sub ledger

8/12/2019 Sub Ledger

1/316

R12 Oracle SubledgerAccounting Fundamentals

Student Guide

D49304GC10

Edition 1.0

June 2007

D51689


2/316

Copyright 2007, Oracle. All rights reserved.

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy andprint this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorizationof Oracle.

The information contained in this document is subject to change without notice. If you find any problems in the document, pleasereport them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is not

warranted to be error-free.

If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the UnitedStates Government, the following notice is applicable:

U.S. GOVERNMENT RIGHTSThe U.S. Governments rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restrictedby the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract.

Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names maybe trademarks of their respective owners.

Author

Melanie Featherstone

Technical Contributors and Reviewers

Ayse Aba, Julianna Dodick, Ivy Farren, Miranda Ho, Suzanne Miller, Neil Ramsay, PamelaRietz, Christine Rudd, Lata Sundar, Kathryn Wohnoutka, Linda Wong, Robert Zwiebach

This book was published using: oracletutor


3/316

Copyright Oracle, 2007. All rights reserved.

R12 Oracle Subledger Accounting Table of Contentsi

Table of Contents

Overview of Subledger Accounting................................................................................................................1-1Overview of Subledger Accounting ..............................................................................................................1-3Objectives......................................................................................................................................................1-4

What is Subledger Accounting? ....................................................................................................................1-5Introduction to Subledger Accounting...........................................................................................................1-6Subledger Accounting Features.....................................................................................................................1-7Subledger Accounting Example ....................................................................................................................1-9Subledger Accounting Screenshot.................................................................................................................1-11Subledger Accounting Invoice Example .......................................................................................................1-12Subledger Accounting Payment Example .....................................................................................................1-13Applications that use Subledger Accounting.................................................................................................1-14What is a subledger?......................................................................................................................................1-15Subledger Balances........................................................................................................................................1-16Third Party Control Accounts........................................................................................................................1-17Alternative Accounts .....................................................................................................................................1-19Summary........................................................................................................................................................1-21

Create Accounting Program and Transfer Journal Entries to GL Program.............................................2-1Create Accounting Program and Transfer Journal Entries to GL Program ...................................................2-3Objectives......................................................................................................................................................2-4Create Accounting Program Overview..........................................................................................................2-5Draft Accounting ...........................................................................................................................................2-7Online Accounting.........................................................................................................................................2-8Straight-Through Accounting........................................................................................................................2-9Create Accounting Program ..........................................................................................................................2-10Create Accounting Program continued......................................................................................................2-11Transfer Journal Entries to GL Program Overview.......................................................................................2-12Transfer Journal Entries to General Ledger Program ....................................................................................2-13Oracle Subledger Accounting Program Report .............................................................................................2-14Transfer Journal Entries to GL Report ..........................................................................................................2-16

Summary........................................................................................................................................................2-17Practice 1: Run the Create Accounting and Transfer Journal Entries to GL Programs ................................2-18Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Programs inPayables.....................................................................................................................................................2-19

Inquiries............................................................................................................................................................3-1Inquiries.........................................................................................................................................................3-3Objectives......................................................................................................................................................3-4Objectives continued .................................................................................................................................3-5Accounting Events Inquiry Process...............................................................................................................3-6Subledger Journal Entry Headers Inquiry Process.........................................................................................3-8Subledger Journal Entry Lines Inquiry Process.............................................................................................3-10Drilldown from GL........................................................................................................................................3-12Summary........................................................................................................................................................3-13

Summary continued...................................................................................................................................3-14Practice 1: Inquiring on Subledger Journal Entries ......................................................................................3-15Guided Demonstration - Inquiring on Subledger Journal Entries in Payables or Receivables ..................3-16Practice - Inquiring on Subledger Journal Entries for Payables and Receivables......................................3-17Solution Inquiring on Subledger Journal Entries for Payables and Receivables ....................................3-18

Accounting Methods Builder (AMB) .......... .......... ........... ........... .......... ........... ........... .......... ........... ........... ...4-1Accounting Methods Builder (AMB)............................................................................................................4-3Objectives......................................................................................................................................................4-4Accounting Methods Builder (AMB) Overview ...........................................................................................4-5


4/316


R12 Oracle Subledger Accounting Table of Contentsii

AMB Process.................................................................................................................................................4-8Accounting Methods Builder (AMB)............................................................................................................4-10Copy and Modify Functionality.....................................................................................................................4-11Transaction Chart of Accounts ......................................................................................................................4-13Accounting Chart of Accounts ......................................................................................................................4-14Event Model ..................................................................................................................................................4-15Event Classes.................................................................................................................................................4-17Event Types ...................................................................................................................................................4-18Journal Line Types ........................................................................................................................................4-19Journal Entry Description..............................................................................................................................4-23Mapping Sets .................................................................................................................................................4-26Account Derivation Rule ...............................................................................................................................4-27Account Combination Rules..........................................................................................................................4-30Segment Rules ...............................................................................................................................................4-32Oracle-Owned vs. User-Owned AMB Components......................................................................................4-35Value Set Rules .............................................................................................................................................4-36Defining Account Derivation Rules ..............................................................................................................4-38Journal Lines Definitions...............................................................................................................................4-39Application Accounting Definitions..............................................................................................................4-40Application Accounting Definition ...............................................................................................................4-42Importing Application Accounting Definitions.............................................................................................4-43

Exporting Application Accounting Definitions.............................................................................................4-44Subledger Accounting Methods ....................................................................................................................4-45Subledger Accounting Method......................................................................................................................4-46Setting Up Subledger Accounting Methods ..................................................................................................4-47Setting Profile Options ..................................................................................................................................4-49Summary........................................................................................................................................................4-51Practice 1: Running the Create Accounting Program ..................................................................................4-52

Practice - Running the Create Accounting Program for Payables .............................................................4-53Solution Running the Create Accounting Program for Payables ............................................................4-55Practice - Running the Create Accounting Program for Receivables ........................................................4-62Solution Running the Create Accounting Program for Receivables.......................................................4-64

Practice 2: Defining Journal Line Types .....................................................................................................4-70Guided Demonstration - Defining Journal Line Types in Payables...........................................................4-71

Guided Demonstration - Defining Journal Line Types in Receivables .....................................................4-73Practice - Defining Journal Line Types for Payables ................................................................................4-74Solution Defining Journal Line Types for Payables ...............................................................................4-76Practice - Defining Journal Line Types for Receivables ...........................................................................4-81Solution Defining Journal Line Types for Receivables ..........................................................................4-83

Practice 3: Defining Journal Lines Definitions............................................................................................4-90Guided Demonstration - Defining Journal Lines Definitions for Receivables ..........................................4-91Guided Demonstration - Defining Account Derivation Rules for Payables ..............................................4-92Practice - Defining Journal Lines Definitions for Payables.......................................................................4-94Solution Defining Journal Lines Definitions for Payables .....................................................................4-95Practice - Defining Journal Lines Definitions for Receivables..................................................................4-99Solution Defining Journal Lines Definitions for Receivables ................................................................4-101

Practice 4: Defining Account Derivation Rules...........................................................................................4-105Guided Demonstration - Defining Account Derivation Rules for Payables ..............................................4-106Guided Demonstration - Defining Account Derivation Rules in Receivables...........................................4-108Practice - Defining Account Derivation Rules for Payables......................................................................4-110Solution Defining Account Derivation Rules for Payables ....................................................................4-112

Practice 5: Defining Application Accounting Definitions...........................................................................4-120Guided Demonstration - Defining an Application Accounting Definition in Payables .............................4-121Guided Demonstration - Defining an Application Accounting Definition in Receivables........................4-122Practice - Defining an Application Accounting Definition for Payables...................................................4-123Solution Defining an Application Accounting Definition for Payables..................................................4-125Practice - Defining an Application Accounting Definition for Receivables..............................................4-130


5/316


R12 Oracle Subledger Accounting Table of Contentsiii

Solution Defining an Application Accounting Definition for Receivables ............................................4-132Practice 6: Defining Subledger Accounting Methods..................................................................................4-137

Guided Demonstration - Defining Subledger Accounting Methods in Payables.......................................4-138Guided Demonstration - Defining Subledger Accounting Methods in Receivables..................................4-142Practice - Defining Subledger Accounting Methods for Payables.............................................................4-146Solution Defining Subledger Accounting Methods for Payables ...........................................................4-149Practice - Defining Subledger Accounting Methods for Receivables........................................................4-159Solution Defining Subledger Accounting Methods for Receivables ......................................................4-162

Reports .............................................................................................................................................................5-1Reports...........................................................................................................................................................5-3Objectives......................................................................................................................................................5-4Subledger Accounting Reports Overview .....................................................................................................5-5Journal Entries Report ...................................................................................................................................5-7Account Analysis Report...............................................................................................................................5-8Third Party Balances Report..........................................................................................................................5-9Multiperiod Accounting Reports ...................................................................................................................5-10Subledger Period Close Exceptions Report ...................................................................................................5-11Open Account Balances Listing Overview....................................................................................................5-12Creating and Updating Open Account Balances Listing Definitions ............................................................5-14Running the Open Account Balances Data Manager Program......................................................................5-16Open Account Balances Listing ....................................................................................................................5-17Summary........................................................................................................................................................5-18Practice 1: Generating the Journal Entries report .........................................................................................5-19

Practice - Generating the Journal Entries Report for Payables ..................................................................5-20Solution Generating the Journal Entries Reports for Payables ...............................................................5-21Practice - Generating the Journal Entries Report for Receivables .............................................................5-24Solution Generating the Journal Entries Reports for Receivables ..........................................................5-25

Creating Manual Subledger Journal Entries ........... ........... ........... ........... .......... ........... ........... .......... ..........6-1Creating Manual Subledger Journal Entries ..................................................................................................6-3Objectives......................................................................................................................................................6-4Subledger Journal Entries Overview .............................................................................................................6-5Manual Journal Entries..................................................................................................................................6-6Creating Subledger Journal Entries ...............................................................................................................6-7

Creating Subledger Journal Lines..................................................................................................................6-8Summary........................................................................................................................................................6-10Practice 1: Creating Manual Subledger Journal Entries ...............................................................................6-11

Guided Demonstration - Creating Manual Subledger Journal Entries in Payables....................................6-12Guided Demonstration - Creating Manual Subledger Journal Entries in Receivables ..............................6-13

Advanced Options............................................................................................................................................7-1Advanced Options .........................................................................................................................................7-3Objectives......................................................................................................................................................7-4Custom Sources .............................................................................................................................................7-5Business Flows ..............................................................................................................................................7-6Business Flow Methods.................................................................................................................................7-7Multiperiod Accounting ................................................................................................................................7-9Accrual Reversals..........................................................................................................................................7-11

Diagnostic Framework Overview..................................................................................................................7-13Diagnostic Framework Features....................................................................................................................7-14Diagnostic Framework Business Process ......................................................................................................7-15

__SLA: Enable Diagnostics Profile Option...................................................................................................7-16Purge Transaction Objects Diagnostics .........................................................................................................7-17Currency Conversion.....................................................................................................................................7-18Gain/Loss Calculations..................................................................................................................................7-19Journal Entry Sequencing..............................................................................................................................7-20Accounting and Reporting Sequences ...........................................................................................................7-22


6/316


R12 Oracle Subledger Accounting Table of Contentsiv

Reporting Sequence Process..........................................................................................................................7-24Subledger Period Close Exceptions Report ...................................................................................................7-26Rounding Rule...............................................................................................................................................7-27Error Handling...............................................................................................................................................7-28Summary........................................................................................................................................................7-29


7/316


R12 Oracle Subledger Accounting Table of Contentsv

Preface

Profile

Before You Begin This Course

Thorough knowledge of Oracle Applications.

Prerequisites

There are no prerequisites for this course.

How This Course Is Organized

R12 Oracle Subledger Accountingis an instructor-led course featuring lecture and hands-onexercises. Online demonstrations and written practice sessions reinforce the concepts and skillsintroduced.


8/316


R12 Oracle Subledger Accounting Table of Contentsvi

Related Publications

Oracle Publications

Title Part Number

Oracle Subledger Accounting Implementation Guide B13984-02

Oracle Receivables User Guide B31211-01

Oracle Payables User Guide B25454-02

Additional Publications

System release bulletins

Installation and users guides

Read-me files

International Oracle Users Group (IOUG) articles

Oracle Magazine


9/316


R12 Oracle Subledger Accounting Table of Contentsvii

Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (ifthere is a glossary)

The algorithminserts the new key.

Caps andlowercase

Buttons,check boxes,triggers,windows

Click the Executable button.Select the Cant Delete Card check box.Assign a When-Validate-Item trigger to the ORD block.Open the Master Schedule window.

Courier new,case sensitive(default islowercase)

Code output,directory names,filenames,passwords,pathnames,URLs,

user input,usernames

Code output: debug.set (I, 300);Directory: bin(DOS), $FMHOME(UNIX)Filename: Locate the init.orafile.Password: User tigeras your password.Pathname: Open c:\my_docs\projectsURL: Go to http://www.oracle.comUser input: Enter 300Username: Log on as scott

Initial cap Graphics labels(unless the term is aproper noun)

Customer address (butOracle Payables)

Italic Emphasized wordsand phrases,titles of books andcourses,variables

Do notsave changes to the database.For further information, see Oracle7 Server SQL LanguageReference [email protected], where user_idis thename of the user.

Quotation

marks

Interface elements

with long namesthat have onlyinitial caps;lesson and chaptertitles in cross-references

Select Include a reusable module component and click Finish.

This subject is covered in Unit II, Lesson 3, Working withObjects.

Uppercase SQL columnnames, commands,functions, schemas,table names

Use the SELECT command to view information stored in theLAST_NAMEcolumn of the EMP table.

Arrow Menu paths Select File> Save.Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:[Alternate], [F], [D]Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]


10/316


R12 Oracle Subledger Accounting Table of Contentsviii

Typographic Conventions in Code

Convention Element Example

Caps andlowercase

Oracle Formstriggers

When-Validate-Item

Lowercase Column names,table names

SELECT last_nameFROM s_emp;

Passwords DROP USER scottIDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER (prod_pie_layer))

Lowercaseitalic

Syntax variables CREATE ROLE role

Uppercase SQL commands andfunctions

SELECT useridFROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct youthrough Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoicethen Entrythen Invoice BatchesSummary.

2. (M) From the menu, select Querythen Find.

3. (B) Click the Approvebutton.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab


11/316


R12 Oracle Subledger Accounting Table of Contentsix

Typographical Conventions in Oracle Application Help System Paths

This course uses a navigation path convention to represent actions you perform to findpertinent information in the Oracle Applications Help System.

The following help navigation path, for example

(Help) General Ledger > Journals > Enter Journals

represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system

window.


12/316


R12 Oracle Subledger Accounting Table of Contentsx


13/316


Overview of Subledger AccountingChapter 1 - Page 1

Overview of SubledgerAccounting

Chapter 1


14/316




15/316



Overview of Subledger Accounting


16/316



Objectives


17/316



What is Subledger Accounting?

What is Subledger Accounting?

Subledger Accounting is a set of services for R12 that significantly enhances accountingsupport across the E-Business Suite.


18/316



Introduction to Subledger Accounting

Introduction to Subledger Accounting

Subledger Accounting is mainly a rule-based accounting engine that centralizes accounting forOracle E-Business Suite products in R12.

Subledger Accounting is not a separate product in itself, but is Oracles engine catering to theaccounting needs of Oracle applications.

Together with the new ledger support, Subledger Accounting enables support of multipleaccounting requirements concurrently in a single instance. Different accounting regulations canbe satisfied by maintaining and applying different sets of rules to different sets of transactions;or accounting for the same transaction with multiple methods.

By maintaining a full link between the transaction and accounting data, Subledger Accounting

allows powerful reconciliation and auditing capabilities.Since Subledger Accounting provides the setup and inquiry user interface and data model foraccounting across modules, Subledger Accounting enables consistency in reporting, analysis,and user experience.


19/316



Subledger Accounting Features

Subledger Accounting Features

Subledger Accounting provides the following services to Oracle Applications:

Generation and storage of detailed accounting entries

Storage of subledger balances

Subledger accounting entries; with drilldown to transactions

Subledger reporting; for example, Subledger journal reports, open account balances listing

Oracle Subledger Accounting features include:

Centralized accounting rules

Predefined Validations

Date effective policies Sophisticated error handling

Full audit trail

Bidirectional drilldowns

Detailed Journal Entries

Configurable Reference Information


20/316



Consistent Balances

Online inquiries


21/316



Subledger Accounting Example

Subledger Accounting Example

Let us assume a US based corporation with operations in the UK and France.

The French operation is subject to French accounting regulations, and therefore mustreport its activities to the local authorities in Euros, according to the French businesscalendar, French chart of accounts, and the French interpretation of IFRS (InternationalFinancial Reporting Standards).

The UK operation, similarly, is subject to the UK regulations, which for this examplessake are not as restrictive as the French ones. Thus, the UK operation does its localreporting in the local currency, the British Pound, but according to the US businesscalendar, US chart of accounts (COA), and US GAAP.

The US operation reports in the USD according to the US business calendar, US COA,and GAAP.

In the R12 ledger setup, each of these operations would be defined as three separate ledgers tosatisfy local reporting requirements.

The US headquarters/parent company would need to have a consolidated global visibilityof the worldwide operations, however, it would not be very meaningful to consolidate orcompare each of these entities with each other. Firstly, because the reporting currencies


22/316



are different. Secondly, the COA and the method of accounting for the French activitiesmay be considerably different than those in the UK and US. For example, in France,purchases or inventory will be reported as expenses, whereas in the UK and the US theywill be reported as inventory items. Therefore, a simple currency conversion will notsuffice. With the R12 ledger architecture and SLA, the following model can beimplemented to solve this business need:

For the UK operation, activities can be converted to the US equivalent simply byconverting the currency since the calendar, COA, and accounting methods are the same.You can set this up by adding a reporting currency to the UK ledger.

For the French operation, a currency conversion alone will not work. You will need todefine a secondary ledger for the French ledger, which will share the same currency,COA, calendar, and accounting method as those at HQ.

By defining the reporting currency and secondary ledgers, the three operations can satisfylocal regulations, and also allow comparison and consolidation.

In the definition above, Subledger Accounting allows:

multiple accounting methods to be defined

separate accounting methods to be used on different ledgers Journal entries to be created on multiple ledgers for a single business event (French

activities accounted for on the primary ledger according to the IFRS method, and on thesecondary ledger according to the US GAAP method).


23/316



Subledger Accounting Screenshot

Subledger Accounting Screenshot

You can see at a glance exactly where the accounting comes from.

This is a journal entry created upon the validation of an accounts payable invoice. Notice thedescription on the journal entry as well as information from the invoice itself which will helpin associating the entry with the transaction.


24/316



Subledger Accounting Invoice Example

Subledger Accounting Invoice Example

Subledger Accounting tracks how the journal entry is built from a transaction.

On the left-hand side of the screen, you can see an invoice for two items, freight, and tax.

On the right, you can see two entries have been created: one on the US corporate ledgerand the other on the FR statutory ledger.

The expense entry is created for the two line items of the invoice.

The next two lines (2 and 3) are for freight and tax respectively.

The rules have been set up to summarize all of this information and create a single liabilityentry. You could also configure the rule so that 3 or 4 separate liability lines are created.

Subledger Accounting stores and enables you to track how each line of the invoicecontributed to the journal entry.


25/316



Subledger Accounting Payment Example

Subledger Accounting Payment Example

Let us go back to the previous example and look at a payment that pays off the invoice. TheSLA data model not only allows keeping the transaction-to-accounting link, but the inherentfeatures also allow the transaction flows to be reflected on the accounting side. You can seehere that a particular payment is applied to a particular invoice liability.

Using the SLA Business Flows functionality, we are able to go back to the journal created forthe invoice and view the exact liability account, at the exact rate that the invoice was convertedat, if it was a foreign currency one, at the time of accounting for the payment.


26/316



Applications that use Subledger Accounting


27/316



What is a subledger?

What is a subledger?

Example: The Receivables subledger stores receivables by customer, but this detail is notneeded in a general ledger.


28/316



Subledger Balances


29/316



Third Party Control Accounts


30/316



Third Party Control Accounts


31/316



Alternative Accounts


32/316



Alternative Accounts


33/316



Summary


34/316




35/316


Create Accounting Program and Transfer Journal Entries to GL ProgramChapter 2 - Page 1

Create Accounting Programand Transfer Journal Entriesto GL Program

Chapter 2


36/316




37/316



Create Accounting Program and Transfer Journal Entries to GLProgram


38/316



Objectives


39/316



Create Accounting Program Overview


40/316



Create Accounting Program Overview


41/316



Draft Accounting

Draft Accounting

When you select draft accounting, Subledger Accounting creates the relevant journal entries indraft mode. Subledger Accounting does not post anything to General Ledger. You can reviewthe resulting entries, make any changes, and rerun the accounting as required.


42/316



Online Accounting

Online Accounting

If you select Final, Subledger Accounting generates the journal entries and transfers them toGeneral Ledger. You can also run the Accounting Program in bulk using the Standard RequestSubmission.


43/316



Straight-Through Accounting

Straight-Through Accounting

If you select Final Post, Subledger Accounting posts the journal entries all the way through toGeneral Ledger. This means that you can update GL balances straight from the invoice entry(or any other transaction entry) window.


44/316



Create Accounting Program

Create Accounting Program

The Create Accounting program creates subledger journal entries. In general, the parametersdescribed in the table above determine which accounting events are processed.


45/316



Create Accounting Program continued


46/316



Transfer Journal Entries to GL Program Overview


47/316



Transfer Journal Entries to General Ledger Program


48/316



Oracle Subledger Accounting Program Report


49/316



Oracle Subledger Accounting Program Report


50/316



Transfer Journal Entries to GL Report


51/316



Summary


52/316



Practice 1: Run the Create Accounting and Transfer JournalEntries to GL Programs


53/316



Guided Demonstration - Run the Create Accounting Program andTransfer Journal Entries to GL Programs in Payables

Responsibility: Payables, Vision Operations (USA)

Run the Create Accounting Program

1. (N) Other > Requests > Run

2. (B) OK

3. In the Name field, select Create Accounting.

4. Enter the following information in the Parameters window:Field Name Value

Ledger Vision Operations (USA)

Process Category Invoices

End Date

Mode Final

Errors Only No

Report Detail

Transfer to General Ledger No

Post in General Ledger No

Include User Transaction Identifier No

5. (B) OK

6. (B) Submit

7. View - Requests.

Run the Transfer Journal Entries to General Ledger Program

8. (N) Other > Requests > Run

9. (B) OK

10. In the Name field, select Transfer Journal Entries to GL.

11. Enter the following information in the Parameters window:Field Name Value

Ledger Vision Operations (USA)


54/316



Process Category Invoices

End Date

Post in General Ledger Yes

12. (B) OK

13. (B) Submit

14. View - Requests.


55/316


InquiriesChapter 3 - Page 1

Inquiries

Chapter 3


56/316




57/316



Inquiries


58/316



Objectives


59/316



Objectives continued


60/316



Accounting Events Inquiry Process

Accounting Events Inquiry Process

1. Navigate to the Accounting Events Inquiry page.

2. Execute a search for specific accounting events.

3. View accounting events.

4. View subledger journal header information by clicking View Journal Headers.

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

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

7. View reversing entry.

8. View multiperiod accounting associated with the accrual journal entry by clicking theMultiperiod icon in the Lines region.

9. Compare subledger journal entry header and line information for two selected journals byclicking Compare.

10. Click View Transaction to view the transaction associated with the accounting event.


61/316



The View Subledger Journal Entry Headers page is displayed only if there is more than onesubledger journal entry created for an accounting event. If there is only one subledger journalentry for an accounting event, the View Subledger Journal Entry page is displayed.

The following conditions apply:

- If the balance type is Actual, the reference date is displayed.

- If the balance type is Budget, the Budget Version field is displayed.

- If the balance type is Encumbrance, the Encumbrance Type field is displayed.

- If the entry is for public sector and funds approval is required, the Funds Status fieldis displayed.

If viewing an accrual reversal journal entry in the View Subledger Journal Entry page, theView Accrual Entry button is displayed to view the accrual journal entry details. Ifviewing an accrual journal entry, the View Reversing Entry button is displayed to view theaccrual reversal journal entry details.

The View Transaction button appears only if the drilldown procedure is registered for thesubledger application.


62/316



Subledger Journal Entry Headers Inquiry Process

Subledger Journal Entry Headers Inquiry

1. Navigate to the Subledger Journal Entry Headers page from a subledger application. Youcan use the subledger application responsibility for any application using Subledgeraccounting.

2. Execute a search.

3. View subledger journal entry headers.

4. Delete, update, duplicate, reverse, and complete entries.

5. View detailed header and line information by selecting the ledger link.

6. View journal entry information in a T-account format by clicking View T-Account.

7. View reversing entry. If viewing an accrual reversal journal entry in the View SubledgerJournal Entry page, the View Accrual Entry button is displayed to view the accrualjournal entry. If viewing an accrual journal entry, the View Reversing Entry button isdisplayed to view the accrual reversal journal entry.

8. View multiperiod accounting. View multiperiod lines associated with the accrual journalentry by clicking the Multiperiod icon in the Lines region.


63/316



9. Create journal entry. Create journal entries page by clicking Create Journal Entry in theSubledger Journal Entries page.

10. Compare entries. Compare subledger journal entries by clicking Compare in theSubledger Journal Entries page.


64/316



Subledger Journal Entry Lines Inquiry Process

Subledger Journal Entry Lines Inquiry Process

1. Navigate to the Subledger Journal Entry Lines page from a subledger application. Use thesubledger application responsibility for any application using Subledger Accounting.

2. Execute a search.

3. View subledger journal entry lines in the results region.

4. View subledger journal entry lines and header for a selected journal entry line by clickingView Journal Entry.

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

6. View reversing entry. If viewing an accrual reversal journal entry in the View SubledgerJournal Entry page, the View Accrual Entry button is displayed to view the accrual journalentry details. If viewing an accrual journal entry, the View Reversing Entry button isdisplayed to view the accrual reversal journal entry details.

7. View multiperiod accounting. View multiperiod lines associated with the accrual journalentry line by clicking the Multiperiod icon in the Lines region.


65/316



8. View the transaction associated with the subledger journal entry by clicking ViewTransaction in the Subledger Journal Entry Lines page. This button appears only if thedrilldown procedure is registered for the subledger application.


66/316



Drilldown from GL

Drilldown from GL

The figure above shows the drilldown from GL journal lines inquiry to subledger journal entrylines in Subledger Accounting. From here, users can navigate to the subledger journal entriesor drill down to the subledger transaction.


67/316



Summary


68/316



Summary continued


69/316



Practice 1: Inquiring on Subledger Journal Entries


70/316



Guided Demonstration - Inquiring on Subledger Journal Entries inPayables or Receivables

Responsibility = Payables, Vision Operations (USA) or Receivables, VisionOperations (USA)

1. Navigate to the Subledger Journal Entries window.

In Payables: (N) Accounting > Subledger Accounting > Journal Entries

In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries

2. (T) Headers

3. In the Advanced Search window, enter the following search information: Ledger: Vision Operation (USA)

From GL Date: To GL Date:

4. (B) Go

5. To view the details of an entry, click on the appropriate ledger link to display the SubledgerJournal Entry window.

6. To view detailed line information, click the appropriate Show link.


71/316



Practice - Inquiring on Subledger Journal Entries for Payablesand Receivables

Overview

In this practice, you will do the following:

Inquire on subledger journal entries for the Vision Operations (USA) ledger.

Note: This practice applies to both Oracle Payables and Oracle Receivables.

Assumptions

You must have access to an Oracle Application Vision database or comparable trainingor test instance at your site on which to complete this practice.

Responsibility selected to complete this practice is Payables, Vision Operations (USA)or Receivables, Vision Operations (USA).

Tasks

Log on to the system

User Name = operations

Password = welcome


Inquire on Subledger Journal Entries

Inquire on subledger journal entries for the Vision Operations (USA) ledger for todays date.


72/316



Solution Inquiring on Subledger Journal Entries for Payablesand Receivables

Inquiring on subledger journal entries for the Vision Operations (USA) ledger.


1. Navigate to the Subledger Journal Entries window.

In Payables: (N) Accounting > Subledger Accounting > Journal Entries

In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries

2. Ensure that the Headers tab is selected.

3. In the Advanced Search window, enter the following search information: Ledger: Vision Operation (USA) From GL Date: To GL Date:

4. (B) Go

The subledger journal entries are displayed in the Results region.


73/316



5. To view the details of an entry, click on the appropriate ledger link to display the SubledgerJournal Entry window.

6. To view detailed line information, click the appropriate Show link. For example, thescreenshot below shows detailed information for the Item Expense line.


74/316




75/316


Accounting Methods Builder (AMB)Chapter 4 - Page 1

Accounting Methods Builder(AMB)

Chapter 4


76/316




77/316



Accounting Methods Builder (AMB)


78/316



Objectives


79/316



Accounting Methods Builder (AMB) Overview


80/316





This diagram shows a hierarchy of the AMB, indicating how the components fit together.

The transaction objects and the sources carry transaction information into the rules defined foreach component of an entry.

These components, i.e. journal line type, account derivation rule, and journal entry descriptionsare grouped together as a journal line definition (JLD) for a particular event. For example, youcan set up a JLD for an invoice validation event, another for payment creation, and another forpayment clearing. The set of rules for a particular subledger application is called theapplication accounting definition (AAD). The set of AADs for multiple applications is calledthe subledger accounting method.

You can maintain multiple accounting methods. You can set up as many components as youlike and use them for different accounting methods. You can set up an accounting method thatcreates entries in compliance with US GAAP, and another one that complies with IFRS. Thesetwo methods could share components, such as entry descriptions, because the journal entrycomponents are modular.

The accounting methods are then assigned to each ledger, which determines the rules that areapplied when accounting is being generated for a particular ledger. If your setup has a primary


81/316



and a secondary ledger, you could have different accounting methods attached to and used foreach ledger.


82/316



AMB Process

AMB Process

The components listed above are used by the Subledger Accounting program to createsubledger journal entries. Before creating or modifying any components or definitions, checkwhether the seeded application accounting definitions meet your requirements. You canmodify existing definitions or create new definitions.

Set up journal line types for a particular event class and determine the characteristics of thesubledger journal entry lines. Also, set up conditions for the use of the journal line type. This isstart-up data seeded by Oracle. Modify these definitions or create new ones.

Define the journal entry description for the subledger journal entry. Descriptions are assignedto the journal header and lines. This is start-up data seeded by Oracle. Modify these definitions

or create new ones.Use mapping sets in the account derivation rules setup. By mapping input values to differentoutputs, mapping sets provide flexibility in the creation of account derivation rules. The use ofmapping sets is optional.

Account derivation rules determine the account combinations for subledger journal entries.You can also define conditions that determine when a particular rule is used. This is start-updata seeded by Oracle. Modify these definitions or create new ones.


83/316



Use journal lines definitions to group and assign journal line types, account derivation rules,and journal entry descriptions into a complete set of journal entries within an event class orevent type. Share these sets across application accounting definitions for the same application.The use of journal lines definitions is required.

Use application accounting definitions to group journal lines definitions and headerassignments for event classes and event types. Also, indicate whether to create accounting for a

particular event class or event type. For example, when using cash basis accounting, you wouldnot create a journal entry to record the accrual of an invoice. This is start-up data seeded byOracle. Modify these definitions or create new ones.

Group application accounting definitions that comply with a common set of accountingrequirements into a subledger accounting method. Each subledger accounting method can beassigned to one or more ledgers. This is start-up data seeded by Oracle. Modify thesedefinitions or create new ones.


84/316





In order to make rule setup as flexible as possible, the journal entry has been split intocomponents, as follows:

Description of the entry or its individual lines; you can set up as many descriptions as youwant by using data from the transaction and constant values. The screenshot above showsa description for an invoice, indicating the event (invoice validation), the invoice number,type, date, and description.

Line Type; defines whether this is a debit or a credit, the accounting class, and where theamount should come from. You can set up as many line types as you need for a particularentry. You can have a single invoice line or distribution create as many debits or credits as

needed. Account derivation rule; determines to which GL account a line is booked. There is a lot

of flexibility around the account derivation rules. You can simply set up a rule for eachaccount combination to be used, or you can provide more detail and build each accountcombination segment by segment by combining multiple rules. These rules can be set upto derive the accounts or segment values from transactional data, including conditions ofwhen to use specific rules.


85/316



Copy and Modify Functionality

Copy and Modify Functionality

The copy and modify functionality is provided for the following components of the AMB:

Subledger accounting methods

Application accounting definitions

Journal lines definitions

Journal line types

Account derivation rules

Journal entry descriptions

The copy functionality reduces the need to repeat data entry functions when there are

substantial similarities between two definitions. Definitions created by users are notoverwritten by upgrades to Subledger Accounting. However, upgrades can still affectdefinitions if those definitions use seeded components. Use the merge analysis feature to assesswhether any upgrades to the AMB impact any user-defined application accounting definitions.

Assign custom components only to custom definitions. For example, assign a custom accountderivation rule (one that has been copied from an existing account derivation rule and


86/316



modified) only to a custom journal lines definition. Assign a journal lines definition only tocustom application accounting definitions and custom subledger accounting methods.

Use seeded components in custom application accounting definitions.


87/316



Transaction Chart of Accounts

Transaction Chart of Accounts

For example, a Receivables invoice is entered. The item, tax, freight, and other accountcombinations for the invoice contain the structure and values from the transaction chart ofaccounts. Similarly, recording the receipt of goods and invoices, as well as issuing payments,are all done in the context of a transaction chart of accounts structure.

Values for account combination sources stored in the transaction objects are taken from thetransaction chart of accounts. Use these source values in the AMB account derivation rules andconditions.


88/316



Accounting Chart of Accounts

Accounting Chart of Accounts

The transaction and accounting charts of accounts are always the same for the primary ledger.They can be different in cases where users create secondary multiple representations.


89/316



Event Model

Event Model

The event model defined in SLA for each subledger represents the transaction/document typesand the lifecycle of each transaction:

The event class classifies transaction types. An invoice, for example, is an event class.

The event type defines possible actions on each event class with potential accountingsignificance, for example, validation of an invoice.

The journal creation rules are defined for each event class and event type.

Accounting events represent transactions that have a financial accounting impact.Examples of accounting events are issuing an invoice and disposing of an asset. Financialaccounting information can be recorded for these events. Accounting events cannot becompared to system events and programs that update transaction tables; instead theyshould be analyzed from a business perspective. Events are captured when transactionsare committed in the subledgers.

As an example, a Payables invoice is created, then approved, possibly adjusted, and thenpaid or cancelled. The accounting events representing these transactions can create one ormore subledger journal entries and subsequently link the originating transaction to itscorresponding journal entries.


90/316



Accounting events are categorized into event types. Event types are grouped into eventclasses that in turn are grouped into event entities. These groupings play a prominent rolein the setup of the AMB. The definition of several components in the AMB is by eventclass or event type.


91/316



Event Classes

Event Classes

Examples of event classes for Payables are: invoices, debit memos, and payments. Notice howthese correspond to the document types.

Similarly, for Receivables, event class examples are invoices, deposits, and receipts; and forPurchasing, requisitions and purchase orders.


92/316



Event Types

Event Types

An accounting event for a Payables invoice, for example, would be the validation, adjustment,or cancellation of the invoice. Similarly, for a Receivables receipt, accounting events would bethe creation, application, or reversal of the receipt. Therefore, every time one of these actions istaken on a receipt transaction, an accounting event will be created. Based on the rule setup,there may or may not be a resulting journal entry. You may set up rules to generate journalentries for some events, but not for others.


93/316



Journal Line Types

Journal Line Types

The definition of a journal line type includes the following features:

Subledger Accounting uses rounding class along with the transaction rounding reference togroup journal lines tighter and calculate transaction rounding. Subledger transaction roundingdifferences can occur when a transaction has multiple distributions.

The journal entry line can have an actual, budget, or encumbrance balance type.

For products like Oracle public sector applications that use encumbrance accounting,separate journal line types can be created for encumbrance lines.

Journal line types specify if the journal line is to be a debit, credit, or gain/loss line.

For example, when a Payables invoice is generated, the liability account should normallybe credited. The journal line type must therefore specify the Side option as Credit. On theother hand, the payment of the Payables invoice must be accounted with a debit to theliability account. A separate journal line type must be defined to create this debit line.

The gain/loss amount is the difference in the ledger currency due to foreign currencyfluctuations. Gain or loss amounts occur when two related transactions, such as an invoiceand its payment, are entered in a currency other than the ledger currency, and theconversion rate fluctuates between the time that the two are accounted.


94/316



You can specify whether to merge matching journal entry lines. Note: You can only mergematching lines if every aspect of the resulting journal entry lines other than the amount isidentical.

You can specify whether the gain or loss has been calculated in the primary ledger so that thegain or loss amount is not converted to the reporting currency or non-valuation methodsecondary ledgers.

You can specify whether to derive journal entry components from a related journal entry. The business flow method determines if and how a journal line should inherit journal

entry values.

You can specify whether to apply multiperiod accounting to a journal line type.

Journal entry lines are transferred to General Ledger in summary or detail mode.

You can define conditions to restrict the use of a journal line type by controlling when aparticular journal line type is used by the Subledger Accounting program.

You can assign accounting attributes.

If an accounting attribute is relevant to the accounting event's underlying transaction, thenits value is required to generate subledger journal entries for the transaction. By assigning

standard sources to accounting attributes in the Accounting Attributes window, you canuse standard source values as the values for accounting attributes.


95/316



Journal Line Types

Journal Line Types

The journal line type determines the type of entry to generate.


96/316



Journal Line Types

Journal Line Types

This is a sample journal entry for an invoice validation.

There are two line types defined in the example above, a credit line type (Line 1) and debit linetype (Lines 2 to 4).

You can see 4 lines on this entry, one for the liability (Line 1) and 3 for the item expense(Lines 2 to 4). The reason why there are only 2 journal line types and there are 4 journal entrylines is because the transaction included 3 lines for 3 separate expense items; one for 5000, onefor 4500, and another for 500. The 2 journal line types were applied to all 3 transaction linesgenerating 6 journal entry lines: 3 expense lines and 3 liability lines. The 3 liability lines wereidentical so they were merged, resulting in 4 journal entry lines.


97/316



Journal Entry Description


A description can be assigned to the journal entry header, to the set of debits and credits, ordifferent descriptions can be assigned to each of the lines of the entry. For example, you couldadd a description on the liability entry containing information about the supplier, and adescription on the item expense line containing information about the item or expense itself.

Build descriptions using any of the available sources for the application. For example, anindividual segment of an account combination can be included in the description. Use literalstrings or a combination of both sources and literals. Some of the sources can only be used fordescriptions applied at the line level. For example, a source associated with an invoice linenumber can only be applied to a line description.

Assign description to journal entry lines in the Journal Lines Definitions window and to journalentry headers in the Application Accounting Definition window.


98/316





The final component that makes up a journal entry is the description.


99/316





100/316



Mapping Sets

Mapping Sets

To define a mapping set, pairs of values are specified. For each input value, specify acorresponding account segment or account combination output value. One or more relatedpairs of these input values and segment or account combination output values form a mappingset. Use value sets or lookup types to validate the input values of the mapping set.

For example, it is possible to create a mapping set based on two input values, Yes and No.Apply these input values to determine the balancing segment value of an account: 01 if theinput value is Yes and 02 if it is No. Use this mapping set in one of the rules that builds thesegment values of an account. The rule compares the value of a source to see if it is Yes or Noand determines the segment value accordingly.

Prerequisite for defining mapping sets: Using value sets and lookup types prevents data entry errors when entering input values. If

planning to use either value sets or lookup types to validate the input values, they must bedefined before setting up mapping sets. If neither a value set nor a lookup type is selected,you can enter any value in the Input Value field.


101/316



Account Derivation Rule


You can set up a separate rule for each account combination to be used, or if you require moredetail you can build each account combination segment by segment by combining multiplerules. These rules can be set up to derive the accounts or segment values from transactionaldata, including conditions determining when specific rules are used.


102/316





103/316





104/316



Account Combination Rules

Account Combination Rules

Source value type

For account combination rules, all the code combination identifiers from the transactionchart of accounts that have been setup as sources are available to create the account.Derive the account combination by specifying a source such as the Distribution Accountin the rule. The Subledger Accounting program then obtains the account by referencingthe distribution account combination. The transaction or accounting chart of accounts doesnot need to be known when this type of rule is defined. If no chart of accounts is specified,the value derived from the source uses the default chart of accounts for the subledgerapplication.

Constant value type Establish the account as a constant value. For example, the constant could be the account

combination 01.000.2210.0000.000 from the accounting chart of accounts specified. Thisis the simplest way to derive an account.

Mapping Set value type


105/316



Derive the account combination by referencing a mapping set. Set up a mapping set rule todetermine the complete account combination from the accounting chart of accountsspecified.

Note: An accounting chart of accounts must be specified for rules using either constants ormapping sets.

Account Derivation Rule value type

Derive the account by referencing another account derivation rule. You cannot selectaccount derivation rules that already have an assigned account derivation rule. Thetransaction or accounting chart of accounts does not need to be specified when defininghis type of rule. If the account derivation rule has an accounting chart of accounts, then allaccount derivation rules that are assigned must have the same or no chart of accounts.When the value type is Account Derivation Rule, select only account derivation rules withmatching output types.


106/316



Segment Rules


107/316



Segment Rules

Segment Rules

Source value type

For Segment rules, all sources defined for the application are available. If the source is anaccount combination, take the value from a particular segment of the transaction chart ofaccounts. For example, derive a segment value from the cost center segment of theliability account combination. In addition, use sources that are not account combinations.For example, take the value for a Project segment from a Project Number source. Usesources that are marked as account combination qualifiers and use them to derive thevalue for the segment.

Note: When creating rules for an account combination qualifier, only sources that are

marked as account combination sources or the same account combination qualifiersegment as the qualifier specified for the rule can be selected.

Constant value type

Establish the segment value as a constant. For example, the company segment can be setto 01.



108/316



Use a mapping set to determine the value of the segment. For example, using a mappingset that maps supplier types to departments, the supplier type can determine thedepartment segment value.

Note: An accounting chart of accounts must be specified for rules using either constants ormapping sets.


Derive the account by referencing another account derivation rule. You cannot selectaccount derivation rules that already have an assigned account derivation rule. Thetransaction or accounting chart of accounts does not need to be specified when defininghis type of rule. If the account derivation rule has an accounting chart of accounts, then allaccount derivation rules that are assigned must have the same or no chart of accounts.When the value type is Account Derivation Rule, select only account derivation rules withmatching output types.


109/316



Oracle-Owned vs. User-Owned AMB Components


110/316



Value Set Rules

Value Set Rules

Source value type

For value set based rules, all sources that are data type Alphanumeric and are not markedas account combinations or account combination qualifiers are available.

Constant value type

Establish the segment value as a constant. This list of values is based on the value setdefined for the rule.


Use a mapping set to determine the value of the value set based rule. In this case, the

mapping set must be created for the same output value set as the value set for the accountderivation rule.


Derive the account by referencing another account derivation rule. You cannot selectaccount derivation rules that already have an assigned account derivation rule. Thetransaction or accounting chart of accounts does not need to be specified when definingthis type of rule. If the account derivation rule has an accounting chart of accounts, then


111/316



all account derivation rules that are assigned must have the same or no chart of accounts.When the value type is Account Derivation Rule, select only account derivation rules withmatching output types.


112/316



Defining Account Derivation Rules

Defining Account Derivation Rules

Note: Oracle strongly recommends that you do not modify a seeded rule or any other seededcomponent as it could get overwritten in an upgrade. Instead, copy a seeded rule and thenmodify it appropriately. The modified rule has an Owner type of User. When you select rulesand other components from a list of values in AMB windows, the name as well as the Ownerof the component is displayed. This enables you to distinguish between seeded and user-defined components.


113/316



Journal Lines Definitions

Journal Lines Definitions

The journal line type, description, and account derivation rules are grouped together as ajournal line definition to create the rule for a particular event type.


114/316



Application Accounting Definitions

Application Accounting Definitions

Storing the validation status of the accounting definitions at the event class and event levelenables you to ge

sub ledger

Documents