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R12SLA White Paper PDF
R12SLA White Paper PDF
Release12.1.1
Oracle SLA
White Paper
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Contents
Oracle SLA ............................................................................................................................................................................ 4
Transaction flow of SLA to GL: ......................................................................................................................................... 5
Account Generators vs. SLA ............................................................................................................................................. 6
Prerequisites Setups ........................................................................................................................................................... 7
Subledger Accounting Options Setup ............................................................................................................................. 7
SETUP PAGES ....................................................................................................................................................................... 7
Accounting Method Builder (AMB) ..................................................................................................................................10
NAVIGATION TO SLA FORM: ................................................................................................................................................. 11
COMPONENTS OF AMB ........................................................................................................................................................ 12
STEPS TO DEFINE RULES IN SLA ......................................................................................................................................... 20
User Configurable - Scenarios .........................................................................................................................................21
SCENARIO 1 DEFINE DIFFERENT LIABILITY ACCOUNT BASED ON SUPPLIER TYPE ................................................................. 21
SCENARIO 2 - DISPOSAL CHARGED TO SPECIFIC COST CENTRE ........................................................................................... 33
Commonly Used Reports ..................................................................................................................................................33
Important Backend Tables ................................................................................................................................................33
Glossary ...............................................................................................................................................................................34
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Oracle SLA
Oracle Sub Ledger Accounting is a set of services for R12 that significantly enhances accounting support
across the E-Business Suite.
Subledger Accounting is a Service, not an application. There are no SLA Responsibilities and there is no direct
login to SLA. SLA forms and programs are embedded within the Standard Oracle Application responsibilities
(Eg. Payable Manager)
SLA is :
Simply a rule-based engine, tool set & repository supporting Oracle E-Business Suite Modules
Allows multiple accounting representations for a single business event, resolving conflicts between
corporate and local fiscal accounting requirement
Retains the most granular level of detail in Subledger accounting model, with different summarization
options in General Ledger, allowing full audibility and reconciliation
Introduces a common data model and UT across Sub-ledger, replacing disparate 11i setups, proving a
Single source of truth for financial and management Analysis
Payables
Receivables
Projects
Assets
Cash Management
Purchasing
Cost Management
Process Manufacturing
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Create Accounting
SLA Journal Entry
Journal Import
GL Journal Entry
Posting
GL Balances
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Most of the sub-ledgers continue to use their existing (11i) methods to derive the accounting which
users see in Distribution windows. For example:
- Receivables still uses Auto Accounting to default invoice accounting
- Projects still use Auto Accounting to default revenue accounting and an Account Generator to default
P2P expenditure accounting
- Assets may use an Account Generator to derive its account codes
In most cases SLA picks up this account code as the default source for its account derivation rules. By
default, it will simply pass this through to GL, however SLA also allows you to modify this if you wish to
In cases where you have a choice between methods (for example in Assets where the profile option
FA: Use Workflow Account Generation allows you to opt to bypass the use of the Account Generator),
its recommend to consider going directly to the newer technology i.e. SLA, (rather than investing
further in a workflow based method whilst knowing that workflow technology will not be used in the next
generation Fusion Applications)
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Prerequisites Setups
1. Set up a subledger application in the Accounting Methods Builder (AMB) Please refer Accounting
Method Builder
2. Set up ledgers in General Ledger Please Oracle General Ledger Student User guide for setup
Why :
To customize basic accounting attributes like entered amount, accounted amount, Date, Currency code etc and the complex attributes
like Ledger, Code Combination ID, Periods etc. and there interface to GL from SLA
How :
Below are the Subledger Accounting Options Setup Pages which are accessed from General Ledger :
1. Subledger Applications
(N): Setup > Financials > Accounting Setup Manager > Accounting Setups
In this page, select the application to update and the Update Subledger Accounting Options page opens. You
can choose to disable Subledger Accounting for a particular application in the Update Accounting Options
page of a secondary ledger
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This page displays the Subledger Accounting options for the ledger and the Subledger application. Review and
update the options. The view for this page depends on the Subledger application type (valuation method or
nonvaluation method) and the ledger type (primary or secondary).
Click on Update Accounting Options against the relevant Application to update the Accounting Options.
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Reversal Method: Determine how the reversal subledger journal Entries are generated in Subledger
Accounting for a given application and ledger, whether by reversing the Debit for a credit or sign is changed
keeping reversal entry same side as the original entry
Rounding Rule: Determines the option for rounding to Up/ Down / Nearest value
Third Party Merge Accounting Options: Determine the option of merging third party account
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(N): Setup > Financials > Accounting Setup Manager > Accounting Setups > Accounting Options > Subledger
Applications > Click on Update > Click on Update System Options
Defines the processing unit size at the event class level to process a large number of items in one commit
cycle.The
Create Accounting program processes the default processing unit size at the application level.
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Components of AMB
Subledger Accounting Method (SLAM) :
Its a collection of accounting definition for all the applications that you will be generating accounting for.Each
Primary and Subledger Level or Secondary Ledger is associated with a SLAM, which determines the rules and
standards that will be applied when generating entries for a ledger
Example:
Standard Accrual, Standard Cash etc.,
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Sources
Each Column in the transaction object is define as source in the AMB. AMB uses these sources to get the
transaction information from transaction objects.
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Accounting Attributes
Sources are mapped with accounting attributes. Accounting attributes is the bridge between JLT and Sources.
For example, GL Date, Entered currency code, Entered amount , Accounted amount, Conversion rate date
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Note Pre Work: Before customizing the subledger definition, ensure that new Subledger Accounting Method,
Application Accounting Definition and Journal Line Definitions are created. It is best to copy the seeded
definitions given by Oracle. Ensure that the Accounting Chart of Accounts is given in each of the three
definitions.
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Report Name
Journal Entries Report
Account Analysis Report
Third Party Balances Report
Period Close Exceptions Report
Open Account Balances Listing
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Glossary
Processing Unit
A processing unit is the number of transactions processed by the Create Accounting program in one commit
cycle
Event Model:
Its defined as a Subledger transaction types and life cycle
Event Entity:
Group event classes into technical transaction models called Event Entities. For instance, group the event
classes invoices and prepayments into the event entity Invoices, because both classes of transaction are
stored in payables invoice transaction table (AP_INVOICES_ALL). Event entities enable you to treat events for
a single transaction model in the same way. The event entity often logically corresponds to a single document
used as a basis for several related transactions
Event Class:
It classifies transaction types for accounting rule purposes. For example, group the event types invoice
approved, invoice adjusted and invoice cancelled into event class invoices. Then assign AMB components,
such as JLT, by event class within the application accounting definition. This assignment simplifies setup when
the accounting requirement for all the event types in a class is the same. Also, sources assigned to an event
class are available for accounting of all event types in that event class
For example Payables: Invoices, Debit Memo, Credit Memo, Prepayments and Refunds
Event Type:
Each accounting event should be represented by an accounting event type. These types are registered in
AMB. When subledger journal entries are created, the event type determines which application accounting
definitions should be used to process the accounting event. Application accounting definitions created in the
AMB determine the lines, description, accounts and other elements of Subledger journal entries
For example AP Invoice Events: Validation, Adjusted and Cancelled
Transaction Chart of Accounts:
The transaction chart of accounts is the chart of accounts for the primary ledger and is referenced when users
enter Accounting Flexfields for their transactions. This chart of accounts is employed when users enter and
maintain the data required to support the daily operations of a company
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