CollaborativeSIG: SLAAccountinginR12:Procure toPayProcess

MohanIyer PrincipalConsultant FSCP Solutions Inc mohan@fscpsolutions.com September22nd,2011

 Agenda
AboutthePresenter ProcuretoPayOverview SLAOverview Accountingtouchpoints Accruals BusinessCasesforSLAchanges ReportingusingSLAdata OthercapabilitiesofSLA
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AboutthePresenter
MohanIyer
PrincipalConsultant@FSCP Solutions Inc. Over20yearsexperiencewithOracleApplications FunctionalconsultantinFinanceapplications MultiplefullcycleR12implementations CurrentlyworkingonR12.1.3 FoundingBoardMemberofNorCalOAUGandGLSIG BoardMemberonMNSIG

ProcuretoPayOverview A
Start Analyzeto Agreement Requisition to Receipt Inspection to Disposition
Material Passes Inspection

SupplierReturn toReplacement

Y
SupplierInvoice toPayment

N
Supplierwill provide replacement?

Y A

Receiptto Asset Subledger toPost End

SupplierReturn toDebit

SubLedgerAccountingOverview
SLAisarulesenginethatcreatesaccounting foralltransactionsintoGL Thisallowsforthedisconnectbetweena transactionanditsaccounting Thisalsoallowsforasingleprocesstocreate accountingentriesintoGL ThereisalayerbetweenGLandthe subledgers(AP,AR)
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SubLedgerAccountingOverview
Oracle Subledger Accounting:
Oracle Subledger Accounting is a rulesbased engine for generating accounting entries based on source transactions from ALL Oracle Applications.

SubLedgerAccountingOverview
GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry

Create Accounting Transaction

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SubLedgerAccountingOverview
Ledger Subledger Accounting Method (SLAM) Application Accounting Definition (AAD) Journal Line Definition (JLD) Account Derivation Rules (ADR) Mapping Sets Sources Transaction Objects

Journal Line Types (JLT)

Journal Entry Descriptions (JED)

SubLedgerAccountingOverview

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CaseforSLAchanges
Whywouldyouchangethestandardrules
ThestandardrulesforAPseemedtobeOKto takewhatyouenteredintheDistributionLine.

Butinsomecasesthatmaynotbetrue AsanexamplelookatAssets Thereisadefaultthatcreatessomeaccounts basedonacombinationofsegments DistributionLine,CategoryandBook Level(Default)

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BusinessCaseforSLAchanges
AssetAccounting
SourceCostCentersegmentfromnonstandard source perstandardfunctionalityinFixedAsset

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BusinessCaseforSLAchanges
AssetsAccounting
Standard SLAwillbookallassetrelatedjournalswiththe followingrules:
BalancingSegmentQualifier fromtheDistribution_id (Assignments) NaturalAccountSegmentQualifier retrievedfrom oneofthreeplacesAssignments,BooksorCategories Allothersegments fromtheDefault_CCIDonthe booksform
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BusinessCaseforSLAchanges
AssetsAccounting
BusinessCase:
Itisrequiredtobookjournalsatanotherlevelin additiontoBalancingandNaturalAccount.For exampleCostCenter. RequirementtobookallP&LaccountsattheCost Centerlevel

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SLAchanges
AssetsAccounting Changestomakeconfigurationchangesto achievetherequirement
AccountDerivationRule(OneforCostCenterDerivationisnow

standard)
CreateCustomJournalLineDefinitionandassigntheAccount

DerivationRule
LinkCustomJournalLineDefinitiontoApplicationAccounting

Definition
LinkApplicationAccountingDefinitiontoSubledgerAccounting

Method
LinkSubledgerAccountingMethodtoaLedger
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SLAchanges

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AccountingTouchpoints
ReceiveProductsandServices
Expenses
Receive:DRReceiving/CRExpenseA/PAccrual Deliver:DRExpense/CRReceiving

ProjectExpenses
Receive:DRReceiving/CRExpenseA/PAccrual Deliver:DRProjectExpense/CRReceiving

Inventory&OutsideProcessing
Receive:DRReceiving/CRInventoryA/PAccrual Deliver:DRInventoryorWIP/CRReceiving
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AccountingTouchpoints
ReverseExpenseAccruals
Receive:DRExpenseA/PAccrual/CRExpense

InvoiceProductsandServices
Expenses
Match:DRExpense/CRAPLiability

Inventory&OutsideProcessing
Match:DRInventoryA/PAccrual/CRAPLiability

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AccrualAccounting
AccrualAccountingregistersaliabilityonyourbalancesheet ifyouhavematerialthathasbeenreceivedbutnotinvoices Therearetwotypesofaccruals HardAccruals accrualsformanufacturingitemsreceived intoInventory PeriodEndAccruals forexpenseitemsthathavebeen received PeriodEndAccrualsdifferfromhardaccrualsduetothefact thattheyarereversedatthebeginningofthenextperiod HardAccrualsareautomaticallygeneratedwhenreceivingis done PeriodEndAccrualsneedaprocesstoberunaspartof 21 periodendprocessing

AccrualsinR12
AccrualsinR12areaccountedaspartoftheCost Managementaccountingevents TheprocessesandreportsareownedbyCost ManagementandSourceisCostManagement TheperiodendprocessforExpenseAccrualsnow createstwojournalbatches
Oneforthecurrentperiodaccrual Anotherforthenextperiodreversal

Therehavebeenissueswiththereversalinearlier releaseofR12 priorto12.0.6

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ReportingusingSLAdatatables
ManyreportsnowaregeneratedfromtheSLA tables,givenbelowareafew
AccountAnalysis(allmodules) AccountsPayableTrialBalance AccountingReportwhilerunningCreate Accounting

Allaccountquerycapabilityisnowdrilldown throughtheSLA
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SLA ReportingfromtheSLAlayer

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SLA ReportingfromtheSLAlayer

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OthercapabilitiesofSLA
SLATransactionsandBalances
SLAmaintainsitsownJournalEntriesandBalancesasamiddlelevel tomaintainthesedatasetsbeforetheyflowtoGL ThirdPartyControlAccountBalances
TrackbalancesbyaccountandCustomer/Supplier Statutoryreportingrequirementincertaincountries Storeanunlimitednumberofsourcesassupportingreferenceson the accountingentries Optionallytrackbalancesbyaccountandsupportingreference Trackbalancesbyoriginatingtransactionsanddownstreamappliedtransactions

SupportingReferenceBalances

OpenAccountBalances

BalancescalculatedandstoredAFTERAccountingProgram Completes
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OthercapabilitiesofSLA
GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Balance Calculation SLA Balances
(Supporting References & Open Account - AP TB)

Create Accounting Transaction

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SLASupportingReferences
Supportingreferencesmaybeusedasfollows
Provideadditionalbusinessinformationforbalanceson transactions Toestablishasubledgerbalanceforaparticularsource valueorcombinationofsourcevalues Forfinancialandmanagerialanalysis Balancescanbemaintained Never nobalancesmaintainedonlyusedfortracking purposes BasedonAccount basedontheaccountthatissourceof thissupportingreference Always continouslymaintainsthebalanceforthissource
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SLASupportingReferences

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Gotchas

MakingtheupdatetoeveryEvent/EventTypecombination Copyingtheseededdefinitionpriortomakingchanges CoordinatingallSLAchangesintheSubledger Accounting Methods Forproductlinechangesyouusuallyhavetochangeover20 eventsorjournallineassignments verytimeconsuming anderrorprone Test,test,test

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