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1
Getting to the ‘Source’ of Oracle
Payables Subledger Accounting
Steve Horgan
Senior Principal Technical Support Engineer
Oracle Product Support, Financials
March 04, 2020

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Safe harbor statement

The following is intended to outline our general product direction. It is intended for information
purposes only, and may not be incorporated into any contract. It is not a commitment to deliver
any material, code, or functionality, and should not be relied upon in making purchasing
decisions.

The development, release, timing, and pricing of any features or functionality described for
Oracle’s products may change and remains at the sole discretion of Oracle Corporation.

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 Presenter

Steve Horgan (Stephen.Horgan@oracle.com)

Senior Principal Technical Support Engineer
Oracle Product Support, Financials

Confidential – © 2020 Oracle Internal/Restricted/Highly Restricted

Agenda

• Subledger Accounting Overview

• Source of the Sources
• Finding Sources
• Find/Verify Payables Source Transaction Data
• Using Sources
• Common Issues / Troubleshooting
• Finding/Using Sources Demo
• Q&A
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 Subledger Accounting Overview
Oracle Accounting Hub

• Oracle Accounting Hub provides a complete set of

accounting tools. It combines two powerful
products, Oracle General Ledger and Oracle Fusion
Subledger Accounting, into an integrated
accounting platform with unparalleled access to
financial data and reporting.

• Oracle Subledger Accounting (SLA) is a user-

definable, rule-based accounting engine that
centralizes accounting for Oracle ERP products and
external source systems. It is part of the Oracle
Accounting Hub.

https://docs.oracle.com/en/cloud/saas/financials/20a/faiac/img/frc_finconrp_acchubover_nhdd_15_20045282.png

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 Subledger Accounting Overview
Accounting Methods/Rules

• Oracle Accounting Hub provides the flexibility to configure accounting rules to meet your corporate and
statutory requirements.

• Oracle Payables has the following seeded Accounting Methods:

• Standard Accrual
• Standard Accrual for China
• Standard Accrual with Encumbrances.

• Duplicate seeded methods and rules or create new methods and rules to configure subledger accounting to
meet your corporate and statutory requirements.

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Subledger Accounting Overview
Terminology and Acronyms
Customizable
 Accounting transformation: Refers to the process of converting transactions or activities from source
systems into journal entries.
• Source systems: Industry-specific applications that are either purchased from third parties or built
internally within the customer organization. Examples of such source systems include: core banking
applications, insurance applications, billing applications, and point of sales applications
• Transaction Objects: Transaction objects refer to the tables or views from which the Create Accounting
program takes the source values to create subledger journal entries. Source values, along with
accounting event identifiers, are stored in the transaction objects. The Create Accounting program uses
this information to create subledger journal entries
• Sources: A key component for setting up accounting rules. Sources represent transaction and reference
information from source systems. Contextual and reference data of transactions that are set up as
sources can be used in accounting rules definitions.
• User Transaction Identifiers: User transaction identifiers constitute the user-oriented key of the
underlying subledger transaction.

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Subledger Accounting Overview
Terminology and Acronyms
Customizable
• Accounting Event: Accounting events represent transactions that may have financial significance, for
example, issuing a loan and disposing of an asset. Financial accounting information can be recorded for
these events and accounted by the Create Accounting process.
• Event Class: An event class groups the related transaction information and attributes within a source
system. The event class is created using the registered source system name. For example, the Loans
source system.
• Event Types: When registering a source system, you can specify the event types as the transaction types
of the source system. For example, the event types Loan Origination and Loan Scheduled Payments are
the types of transactions that have differences in their functional and operational implications.
 Accounting Attribute Assignments: An accounting attribute is a piece of the journal entry. The mapping
of sources to accounting attributes specifies how the Create Accounting process gets the value for each
piece of the journal entry. For example, the Entered Currency attribute is used to map source values to
the entered currency field for subledger journal entry lines.
 User-defined formulas: Use predefined functions and conditions with sources to derive a resulting value.

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Subledger Accounting Overview
Terminology and Acronyms
Customizable
 Accounting Method (SLAM): Define Account Methods to group subledger journal entry rule sets. This
determines how the source system transactions are accounted for a given ledger.
 Journal Entry Rule Sets (JERS): Assign journal entry rule sets to event class and event type combinations
in an accounting method. This determines how the subledger journal entries for that class or type are
created.
 Journal Line Rule (JLR): Determine basic information about a subledger journal entry line. Such
information includes whether the line is a debit or credit, the accounting class, the currency, the amounts,
and conversion rates.
 Description Rule: Determine the descriptions that are included on subledger journal entry headers and
lines. Include constant values, transaction attribute, and transaction information in descriptions.
 Account Rule: Determine which account is used for a subledger journal entry line.
 Mapping Set: Mapping sets can be used to associate a specific output value for an account or segment.
You can use mapping sets in account rules to build the account.
 Conditions: Attach conditions to journal line rules, description rules, and account rules components. A
condition combines constants, source values, and operands to indicate when a particular journal line
rule, description, or account rule is used. For example, for mortgage loans, you can elect to use a specific
loan receivable account based on the loan type.

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Subledger Accounting Overview
Subledger Architecture

Transaction Objects

Sources

.
https://docs.oracle.com/en/cloud/saas/financials/20a/faiac/img/xlh_subledger_flow_02_20064432.png

12 Confidential – © 2020 Oracle Internal/Restricted/Highly Restricted

Source of the Sources
Transaction Objects (Extract Views)

https://docs.oracle.com/en/cloud/saas/financials/20a/index.html

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Finding Sources
By Event Class (Application)
Navigate: Setup and Maintenance > Financials > Payables > Manage Subledger Application
Transaction Objects > View Source Assignments

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Finding Sources
General Search (Application)
Navigate: Setup and Maintenance > Financials > Payables > Manage Sources

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Finding Sources
Search using Sources Spreadsheet
Fusion Payables Subledger Accounting Sources (Doc ID 2628556.1)

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Find/Verify Payables Source Transaction Data
APList Payables Invoice Data Collection Diagnostic
Fusion: Generate Payables Data Collection Test (APList) (Doc ID 1387595.1)

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Find/Verify Payables Source Transaction Data
Accounting Event Diagnostic Report
Diagnostic Steps for Subledger Accounting Issues (Doc ID 2154770.1)

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 Using Sources
Assigning Sources Accounting Attributes
Navigate: Setup and Maintenance > Financials > Payables > Manage Accounting Attributes

Note: Whenever adding new mapping, set Default to No so it

won't impact existing journal line rules.

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Using Sources
Using sources in formulas and formulas as sources
Navigate: Setup and Maintenance > Financials > Payables > Manage User-Defined Formulas

Type Function Description

Concatenate two strings into one single
Alphanumeric Concatenate
string.
Alphanumeric Substring Extract part of a string.
Alphanumeric ToText Convert a numeric value to text.
Return the first day of the calendar year
Date FirstDayOfYear
based on the parameter.
Return the last day of the calendar year
Date LastDayOfYear
based on the parameter.
Return the first day of the month based on
Date FirstDayOfMonth
the parameter.
Return the last day of the month based on
Date LastDayOfMonth
the parameter.
Return the date of specified number of
Date AddMonth
months after the date in parameter.
Return the year of a date source in 4-digit
Numeric YearNum
format.
Return the month of a date source in
Numeric MonthNum
numeric format.
Return the day of date source in numeric
Numeric DayNum
format.
Numeric Round Round a number to a specific decimal place.
Numeric RoundUp Round up a number to integer.
Numeric RoundDown Round down a number to integer.
Numeric Power Return the power of a number.
NumberOfGLPerio Return the number of nonadjustment
Numeric
d accounting periods between two dates.
Numeric ToInteger Convert a text value to integer.

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Finding and Using Sources
Do’s and Don’ts / Best Practices / Common Issues / Troubleshooting

• Common Issues / Do’s and Don’ts

• Selecting wrong source e.g. Picking wrong source for tax line accounting changes
• Not selecting segment when selecting full account value for account rule source
• Source selected has NULL or incorrect value
• Incomplete/incorrect setup e.g. User created new account rule with correct source, but forgot to assign it to Journal Line Rule. Or
new Journal Entry Rule Set not assigned to accounting method.
• New JLR or Account rule is not being used due to conditions/priorities.
• Whenever adding new mapping for source Accounting Attribute assignments, set Default to No so it won't impact existing journal
line rules.
• Oracle Payables Source System Data is seeded. New Sources cannot be added by users.

• Best Practices / Troubleshooting

• Make changes on TEST first.
• Make sure to activate JERS and SLAM after making any changes to accounting rules.
• Know your source. Use the application view source assignments / the sources spreadsheet / transaction object view to make sure
you are selecting the source for the correct field (table and column).
• Know your source value. Use the application view source assignments/ the sources spreadsheet / transaction object view, and the
aplist / the accounting event diagnostic to verify the value of the source selected.
• When logging SRs for issues related to accounting rule changes, please provide the following:
• Accounting Event Diagnostic Report Output
• Payables List (APList) Output
• Subledger Accounting Method Setups Report
• JOIN “Cloud Customer Connect” to learn more and interact directly with Oracle’s Financial and Subledger Accounting Cloud
community, including Oracle Support, Development and industry peers –
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Demo
Scenario

Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be
changed for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.

Confidential – © 2020 Oracle Internal/Restricted/Highly Restricted

Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.
Navigate: Payables > Invoices > Search Invoice

Defaults from Supplier Setup (BSV = 102)

Entered By User (BSV = 102)

Defaults from Tax Setup (BSV = 101)

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Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.

Long description missing accounting date

and supplier name

User Enterable DFF used for reconciliation

reference. Setup for ap_invoice_lines
Attribute1

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Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.

Seeded Standard Accrual Method account error due to

intercompany not setup

Description too long and missing Supplier Name and

Accounting date in MM-DD-YYYY format.

Recoverable Tax line has BSV 101, causing intercompany

scenario. Seeded setup takes Tax Recoverable account
As Is.

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Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.

EVENT_CLAS
S_CODE SOURCE_CODE NAME DESCRIPTION OBJECT_NAME LEVEL_CODE
Invoice Line Flexfield Invoice line descriptive AP_INVOICE_EXTRACT
INVOICES AIL_ATTRIBUTE1 Segment 1 flexfield column. _DETAILS_V L

There are many ATTRIBUTE1 sources. Use Sources

spreadsheet to help find correct source name…Filter by
Event Class, search ATTRIBUTE1, look for ATTRIBUTE1
associated with ap invoice lines table.

Set Default to No so it won't impact

existing journal line rules.

Select Accounting Attribute

Reconcilation Reference to associate
Rec Reference to be transferred to GL

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 Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.
Navigate: Setup and Maintenance > Financials > Payables > Manage Journal Line Rules

Find Seeded Journal Line Rule and Select Duplicate.

Enter new unique name.

Select Accounting Attributes Assignment Region.

Select Accounting Attribute Group Reconciliation.
Select the reconciliation reference source.

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Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.
Navigate: Setup and Maintenance > Financials > Payables > Manage User-Defined Formulas

Use DayNum Function to capture the day number. The The data type returned by these functions is number,
date source is the Invoice Distribution Account Date make sure to select correct data type for formula.
These formulas are intended to be used for Event Class
= Invoices, be sure to select correct event class.

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 Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.
Navigate: Setup and Maintenance > Financials > Payables > Manage User-Defined Formulas

Use the Substring function to shorten the Invoice Distribution

Note that the “Month” formula defined in the previous step is being
Description. Here it is starting at position 25 and returning 30
used as a formula source here. And the Conditonal “IF THEN ELSE”
function is being used here to derive the 3 letter month.
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 Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.
Navigate: Setup and Maintenance > Financials > Payables > Manage User-Defined Formulas

Find Seeded Journal Line Rule and Select Duplicate.

Enter new unique name.

Enter text and corresponding sources e.g. New

Accounting date, Supplier Name, New Short
Description. Add condition to only use this description
if invoice line flexfield segment 1 is populated.

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 Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.
Navigate: Setup and Maintenance > Financials > Payables > Manage Account Rules

Find Seeded Account Rule and Select Duplicate. Enter

new unique name.

Select Rule Type Segment, Primary Balancing Segment.

Select Source “Item Charge Account for Tax”. That
source is the complete account, make sure to select
corresponding segment to previous selection. No
Conditions for this Rule.

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 Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.
Navigate: Setup and Maintenance > Financials > Payables > Manage Subledger Journal Entry Rule Sets

Find Seeded JERS and Select Duplicate. Enter new

unique name.

Remove seeded Item Expense JLR and add New Item

Expense JLR. Re-enter seeded Accounting Rule Invoice
Distribution Account. And enter Description Rule New
Invoice Distribution Description

Find Recoverable Tax JLR and assign Tax BSV account

rule to the Primary Balancing Segment. Note the
complete account is being pulled from Invoice
distribution.
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Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.
Navigate: Setup and Maintenance > Financials > Payables > Manage Accounting Method

Find Seeded Account Method and Select Duplicate.

Enter new unique name.

Select the tab for the ERP product new JERS needs to be added.
End Date the seeded JERS. Add the new JERS. Make sure it has
Start Date after the End Date of seeded JERS. Event Class and
Event Type are same as seeded. Activate the Method after
completing the changes.

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Demo
Recoverable Tax has a different Balancing Segment Value (BSV) and Description needs to be changed
for accounting. Also add Descriptive Flexfield (DFF) for Reconciliation Reference.
Navigate: Setup and Maintenance > Financials > General Ledger > Specify Ledger Options

Change the seeded Subledger Accounting Method to the new

Subledger Accounting Method.

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Demo
New Standard Accrual Accounting Method
Navigate: Payables > Invoices > Search Invoice > Actions > Post to Ledger

Recoverable Tax Line BSV overwritten with Item

Expense BSV

New Accounting Date. Supplier Name. Shorter

Description.

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 Demo
New Standard Accrual Accounting Method
Navigate: General Accounting > Journals >

Additional Steps to make the reconciliation reference accounting attribute display

in GL:

1) The Reconciliation option must be selected on the

Specify Ledger Options page.
2) In Manage Values UI for natural account, set Reconcile = Yes for the
specific natural account. No need to deploy flex again.
3)If the account combination used in AP, SLA existed before step 2 was done
then run 'Inherit Segment Value Attributes' ESS job. This will update the
Reconciliation Reference Accounting Attribute DFF
reconcile attribute on the existing combinations
Setup in Previous Slide. Also new description.
4) Manage Subledger Accounting Profile Options task must be set to:

• Group by General Ledger Date

• Group by General Ledger Period

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 Demo
New Standard Accrual Accounting Method
Verifying/Finding the Source
Transaction (Extract) Object View Sources Spreadsheet

Accounting Event Diagnostic

Payables List

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 References

• Oracle doc with links to 3-4 minute tutorials on setting up Mapping Sets, JLRs, Account Rules etc…
• https://www.oracle.com/webfolder/technetwork/docs/fin-accounting-hub/eBook_Accounting_Hub_BestPractices.pdf
• https://docs.oracle.com/en/cloud/saas/financials/20a/faiac/introduction-to-oracle-accounting-hub-cloud.html
• Document for Tax modification/customization:
• SLA: How to Setup Recoverable Tax to Use the Item Distribution Balancing Segment Value (BSV) (Doc ID 2247037.1)
• Sources Spreadsheet
• Fusion Payables Subledger Accounting Sources (Doc ID 2628556.1)
• Generate Payables Data Collection Test (APList) (Doc ID 1387595.1)
• Steps to get Accounting Event Diagnostic and Subledger Accounting Methods Setup report
• Diagnostic Steps for Subledger Accounting Issues (Doc ID 2154770.1)
• Link for Cloud Customer Connect
• https://cloudcustomerconnect.oracle.com/pages/home

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Q&A
Thank you

Steve Horgan (Stephen.Horgan@oracle.com)

Senior Principal Technical Support Engineer
Oracle Product Support, Financials

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