Release 12 Field Readiness Workshop

Oracle Receivables
Subledger Accounting

Copyright © 2006, Oracle. All rights reserved.

Purpose:
This document provides an overview of features and enhancements included in
Release 12.  It is intended solely to help you assess the business benefits of upgrading
to Release 12.

Disclaimer:
This document in any form, software or printed matter, contains proprietary information
that is the exclusive property of Oracle.  Your access to and use of this confidential
material is subject to the terms and conditions of your Oracle Software License and
Service Agreement, which has been executed and with which you agree to comply. 
This document and information contained herein may not be disclosed, copied,
reproduced or distributed to anyone outside Oracle without prior written consent of
Oracle.  This document is not part of your license agreement nor can it be incorporated
into any contractual agreement with Oracle or its subsidiaries or affiliates.   This
document is for informational purposes only and is intended solely to assist you in
planning for the implementation and upgrade of the product features described.  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, and timing of any
features or functionality described in this document remains at the sole discretion of
Oracle.   Due to the nature of the product architecture, it may not be possible to safely
include all features described in this document without risking significant destabilization
of the code.

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 Oracle Receivables
Subledger Accounting

Functional Deep Dive

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 Functional Deep Dive Agenda
• Product Review – Business Needs
• Demonstration
• Upgrade Considerations
• Implementation Considerations
• Customization and Extensibility Options
• Integration Considerations

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 Review Business Needs

• Flexibility of transaction accounting

• Multiple accounting representations for a single
transaction
- Such as Accrual and Cash Basis representations
• Consistent reporting across subledgers

Our solution:
 Leverages the Subledger Accounting Architecture (SLA)
 Predefines setup data to maintain R11i functionality

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 Oracle Receivables
Subledger Accounting

Demonstration

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 Demonstration – Scenarios

• Scenario 1: Invoice creation accounting

– Create Invoice
– Create Accounting
• Scenario 2: Adjustment creation accounting
– Adjust the invoice
– Create Accounting
• Scenario 3: Receipt application accounting
– Create Receipt and Apply
– Create Accounting
• Scenario 4: Predefined setup data
– What AR has predefined
– What can be customized
• Scenario 5: Customization discussion

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 Demonstration
Invoice Extract

Item 1 $100
Tax $ 10
Freight $ 30
Item 2 $200
Tax $ 20
Total $360

Invoice Extract Lines

Line # Account Type Account Amount
1 Receivable 01-1210-000 360
2 Revenue 01-4110-000 100
3 Revenue 01-4110-000 200
4 Tax 01-7800-000 10
5 Tax 01-7800-000 20
6 Freight 01-2550-000 30

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 Demonstration
Invoice Accounting

11i Accounting R12 Default Accounting

DR Receivables $360 DR Receivables $360
CR Revenue $100 CR Revenue $100
CR Revenue $200 CR Revenue $200
CR Tax $ 10 CR Tax $ 10
CR Tax $ 20 CR Tax $ 20
CR Freight $ 30 CR Freight $ 30

* No Cash Basis Accounting

for an invoice creation event

** Default Accrual Rules: 1 Extract Line = 1 journal lines, DR & CR

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 Demonstration
Multi-Fund Receivables Accounting

** MFAR Rules: 1 Extract Line = 2 journal lines, DR & CR

R12 Invoice Accounting

DR Receivables $100
INVOICE Extract Distributions DR Receivables $200
Line # Account Type Account Amount DR Receivables $ 10
1 Receivable 01-1210-000 360 DR Receivables $ 20
2 Revenue 01-4110-000 100 DR Receivables $ 30
3 Revenue 01-4110-000 200
CR Revenue $100
4 Tax 01-7800-000 10
CR Revenue $200
5 Tax 01-7800-000 20

6 Freight 01-2550-000 30
CR Tax $ 10
CR Tax $ 20
CR Freight $ 30

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 AR Subledger Accounting
Process: Adjustment Extract

INVOICE Extract Distributions

Line # Account Type Account Amount

1 Receivable 01-1210-000 360

2 Revenue 01-4110-000 100

3 Revenue 01-4110-000 200

4 Tax 01-7800-000 10 $60 LINE* Adjustment

5 Tax 01-7800-000 20 ADJUSTMENT Extract Distributions
6 Freight 01-2550-000 30 Link # Account Type Account Amount

2 Adjustment 01-6320-000 -20

3 Adjustment 01-6320-000 -40

* LINE Adjustment prorated over Lines

(Tax Adjustments prorated over Tax)
(Freight Adjustments prorated over Freight)

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 AR Subledger Accounting
Process: Adjustment Accounting

11i Adjustment Accounting R12 Adjustment Accounting

DR Write Off $ 60 DR Write Off $ 20
CR Receivables $ 60 DR Write Off $ 40
CR Receivables $ 20
CR Receivables $ 40

* No Cash Basis Accounting

for an invoice adjust event

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 AR Subledger Accounting
Process: Receipt Application Extract
INVOICE Extract Distributions

Line # Account Type Account Amount

1 Receivable 01-1210-000 360

2 Revenue 01-4110-000 100

3 Revenue 01-4110-000 200

4 Tax 01-7800-000 10

5 Tax 01-7800-000 20
$150 Receipt Application*
Receipt Application Extract Distributions
6 Freight 01-2550-000 30
Link # Account Type Account Amount

2 Revenue 01-4110-000 50
ADJUSTMENT Extract Distributions
Link # Account Type Account Amount 3 Revenue 01-4110-000 100

2 Adjustment 01-6320-000 -20 4 Tax 01-7800-000 5

3 Adjustment 01-6320-000 -40 5 Tax 01-7800-000 10

6 Freight 01-2550-000 15

2 Adjustment 01-6320-000 -10

3 Adjustment 01-6320-000 -20

* Application Rule = Prorate All

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 AR Subledger Accounting
Process: Receipt Application Accounting

11i Receipt Accounting R12 Default Receipt Accounting

DR Unapp $150 DR Unapp $ 150
CR Receivables $150 CR Receivables $ 50
CR Receivables $100
CR Receivables $ 5
CR Receivables $ 10
CR Receivables $ 15
CR Receivables -$ 10 *
CR Receivables -$ 20 *

* Negative DR can be CR
* Negative CR can be DR

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 AR Subledger Accounting
Process: Receipt Application Accounting

11i CASH BASIS R12 CASH BASIS

DR Unapp $150 DR Unapp $ 150
CR Revenue $ 50 CR Revenue $ 50
CR Revenue $100 CR Revenue $100
CR Tax $ 5 CR Tax $ 5
CR Tax $ 10 CR Tax $ 10
CR Freight $ 15 CR Freight $ 15
CR Adjustment -$ 10 * CR Adjustment -$ 10 *
CR Adjustment -$ 20 * CR Adjustment -$ 20 *

* Negative DR can be CR
* Negative CR can be DR

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Demonstration

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 Demonstration Scenarios Summary

• Line level accounting

– Provides infrastructure for new feature Line Level Cash
Application
– Enables Multi-Fund receivables
– Enables Global accounting
• Default setup maintains R11i functionality
– Flexible accounting definition
– Easy customization

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 Upgrade Considerations

• Upgrade for Accounting Data can be done in 2 stages:

– Down-time upgrade using AD technology such as
ADPATCH
– Post down-time or range based upgrade using concurrent
request
—
Receivables program upgrades receivables accounting data,
receivables MRC data, Latin America document accounting
data, and Multi-Fund public sector accounting data
—
Receivables ensures the rerun ability of the upgrade
—
Each product is responsible for their upgrade code
• SLA drives the range based upgrade, and maintains the
code that executes each team upgrade
– Please refer to SLA documentation for range based
upgrade

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 Upgrade Considerations

• Upgrade paths - How do customers get to R12 from all

prior release levels?
– Down-time upgrade:
—
Accounting Entity : AR and XLA have a 1 to 1 mapping
between AR document and XLA accounting entity
—
Transactions that have not been accounted for
—
Accounted transactions with distributions fall within ranges
specified
—
All Public Sector Accounting metadata relevant to Cash
Receipts, Adjustments
– Post down-time upgrade:
—
On-demand upgrade for specified ranges

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 Upgrade Considerations

• Major scripts available:

– AR_XLA_UPGRADE
– AR_UPG_PSA_DIST_PKG
– AR_UNPOSTED_ITEM_UPG

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 Implementation Considerations

• New for Release 12.0

• Pre-req: Sub ledger Accounting as a product
• Ensure Receivables pre defined Application
Accounting Definition is loaded and validated
• Verify that Application Accounting Definition is
assigned to Subledger Accounting Method
• To customize, you can copy the pre seeded definition
and modify the copy. Replace the existing definition
with your customized copy
• You must run Submit Accounting or Create Accounting
– Note that AR distributions is only used as an interim
accounting. You must refer to SLA for your accounting
• View accounting displays accounting in SLA

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 Customization and Extensibility Options

• Customization on setup: code combination derivations,

additional descriptions on journal lines and headers
• Receivables maintains line level details to enable level
activity
• Most impacted: Receivables allocation layer
– In 11i, the application of a cash receipt to an invoice with
10 revenue lines creates one receivables line
– In R12, the same receipt application creates 10
receivables, one receivables distribution for each parent
invoice line

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 Integration Considerations

• The AR APIs introduced by the new accounting

structure are private APIs only
• Receivables public APIs are leveraging the line details
– New functionality of Receipt APIs due to Line Level Cash
Applications feature. See Line Level Cash Application
TOI for more detail
• MRC is obsolete in R12
– MRC APIs are obsolete
– MRC customizations are obsolete
• Submit Accounting concurrent program replaces R11i
Transfer to GL program
– Obsolete: Transfer to GL concurrent program
– Obsolete: CCID Correction form

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 Oracle Receivables
Subledger Accounting

Technical Deep Dive

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 Performance Considerations

• Performance affects Receivables in 4 parts:

– Detail distribution allocations
– Accounting Extract
– Accounting events creation
– Upgrade 11i distributions to Subledger Accounting
• To improve performance
– Code is tuned by using bulk processing, global temporary
tables. And streamline execution
– Usage of simple views to allow a maximum data
availability and minimum data manipulation
– Use AD parallelization for range based upgrade

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 Data Model and Database Relationship Changes

• Accounting extract uses a set of views pointing a

central global temporary table
Table1
ar_adjustments_h_v event_id
ADJ_NUMBER AR_XLA_LINES_EXTRACT ledger_id
adj_type gain_ccid
doc_sequence_value loss_ccid
event_id
language
ledger_id
line_id
source_id
customer_trx_id
customer_trx_line_id
cash_receipt_id
cust_trx_line_gl_dist_id
inventory_item_id
org_id
site_use_id
adjustment_id
receivables_trx_id

ar_distributions_l_v ar_distribution_base_v
dist_code_combination_id event_id
dist_ent_amt base_currency
dist_currency_code acctd_amt

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 Data Model and Database Relationship Changes

• Transaction distribution relations and line level balance

ra_customer_trx_lines_all

original_amount ar_distributions_all
remaining_amount
customer_trx_line_id
ref_customer_trx_line_id
ref_cust_trx_line_gl_dist_id
ref_line_id
ra_cust_trx_line_gl_dist_all

cust_trx_line_gl_dist_id

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 Data Model and Database Relationship Changes

• New column event_id added to the following Receivables

tables:
– RA_CUST_TRX_LINE_GL_DIST_ALL
– AR_CASH_RECEIPT_HISTORY_ALL
– AR_TRANSACTION_HISTORY_ALL
– AR_ADJUSTMENTS_ALL
– AR_MISC_CASH_DISTRIBUTIONS_ALL
• Event ID column foreign key to SLA Accounting events
– New table from SLA XLA_EVENTS

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 Form Structure

• Subledger Accounting offers the document level

accounting
• Receivables allows user to post accounting of a
particular transaction directly from Receivables
workbenches

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 Reports
• All SLA Reports will automatically display accounting
Data for Receivables
• For the existing Receivables reports, AR has provided a
set of 2 views running out of SLA schema returning
directly the accounting data to AR legacy reports
– AR_XLA_CTLGD_LINES_V
– AR_XLA_ARD_LINES_V
• Implication
– Check if Receivables distributions are posted

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 Troubleshooting Recommendations

• Subledger Accounting has provided Diagnostic

Framework
– See SubLedger Accounting Presentation
• Errors in accounting process
– Sub Ledger Accounting product is in error
—
Refer to Sub Ledger Accounting Presentation
– For Receivables specifics
—
check if Receivables Application Accounting Definition is
valid
– Check if General Ledger Accounting setup is correct
– Run Submit Accounting and view the execution log for
errors
– Use FND log mechanism to diagnose code execution

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 Oracle Receivables
Subledger Accounting

Hands-on Experience

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 Hands-on Experience

• Objective(s) of Hands-on Experience

• Login Details/ Environment Information
• Limitations/ Known Issues
• Rules of Engagement
• Other

Note

This slide should provide instructions for the

hands-on exercise for this product/process.
Make sure to clearly explain how participants will
execute any flows or scenarios using the
environment.

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Wrap Up/ Q&A

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 Thank You

Thank You

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