What is Sub-ledger Accounting(SLA):

Oracle Sub ledger Accounting is a rule based engine for Generating accounting entries based on sub ledger transactions from all oracle applications.

Sub ledger Accounting is a New R12 feature that functional users can customize the Accounting engine to generate accounting to meet different accounting needs . it is a Rule-based accounting engine which supports most of Oracle business Suite modules. It is a Module on its own but forms a part of all transactional modules like Accounts payable, Accounts receivable, Cash Management etc.

Sub ledger accounting is a set of services for R12 that significantly enhance accounting support across the E-Business suite.R12 introduces some of the changes that will be fully developed in Fusion, so close attention to the impact of these changes is worthwhile. Sub-ledger accounting may be one of these key changes.

When Release 12 was first released, there was a lot of publicity about the move from the Set of Books concept to Ledgers being so fundamental, however experience suggests that the introduction of sub-ledger accounting (SLA) probably has even more impact.For those not familiar with SLA, it is a new product in Release 12 and a major change, (although it may be almost transparent to many end-users). It is both the rules and the engine that generates the accounting representation of your transactions, and it offers some wonderful opportunities to meet very specific accounting requirements in supportable ways. Participating sub ledgers include Payables, Receivables, Projects, Assets, Cash Management , Purchasing, Cost Management and Process Manufacturing.

In terms of its mechanics, SLA is a new schema into which all accounting entries are processed before being interfaced to the General Ledger - and so it alters the way reconciliation and month-end processes run. This simple statement is both fundamental and important - because many of the skills we have learnt over years to address accounting issues at period end may have to be modified.Do not underestimate this change and do invest the time to simulate month-end processesduring Testing (CRP and UAT) . Companies should move from utilizing Account Generators in Release 12 to representing their accounting rules in the Sub-ledger Accounting Engine. SLA rules that are in place in Release 12 will be protected in an upgrade to Fusion.

Components of Sub Ledger accounting1. Journal Entry Description (JED)2. Journal Line Types (JLT)3. Accounting Derivation Rules (ADR)4. Journal Lines Definition (JLD)5. Application Accounting Definition (AAD)6. Sub ledger Accounting Method (SLAM)

1

Sub- ledger Accounting Methods (SLAM):

The Sub ledger accounting method is required if using Oracle Sub ledger accounting.A sub ledger level secondary ledger requires a sub ledger accounting method for both the primary ledger and the secondary ledgers.

The accounting method can be changed at any time, it will only affect new journals, additional accounting methods may be defined. This is done in sub ledger Accounting.

There are 5 Sub ledger Accounting Methods:1. Accrual with Encumbrance Accounting2. Cash with Encumburance Accounting3. Standard Accrual (Default)4. Standard Cash5. US Federal Accounting.

All upgraded ledgers in Release 12 will have a subledger accounting method assigned during the upgrade. Any reporting currencies assigned to the ledger inherit the subledger accounting method from the source ledger. The subledger accounting method enables Oracle General Ledger to integrate with Oracle subledgers using Subledger Accounting.

All upgraded, non-publicsector ledgers will have a subledger accounting method assigned called Standard Accrual or Standard Cash.All upgraded public sector ledgers will have a subledger accounting method assigned called Encumbrance Accrual or Encumbrance Cash.For US Federal customers, all upgraded ledgers will have the US Federal Accounting subledger accounting method assigned to them.

What is a sub-ledger:

Sub-ledger are applications to manager operational transactions with financials impact.Subledger stores accounting at transaction level of details. Sub-ledger post summarized activity information to a GL Periodically to maintain centralized account balance for the company.

What is Accounting Setup Manager (ASM):

It is one of the main feature of the Ledger Architecture introduced in R12, which replaces the Set of books from using a web based interface.

2

Accounting Setup Steps:

Accounting Setup Manager(ASM) is the central place where all the accounting setup is defined and maintained for:- Legal Enties.- Operating Units- Ledgers.- Reporting Currencies- Subledger Accouting.-Inter and Intra Balancing Segments.- Sequencing (Accounting and Reporting)- Other Accounting options like retained earning account, suspense account, currency conversion types etc.

Accounting Setup Manager Benefits:Centralized Accounting Setup for Financials–Define all of your accounting-related setup in a central location–Reduce setup errors–Have clear view of implementation Increased Efficiency–Access accounting setup information more quickly now that it appears centrally in one location.Simplified Processes Improved Efficiency Strengthens business’s corporate legal structure Streamlined on-going maintenance User friendly interface Facilitates internal control management.

What is a ledger:The Ledger represents an accounting representation for an organization that is accountable in a self- contained way. The ledger represent the core of a company's Financial records where every transaction flow through. " A Legal Entity accounts for itself in a ledger"

3

Primary Ledger and Secondary Ledgers:

There are 3 types of ledgers: Primary , secondary and reporting currency ledgers.

1. Primary Ledger (PL): it is the main ledger and has the most details of information. It can have more than one secondary ledger assigned.

2. Secondary Ledger(SL): it is optional and differs in one or more of the 4C's from the PL.It provides an additional accounting representation of the PL to comply with legal requirements. The SL can only be assigned to one PL.

3. Reporting Currency(RC): Used when the only element that differ from the PL is the Currency. it is stored in the tables as a ledger but does not need to be setup as a ledger via ASM.

Primary and secondary ledgers can have RC's assigned. if a RC has not been assigned to a PL or SL, when a transaltion is run in a ledger the reporting currency is automatically added to the ledger setup.

The Secondary and reporting currency ledgers stores additional accounting representations of the information present in the primary ledger. There are different level of detail in which this information is stored, which are called Conversion levels.

Ledger Sets : Ledger Sets enables you to group multiple ledgers that share the same COA and Calendar Combination. Essentially, Ledger Sets allow you to treat multiple ledger as one.

Ledger Set - Perform the Following Across Ledgers:

• Create Reports-Report on One or All Ledgers in a Ledger Set

• Open/Close Periods-Open/Close Periods Independently or Simultaneously

• Create Journals-Allocations Across Ledgers

4

-Recurring Journals for All Ledgers• Translate Balances

-Translate Balances for All Ledgers• View Information

-No Changing Responsibilities-View Journals and Account Balances

Data Access Sets:Data Access Sets enable you to specify read only or read and write access for a legal entity, ledger, Balancing Segment Value or Management segment Value.

Access multiple legal entities and ledgers from a single GL responsibility using the GL: Data Access Set profile option

Assign Ledgers and Ledger Sets to Data Access Sets Optionally specify read and write privileges to:

-Entire Ledgers-Specific Balancing Segment Values (a.k.a Legal Entities if BSVs assigned to Legal Entities)-Specific Management Segment Values

When you assign specific balancing or management segment values, you can specify all values, parent values that include children, or child values individually

For more information go through: http://oracleappsyashrajvarsity.blogspot.com/search/label/ASM

5