Tuesday, April 24, 2012


In this post, I gave a summarized and quick overview of Sub ledger Accounting. This may be useful for beginners.  In General, Sub ledger Accounting is introduced to make the accounting process easier and efficient. Lets see some of the features of SLA,

1. Setups:

Journal Entry Setups: Oracle SLA gives users the control over the definition of their journal entries. 
Users can define the following components,
  1. GL Dates
  2. Entry Descriptions
  3. Line Descriptions
  4. Amounts
  5. Accounts: Rules can be created for the entire account combination or for individual segments.
  6. Journal Lines
  7. Reconciliation References 
Setups can be easily copied and altered to modify seeded definitions. Also for each setup SLA stores information to determine whether it was seeded or customized by the user. This eases the customers’ worry about overwriting their setups and take advantage of the upgrades. 

2. Accounting:  This is a major feature of SLA around which all its intricacies and advantages revolve.

Application Accounting: All the journal entry setups which generate accounting for transactions of an application can be grouped together. These are called application accounting definitions. For example, all the setups to provide a product’s representation in the inventory accounting can be grouped and created as an application accounting definition.

Date ranges can be specified for the definition so that it is flexible enough to stand any changes. Also the definitions can be locked preventing any updates. 

Multiple Accounting Representations: For the same sub ledger transactions multiple accounting representations can be created and stored in a separate ledger. This meets the requirements which are mutually exclusive.

Draft Accounting: Users can create accounting in draft mode. They can view and report on accounting without saving it. The setups or transaction data can be changed if they are not satisfied with the created accounting.

This approach can be used for each journal entry allowing corrections iteratively before committing the final accounting. It minimizes the need to correct the journal entries and facilitates clean audit.

Online Accounting: By this users have the ability to create, view, transfer and post accounting in GL when entering transactions into Oracle sub ledger applications like Oracle Payables and Oracle Receivables. Same accounting rules and validation are used for both offline and online accounting. Sub ledger Accounting therefore supports straight through processing from the
Sub ledger transaction to General Ledger balances. 

Replacement Accounts: If an account is disabled, Oracle SLA replaces the disabled account with the replacement account and continues processing. This improves efficiency and minimizes user intervention.

Transaction Account Builder: It provides a flexible mechanism to derive default accounts for transactions. Rules can be created for either an account combination or individual segments.

Errors accounting and reporting: SLA creates journal as completely as possible, though there are conditions that make it invalid. These are not eligible for posting and transfer to GL. But these can be useful for troubleshooting setup and information issues.

3. On-line Inquiries:

Oracle SLA provides for multiple inquiries to view accounting information. It takes advantage of the Oracle personalization framework that allows users to customize their view of the accounting using any of the attributes of the journal entry and to save predefined searches.

Standard Reports: Oracle SLA reports are built to allow users to take full advantage of the features of Oracle XML Publisher. It delivers data definitions and XML Publisher templates for the following reports.

1. Journal Entries Report: This report provides detailed journal entry information on a transaction-by-transaction basis for a period or period range.

2. Account Analysis Report: This report provides drill-down information about the movement on a particular account or account range for a period or period range.

3. Third Party Balances Report: This report provides balances and account activity information for suppliers and customers for a period or period range.

4. Open Account Balances Listing: This report gives users the ability to net account activity across all the journals related to a document, and to reconcile the outstanding amounts with the GL balances. This report replaces existing product functionality such as the Payables Trial Balance.

Benefits of R12 Sub ledger Accounting

Enhanced Reporting Currency:  Multiple Reporting Currencies functionality is enhanced to support all journal sources. Reporting set of books is now known as reporting currencies. Every journal that is posted in the primary currency of a ledger can be automatically converted into one or more reporting currencies. We can choose to convert any journal sources and categories.

Speedy Process: SLA improves efficiency by speeding period close, simplifying business and regulatory changes and making acquisitions easier.

Maintenance: Minimization of maintenance and elimination of duplication makes accounting policies easier to implement, maintain and hence, control.

Global Accounting Engine: SLA replaces the Global Accounting Engine and further extends its functionality by providing customizable accounting rules via a flexible and robust accounting rules setup.

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