View
41
Download
4
Category
Preview:
DESCRIPTION
Implications of SLA in different modules
Citation preview
R12 SUBLEDGER
Krithivasan N
SLA is not a module or is an application
It is not separately licensed
Embedded in Application Responsibilities – no
separate log in It is a service – Event and Rule based Accounting
Engine, tool set and repository
Common data model across all modules (XLA)
Consolidates and Standardize Accounting across
various sub ledgers
WHAT IS SLA?
WHY SLA?
To enable compliance with different geographic,
legislative and industry requirementsTo provide flexibility while maintaining necessary
transparency, audit trial and control
To support user defined Accounting Rules
To enable balancing at sub ledger level
To minimize customization and manual journal
entriesTo facilitate simultaneous multiple representation of
a single accounting event
Generate and store detailed Accounting Entries
Store Sub-ledger balances (Third Party Control
Accounts)Provide drill down from Ledger(s) to Sub ledger and
from Sub ledger to Ledger(s)Enables maintaining two sequences – Accounting and
Reporting
Enables definition of “Reconciliation Accounts”
Facilitates 4th “C” – Accounting Convention
WHAT SLA DO?
Features that were available in individual sub ledger modules of
R11i have been consolidated in to a common data model across
modules with enhanced features
Events based Accounting features of Payables 11i has been
extended to all sub ledgers
Global Accounting Engine of 11i has been enhanced and
replaced by SLA
Account Generators in 11i which was used to automatically
construct Accounting flexfield based on Oracle Seeded Rules or
user defined rules has been enhanced and built into SLA
FROM RELEASE 11i
Transactions are exported to interface table and imported
into GL from interface table
Journal Balancing occurs in General Ledger
Error transactions get trapped in interface table until it is
cleared – often causing delay in closing books
R 11i Vs R12 SLA
Release 11i process
SUBLEDGER Export Temp Table
Import & Posting
Generation of Journal
Payable Sub ledger GL INTERFACE TABLE
GENERAL LEDGER
Receivable Sub ledger Project Sub ledger
Costing Sub ledger
R 11i Vs R12 SLA
Release 12 process
SUBLEDGER Create Accounting
SLA Generation of Journal
Payable Sub ledger AP SLAM GL INTER-FACE
GENERAL LEDGER
Receivable Sub ledger AR SLAM Project Sub ledger PA SLAM
Costing Sub ledger CS SLAM
Journals are created in the sub ledger
Error transactions are reported at SLA level itself and no
journal gets created
GL Interface table contains only error free entries
Drilldown from GL to SLA to Transaction
Drilldown from summarized posting in Primary,
Secondary and Consolidation Ledger is possible Preview effect of a journal in Primary / Secondary
Ledger(s)
Drilldown in web-based and not form based
No change in drilldown navigation
Security can be enabled as a combination of SL and
GL
IMPACT OF SLA ON GL – Drilldown
The way journal import is triggered has undergone a major
change in R12
Journal Import process has been standardized across all sub
ledger applications.
“Create Accounting” concurrent request from the respective
Application will generate Journal in the SL
Transfer to GL option will always triggers Journal Import
In case of any error, the error journal is rolled back to SL
Unlike 11i, there is no need to run Journal Import in the same
language as the language used for exporting journal
IMPACT OF SLA ON GL – Journal Import
Unlike 11i, Encumbrance to be specifically opted while choosing
SLAM for a Ledger
On reserving and approving PO, encumbrance entries are
generated
“Create Accounting” concurrent Request from purchasing
responsibility will transfer encumbrance entries to GL
Accounting entries created can be viewed from SLA menu in
Purchase responsibility
Credit for Reserve for Encumbrance is created while reserving
encumbrance (PO Reservation)
IMPACT ON PO ACCOUNTING
In 11i, Receiving Transaction processor will create receipt accounting
entry in Receiving sub ledger as well as GL Interface. In R12, RTP will
create entries on in SL. Create Accounting Program to be run
In case of expense destination, PO Receipt will fire Create Accounting
process and SL & GL will get populated
In case of Inventory Destination with online accrual, when PO is
received and delivered, Create Accounting will happen and SL & GL will
get populated
In case of Inventory Destination with period end accrual, Receipt
Accrual Period End program will create entries only when Receipt Qty is
greater than Bill Quantity. Create Accounting Program to be run for
generating Actual and encumbrance entries
Impact on Receiving
In the case of period end accrual, the accrual entry should be reversed manually
in 11i, where as in R12, the accrual entry will be reversed automatically
In 11i, the Accrual Rebuild Reconciliation Report which was required to be run to
populate the accrual reconciliation table is now replaced by "Accrual
Reconciliation Load Run" program in R12
In R12 there are 3 different reports, one for AP-PO individual transactions, one
for Miscellaneous transactions showing the individual transaction details for
source INV and AP and one for showing the summarized accrual balance for all
transaction types as against one Accrual Reconciliation Report in 11i.
In 11i, accounting will not get created for the write off transaction and accrual
entry has to be manually adjusted in GL whereas in R12, Create Accounting
program will create the accrual entry for the write off transaction in SLA as well
as in GL and hence manual adjustment of accrual entry is not required.
Impact on Accrual Accounting
In Release 11i AutoAccounting is used by SLA in R12 to facilitate definition of
code combination
AutoAccounting is used to generate Code Combination with limited sources and
limited flexibility. R12 provides more sources and flexibility
Receipts can be applied at line level
Event based Revenue Management enables definition Revenue deferral rules.
Contingency based Revenue Recognition is built into SLA
COGS and Revenue Matching feature is enhanced
SLA AND RECEIVABLES
Oracle ships 3 application definitions for Cost Management
• Cost Management – US GAPP (Standard Accrual)
• Cost Management with encumbrance – US GAPP with
encumbrance
• Federal CostingDefault set up is US GAPP
All setups to use pre-R12 functionality are migrated
automatically
SLA removes11i pain points regarding revenue recognition
SLA replaces MAC
SLA AND COSTING
PAYABLE
RECEIVABLE
CASH MANAGEMENT
ASSETS
COSTING
PROJECTS
PAYROLL
PROPERTY MANAGEMENT
LEASE MANAGEMENT
GLOBALISATION
PUBLIC SECTOR FINANCIALS
FEDERAL FINANCIALS
MODULES USING SLA
Journal can be imported directly into GL from non-
oracle feeder system by using GL Interface table.
There is no change in the functionality
Journal can be imported into SLA by using tables
provided by under Financial Services Accounting Hub.
Refer Chapter 12 of FSAH Implementation Manual.
No FSAH Licensing is required for using the tables.
Refer Metalink Note: 737370.1 dated 30/03/09
JOURNAL IMPORT
LEDGER
SLAM
AAD AADAAD
PAYABLE
Credit Memo Invoice
Modify Validate
Journal Header
Assignment
Journal Line
Definition
Journal Entry
Description
Journal Line
Type
Account
Derivation Rule
Cancel
Prepayment Payment
AAD AADEntity / Events
Event Class
Event Type
SLAM: Sub ledger Accounting Method
AAD: Application Accounting Definition
With SLA, Event based accounting has been extended to all sub ledger modules
An Event is a business activity having an accounting effect – Example creation of PO in
Purchasing and life cycle of a Transaction is defined in the event model
An Event Class is a category of business events for a particular transaction type or document
– e.g., Requisition, PO, Invoice, Credit Memo, Prepayment Payment – In other words, Event
class groups together similar event types and enable sharing of Accounting definitions
An Event Type is a business operation that can be performed on an Even Class – Eg. Invoice
Validated, Invoice modified or Invoice Cancelled are Event Types for the Event Class Invoice
One or more Event Classes are associated with Even Entities – Example Payables
SLA CONCEPTS
Oracle provides seeded components for each level of the SLA hierarchy
to meet standard requirement
Seeded components cannot be modified but can be copied with another
name and modified to suite requirements
Users have the flexibility of using seeded components with user
defined components
Definitions created by users are not overwritten during upgrade.
However, in case seeded components are used as part of user defined
components, Merge Analysis feature is provided to verify the effect
Definitions can Exported and Imported to enable testing before
migrating to Production environment
SLA CONCEPTS
Recommended