Sub ledger Accounting

Contents
Pre R12 Accounting Process....................................................................................................3
R12 Key Terminology Changes................................................................................................3
Drawbacks of Pre R12 Accounting Process................................................................................3
enefits of !"A......................................................................................................................#
rief $%er%iew of !"A............................................................................................................#
&" 'low with !ub le(ger ) Com*arison.....................................................................................+
,nitial Accounting !etu*s........................................................................................................-
"egal entity...........................................................................................................................-
Accounting setu*...................................................................................................................-
Accounting setu*."egal entity................................................................................................./
Accounting setu*."e(gers.......................................................................................................0
Accounting $*tions..............................................................................................................11
Defining Accounting $*tions..................................................................................................11
Assigning the "e(ger to a res*onsibility..................................................................................12
!"A Process $%er%iew..........................................................................................................12
A1 setu*s o%er%iew...........................................................................................................13
!uble(ger A**lication !etu*..................................................................................................1#
Accounting 1etho(s uil(er Process.......................................................................................22
Accounting !ource setu*......................................................................................................21
!ource Assignment..............................................................................................................22
Accounting Attribute Assignment...........................................................................................23
3ournal "ine Ty*e.................................................................................................................2#
3ournal "ine Descri*tion........................................................................................................2+
Account Deri%ation Rules......................................................................................................2/
3ournal "ine Definitions.........................................................................................................32
A**lication Accounting Definitions..........................................................................................31
!ub.le(ger Accounting 1etho(s.............................................................................................32
Create Accounting 4 Transfer 3ournal 5ntries to &"..................................................................3#
56am*le7Case !tu(y on !ub le(ger Accounting.......................................................................3+
Pre R12 Accounting Process
A transaction is recei%e( 7 coste( an( accounte( for in the local sub le(ger.
The 3ournal Descri*tion an( Accounting rules cannot be customi8e(.
The transaction is transferre( to &" %ia the *rogram 9Transfer to &" *rocess:.
Details for these transactions are then %iewe( from 9;iew Accounting <in(ows:.
!et of ooks (efine( by 3 Cs )
Chart of accounts
'unctional Currency
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R12 Key Terminology Changes
Release 11i Release R12
!et of ooks "e(gers
!et of ooks 3Cs.Chart of Accounts=
'unctional Currency= Accounting Calen(ar
"e(gers #Cs ) Chart of Accounts=
"e(ger Currency= Accounting Calen(ar=
Accounting 1etho(
,n(i%i(ual Pro(uct >AP = AR = etc.?
accounting
!ub le(ger Accounting
$*erating @nit 1ulti.$rg Access Control >1$AC?
1ulti*le setu*s for accounting in &" Accounting !etu* 1anager >A!1?
&lobal Accounting 5ngine >AA? !ub le(ger Accounting
AA Posting !ets of ooks !econ(ary "e(gers
1RC Primary !ets of ooks Primary "e(gers
1ulti*le re*orting Currency >1RC? Re*orting Currencies >RC?
Re*orting Currencies >RC? ,ntercom*any alancing
!et of ooks as use( in $racle 11i is now re*lace( by le(gers. The #
th
C is a((e( in this
conce*t i.e. Con%ention >Accounting 1etho(?.,t allows to assign an( manage a s*ecific
accounting metho( for each le(ger.
1$ACB ,t:s a new feature in R12.1ulti $rg access control means *erforming %arious tasks
across (ifferent o*erating units without changing the res*onsibility. Till 11i a res*onsibility
can be tie( to only one o*erating unit but now from within CR form = multi*le o*erating
units can be assigne( to a single res*onsibility . !ingle a**lication res*onsibility can %iew=
*rocess an( re*ort on multi*le o*erating units.
Drawbacks of Pre R12 Accounting Process
,nconsistent Drill(own from &eneral "e(ger
Also inconsistent 1echanisms has been notice( for controlling accounting as certain
o*tions ha%e been use( in e6isting %ersionB
o fle6 buil(er
o Account &enerator
o Automatic $ffsets
enefits of S!A
3ournal Descri*tion an( Accounting rules can be customi8e( as *er the reDuirement.
Allows multi*le accounting re*resentations for a single business units when use( in
combination
with secon(ary le(gers
,ntro(uces a common (ata mo(el an( @, across sub le(gers
re*laces %arious (is*arate 11i setu*s=
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*ro%i(ing single source of truth for financial an( management analysis
rief "#er#iew of S!A
!"A is an interme(iate ste* between sub le(ger *ro(ucts an( the $racle &eneral "e(ger.
3ournal entries are transferre( to $racle &eneral "e(ger through !"A
5ach sub le(ger transaction that reDuires accounting is re*resente( by a com*lete an(
balance( sub le(ger Eournal entry store( in a common (ata mo(el
!"A is neither an A**lication nor a Res*onsibility= rather it is a ser%ice *ro%i(e( to $racle
A**lications.
@sers (o not login to !"A
!"A forms an( *rograms are embe((e( within stan(ar( $racle A**lication res*onsibilities
!er%ices *ro%i(e( by !"A to $racle A**lications B
o !torage of sub le(ger balances
o !ub le(ger accounting entries
o !ub le(ger re*orting >e.g. !uble(ger Eournal re*orts= o*en account balances
listing?
@ser (efine( rule.base( accounting engine that *osts entries in &".
@se( to store (etaile( information not reDuire( for a general le(ger
!"A *erio(ically *ost summari8e( acti%ity to &" to maintain centrali8e( account
balances for the com*any.
Retains the most granular le%el of (etail in the !"A mo(el= with (ifferent
summari8ation o*tions in the &"= allowing full au(it ability an( reconciliation.
,ntro(uces a common (ata mo(el an( @, across sub.le(gers while re*lacing %arious
(is*arate 11i setu*s.
1ulti*le accounting re*resentations are allowe( for e%ery business e%ent thereby
resol%ing conflicts between cor*orate an( local fiscal accounting reDuirements.
NotesB !ub.le(ger accounting is a new fun(amental conce*t in R12.,t is enhance( accounting
*rocess an( re*ository for generating accounting entries base( on source transactions. This
conce*t offers a great (eal of fle6ibility to customers as they can (efine the rules for
accounting the Eournal entries in all in(i%i(ual *ro(ucts >AR=AP =etc.? as *er their reDuirement.
There are no !"A res*onsibilities an( users (o not login to !"A. ,t is a ser%ice *ro%i(e( to
$racle A**lication sub.le(gers. ,n R12 the accounts are (efine( in the same way as *rior
a**lication %ersions %ia the same forms. $rgani8ations are also (efine( the same way. ,f there
are no rules entere( into the !"A engine= the accounts (efine( the tra(itional way will be use(
to generate the Eournal entries *oste( to &".
Fow in R12 business enter*rises can clearly an( efficiently mo(el its legal entities an( their
accounting re*resentations. "egal 5ntities can be ma**e( to entire "e(gers or if more than
one legal entity is accounte( within a le(ger= then the legal entity can be ma**e( to balancing
segments within a le(ger.
,n R12 ank Accounts are now associate( with legal entities instea( of $*erating @nits. !o
now a single bank account can ser%e multi*le $@:s.
$! %low with Sub ledger & Com'arison
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(nitial Accounting Setu's
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!egal entity
"egal 5ntity.To store the legal 4 !tatutory information for the client:s business.
"egal 5ntity has the same meaning as in *rior releases.
This ste* can be ski**e( if the accounting setu* to be (efine( (oes not reDuire a legal
entity.
Fone= one or multi*le legal entities can be assigne( to an accounting setu*.
Accounting setu'
)a#igation . &" !u*er userG!etu*G'inancialsGAccounting !et u* 1anagerGAccounting
!etu*s
@nlike the *rior a**lication releases: maEority set u* screens are form base(. The
Accounting set u* manager is a user frien(ly CT1" base( interface that gui(es the user in
*erforming all the ste*s. ,t is a multi use screen which allows users to create7u*(ate
both legal entities an( Accounting setu*s.
Accounting setu'*!egal entity
The screen below is multi use screen that allows to Duery the *re(efine( "egal 5ntities as
well as create new legal entities. Click create "egal 5ntities button to o*en the Create
"egal 5ntities screen.
A com*lete( legal entity is reDuire( for assigning balancing segment %alues as *art of
com*leting the Accounting !et u* $*tions. 'or usage 7 (efinition of "e(ger= creation of
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"egal 5ntity is not a *rereDuisite= so we can ha%e le(gers which are not associate( to any
"egal entity.
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Accounting setu'*!edgers
After (efining the legal entity= the ne6t ste* is to create le(ger. "e(ger in R12 is effecti%ely
the substitution for !et of ooks in *rior releases.
Primary "e(ger.1ain recor( kee*ing le(ger. PrereDuisites before (efining a le(ger B
o Fame
o Chart of accounts
o Calen(ar
o Currency
o !ub le(ger Accounting 1etho(
!econ(ary "e(ger. Retains alternate re*resentations for (ifferent re*orting reDuirements.
5ach secon(ary le(ger can (iffer from the *rimary le(ger by the chart of accounts=
calen(ar= currency= an( accounting metho(.
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Cere= the le(ger attributes are (efine( like
H Ty*e a name for the Primary "e(ger
H Associate(
o Chart of Accounts
o Accounting Calen(ar
o Currency
o !ub le(ger Accounting 1etho( >@ser (efine( or !ee(e(? if using $racle sub le(gers.
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$nce all the information are entere(= Click on 'inish button.
Accounting "'tions
,n the Accounting set u* win(ow un(er the *rimary "e(ger %arious setu* o*tions are
there. ,n these setu*s only the setu* ste* 9"egal $*tion: is enable( for u*(ation rest are
not enable(. Click on the u*(ate o*tion an( enter all man(atory information.
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Defining Accounting "'tions
$nce we com*lete the man(atory > those marke( with I? an( the o*tional ste*s
(e*en(ing on what features we inten(e( to use= the last ste* is to re%iew all the
information before finishing the setu*s.
Please note that the name of the Ledger Options changes to the Ledger Name we (efine(
an( that all other set u* o*tions are enable( for u*(ation >this was not the case before the
com*letion of the "e(ger $*tions?. ,n the similar way we can u*(ate all other set u*s.
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Assigning the !edger to a res'onsibility
The ne6t ste* is to associate the le(ger to a res*onsibility.
The 9GL Data Access Set: Profile o*tion is a new o*tion intro(uce( in R12.This *rofile
o*tion (etermines what le(gers a user of a res*onsibility has an access to.
,n R11i= each res*onsibility can ha%e access to only one set of books= ut in R12= users
can ha%e access to multi*le le(gers %ia a le(ger set. This feature along with other new
features like Data Definition set= 1ulti $rg Access Control >1$AC? ha%e gi%en the access=
security an( usage features a new (imension.
S!A Process "#er#iew
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A+ setu's o#er#iew
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Subledger A''lication Setu'
Fa%igationB !"A Accounting !etu* !"AB !ub le(ger Accounting !etu*s !ub le(ger
A**lications
Register the source a**lication with !"A to use the Accounting 1etho( uil(er. Cere we
can s*ecify o*tions relate( toB.
o 5%ent security
o &eneral "e(ger
o !ub le(ger accounting
o This screen is use( to assign &" 3ournal sources= a security *olicy function an( a
(rill(own *roce(ure to the sub le(ger a**lication.
o The (rill(own o*tion allows the user to (rill (own to the &" 3ournal entry from a
!ub le(ger a**lication transaction.
o The security *olicy function allows a mechanism to assign (ata security for creating
an( %iewing accounting transactions
elow is the !ub.le(ger a**lication screen use( to register the source a**lication i.e.
Payables with !"A.
Define 5%ents
5%ent 1o(el
Accounting e%ents are categori8e( into e%ent ty*es. 5%ent ty*es are grou*e( into e%ent
classes that in turn are grou*e( into e%ent entities. These grou*ings *lay a *rominent role
in the setu* of the A1. The (efinition of se%eral com*onents in the A1 is by e%ent class
or e%ent ty*e.
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5%ent class 4 ty*es.conce*t
5%ent Class . classifies transaction ty*es for accounting rule *ur*oses
5%ent Ty*e . for each transaction ty*e= (efines *ossible actions with accounting
significance
56am*leB
5%ent entities
Fa%igationB !"A Accounting !etu* !"AB !ub le(ger Accounting !etu*s Accounting
1etho(s uil(er 5%ents 5%ent 1o(el
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@se the 5ntities win(ow to set u* e%ent entities an( system transaction i(entifiers for the
a**lication. This win(ow is only a%ailable to im*lementers. @sers cannot create or u*(ate
e%ent entities.
,(entifiersB $*ens the !ystem Transaction ,(entifiers win(ow
,(entifiers link accounting e%ents with their un(erlying transactions in the transaction (ata
mo(el. Define the link by ma**ing columns from the entity table to system transaction
i(entifiers for the e%ent entity in the !ystem Transaction ,(entifiers win(ow
Click 5%ent Classes to (efine 5%ent Classes 4 Ty*es.
5%ent class 4 5%ent ty*es
After (efining the 5%ent 5ntity= (efine 5%ent classes 4 Ty*es by clicking 95%ent Classes: in
5%ent 5ntities win(ow. Define the e%ents for which you want to (efine the accounting
rules.
After (efining 5%ent entities (efine the 9Process Category:
Fa%igationB !"A Accounting !etu* !"AB !ub le(ger Accounting !etu*s Accounting
1etho(s uil(er 5%ents Process Categories
Process categories are collections of one or more logically relate( e%ent classes. <hen
users submit the 9Accounting Program: they restrict the e%ents selecte( for accounting.
,t grou*s the relate( e%ents for which the user wants to submit single Accounting Program=
an( thereby enables the user to create 4 transfer accounting entries relate( to these
e%ents only.
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Accounting e%ent class o*tion
After Defining 5%ent classes 4 Ty*es link this with Transaction $bEect.
Fa%igationB !"A Accounting !etu* !"AB !ub le(ger Accounting !etu*s Accounting
1etho(s uil(er 5%ents Accounting 5%ent Class $*tions
,n the $bEect Fame fiel(= enter the obEect name of the reference obEect. The obEect must
e6ist in the (atabase an( be accessible to users. The obEect name must be uniDue within
an e%ent class.
Transaction $bEects are ty*ically tables7%iews that are linke( to an e%ent class. <hen a
suble(ger a**lication raises an accounting e%ent= it must *o*ulate the transaction obEects
for the accounting e%ent class.
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$bEects
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Accounting +ethods uilder Process
'irst we (efine 3ournal 5ntry Descri*tion= 3ournal "ine Ty*e 4 Account Deri%ation Rule.
Different 3"D= 3"T 4 ADRs are the grou*e( an( assigne( to 3ournal "ine Definition.
Then there will be (ifferent Eournal line (efinition for e%ery a**lication base( on the
accounting e%ents.
A**lication Accounting Definition then for e%ery a**lication integrates all 3ournal "ine
Definitions at one *lace.
Then !ub le(ger Accounting 1etho( (efinition integrates all the AADs of (ifferent
a**lications.
Accounting Source setu'
Fa%igationB !"A Accounting !etu* G !"AB !ub le(ger Accounting !etu*s G Accounting
1etho(s uil(er G !ourcesG!ources
!ource name that is assigne( to the e%ent class is (efine( here. The list of %alues inclu(es
all sources set u* for this a**lication
The Columns which are *resent in the Transaction $bEects gets automatically *o*ulate( in
!ource !et u* screen.
'or create cre(it memo transaction= e6am*le of sources are ,n%oice Date= ,n%oice
Descri*tion= ,n%oice Currency etc.
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Source Assignment
Fa%igation B !"A Accounting !etu* G !"AB !ub le(ger Accounting !etu*s G Accounting
1etho(s uil(er G !ources G !ource Assignment
!ource assignment set u* screen is use( for ma**ing transaction obEect source columns to
an e%ent class.
@ser can s*ecify the %alue for each source fiel( to be *icke( from hea(er or line le%el
transaction obEect.
'or e.g. ,n%oice amount 4 (ate woul( be store( on the transaction hea(er whereas
Distribution amount 4 Distribution account woul( be store( on transaction line.
Accounting Attribute Assignment
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Fa%igationB !"A Accounting !etu* G !"AB !ub le(ger Accounting !etu*s G Accounting
1etho(s uil(er G !ources G Accounting Attribute Assignment
There are few man(atory attributes in !"A which shoul( be linke( to Transaction !ources.
,t hel*s in referencing man(atory (ata reDuire( for generating accounting entries.
1an(atory attributes
&" Date
5ntere( Amount
Currency Co(e
Distribution Ty*e
'irst Distribution ,(entifier
,ournal !ine Ty'e
Fa%igationB !"A Accounting !etu* !"AB !ub le(ger Accounting !etu*s Accounting
1etho(s uil(er 3ournal 5ntry !etu*s 3ournal "ine Ty*es
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3ournal "ine Ty*e (efine whether the Eournal line is (ebit= cre(it or &ain7"oss
For example, when a Payables inoice is generated, the liability acco!nt sho!ld normally
be credited" #he $o!rnal line type m!st therefore specify the Side option as %redit"
'or each e%ent class 3"T is (efine(. ,t is (en along with ADR 4 Eournal entry (escri*tion is
assigne( to a 3ournal line (efinition.
,t can also be s*ecifie( whether *osting to &" is nee(e( in summary or Detail.
usiness 'low 1etho(B ,n case of relate( Eournal entries it (etermine the flow of entries
i.e. how to (eri%e Eournal entry com*onents from the *re%ious relate( Eournal entry.
For example& 'n case of Payables the acco!nting entries depend on three types of
transaction
(eceipt of goods
'ss!e of 'noice
Payment
At the time of (eceipt& At the time of iss!e of 'noice At the time of Payment
Goods (eceied )"Dr PO Accr!al))""Dr 'noice Liability))"Dr
#o PO Accr!al)""%r #o 'noice Liability)""%r #o %ash))%r
'n this way *!siness flow determine the flow of entries, specifies how a $o!rnal line
obtains certain $o!rnal entry al!es incl!ding acco!nting attrib!tes for a $o!rnal entry from
the related entry"
3ournal "ine Con(itionB 3ournal line ty*e con(itions establish whether a Eournal line ty*e
an( its associate( ADR an( 35D are to be use( in the sub le(ger Eournal entry. ,t s*ecifies
the con(itions un(er which accounts are create(.
,ournal !ine Descri'tion
Fa%igationB !"A Accounting !etu*G!"AB !ub le(ger Accounting !etu*sGAccounting
1etho(s uil(erG3ournal 5ntry !etu*sG3ournal "ine Descri*tion
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,n !"A we can also customi8e the Eournal (escri*tion as *er the reDuirement. ,n
Descri*tion column (efine the (escri*tion content an( the seDuence in which the user want
it to a**ear.
<e can also set Conditions- 3ournal line (escri*tion con(itions establish whether a Eournal
line (escri*tion an( its associate( account (eri%ation rules an( Eournal entry are to be use(
in the sub le(ger Eournal entry.
'or e6am*le in the abo%e case one con(ition is establishe( that at the time of creation of
Eournal entry the (escri*tion (efine( is to be use( only when the ,n%oice %oucher number
is not null.
3ournal "ine Descri*tion ) Details
To a(( (etails to the (escri*tion Click Details.
ConstantB ,t is selecte( to enter te6t to be use( in the Eournal entry (escri*tion.
!ourceB <hen this is selecte( then at the time of creation of Eournal entry= this source
%alue is re*lace( with a**ro*riate source content.
'or e6am*le= the source ,n%oice Fumber *o*ulates the Eournal entry (escri*tion with the
actual number of ,n%oice.
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Account Deri#ation Rules
Fa%igationB !"A Accounting !etu*G!"AB !ub le(ger Accounting !etu*sGAccounting
1etho(s uil(erG3ournal 5ntry !etu*sGAccount Deri%ation Rules
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Account (eri%ation rule is use( to (etermine the Accounting 'le6 fiel(s for sub le(ger
Eournal entries. <e can also s*ecify con(itions un(er which these rules will a**ly.
'or e6am*le the Rule (efine( in the abo%e case is that in case of accounting entry the
source for the Fatural Account !egment shall be ,n%oice Distribution Account subEect to
the con(ition s*ecifie(.
Account Deri%ation Rules.Con(ition
Account Deri%ation Rules Con(itions are s*ecifie( for each rule (etail line. The or(er in
which account (eri%ation rule con(itions are to e6amine( is (etermine( by Priorities.
'or e6am*leB The (efine( rule will a**ly only when the following con(ition gets satisfie(B
Pre*ai( 56*ense Account J Kes AFD
Purchase $r(er Fumber ,! F$T F@"" AFD
,n%oice Distribution Ty*e J ,tem
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1a**ing !et
Fa%igationB !"A Accounting !etu*G!"AB !ub le(ger Accounting !etu*sGAccounting
1etho(s uil(erG3ournal 5ntry !etu*sG1a**ing !ets
1a**ing !ets can be use( in Account Deri%ation Rules to buil( the Accenting 'le6 fiel(
structure. 'or each in*ut %alue= we can s*ecify a corres*on(ing account segment or
Accounting 'le6 fiel( out*ut %alue.
For exampleB in this case we ha%e (efine( a ma**ing setB
,n case the !u**lier Ty*e is 1anufacturing then (e*artment /+2 shoul( be use( an( in
case it is Consulting the (e*artment L#2 shoul( be use( an( in case of !er%ices
(e*artment L32.
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Account Deri%ation Rules >1a**ing !et?
<e can attach 1a**ing set to (eri%e accounting fle6 fiel(.
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,n or(er to (eri%e an account at the time of Eournal entry creation = the %alues of the
1a**ing !et ,n*ut !ource s*ecifie( in a rule are com*are( with the in*ut %alues of the
ma**ing set.
'n the aboe example we ha%e attache( the ma**ing set (efine( earlier.
,n this e6am*le= 1a**ing !et ,n*ut !ource %alues from the accounting e%ent information
inclu(e the !u**lier Ty*e source %alues. These are now com*are( with the ;en(or
Category in*ut %alues to (etermine what the account shoul( be.
@sing the 1a**ing set (efine(= if the !u**lier ty*e is Contractor =the account create( is
21./+2.2212.2222.222
,ournal !ine Definitions
Fa%igationB !"A Accounting !etu* G !"AB !ub le(ger Accounting !etu*s G Accounting
1etho(s uil(er G 1etho(s an( Definitions G 3ournal "ine Definitions
3ournal "ines (efinitions is use( to grou* an( assign Eournal line ty*es= account (eri%ation
rules= an( Eournal entry (escri*tions into a com*lete set of Eournal entries within an e%ent
class or e%ent ty*e.
A''lication Accounting Definitions
Fa%igationB !"A Accounting !etu* G !"AB !ub le(ger Accounting !etu*s G Accounting
1etho(s uil(er G 1etho(s an( Definitions G A**lication Accounting Definitions
A**lication Accounting Definitions is use( to grou* Eournal lines (efinitions an( hea(er
assignments for e%ent classes an( e%ent ty*es.
After (efining it %ali(ate the AAD. After ;ali(ation the !tatus gets u*(ate( as 9;ali(ate(:
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Sub*ledger Accounting +ethods
Fa%igationB !"A Accounting !etu* G !"AB !ub le(ger Accounting !etu*s G Accounting
1etho(s uil(er G 1etho(s an( Definitions G !ub le(ger Accounting 1etho(s
&rou* all the A**lication accounting (efinitions that com*ly with a common set of
accounting
reDuirements into a sub le(ger accounting metho(. 5ach sub le(ger accounting metho(
can be assigne( to one or more le(gers.
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Attaching !uble(ger Accounting metho( to le(ger
After (oing all abo%e set u*s the last ste* is to attach the !ub le(ger A**lication metho(
with the le(ger
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Create Accounting . Transfer ,ournal /ntries to $!
Transactions are create( in &" through !"A
Create Accounting *rogram
The Create Accounting *rogramB
;ali(ates an( generates sub le(ger Eournal entries
Transfers the Eournal entries to &eneral "e(ger an( initiates the &eneral "e(ger *osting
*rocess.
&enerates the !ub le(ger Accounting Program Re*ort= in which the results of the Create
Accounting *rogram are (ocumente(.
Create Accounting Program creates accounting entries an( transfers the Eournal entries in
the current batch run to &".
There is another *rogram in R12 9Transfer Eournal entries to &": which transfers the Eournal
entries inclu(ing those from *re%ious batch run that ha%e not yet been transferre( to &".
5arlier there was only one *rogram that transfers the entries to &" i.e. 9Transfer to &":
*rogram
Create Accounting *rogram ) 5nhance( 'eature
5arlier in Release 11 create accounting feature was only in *ayable a**lication 4 there also
no o*tion was a%ailable for *re%iewing the entries before accounting.
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R12 has *ro%i(e( the user with 3 new functionalities un(er create accountingB
DRA%T modeB Draft accounting by which user can *re%iew the accounts getting hit by the
transaction. ,t can be u*(ate( an( (elete(.
%()A! mode0 ,t:s same as in earlier release. 5ntry create( un(er this mo(e cannot be
change(.
%()A! P"ST modeB ,t creates accounting for the transaction with final mo(e= transfer them
to &" an( also *ost those entries in &".
/1am'le2Case Study on Sub ledger Accounting
"et us take an e6am*le to get better un(erstan(ing of this conce*t.
Current Process
,n accounts *ayable= in the normal accrual basis of accounting= the liability account on a
Payables ,n%oice accounting 5ntry is *icke( from the ,n%oice "iability account on the
,n%oice Cea(er. This liability account (efaults from the "iability Account (efine( at the
su**lier site le%el as *er the stan(ar( functionality.
Re3uirement
1. ,n an ,n%oice Accounting 5ntry= for all su**liers e6ce*t the few one mentione( below= all
the segments e6ce*t the cost center segment shoul( be *icke( from the ,n%oice "iability
account on the ,n%oice Cea(er. The cost center segment shall be *icke( from the ,n%oice
(istribution Account.
2. 'or the following su**lier ty*e the cost center segment of the liability account shoul( be
as mentione( belowB
!u**lier Ty*e De*artment
Contractor 122
'oo( !u**lies #22
Carrier #+2
5m*loyee 112
3. 'or Ca*ital Purchase
'or ca*ital *urchases the reDuirement is if the (istribution account cost center is the same
as the liability account cost center an( the AssetsM tracking o*tion is yes then the natural
account segment for the liability account shall be 23/1.
Accounting entries in 'resent scenario
1.<here su**lier ty*e is carrier
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2.,n case of su**liers other than the su**liers mentione( in reDuirement 2.
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3.'or ca*ital *urchase
Thus= *resently it:s taking the same accounting fle6 fiel( for liability account from the
,n%oice "iability Account on Cea(er le%el irres*ecti%e of the su**lier ty*e or ty*e of
transaction.
Solution
1- 'irst (efine the ma**ing set for %arious su**lier ty*es in or(er to meet the secon(
reDuirement.
Fa%igationB !"A Accounting !etu*G!"AB !ub le(ger Accounting !etu*sGAccounting
1etho(s uil(erG3ournal 5ntry !etu*s G 1a**ing !ets.
<hen using the ma**ing set= the source %alue !u**lier Ty*e from the accounting e%ent
(ata is com*are( with the 1a**ing !et ,n*ut ;alues to (etermine the Accounting 'le6 fiel(
7 segment.
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2- Account Deri#ation Rule
Fa%igationB !"A Accounting !etu*G!"AB !ub le(ger Accounting !etu*sGAccounting
1etho(s uil(erG3ournal 5ntry !etu*sGAccount Deri%ation Rules
Attach ma**ing set (efine(= to the Account (eri%ation Rule. Also for the first
reDuirement = (efine the source of cost center segment as ,n%oice (istribution account for
su**liers other than the su**liers for which ma**ing set is (efine(.
Also (efine one con(ition for this rule that the rule woul( be a**lie( only when the su**lier
ty*e is not the one s*ecifie( by the entity.
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'or the thir( reDuirement (efine one more rule. Also (efine the con(ition for this rule as to
when this rule woul( be a**licable.
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4- ,ournal !ine Definition
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Fa%igationB !"A Accounting !etu* G !"AB !ub le(ger Accounting !etu*s G Accounting
1etho(s uil(er G 1etho(s an( Definitions G 3ournal "ine Definitions
3ournal "ines Definitions is use( to grou* an( assign Eournal line ty*es= account (eri%ation
rules= an( Eournal entry (escri*tions into a com*lete set of Eournal entries within an e%ent
class or e%ent ty*e.
5- A''lication Accounting Definition
Fa%igationB !"A Accounting !etu* G !"AB !ub le(ger Accounting !etu*s G Accounting
1etho(s uil(er G 1etho(s an( Definitions G A**lication Accounting Definitions
A**lication Accounting Definitions is use( to grou* Eournal lines (efinitions an( hea(er
assignments for e%ent classes an( e%ent ty*es. After (efining it %ali(ate the AAD. After
;ali(ation the !tatus gets u*(ate( as 9;ali(ate(:
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6- Subledger Accounting +ethod
Fa%igationB !"A Accounting !etu* G !"AB !ub le(ger Accounting !etu*s G Accounting
1etho(s uil(er G 1etho(s an( Definitions G !ub le(ger Accounting 1etho(s
&rou* all the A**lication accounting (efinitions that com*ly with a common set of
accounting reDuirements into a sub le(ger accounting metho(. 5ach sub le(ger accounting
metho( can be assigne( to one or more le(gers.
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7- 8'dating !edger
After (oing all abo%e set u*s the last ste* is to attach the !ub le(ger A**lication metho(
with the le(ger.
Fa%igationB !et u*s G Accounting !etu*s G "e(ger !etu* G Define G Accounting !etu*
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)ow ,ournal /ntries will be as follows0
1. 'or su**lier ha%ing su**lier ty*e as carrier. Fow the cost center segment of liability
account is #+2.
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2. 'or other su**liers the cost center segment has been *icke( from the ,n%oice
(istribution Account an( other segments from ,n%oice "iability account on hea(er le%el.
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3. 'or ca*ital *urchases the rule has been a**lie( where both the con(itions are met.Fow
its taking the account segment of liability account as 23/1 since cost center segment of
(istribution account 4 "iability account is same i.e. 222 an( Asset Tracking o*tion is
yes.
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