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7/28/2019 SLA- High Level-Oracle

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Subledger Accounting- An overview18-OCT-2012

By: Sirisha Nagavalli


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Agenda

Subledger Accounting Overview

Create Accounting Process

Drilldown and Inquiries

Third Party Control Accounts

Manual Subledger Entries Creating, Updating, Deleting

Reports

Impact on period close process


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SUBLEDGER ACCOUNTINGOVERVIEW


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What is Subledger Accounting

A rule based engine for generating accounting

for subledger transactions from all Oracle

Applications

Single repository for subledger accounting

data.


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What is a Subledger

Subledgers are applications where theoperational transactions are recorded andstored.

Subledgers store the transaction levelaccounting detail.

Subledgers post summarized activity

information to a general ledger periodically tomaintain the centralized account balances forthe company.


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SLA Overview:Features

Provides rule-based accounting for all sub-ledgers.

Allows multiple accounting representations for a singlebusiness event to meet corporate and local fiscalaccounting requirements.

Retains transaction level detail with differentsummarization options in general ledger. This allowsdrilldowns to transactions and ensures auditability.

Introduces a common data model and user interface acrosssubledgers and hence provides consistency in reporting and

user experience. Not a separate product with different responsibilities. The

forms and programs are embedded within standard oracleapplication responsibilities.


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SLA Overview


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SLA Overview: Multiple

Representations


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SLA Overview Payables SLA Entry : An example


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SLA Overview- Transaction to Entry

This graphic shows how SLA tracks atransaction to its journal entry.


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Applications that use Subledger

Accounting Payables

Receivables

Projects

Assets

Costing Process Manufacturing

Federal Financials

Payroll

Property Manager

Loans Lease Management

Cash Management


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CREATE ACCOUNTING


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Create Accounting - Overview

The create accounting program processes eligibleaccounting events to create subledger journalentries. To create the subledger journal entries

the Create Accounting program appliesapplication accounting definitions that arecreated in the Accounting Methods Builder.

An eligible event is one that is :

Completed Rules must be defined to process the transaction

type/ event type.


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Validates and creates subledger journal

entries

Optionally transfers the journal entries to GL

Optionally posts the journal entries in GL

Generates the Subledger Accounting Program

Report which documents the results of the

Create Accounting program.


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Create accounting can be online or in

concurrent mode. Online accounting can be

created for a transaction without submitting

the concurrent process. This is available forpayables and receivables transactions.


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Draft Accounting

You can choose create accounting in draft mode. In this modeSubledger Accounting creates the journal entries so that you areable to view them but you can go back and update the transactionsor the accounting rules and rerun the process to see your changes.

Useful when testing the accounting for a transaction.


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Final (without posting)

When you create accounting in the final mode the journal entries arecreated in final status and are ready to be transferred to GeneralLedger. Any changes in rules after this will not update the journalentries.


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Final Post (Straight-Through

accounting) If you select Final Post, Subledger Accounting posts the journal

entries all the way through to General Ledger. This means that youcan update GL balances straight from the invoice entry (or anyother transaction entry) window.


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Create Accounting Parameters


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Create Accounting Parameters


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Transfer Journal Entries to GL Program

The Transfer Journal Entries to GL program

enables you transfer any eligible journals

entries to GL. These could be entries created

by earlier runs of create accounting but nottransferred at the same time.

Transfers all journal entries in the status

Final


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Transfer Journal Entries to GL Program

Parameters:

Ledger

Process Category

End Date

Post in General Ledger

General Ledger Batch Name


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INQUIRIES AND DRILLDOWN


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Accounting Events Inquiry- Features

Perform and inquiry on accounting events, journalentries, and lines based on multiple selection criteria.

View information about an accounting event or journalentry error.

View detailed information about the subledger journalentry

Compare subledger journal entry information for anytwo journal entries

View subledger journal entry in T-Form View transactions underlying the subledger journal

entry.


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Accounting Events Inquiry Process

Navigate to the Accounting Events Inquiry page.

- Payables: Accounting > Subledger Accounting > Journal Entries (T) AccountingEvents

- Receivables: Inquiry > Accounting > Subledger Journal Entries (T) AccountingEvents

Execute a search for specific accounting events.

View accounting events. View subledger journal entry information by clicking View Journal Entries.

View detailed entry information about the subledger journal entry by clicking theledger link.

View the T-account by clicking View T-Account.

View reversing entry. Note that this button is only available if you are viewing an

accrual entry that has been reversed. View multiperiod accounting associated with the accrual journal entry by clicking

the Multiperiod icon in the Lines region.

Compare two journals by clicking Compare.

Click View Transaction to view the underlying transaction.


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Subledger Journal Entry Lines Inquiry

Process

View the subledger journal entry lines for a

number of different documents or transaction

by selecting the Subledger Journal Entry Lines

menu option.


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Subledger Journal Entry Lines Inquiry

ProcessPayables: Accounting > Subledger Accounting > Journal Entries (Lines)

Receivables: Inquiry > Subledger Accounting > Journal Entries (Lines)

Navigate to the Subledger Journal Entry Lines page from a subledger application.

Execute a search.

View subledger journal entry lines in the results region.

View subledger journal entries for a selected journal entry line by clicking ViewJournal Entry.

View journal line information in T-account format by clicking View T-account in theView Subledger Journal Entry page.

View reversing entry. If viewing an accrual reversal journal entry in the ViewSubledger Journal Entry page, the View Accrual Entry button is displayed to viewthe accrual journal entry details. If viewing an accrual journal entry, the View

Reversing Entry button is displayed to view the accrual reversal journal entrydetails.

View multiperiod accounting. View multiperiod lines associated with the accrualjournal entry line by clicking the Multiperiod icon in the Lines region.


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Drilldown from GL


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THIRD PARTY CONTROL ACCOUNTS


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Certain accounts in GL can be classified as third party control accounts forsuppliers or customers or both. Manual adjustments cannot be entered against such accounts in general

ledger

Subledger accounting maintains balances for these accounts by the third party(supplier/ customer)

Normally balance sheet accounts would be classified as a third partycontrol account.

Available Segment qualifiers: Supplier

Customer

Yes

No Restrict Manual Journals

'Program - Inherit Segment Value Attributes needs to be run after thevalue is set.


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MANUAL SUBLEDGER ENTRIES


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Manual Subledger Entries

These subledger journal entries are not

associated with any transaction directly.

These entries can be created manually within

the subledger

The entries are considered adjustments for

the subledger and are transferred and posted

to GL like any other entry.


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Manual Subledger Entries

Features:

Adjustments to subledger entries can now bemade in the subledger itself. Provides better

subledger reporting. These manual entries can optionally have third

party information. This makes reconciliationeasier.

Any adjustments to a third party control accountshould be made using a manual subledger entry.Ensures better control.


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Creating Subledger Entries

Navigation Paths: Payables: Accounting > Subledger Accounting > Journal Entries

Receivables: Inquiry > Subledger Accounting > Journal Entries

The ledgers available are determined by the data access set profile assigned to theresponsibility/ user.

Default Currency Options - Opens the Default Currency Options page to default an

entered currency, conversion type, conversion date, and conversion rateinformation for each new subledger journal entry line. Use the currency controlsavailable in the Details region of each journal entry line to override the default set.

Third Party Type - Defaults from the application associated with the responsibilityused to access the manual subledger journal entry pages. The values for name,site, number, and taxpayer ID must match the third party type. These values arerequired if the account on the line is a third party control account. If the account is

not a third party control account, but party type is selected, party informationshould be provided.

Conversion Rate - If the conversion type is User, you must enter a conversion rate.

Continue - Select to review the manual subledger journal entry and complete it.


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Subledger Journal Entry Completion

Subledger accounting does the following

when completing a journal entry:

Validates the accounts

Assigns the corresponding sequence to the entry

if completed with a final status.

Updates the status of the subledger journal entry

(Final or Error). Invokes the balance update program


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Duplicating Subledger Journal Entries

You can create a new subledger journal entry

from any existing subledger journal entry. The

existing journal entry should not be in error.


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Reversing Subledger Journal Entries

You can reverse an existing manual subledger

journal entry that is in final status. The

Reversal options are :

Switch DR/CR

Change Sign


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Delete Subledger Journal Entries

You can delete manual subledger journal

entries that are in Draft or Incomplete status.


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SUBLEDGER ACCOUNTING REPORTS


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Reports

Subledger accounting provides the following reports: Journal Entries Report

Account Analysis Report

Third Party Balances Report

Period Close Exceptions Report Open Account Balances Listing

This reports can be customized by defining new BIPublisher Templates that use a subset of the dataelements included in these reports.

These reports are comprehensive and can be used inlieu of the General Ledger based journals and accountanalysis reports.


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Journal Entries Report

The Journal Entries Report displayed detailedjournal entry information including transactiondetails for subledger journal entries as well asadjustments entered in the General Ledger andentries posted to General Ledger from othersources.

Navigation

Payables: Other > Requests > RunReceivables: (M) View > Requests (B) Submit aNew Request


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Journal Entries Report parameters


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Journal Entries Report parameters


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Account Analysis Report

The Account Analysis Report provides drill-

down information about the movement on a

particular account for a period or range of

periods. It only includes journal entriestransferred to and posted to General Ledger.


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Account Analysis Report Parameters


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Account Analysis Report Parameters


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This report retrieves the followinginformation:

Third party balances for third party control

accounts Subledger journal entry lines that add up to the

total period activity for each control account, thirdparty, and third party site

Third party and third party site information User transaction identifiers for the associated

event

Thi d P B l R


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Parameters

Thi d P B l R


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Parameters

Thi d P t B l R t


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Parameters

S bl d P i d Cl E ti


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Subledger Period Close Exceptions

Report The Subledger Period Close Exceptions Report lists all

accounting events and journal entries that fail period closevalidation. It is automatically submitted by General Ledgerwhen closing a GL period if there are unprocessedaccounting events or untransferred journal entries.

You can also generate the Subledger Period CloseExceptions Report through a concurrent request as follows: For the application associated with the responsibility

For all applications in the General Ledger responsibility

The report lists the following: Unprocessed Accounting Events

Incomplete, draft or error journal entries

Final journal entries not transferred to General Ledger



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Report Parameters



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Report Parameters


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Open Account Balances Listing

The Open Account Balances Listing identifiesGeneral Ledger accounts with outstandingbalances and displays the subledger transactionsthat contribute to the balance.

This report needs pre-processing using the OpenAccount Balances Listing Data Manager.

This report displays:

Account Actual Account Balance

Listing of transactions contributing to that balance

C ti d U d ti O A t


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Creating and Updating Open Account

Balances Listing Definitions

You can defined the accounts to be tracked in theOpen Account Balances Listing

Define the report definitions either by account

combination or by segment and associate eachdefinition with a ledger.

The chart of accounts of the associated ledgersets the context for the following information in

the details region: General Ledger accounts

General Ledger account segments

O A t B l Li ti


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Parameters



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Parameters


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PERIOD CLOSE PROCESS


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General Close Process

CompleteTransactions

CreateAccounting

ResolveExceptions

Post to GL

Reconciliation

Impacted by

SubledgerAccounting


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Create Accounting

Subledger accounting replaces the individual

subledgers different types of accounting

processes with Create Accounting.

The create accounting process determines thefinal accounting for a transaction and also

generated balancing lines if required as opposed

to 11i where the accounts in the transaction

distribution were the final accounts and the

balancing lines were generate by General Ledger.


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Resolve Exceptions

The Subledger Period Close Exception Reportcan be and must be used before closingsubledgers and general ledger to review

accounting events that are unprocessed,incomplete, in error or not transferred toGeneral Ledger.

The Create Accounting program can be run

only for errors to review the details of theexceptions for events in error.


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Post to GL

All subledgers use the same processed to posttheir journal entries to General Ledger. The

journals may be posted using one of the followingoptions:

Transferred and posted by the Create Accountingprocess when the journal entries are created.

Transferred and posted by the Transfer to GeneralLedger program

Posted in General Ledger after the entries have beentransferred to GL by one of the above listed processes.


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Reconciliation

The most important point to note is that you should notuse the accounts on the transaction distributions forreconciliation as they are not the final account necessarily.

New reports introduced by R12 assist in reconciliation suchas the Third Party Balances Report but the existing reports

have also been updated in R12 to look at the subledgeraccounting data rather than the transaction data whereapplicable.

E.g. of modified reports Aging report in Receivables

Trial Balance in Payables

AP/PO accrual reconciliation report


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Period End Accrual

Period End Accrual process generates the accrualentries for expense purchases that have been receivedbut not invoiced yet.

The process remains the same as 11i except for the

following: The Create Accounting process generates the accounting

entries as opposed to the Period End Accrual Process

Subledger accounting generates the reversal for the

accrual entry too. The accrual entry does not have to bemanually reversed in general ledger. This requires theComplete Multiperiod Accounting process to run.


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