Subledger Accounting- An overview

18-OCT-2012

By: Sirisha Nagavalli
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Agenda
Subledger Accounting Overview
Create Accounting Process
Drilldown and Inquiries
Third Party Control Accounts
Manual Subledger Entries Creating, Updating, Deleting
Reports
Impact on period close process


SUBLEDGER ACCOUNTING
OVERVIEW
What is Subledger Accounting
A rule based engine for generating accounting
for subledger transactions from all Oracle
Applications
Single repository for subledger accounting
data.
What is a Subledger
Subledgers are applications where the
operational transactions are recorded and
stored.
Subledgers store the transaction level
accounting detail.
Subledgers post summarized activity
information to a general ledger periodically to
maintain the centralized account balances for
the company.
SLA Overview:Features
Provides rule-based accounting for all sub-ledgers.
Allows multiple accounting representations for a single
business event to meet corporate and local fiscal
accounting requirements.
Retains transaction level detail with different
summarization options in general ledger. This allows
drilldowns to transactions and ensures auditability.
Introduces a common data model and user interface across
subledgers and hence provides consistency in reporting and
user experience.
Not a separate product with different responsibilities. The
forms and programs are embedded within standard oracle
application responsibilities.
SLA Overview
SLA Overview: Multiple
Representations
SLA Overview


Payables SLA Entry : An example
SLA Overview- Transaction to Entry
This graphic shows how SLA tracks a
transaction to its journal entry.
Applications that use Subledger
Accounting
Payables
Receivables
Projects
Assets
Costing
Process Manufacturing
Federal Financials
Payroll
Property Manager
Loans
Lease Management
Cash Management
CREATE ACCOUNTING
Create Accounting - Overview
The create accounting program processes eligible
accounting events to create subledger journal
entries. To create the subledger journal entries
the Create Accounting program applies
application accounting definitions that are
created in the Accounting Methods Builder.
An eligible event is one that is :
Completed
Rules must be defined to process the transaction
type/ event type.
Create Accounting - Overview
Validates and creates subledger journal
entries
Optionally transfers the journal entries to GL
Optionally posts the journal entries in GL
Generates the Subledger Accounting Program
Report which documents the results of the
Create Accounting program.
Create Accounting - Overview
Create accounting can be online or in
concurrent mode. Online accounting can be
created for a transaction without submitting
the concurrent process. This is available for
payables and receivables transactions.
Draft Accounting
You can choose create accounting in draft mode. In this mode
Subledger Accounting creates the journal entries so that you are
able to view them but you can go back and update the transactions
or the accounting rules and rerun the process to see your changes.
Useful when testing the accounting for a transaction.

Final (without posting)
When you create accounting in the final mode the journal entries are
created in final status and are ready to be transferred to General
Ledger. Any changes in rules after this will not update the journal
entries.
Final Post (Straight-Through
accounting)
If you select Final Post, Subledger Accounting posts the journal
entries all the way through to General Ledger. This means that you
can update GL balances straight from the invoice entry (or any
other transaction entry) window.
Create Accounting Parameters
Create Accounting Parameters
Transfer Journal Entries to GL Program
The Transfer Journal Entries to GL program
enables you transfer any eligible journals
entries to GL. These could be entries created
by earlier runs of create accounting but not
transferred at the same time.
Transfers all journal entries in the status
Final
Transfer Journal Entries to GL Program
Parameters:
Ledger
Process Category
End Date
Post in General Ledger
General Ledger Batch Name
INQUIRIES AND DRILLDOWN
Accounting Events Inquiry- Features
Perform and inquiry on accounting events, journal
entries, and lines based on multiple selection criteria.
View information about an accounting event or journal
entry error.
View detailed information about the subledger journal
entry
Compare subledger journal entry information for any
two journal entries
View subledger journal entry in T-Form
View transactions underlying the subledger journal
entry.
Accounting Events Inquiry Process
Navigate to the Accounting Events Inquiry page.
- Payables: Accounting > Subledger Accounting > Journal Entries (T) Accounting
Events
- Receivables: Inquiry > Accounting > Subledger Journal Entries (T) Accounting
Events
Execute a search for specific accounting events.
View accounting events.
View subledger journal entry information by clicking View Journal Entries.
View detailed entry information about the subledger journal entry by clicking the
ledger link.
View the T-account by clicking View T-Account.
View reversing entry. Note that this button is only available if you are viewing an
accrual entry that has been reversed.
View multiperiod accounting associated with the accrual journal entry by clicking
the Multiperiod icon in the Lines region.
Compare two journals by clicking Compare.
Click View Transaction to view the underlying transaction.
Subledger Journal Entry Lines Inquiry
Process
View the subledger journal entry lines for a
number of different documents or transaction
by selecting the Subledger Journal Entry Lines
menu option.
Subledger Journal Entry Lines Inquiry
Process
Payables: Accounting > Subledger Accounting > Journal Entries (Lines)
Receivables: Inquiry > Subledger Accounting > Journal Entries (Lines)
Navigate to the Subledger Journal Entry Lines page from a subledger application.
Execute a search.
View subledger journal entry lines in the results region.
View subledger journal entries for a selected journal entry line by clicking View
Journal Entry.
View journal line information in T-account format by clicking View T-account in the
View Subledger Journal Entry page.
View reversing entry. If viewing an accrual reversal journal entry in the View
Subledger Journal Entry page, the View Accrual Entry button is displayed to view
the accrual journal entry details. If viewing an accrual journal entry, the View
Reversing Entry button is displayed to view the accrual reversal journal entry
details.
View multiperiod accounting. View multiperiod lines associated with the accrual
journal entry line by clicking the Multiperiod icon in the Lines region.
Drilldown from GL
THIRD PARTY CONTROL ACCOUNTS
Third Party Control Accounts
Certain accounts in GL can be classified as third party control accounts for
suppliers or customers or both.
Manual adjustments cannot be entered against such accounts in general
ledger
Subledger accounting maintains balances for these accounts by the third party
(supplier/ customer)
Normally balance sheet accounts would be classified as a third party
control account.
Available Segment qualifiers:
Supplier
Customer
Yes
No
Restrict Manual Journals
'Program - Inherit Segment Value Attributes needs to be run after the
value is set.
Third Party Control Accounts
MANUAL SUBLEDGER ENTRIES
Manual Subledger Entries
These subledger journal entries are not
associated with any transaction directly.
These entries can be created manually within
the subledger
The entries are considered adjustments for
the subledger and are transferred and posted
to GL like any other entry.

Manual Subledger Entries
Features:
Adjustments to subledger entries can now be
made in the subledger itself. Provides better
subledger reporting.
These manual entries can optionally have third
party information. This makes reconciliation
easier.
Any adjustments to a third party control account
should be made using a manual subledger entry.
Ensures better control.
Creating Subledger Entries
Navigation Paths:
Payables: Accounting > Subledger Accounting > Journal Entries
Receivables: Inquiry > Subledger Accounting > Journal Entries
The ledgers available are determined by the data access set profile assigned to the
responsibility/ user.
Default Currency Options - Opens the Default Currency Options page to default an
entered currency, conversion type, conversion date, and conversion rate
information for each new subledger journal entry line. Use the currency controls
available in the Details region of each journal entry line to override the default set.
Third Party Type - Defaults from the application associated with the responsibility
used to access the manual subledger journal entry pages. The values for name,
site, number, and taxpayer ID must match the third party type. These values are
required if the account on the line is a third party control account. If the account is
not a third party control account, but party type is selected, party information
should be provided.
Conversion Rate - If the conversion type is User, you must enter a conversion rate.
Continue - Select to review the manual subledger journal entry and complete it.
Subledger Journal Entry Completion
Subledger accounting does the following
when completing a journal entry:
Validates the accounts
Assigns the corresponding sequence to the entry
if completed with a final status.
Updates the status of the subledger journal entry
(Final or Error).
Invokes the balance update program

Duplicating Subledger Journal Entries
You can create a new subledger journal entry
from any existing subledger journal entry. The
existing journal entry should not be in error.
Reversing Subledger Journal Entries
You can reverse an existing manual subledger
journal entry that is in final status. The
Reversal options are :
Switch DR/CR
Change Sign
Delete Subledger Journal Entries
You can delete manual subledger journal
entries that are in Draft or Incomplete status.
SUBLEDGER ACCOUNTING REPORTS
Reports
Subledger accounting provides the following reports:
Journal Entries Report
Account Analysis Report
Third Party Balances Report
Period Close Exceptions Report
Open Account Balances Listing
This reports can be customized by defining new BI
Publisher Templates that use a subset of the data
elements included in these reports.
These reports are comprehensive and can be used in
lieu of the General Ledger based journals and account
analysis reports.
Journal Entries Report
The Journal Entries Report displayed detailed
journal entry information including transaction
details for subledger journal entries as well as
adjustments entered in the General Ledger and
entries posted to General Ledger from other
sources.
Navigation
Payables: Other > Requests > Run
Receivables: (M) View > Requests (B) Submit a
New Request
Journal Entries Report parameters

Journal Entries Report parameters
Account Analysis Report
The Account Analysis Report provides drill-
down information about the movement on a
particular account for a period or range of
periods. It only includes journal entries
transferred to and posted to General Ledger.
Account Analysis Report Parameters
Account Analysis Report Parameters
Third Party Balances Report
This report retrieves the following
information:
Third party balances for third party control
accounts
Subledger journal entry lines that add up to the
total period activity for each control account, third
party, and third party site
Third party and third party site information
User transaction identifiers for the associated
event
Third Party Balances Report
Parameters
Third Party Balances Report
Parameters

Third Party Balances Report
Parameters
Subledger Period Close Exceptions
Report
The Subledger Period Close Exceptions Report lists all
accounting events and journal entries that fail period close
validation. It is automatically submitted by General Ledger
when closing a GL period if there are unprocessed
accounting events or untransferred journal entries.
You can also generate the Subledger Period Close
Exceptions Report through a concurrent request as follows:
For the application associated with the responsibility
For all applications in the General Ledger responsibility
The report lists the following:
Unprocessed Accounting Events
Incomplete, draft or error journal entries
Final journal entries not transferred to General Ledger
Subledger Period Close Exceptions
Report Parameters
Subledger Period Close Exceptions
Report Parameters
Open Account Balances Listing
The Open Account Balances Listing identifies
General Ledger accounts with outstanding
balances and displays the subledger transactions
that contribute to the balance.
This report needs pre-processing using the Open
Account Balances Listing Data Manager.
This report displays:
Account
Actual Account Balance
Listing of transactions contributing to that balance
Creating and Updating Open Account
Balances Listing Definitions
You can defined the accounts to be tracked in the
Open Account Balances Listing
Define the report definitions either by account
combination or by segment and associate each
definition with a ledger.
The chart of accounts of the associated ledger
sets the context for the following information in
the details region:
General Ledger accounts
General Ledger account segments
Open Account Balances Listing
Parameters
Open Account Balances Listing
Parameters
PERIOD CLOSE PROCESS
General Close Process
Complete
Transactions
Create
Accounting
Resolve
Exceptions
Post to GL
Reconciliation
Impacted by
Subledger
Accounting
Create Accounting
Subledger accounting replaces the individual
subledgers different types of accounting
processes with Create Accounting.
The create accounting process determines the
final accounting for a transaction and also
generated balancing lines if required as opposed
to 11i where the accounts in the transaction
distribution were the final accounts and the
balancing lines were generate by General Ledger.
Resolve Exceptions
The Subledger Period Close Exception Report
can be and must be used before closing
subledgers and general ledger to review
accounting events that are unprocessed,
incomplete, in error or not transferred to
General Ledger.
The Create Accounting program can be run
only for errors to review the details of the
exceptions for events in error.
Post to GL
All subledgers use the same processed to post
their journal entries to General Ledger. The
journals may be posted using one of the following
options:
Transferred and posted by the Create Accounting
process when the journal entries are created.
Transferred and posted by the Transfer to General
Ledger program
Posted in General Ledger after the entries have been
transferred to GL by one of the above listed processes.
Reconciliation
The most important point to note is that you should not
use the accounts on the transaction distributions for
reconciliation as they are not the final account necessarily.
New reports introduced by R12 assist in reconciliation such
as the Third Party Balances Report but the existing reports
have also been updated in R12 to look at the subledger
accounting data rather than the transaction data where
applicable.
E.g. of modified reports
Aging report in Receivables
Trial Balance in Payables
AP/PO accrual reconciliation report

Period End Accrual
Period End Accrual process generates the accrual
entries for expense purchases that have been received
but not invoiced yet.
The process remains the same as 11i except for the
following:
The Create Accounting process generates the accounting
entries as opposed to the Period End Accrual Process
Subledger accounting generates the reversal for the
accrual entry too. The accrual entry does not have to be
manually reversed in general ledger. This requires the
Complete Multiperiod Accounting process to run.
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