarily for reporting purposes.

Name Enter a name.Rounding Class - Enter the same value as in

Accounting Class.- Along with the Rounding Reference,

this value is used to determine atwhat level transaction roundingshould be performed (advanced

topic).Description Enter a description for the componentyou are defining; can leave null.

Enabled YesBalance Type Actual, as we are not looking to create

budget or encumbrance entries.Side Debit. Expense amount should be

debited to the expense account.Switch Debit/Credit - No.

- Determines if the side on a line witha negative amount should beswitched and the negative madepositive, or both the negative andthe side preserved. For example, anamount of -100 may generate anentry line with DR -100 or CR 100.

Merge Matching Lines - No.- Determines if lines with matching

criteria should be merged into asingle line.

Subledger Gain/Loss - No.- Will this JLT be used to create an

exchange gain/loss line calculatedby the transacting application forthe primary ledger (advanced

topic)? Transaction Chart of Accounts

- Null.- Used in interpreting or converting an

accounting flexfield source carryinga value from the transaction for theprimary ledger (advanced topic).

Business Flow Method - None.- Determines if certain attributes of

the journal line should be inheritedfrom another line. For example, fora liability line, copy the BSV fromthe corresponding expense line inthe same entry; or, on a payment,

back out from the same liabilityaccount that was used on the


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invoice of this payment (advancedtopic).

Business Flow Class - Null.- Used together with the above when

Prior Entry is selected.Multiperiod - None.

- Determines if/how a payment shouldbe recognized as expense overmultiple accounting periods(advanced topic).

Transfer to GL - Summary.- Determines whether the lines should

be transferred to GL in the samelevel of granularity as in SLA orsummarized by accounting flexfieldand other criteria.

Conditions Define a condition such that this JLT isused only for invoice lines withdistribution type = Item.

Accounting AttributeAssignments

- Review the sources assigned to theaccounting attributes to be used inderiving values for this journal entryline.

- Uncheck the Event Class Default boxfor the attribute Party Identifier, andselect Invoice Supplier Site Identifierfrom the list of values. This willresult in the journal entry lineshowing the party site identifier asboth the party and the party site.Note that you can change the event

class default only if there have beenmultiple source assignments to anaccounting attribute on the eventclass level.

Note: This may not work in our currenttraining environment


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Your JLT for the expense line should be similar to below:(Note: You may have to set the Subledger Gain/Loss field toNO)

Figure 9 - New Expense JLT

Figure 10 - Expense JLT Condition


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Figure 11 - Expense JLT Accounting Attributes

Your liability ADR should be similar to below:Setup -> Accounting Setup -> Subledger Accounting Setup ->Accounting Methods Builder -> Journal Entry Setups -> AccountDerivation Rules

Figure 12 - Liability ADR


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3. Liability ADR: a constant based ADR deriving accountingflexfield 01-000-2220-0000-000, defined for accountingchart of accounts Operations Accounting Flex,

Field ValueRule Code Enter a code. _LIABILITY

Rule Name Enter a name. LiabilityAccountEnabled YesDescription Enter a description for the component

you are defining; can leave null.Chart of Accounts-

Transaction- Null- Used in interpreting or converting

an accounting flexfield sourcecarrying a value from thetransaction for the primary ledger(advanced topic).

Chart of Accounts-Accounting

- Operations Accounting Flex- Will allow defining constant values

by validating against the COA.Output Type FlexfieldPriority 1Value Type ConstantValue 01-000-2220-0000-000


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4. ADR for invoice distribution account: already exists asseeded rule (see the ADR Invoice Distribution Account attached on the JLT Item Expense JLT on seeded JLD

Accrual, Invoices All ),Seeded ADR Invoice Distribution Account will read the valueof the source Invoice Distribution Account from thetransaction, and will use the same account on the journalline.

Figure 13 - Seeded ADR for Invoice Distribution Account

5. ADR for account segment: a constant based ADR derivingvalue 7740 for account segment, defined for accountingchart of accounts Operations Accounting Flex,

Field ValueRule Code Enter a code. _EXPENSERule Name Enter a name. Expense

AccountEnabled YesDescription Enter a description for the component

you are defining; can leave null.Chart of Accounts-

Transaction- Null- Used in interpreting or converting

an accounting flexfield sourcecarrying a value from thetransaction for the primary ledger(advanced topic).


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Chart of Accounts-Accounting

- Operations Accounting Flex- Will allow defining constant values

by validating against the COA.Output Type Segment AccountPriority 1Value Type ConstantValue 7740

Expense account ADR should be similar to below:

Figure 14 - Expense ADR for Account Segment

6. The JED is defined in the previous exercise.

7. JLD for invoice validation event type: defined for accountingchart of accounts O perations Accounting Flex:

- Assign the liability JLT from step #1 and theliability ADR from step #3. Note that this ADRwill determine the value for all the segments of the accounting flexfield.

- Assign the expense JLT from step #2 and theADR for invoice distribution account from step#4 and ADR for account segment from step #5.Note that the former will determine the valuefor all the segments of the accounting flexfield,and the latter will overwrite the account

segment value.


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Your JLD should be similar to below:Setup -> Accounting Setups -> Subledger AccountingSetup -> Accounting Methods Builder -> Methods andDefinitions -> Journal Lines Definitions

Figure 15 - JLD for Invoice Validation Event


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8. Payables AAD: defined for accounting chart of accountsOperations Accounting Flex, to generate an entry only forinvoice validation events. Assign the JLD from step #7. Usethe Definition Code OPERATIONS_COA_AAD.Hit the Header Assignments button, and check the sourceassigned to the GL Date accounting attribute. The value of

this source from the transaction will determine what the GLdate will be on the accounting entry. Optionally, assign adescription for the header of the entry.Remember to Validate your AAD

Your AAD should look like below:Setup -> Accounting Setups -> Subledger Accounting Setup-> Accounting Methods Builder -> Methods & Definitions ->Application Accounting Definition

Figure 16 - AAD for Operations Accounting Flex


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Figure 18 - SLAM for Services Accounting Flex


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Exercise 3 - Create Accounting Using Seeded SLAM withCustom AAD

Task

In the Copy and Create flow above in Exercise 1, you created yourown AMB components by copying and modifying the seededdefinitions. You assigned your AAD to the seeded SLAM Standard

Accrual . When you create accounting for any ledger that has thisSLAM assignment, the invoices will be accounted per your rules.

This exercise involves entering a transaction and generatingaccounting for it per your definition in Exercise 1.

Detailed Steps

1. Create a standard Payables invoice for operating unitVision Operations (USA), with 2 item lines, validate theinvoice, and create online accounting in final mode to postto GL.Note: If you use Supplier number 1005, you should removethe Distribution Set name that will default into the invoiceheader, otherwise this will generate confusing results.Use the Actions button to submit online accounting for theinvoice.

Figure 19 - Create Online Accounting for a Payables Invoice


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2. View the accounting lines generated.Use the toolbar to access accounting entry for the invoice,displaying all lines generated. Note that if there aremultiple representations i.e. reporting currencies andsecondary ledgers, a separate entry will be generated foreach; but all lines belonging to all entries will be displayed

on this page.

Figure 20 - Accessing Accounting Entry from Invoice Workbench

Figure 21 - View Journal Entry Lines

3. View the journal entry .

Use the button View Journal Entry to access more details of the entry with the header information. Notice that theliability lines have not been summarized per the liability JLTdefinition you had created.

Figure 22 View Journal Entry


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4. View the details of one liability line.Select the link Show for one of the liability lines to view thedetails. Notice the description is created per your JED.

Figure 23 - Journal Line Details and Description

5. View the entry in t-account format. ( Warning: thismight take a long time to appear go for a coffee!)Select the button View T-Account .

Figure 24 - View Journal Entry in T-Account Format


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Exercise 4 - Create Accounting Using Custom SLAM withCustom AAD

Task

In the Copy and Create flow above in Exercise 2, you created yourown AMB components including the SLAM. In order to use yourSLAM, you need to assign it to the ledger you are using. When youcreate accounting for any ledger that has this SLAM assignment,the invoices will be accounted per your rules. This exerciseinvolves entering a transaction and generating accounting for itper your definition in Exercise 2.

Detailed Steps

1. Create a standard Payables invoice for operating unit VisionOperations (USA), with 2 item lines, validate the invoice,and create online accounting in final mode to post to GL.Use the same date, amount, and distribution accounts as inthe previous exercise.

2. On the Subledger Accounting Journal Entries page, searchfor the two invoices you have entered in this exercise andthe previous one. Depending on your search criteria,multiple entries may be returned.

Figure 25 - Search Journal Entries

3. Select the two entries and hit the Compare button.Compare the details of the two entries, and notice thedifference in the accounts and liability line summarization.


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Figure 26 - Compare Journal Entries

4. Switch to GL responsibility and view the new journal.Notice that the entry in GL has two lines with the expenselines summarized, whereas the entry was created in SLAwith 2 expense lines to the same account. This is becauseof the Transfer to GL setting on the expense JLT, which wasset to Summary. Hence, during transfer to GL, lines hittingthe same account are summarized into a single one, withthe details being preserved in SLA. SLA entries are moredetailed than the GL entries.

Figure 27 - Entry Viewed in GL


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5. Drill down to the SLA entry.Using the Line Drilldown button for the debit line, younavigate to the SLA page to view the detail lines that weresummarized together to create the line as seen in GL.

Figure 28 - Detail Lines in SLA

6. Drill down to the transaction.From the lines view, you can drill back to the transaction onPayables invoice workbench.

Figure 29 - Drilldown to Transaction


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Figure 31 - Enable Diagnostics

3. Submit Create Accounting program for your ledger, andwhen completed, view the output for errors.

Figure 32 - Create Accounting Offline

Figure 33 - Error on Accounting Report


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Figure 34 - Submit Transaction Object Diagnostics

4. On the output, locate the accounting attribute that the errorwas reported for, i.e. Accounted Amount. Notice the sourceand its value mapped to this attribute for the JLT that wasexpected to create the entry line, Quantity Variance

Amount in Ledger Currency with no value. This shows thatthe accounting program was trying to create the entry lineusing the value of this source, and was unable to create asuccessful entry as the there was no value. A valid journalentry line must always have a value for accounted amount.For a list of validations on a journal entry, please see theappendix of the SLA Implementation Guide.

To fix the error, you will need to change the sourcemapped to this accounting attribute on the JLT that wasin error, i.e. your copy of the LP Item Expense (error)

JLT. Note that after modifying any component used init, your AAD will need to be revalidated to compile thecode with the new settings.

When you generate accounting after these changes(offline or online), you will see an entry successfullycreated.


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Figure 35 - Diagnostics Report

Figure 36 - Accounting Attribute Assignments on the JLT


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Figure 37 - Revalidating the AAD

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