3-10 subledger architecture (sla) configuration for opm in r12_v0.1

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Subledger Accounting (SLA) Configuration for OPM in R12

Shailendra Naithani, Principal Product Manager(OPM)Venkat Chukkapalli, Group Manager(OPM Development)

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Agenda

• Subledger Accounting(SLA) - Introduction• Architecture overview

• Manufacturing Accounting Controller(MAC) vs. SLA

• Setting up SLA for OPM• SLA Use Case: Misc Receipt Accounting• OPM Period End Closing using OPM Financials• SLA Advanced Configuration:

• Custom Sources

• Q&A

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Accounting representation strongly tied to subledger transactions

Payables

ReceivablesGeneral Ledger

SubledgerAccounting

SubledgerAccounting

SubledgerAccounting

Payables

Receivables

Ledger

SubledgerAccounting

SubledgerAccounting

SubledgerAccounting

General Ledger

OPM

Subledger Accounting IntroductionWhat is SLA?

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Subledger Accounting Replaces MAC

OPM Costing engine generates cost

MAC processes transactions

and creates journals

Completed material and resource transactions

OPM Costing with MAC

OPM Costing engine generates cost

SLA processes these events to create journal entries

Completed material and resource transactions

OPM Costing with SLA

Preprocessor creates

accounting events

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Key Changes Summary

• Process Manufacturing Financials is the Subledger for all OPM transactions

• MAC Obsoletes and replaced by SLA – No need for separate accounting units and accounts

– No need for Ledger mappings

• Account derivation based on flexible condition based rules• Test Subledger update replaced by Create accounting-Draft• Subledger Update replaced by Create accounting- Final mode• Inventory Close for Process Organizations

– Handled by OPM Costing

– Preliminary Close is still supported for Process Organizations

– Period Ending Balances saved in an OPM Costing Table (GMF_PERIOD_BALANCES)

– Inventory Valuation report available in OPM Costing reports

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Subledger Accounting Replaces MAC OPM example with Order Management

Shipping (OMSO)

Shipping Shipping, Internal Order shipments, Customer Returns

MAC-11i Event Subevent

SLA- R12 Event Class Event Type

Shipping

Customer Returns(RMA)

Internal Order Shipments

Order Management

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Event Model - Example

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Subledger Accounting Replaces MAC Equivalent functionality in SLA

OPM MAC SLA Comments

Event Event Class

Sub-Event Event Type

Account Titles Journal Line Types (JLT)

Accounting TemplateApplication Accounting Definitions (AAD)

Account Mapping Attributes (SLA) Sources

Priorities and Account Mapping

Account Derivation Rules (ADR)

OPM Currency, OPM Ledger, OPM Exchange Rates

Use GL set ups

Subledger Program Accounting Pre-Processor

Test and Actual Subledger Accounting

Draft and Final Accounting -

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Event Model- SLA vs MAC

Event Subevent11i

Event Entity

Event Class

Event Type

R12

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JLTs vs. Account Titles

11i

R12

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SLA ADR vs. MAC Account Mapping

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Subledger Accounting Method StructureExample- Vision Environment

Primary Ledger(OPM US)

Subledger Accounting Method-Standard Accrual

Application Accounting Definition (AAD for Process Manufacturing Financials)

Journal Line Types

Account Derivation Rules

Journal Entry Descriptions

Journal Line Definitions

Transaction Objects

Sources

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Subledger Journal Entry

Description

Line Type

Account Derivation Rule

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Agenda

• Subledger Accounting(SLA) - Introduction• Architecture overview

• MAC vs. SLA

• Setting up SLA for OPM• SLA Use Case: Misc Receipt Accounting• OPM Period End Closing using OPM Financials(Costing and

SLA)• SLA Advanced Configuration:

• Custom Sources

• Q&A

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SLA Setup

Microsoft Excel Worksheet

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Setup Account Derivation Rules•Corresponds to Account Mapping and Priority setup of 11i OPM MAC

•Query a seeded rule and creates custom ADR with owner as ‘User’

• Output type can be an entire accounting flexfield or a specific segment in the accounting code combination

• Multiple conditions can be separated by ‘AND/OR’ logic

Key Takeaways:

•Do not modify seeded ADRs. Create custom ADRs

•Define custom ADRs for rules such as AAC, AAP, DCOGS depending on your business needs

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Setup Journal Lines Definition

•JLD created with owner ‘User’

•JLDs are created for an Event class and Event type combination

•Multiple journal line types (JLTs) are associated to a JLD. These JLTs correspond to Account Titles of MAC

•ADRs are associated to the JLTs

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Setup Applications Accounting Definition

•AAD created with owner ‘User’

•Specific to a particular application

•Contains all event classes and event types

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Setup Subledger Accounting Method(SLAM)

• SLAM created with owner ‘User’

• Specific to a ledger

• Contains AADs from all applications

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Assign SLAM to Primary Ledger

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Agenda

• Subledger Accounting(SLA) - Introduction• Architecture overview

• MAC vs. SLA

• Setting up SLA for OPM• SLA Use Case: Misc Receipt Accounting• OPM Period End Closing using OPM Financials(Costing and

SLA)• SLA Advanced Configuration:

• Custom Sources

• Q&A

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Perform a Miscellaneous Transaction

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Run OPM accounting preprocessor

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Run Create Accounting

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Output of create accounting- INV and IVA accounts

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Agenda

• Subledger Accounting(SLA) - Introduction• Architecture overview

• MAC vs. SLA

• Setting up SLA for OPM• SLA Use Case: Misc Receipt Accounting• OPM Period End Closing using OPM Financials(Costing and

SLA)• SLA Advanced Configuration:

• Custom Sources

• Q&A

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OPM with SLA - The Process

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Run the preliminary inventory close

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Run Preliminary cost update process

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Run OPM Accounting Pre-processor

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Run Detailed Subledger Report

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Review the accounting entries

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Inventory Close- Final

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Final Cost Update

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Create accounting –final mode

On Submitting program, the following requests will be invoked:

•Create Accounting

•Accounting Program

•Journal Import and

•Subledger Accounting Balances Update

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Agenda

• Subledger Accounting(SLA) - Introduction• Architecture overview

• MAC vs. SLA

• Setting up SLA for OPM• SLA Use Case: Misc Receipt Accounting• OPM Period End Closing using OPM Financials(Costing and

SLA)• SLA Advanced Configuration:

• Custom Sources

• Q&A

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Custom SourcesExample1

• Extend the list of sources available to application accounting definitions

•Used to derive accounts based on non-standard sources

• PL/SQL function used to derive the source

• Return value can be a string, an accounting flexfield or a value set

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Custom SourcesExample2

Business Case:

Customer  needs to capture purchasing details(PO Number, Line Number, Supplier Name, Item Number, Item Description) on the journal entry descriptions for Receive to Inspection accounting events.

Solution Approach using custom sources:

1. Create PL/SQL Functions for Item Number, Item Description etc

create or replace FUNCTION GET_ITEM_NAME(p_inventory_item_id IN NUMBER , p_organization_id IN NUMBER)

return varchar2 IS

 CURSOR c_item_name IS

select concatenated_segments from mtl_system_items_kfv where

inventory_item_id = p_inventory_item_id and organization_id = p_organization_id;

  l_item_name VARCHAR2(100) :=' ';

BEGIN

  OPEN c_item_name;

FETCH c_item_name INTO l_item_name;

CLOSE c_item_name;

  RETURN l_item_name;

END GET_ITEM_NAME;

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Custom SourcesExample2….continued

2. Create Custom Sources for PO Number, Line Number, Supplier Name, Item Number, Item Description

3. Create Journal Entry Description using custom sources

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Custom SourcesExample2….continued

4. Assign Journal Entry Description to the Receive to inspection Event type

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Custom SourcesExample2….continued

5. Run the Create Accounting Procedure

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Inventory valuation accounts using Subinventory

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Changes – Summing up

• NO LOSS of functionality by moving to SLA model• A new sub-menu created under Cost Management for SLA

forms.• Fiscal Policy and Event Fiscal Policy screens retained with minor

modifications. Most of the fields will be read-only.• OPM Event model mapped to SLA event model.• Account Titles replaced by Journal Line Types (JLT) in SLA.• Account Mapping functionality replaced by Accounting Definition

Rules (ADRs) in SLA.• Test Account Mapping replaced with TAB Test Accounting

Builder.• Test Sub Ledger process replaced with Draft Sub Ledger

Accounting in SLA• Subledger Detail Report modified to go against SLA repository.

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AQ&

Shailendra.naithani@oracle.com

Venkat.chukkapalli@oracle.com

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