R12 SUBLEDGER

Krithivasan N

SLA is not a module or is an application

It is not separately licensed

Embedded in Application Responsibilities – no

separate log in It is a service – Event and Rule based Accounting

Engine, tool set and repository

Common data model across all modules (XLA)

Consolidates and Standardize Accounting across

various sub ledgers

WHAT IS SLA?

WHY SLA?

To enable compliance with different geographic,

legislative and industry requirementsTo provide flexibility while maintaining necessary

transparency, audit trial and control

To support user defined Accounting Rules

To enable balancing at sub ledger level

To minimize customization and manual journal

entriesTo facilitate simultaneous multiple representation of

a single accounting event

Generate and store detailed Accounting Entries

Store Sub-ledger balances (Third Party Control

Accounts)Provide drill down from Ledger(s) to Sub ledger and

from Sub ledger to Ledger(s)Enables maintaining two sequences – Accounting and

Reporting

Enables definition of “Reconciliation Accounts”

Facilitates 4th “C” – Accounting Convention

WHAT SLA DO?

Features that were available in individual sub ledger modules of

R11i have been consolidated in to a common data model across

modules with enhanced features

Events based Accounting features of Payables 11i has been

extended to all sub ledgers

Global Accounting Engine of 11i has been enhanced and

replaced by SLA

Account Generators in 11i which was used to automatically

construct Accounting flexfield based on Oracle Seeded Rules or

user defined rules has been enhanced and built into SLA

FROM RELEASE 11i

Transactions are exported to interface table and imported

into GL from interface table

Journal Balancing occurs in General Ledger

Error transactions get trapped in interface table until it is

cleared – often causing delay in closing books

R 11i Vs R12 SLA

Release 11i process

SUBLEDGER Export Temp Table

Import & Posting

Generation of Journal

Payable Sub ledger GL INTERFACE TABLE

GENERAL LEDGER

Receivable Sub ledger Project Sub ledger

Costing Sub ledger

R 11i Vs R12 SLA

Release 12 process

SUBLEDGER Create Accounting

SLA Generation of Journal

Payable Sub ledger AP SLAM GL INTER-FACE

GENERAL LEDGER

Receivable Sub ledger AR SLAM Project Sub ledger PA SLAM

Costing Sub ledger CS SLAM

Journals are created in the sub ledger

Error transactions are reported at SLA level itself and no

journal gets created

GL Interface table contains only error free entries

Drilldown from GL to SLA to Transaction

Drilldown from summarized posting in Primary,

Secondary and Consolidation Ledger is possible Preview effect of a journal in Primary / Secondary

Ledger(s)

Drilldown in web-based and not form based

No change in drilldown navigation

Security can be enabled as a combination of SL and

GL

IMPACT OF SLA ON GL – Drilldown

The way journal import is triggered has undergone a major

change in R12

Journal Import process has been standardized across all sub

ledger applications.

“Create Accounting” concurrent request from the respective

Application will generate Journal in the SL

Transfer to GL option will always triggers Journal Import

In case of any error, the error journal is rolled back to SL

Unlike 11i, there is no need to run Journal Import in the same

language as the language used for exporting journal

IMPACT OF SLA ON GL – Journal Import

Unlike 11i, Encumbrance to be specifically opted while choosing

SLAM for a Ledger

On reserving and approving PO, encumbrance entries are

generated

“Create Accounting” concurrent Request from purchasing

responsibility will transfer encumbrance entries to GL

Accounting entries created can be viewed from SLA menu in

Purchase responsibility

Credit for Reserve for Encumbrance is created while reserving

encumbrance (PO Reservation)

IMPACT ON PO ACCOUNTING

In 11i, Receiving Transaction processor will create receipt accounting

entry in Receiving sub ledger as well as GL Interface. In R12, RTP will

create entries on in SL. Create Accounting Program to be run

In case of expense destination, PO Receipt will fire Create Accounting

process and SL & GL will get populated

In case of Inventory Destination with online accrual, when PO is

received and delivered, Create Accounting will happen and SL & GL will

get populated

In case of Inventory Destination with period end accrual, Receipt

Accrual Period End program will create entries only when Receipt Qty is

greater than Bill Quantity. Create Accounting Program to be run for

generating Actual and encumbrance entries

Impact on Receiving

In the case of period end accrual, the accrual entry should be reversed manually

in 11i, where as in R12, the accrual entry will be reversed automatically

In 11i, the Accrual Rebuild Reconciliation Report which was required to be run to

populate the accrual reconciliation table is now replaced by "Accrual

Reconciliation Load Run" program in R12

In R12 there are 3 different reports, one for AP-PO individual transactions, one

for Miscellaneous transactions showing the individual transaction details for

source INV and AP and one for showing the summarized accrual balance for all

transaction types as against one Accrual Reconciliation Report in 11i.

In 11i, accounting will not get created for the write off transaction and accrual

entry has to be manually adjusted in GL whereas in R12, Create Accounting

program will create the accrual entry for the write off transaction in SLA as well

as in GL and hence manual adjustment of accrual entry is not required.

Impact on Accrual Accounting

In Release 11i AutoAccounting is used by SLA in R12 to facilitate definition of

code combination

AutoAccounting is used to generate Code Combination with limited sources and

limited flexibility. R12 provides more sources and flexibility

Receipts can be applied at line level

Event based Revenue Management enables definition Revenue deferral rules.

Contingency based Revenue Recognition is built into SLA

COGS and Revenue Matching feature is enhanced

SLA AND RECEIVABLES

Oracle ships 3 application definitions for Cost Management

• Cost Management – US GAPP (Standard Accrual)

• Cost Management with encumbrance – US GAPP with

encumbrance

• Federal CostingDefault set up is US GAPP

All setups to use pre-R12 functionality are migrated

automatically

SLA removes11i pain points regarding revenue recognition

SLA replaces MAC

SLA AND COSTING

PAYABLE

RECEIVABLE

CASH MANAGEMENT

ASSETS

COSTING

PROJECTS

PAYROLL

PROPERTY MANAGEMENT

LEASE MANAGEMENT

GLOBALISATION

PUBLIC SECTOR FINANCIALS

FEDERAL FINANCIALS

MODULES USING SLA

Journal can be imported directly into GL from non-

oracle feeder system by using GL Interface table.

There is no change in the functionality

Journal can be imported into SLA by using tables

provided by under Financial Services Accounting Hub.

Refer Chapter 12 of FSAH Implementation Manual.

No FSAH Licensing is required for using the tables.

Refer Metalink Note: 737370.1 dated 30/03/09

JOURNAL IMPORT

LEDGER

SLAM

AAD AADAAD

PAYABLE

Credit Memo Invoice

Modify Validate

Journal Header

Assignment

Journal Line

Definition

Journal Entry

Description

Journal Line

Type

Account

Derivation Rule

Cancel

Prepayment Payment

AAD AADEntity / Events

Event Class

Event Type

SLAM: Sub ledger Accounting Method

AAD: Application Accounting Definition

With SLA, Event based accounting has been extended to all sub ledger modules

An Event is a business activity having an accounting effect – Example creation of PO in

Purchasing and life cycle of a Transaction is defined in the event model

An Event Class is a category of business events for a particular transaction type or document

– e.g., Requisition, PO, Invoice, Credit Memo, Prepayment Payment – In other words, Event

class groups together similar event types and enable sharing of Accounting definitions

An Event Type is a business operation that can be performed on an Even Class – Eg. Invoice

Validated, Invoice modified or Invoice Cancelled are Event Types for the Event Class Invoice

One or more Event Classes are associated with Even Entities – Example Payables

SLA CONCEPTS

Oracle provides seeded components for each level of the SLA hierarchy

to meet standard requirement

Seeded components cannot be modified but can be copied with another

name and modified to suite requirements

Users have the flexibility of using seeded components with user

defined components

Definitions created by users are not overwritten during upgrade.

However, in case seeded components are used as part of user defined

components, Merge Analysis feature is provided to verify the effect

Definitions can Exported and Imported to enable testing before

migrating to Production environment

SLA CONCEPTS