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January 20, 2010Introduction to SubledgerIntroduction to Subledger Accounting (SLA)Rob Zwiebach

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WelcomeWelcome

Moderator – Lori Hayes

Subject Matter Expert – Rob Zwiebach of Oracle CorporationOracle Corporation

Additional Moderator – Mohan Iyer of Additional Moderator Mohan Iyer of OAUG GL-SIG

Safe Harbor StatementSafe Harbor Statement

Th f ll i i i d d li R b Z i b h’ The following is intended to outline Rob Zwiebach’s impressions on Oracle’s general product direction.

This presentation is not a commitment to deliver any material This presentation is not a commitment to deliver any material, code or functionality, and should not be relied upon in making purchasing decisions.

It i i t d d f i f ti l d d t It is intended for information purposes only, and does not commit FMT Systems Incorporated, The Oracle Applications Users Group, Oracle Corporation or any other corporate entity.

The views and opinions expressed in the presentation and webinar pages are those of the page authors only.

AgendaAgenda

–Part 1: SLA Overview• Introduction to Subledger Accounting

bl d d l d• Subledgers and General Ledgers

• SLA capabilities for controlling accounting entries

• SLA capabilities for information capture• SLA capabilities for information capture and reconciliation

• SLA inquiries and reports

–Part 2: New Installation Topics–Part 3: Upgrade Topicspg p

AgendaAgenda

– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries

–SLA capabilities for information capture and reconciliation

–SLA inquiries and reports

Introduction to SLAIntroduction to SLA

Oracle Subledger Oracle Subledger A tiA ti

ggAccounting:Accounting:

Oracle Subledger Accounting is a rules-based engine for generating accounting

entries based on source transactions fromentries based on source transactions from ALL Oracle Applications.

This is a transaction

This is a transaction

This is NOT an accounting entry

Transactions and Accounting E t iEntries

Invoice #100Invoice #100Ledger: US CorporateLedger: US Corporate

GL Date: 2GL Date: 2--MarMar--20062006Invoice Internal Identifier: 1001Invoice Internal Identifier: 1001

ABC NetworksABC Networks

2 Monitors2 Monitors Marketing $1000Marketing $1000

Invoice# 100Invoice# 100

Supplier: ABC NetworksSupplier: ABC Networks

DRDR CRCRIn oice Line 1In oice Line 12 Monitors 2 Monitors –– Marketing $1000Marketing $1000

5 Printers 5 Printers –– Marketing $ 500Marketing $ 500

FreightFreight $ 100$ 100

Tax $ 110Tax $ 110

1 Expense 011 Expense 01--EXPEXP--200200 $1500 $1500

2 Freight 012 Freight 01--FRFR--200200 $100$100

3 Tax 013 Tax 01--TXTX--200 $110200 $110

Invoice Line 1Invoice Line 1

Invoice Line 2Invoice Line 2

Invoice Line 3Invoice Line 3

Invoice Line 4Invoice Line 4Tax $ 110Tax $ 110

TotalTotal $1710$17104 Liability 014 Liability 01--LIABLIAB--200200 $1710$1710

Transactions vs. Accounting

– SLA provides a distinction between a transaction and the

Transactions vs. Accounting

SLA provides a distinction between a transaction and the accounting representation of the transaction

– Accounting distributions did not necessarily go away• Needed for upgrade customers

• Needed as starting point for SLA (Don’t want to force customers to define their own SLA rules)

• In some cases, necessary to allow user input

– Most default SLA rules just ‘pass through’ the distribution accounts (where applicable)accounts (where applicable)

– If you modify SLA rules, the ultimate accounting entry may not match the distributions.

– OK because distribution accounts are just defaults

AgendaAgenda

– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries

–SLA capabilities for information capture and reconciliation

–SLA inquiries and reports

Subledger Journal EntrySubledger Journal Entry

Subledger vs. GL Journal Entries

Invoice No: 136274 GL Date: 01/27/07 3rd Party: FenderSLA

Subledger vs. GL Journal Entries

101.100.63580.0000.720.000.000 6,000 EUR101.100.22100.0000.000.000.000 6,000 EUR

SLA JE #1

Invoice No: 131299 GL Date: 01/27/07 3rd Party: Gibson

101.100.63580.0000.720.000.000 3,000 EUR101.100.22100.0000.000.000.000 3,000 EUR

SLA JE #2

Invoice No: 116555 GL Date: 01/27/07 3rd Party: Kramer

101 100 63580 0000 720 000 000 2 000 EURSLA

JE #3 101.100.63580.0000.720.000.000 2,000 EUR101.100.22100.0000.000.000.000 2,000 EUR

Batch: AP Invoices 27-Jan-07 GL Period: Jan-07

JE #3

Batch: AP Invoices 27-Jan-07 GL Period: Jan-07

101.100.63580.0000.720.000.000 11,000 EUR101.100.22100.0000.000.000.000 11,000 EUR

GL JE #1

SLA – GL Flow

GL Balances

SLA GL Flow

Posting

GL Journal Entry

Journal Import

SLA Journal Entry

Journal Import

Create Accounting

Transaction

Subledger Balances

– Third Party Control Account Balances

Subledger Balances

Third Party Control Account Balances• Track balances by account and Customer/Supplier

• Statutory reporting requirement in certain countries

f l– Supporting Reference Balances• Store an unlimited number of sources as supporting references on 

the accounting entries

• Optionally track balances by account and supporting reference

– Open Account Balances• Track balances by originating transactions and downstream applied• Track balances by originating transactions and downstream applied 

transactions

– Balances calculated and stored AFTER Accounting Program Completes

Subledger Balances

GL Balances

Subledger Balances

Posting

GL Journal Entry

Journal Import

SLA Journal Entry

Journal Import

SLA BalancesBalance Calculation

Create Accounting

Transaction

AgendaAgenda

– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries

–SLA capabilities for information capture and reconciliation

–SLA inquiries and reports

Accounting Methods Builder C t

Vision Operations (USA) Ledger

Components

Standard/GAAP Accrual Subledger Accounting Method

Payables Accrual Application Accounting Definitiony pp g

Invoice Journal Line Definition

Journal Line Types

Account Derivation Rules

Journal Entry Descriptions

Transaction Objects

Sources

Transaction Objects

AMB: Shipped by Oracle, C t C t Ch

Vision Operations (USA) Ledger

Customers Cannot Change

Standard/GAAP Accrual Subledger Accounting Method

Payables Accrual Application Accounting Definitiony pp g

Invoice Journal Line Definition

Journal Line Types

Account Derivation Rules

Journal Entry Descriptions

Transaction Objects

Sources

Transaction Objects

AMB: Shipped by Oracle, C t C C t Th i O

Vision Operations (USA) Ledger

Customers Can Create Their Own

Standard/GAAP Accrual Subledger Accounting Method

Payables Accrual Application Accounting Definitiony pp g

Invoice Journal Line Definition

Journal Line Types

Account Derivation Rules

Journal Entry Descriptions

Transaction Objects

Sources

Transaction Objects

AMB: Grouping Components

SSC France Ledger

AMB: Grouping Components

PLFA Standard Accrual Subledger Accounting Method

PLFA Accrual Basis Application Accounting Definitionpp g

Invoice Journal Line Definition

Journal Line Types

Account Derivation Rules

Journal Entry Descriptions

Transaction Objects

Sources

Transaction Objects

Grouping Component: S bl d A ti M th dSubledger Accounting Method

Grouping Component: A li ti A ti D fi itiApplication Accounting Definition

AMB: Shipped by Oracle, C t C C t Th i OCustomers Can Create Their Own

Accounting Methods Builder (AMB)Accounting Methods Builder (AMB)

Description

Account Derivation Rule

Line Type

Journal Line Type (JLT)Journal Line Type (JLT)

Line Type

Journal Line Type (JLT)

– Identify the natural side

Journal Line Type (JLT)

y• Debit

• Credit

• Gain/Loss• Gain/Loss

– Determine the accounting class

– Set under which conditions the rule will create a line

– Define the values needed for entry line generation, such y g ,as amount, currency, conversion rate information

– Control behavior for certain features i.e. multiperiodControl behavior for certain features i.e. multiperiod accounting, business flows, line merging and summarization

Journal Line Type (JLT)Journal Line Type (JLT)

Account Derivation Rule (ADR)Account Derivation Rule (ADR)

Account Derivation Rule

Account Derivation Rule (ADR)

– Determine if rule will be generic or specific for a given 

Account Derivation Rule (ADR)

g p gchart of accounts

– Identify what will be derived• Accounting flexfield• Segment/qualifier value• Value from a value set

– Define how the value will be derived• Constant• Source value• Mapping Set• Another account derivation rule

– Set under which conditions the rule will derive a value

ADR ExamplesADR Examples

1. Shipped rule, account combination

2. Shipped rule, with conditions

3 Shi d l i l t3. Shipped rule, single segment

4. Custom rule, fixed combination

5 Custom rule fixed segment5. Custom rule, fixed segment

6. Custom rule, with conditions

ADR Example 1: Shipped Rule, A t C bi tiAccount Combination

ADR Example 2: Shipped Rule, With C ditiWith Conditions

ADR Example 3: Shipped Rule, Si l S tSingle Segment

ADR Example 4: Custom Rule, Fi d C bi tiFixed Combination

ADR Example 5: Custom Rule, Fi d S tFixed Segment

ADR Example 6: Custom Rule, With C ditiWith Conditions

ADR Example 6 (cont.)ADR Example 6 (cont.)

ADR Example 6 (cont.)ADR Example 6 (cont.)

Oracle-owned vs. User-owned AMB C tComponents

Owner: Oracle User

Created by: Oracle  CustomerDevelopment

Updatable? No Yes

Ch t f A t ? G i G iChart of Accounts? Generic Generic or Specific

Account Derivation RulesAccount Derivation Rules

Chart of Accounts: Generic Specific

Use Source for entire Account?

Yes YesAccount?

Use Source for individual segment?

Yes for Qualified segments

Yes for Any Segment

Use Mapping Sets? No Yes

Use Specific Values? No Yes

Journal Entry DescriptionJournal Entry Description

D i tiDescription

Journal Entry Description

– Define how the description on a journal entry or on

Journal Entry Description

Define how the description on a journal entry or on each of its lines will be built:• Constant

• Source Value

– Set under which conditions the rule will be used

Journal Entry DescriptionJournal Entry Description

AgendaAgenda

– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries

–SLA capabilities for information capture and reconciliation

–SLA inquiries and reports

Third Party Control Accounts

– Certain accounts can be identified as control

Third Party Control Accounts

Certain accounts can be identified as control accounts.  In this case:• You cannot enter manual adjustments against these j g

accounts in General Ledger

• SLA maintains balances for these accounts by third party

– This typically only applies to balance sheet accounts

Third Party Control AccountsThird Party Control Accounts

Supporting References

– Transaction attributes can be identified as

Supporting References

Transaction attributes can be identified as supporting references and stored on journal entries.  In this case:• SLA maintains subledger balances for each supporting 

reference value and account.

– This can apply to balance sheet as well as income statement accounts.  In the latter case, subledger balances are reset automatically at fiscal year endbalances are reset automatically at fiscal year end.

– Formerly (in 11i FSAH) known as analytical criteria.

Supporting References

Invoice No: 136274 GL Date: 01/27/07 3rd Party: FenderSLA

Supporting References

101.100.63580… 6,000 EUR Product: X8F54101.100.22100… 6,000 EUR Buyer: Smithers

SLA JE #1

Invoice No: 131299 GL Date: 01/27/07 3rd Party: Gibson

101.100.63580… 3,000 EUR Product: S7000101.100.22100… 3,000 EUR Buyer: Siszlak

SLA JE #2

Invoice No: 116555 GL Date: 01/27/07 3rd Party: Kramer

101 100 63580 2 000 EUR Product: 8811920SLA

JE #3 101.100.63580… 2,000 EUR Product: 8811920101.100.22100… 2,000 EUR Buyer: Flanders

Batch: AP Invoices 27-Jan-07 GL Period: Jan-07

JE #3

Batch: AP Invoices 27-Jan-07 GL Period: Jan-07

101.100.63580… 11,000 EUR101.100.22100… 11,000 EUR

GL JE #1

AgendaAgenda

– Introduction to Subledger Accounting–Subledgers and General Ledgers–SLA capabilities for controlling accounting entries

–SLA capabilities for information capture and reconciliation

–SLA inquiries and reports

Supporting ReferencesSupporting References

Online Inquiries: EventsOnline Inquiries: Events

Online Inquiries: Journal EntriesOnline Inquiries: Journal Entries

Online Inquiries: Journal LinesOnline Inquiries: Journal Lines

New Reports

BI P bli h R

New Reports

– BI Publisher Reports• Journal Entries: Listing of subledger journal entries

• Account Analysis: Listing of beginning and ending balances fromAccount Analysis: Listing of beginning and ending balances from General Ledger with merge of subledger and General Ledger journal entries

• Open Account Balances (a.k.a. Trial Balance): Listing of open Ope ccou t a a ces (a. .a. a a a ce): st g o opebalances by third party (leverages business flows)

• Third Party Balances: Balances by third party control account and third partyp y

• Period Close Exceptions Report: Listing of transactions / subledger journal entries that have not yet been posted to General Ledger

Account Analysis ReportAccount Analysis Report

Journal Entries ReportJournal Entries Report

Open Account Balances ListingOpen Account Balances Listing

SLA Reports Detail

– All reports are native to BI Publisher

SLA Reports Detail

All reports are native to BI Publisher

– All extracts are very fat, i.e. they include a tremendous amount of data that is not displayedtremendous amount of data that is not displayed by default but can be added by simple template modifications

– Journals and Account Analysis reports include GL journals for non‐SLA sources

– Open Account Balances Listing is based on Business Flows• It replaces (and genericizes) the AP Trial Balance.  

• You must create a report definition in advance

QuestionsQuestions

FMT Systems EventsFMT Systems Events

OAUG GL SIG Webinar Series ContinuesOAUG GL SIG Webinar Series Continues

January 27th –Deep Dive into the Functionality and Capability of SLADeep Dive into the Functionality and Capability of SLA

February 3rd –February 3rd Case Study on SLA usage

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