SLA - Oracle Subledger Accounting Training Manual PDF

SLA – Oracle Subledger Accounting Training Manual OracleApps88
Overview of Subledger Accounting ........................................................................................... 1-1

Overview of Subledger Accounting ......................................................................................... 1-2
Objectives...................................................................................................................................... 1-3
What is Subledger Accounting? ................................................................................................ 1-4
Subledger Balances...................................................................................................................... 1-8
Summary ...................................................................................................................................... 1-9
Create a New User ...................................................................................................................... 1-10
Create a Supplier With Two Sites .......................................................................................... 1-20
Create Accounting and Transfer Journal Entries to General Ledger ................................... 2-1
Create Accounting and Transfer Journal Entries to General Ledger ................................... 2-2
Objectives...................................................................................................................................... 2-3
Create Accounting Program Overview .................................................................................... 2-4
Draft Accounting ......................................................................................................................... 2-6
Online Accounting ...................................................................................................................... 2-7
Straight-Through Accounting.................................................................................................... 2-8
Create Accounting Program Parameters ................................................................................. 2-9
Transfer Journal Entries to GL Program Overview ................................................................ 2-12
Transfer Journal Entries to General Ledger Program ............................................................ 2-13
Oracle Subledger Accounting Program Report ...................................................................... 2-14
Transfer Journal Entries to GL Report ...................................................................................... 2-16
Setting Profile Options................................................................................................................ 2-17
Summary ...................................................................................................................................... 2-19
Entering an Invoice ..................................................................................................................... 2-20

Enter an Invoice with Two Lines that are Distributed to Different Departments .......... 2-22
Create an Invoice ..................................................................................................................... 2-25
Run the Create Accounting Program ....................................................................................... 2-27
Run the Create Accounting Program and Transfer Journal Entries to GL Program in
Payables
Run the Create Accounting Program and Transfer Journal Entries to GL Program in
Receivables
Inquiries........................................................................................................................................... 3-1
Inquiries ........................................................................................................................................ 3-2
Objectives...................................................................................................................................... 3-3
Objectives continued… ............................................................................................................... 3-4
Accounting Events Inquiry Process .......................................................................................... 3-5
Viewing Subledger Journal Entry Lines................................................................................... 3-7
Subledger Journal Entry Lines Inquiry Process ...................................................................... 3-9
Drilldown from GL ..................................................................................................................... 3-11
Summary ...................................................................................................................................... 3-12
Summary continued… ................................................................................................................ 3-13
Inquiring on Subledger Journal Entries ................................................................................... 3-14
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Inquiring on Subledger Journal Entries in Payables or Receivables ................................ 3-15
Accounting Methods Builder (AMB) ......................................................................................... 4-1

Accounting Methods Builder (AMB)........................................................................................ 4-2
Objectives...................................................................................................................................... 4-3
Accounting Methods Builder (AMB) Overview ..................................................................... 4-4
AMB Process ................................................................................................................................ 4-7
Accounting Methods Builder (AMB)........................................................................................ 4-9
Copy and Modify Functionality ................................................................................................ 4-11
Transaction Chart of Accounts .................................................................................................. 4-13
Accounting Chart of Accounts .................................................................................................. 4-14
Event Model ................................................................................................................................. 4-15
Event Classes................................................................................................................................ 4-17
Event Types .................................................................................................................................. 4-18
Subledger Accounting Methods ................................................................................................ 4-20
Setting Up Subledger Accounting Methods ............................................................................ 4-21
Subledger Accounting Methods ................................................................................................ 4-23
Application Accounting Definition .......................................................................................... 4-24
Application Accounting Definitions ......................................................................................... 4-25
Importing Application Accounting Definitions ...................................................................... 4-28
Exporting Application Accounting Definitions ...................................................................... 4-30
Journal Line Types ...................................................................................................................... 4-31
Account Derivation Rules .......................................................................................................... 4-37
Account Derivation Rule ............................................................................................................ 4-38
Defining Account Derivation Rules .......................................................................................... 4-40
Account Derivation Rule ............................................................................................................ 4-41
Account Combination Rules ...................................................................................................... 4-43
Segment Rules .............................................................................................................................. 4-45
Oracle-Owned vs. User-Owned AMB Components .............................................................. 4-48
Value Set Rules ............................................................................................................................ 4-49
Mapping Sets................................................................................................................................ 4-51
Journal Entry Descriptions ......................................................................................................... 4-53
Journal Entry Description .......................................................................................................... 4-54
Journal Lines Definition ............................................................................................................. 4-57
Journal Lines Definitions ............................................................................................................ 4-58
Summary ...................................................................................................................................... 4-60
Running the Create Accounting Program in Draft Mode ..................................................... 4-61

Running the Create Accounting Program for Payables ..................................................... 4-62
Running the Create Accounting Program for Receivables ................................................ 4-71
Defining Subledger Accounting Methods ............................................................................... 4-79

Defining Subledger Accounting Methods for Payables ..................................................... 4-86
Defining Subledger Accounting Methods in Receivables.................................................. 4-91
Defining Application Accounting Definitions ........................................................................ 4-102
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Defining an Application Accounting Definition for Payables .......................................... 4-105

Defining an Application Accounting Definition in Receivables ....................................... 4-110
Defining Journal Line Types ...................................................................................................... 4-118

Defining Journal Line Types for Payables............................................................................ 4-123
Defining Journal Line Types in Receivables ........................................................................ 4-129
Defining Account Derivation Rules .......................................................................................... 4-139

Defining Account Derivation Rules for Payables ............................................................... 4-144
Defining Account Derivation Rules in Receivables ............................................................ 4-152
Defining Journal Lines Definitions ........................................................................................... 4-166

Defining Journal Lines Definitions for Payables ................................................................. 4-169
Defining Journal Lines Definitions for Receivables ............................................................ 4-173
Reports ............................................................................................................................................. 5-1

Reports .......................................................................................................................................... 5-2
Objectives...................................................................................................................................... 5-3
Subledger Accounting Reports Overview ............................................................................... 5-4
Custom Parameters ..................................................................................................................... 5-7
Journal Entries Report ................................................................................................................ 5-8
Journal Entries Report Parameters............................................................................................ 5-9
Account Analysis Report............................................................................................................ 5-12
Account Analysis Report Parameters ....................................................................................... 5-13
Third Party Balances Report ...................................................................................................... 5-15
Third Party Balances Report Parameters ................................................................................. 5-16
Subledger Period Close Exceptions Report ............................................................................. 5-19
Subledger Period Close Exceptions Report Parameters ........................................................ 5-20
Open Account Balances Listing Overview .............................................................................. 5-22
Creating and Updating Open Account Balances Listing Definitions .................................. 5-25
Open Account Balances Listing................................................................................................. 5-27
Open Account Balances Listing Parameters ............................................................................ 5-28
Summary ...................................................................................................................................... 5-30
Generating the Journal Entries report ...................................................................................... 5-31
Generating the Journal Entries Report for Payables ........................................................... 5-32
Generating the Journal Entries Reports for Receivables .................................................... 5-37
Creating Manual Subledger Journal Entries ............................................................................ 6-1

Creating Manual Subledger Journal Entries............................................................................ 6-2
Objectives...................................................................................................................................... 6-3
Subledger Journal Entries Overview ........................................................................................ 6-4
Manual Journal Entries ............................................................................................................... 6-5
Creating Subledger Journal Entries .......................................................................................... 6-6
Creating Subledger Journal Lines ............................................................................................. 6-7
Summary ...................................................................................................................................... 6-9
Creating Manual Subledger Journal Entries............................................................................ 6-10
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Creating Manual Subledger Journal Entries in Payables ................................................... 6-14

Creating Manual Subledger Journal Entries in Receivables .............................................. 6-17
Advanced Options ......................................................................................................................... 7-1

Advanced Options ...................................................................................................................... 7-2
Objectives...................................................................................................................................... 7-3
Custom Sources ........................................................................................................................... 7-4
Defining Custom Sources ........................................................................................................... 7-5
Custom Source Definition .......................................................................................................... 7-6
Example: Custom Source in a Description .............................................................................. 7-8
Business Flows ............................................................................................................................. 7-9
Business Flow Methods .............................................................................................................. 7-12
Multiperiod Accounting ............................................................................................................. 7-14
Accrual Reversals ........................................................................................................................ 7-15
Third Party Control Accounts ................................................................................................... 7-16
Alternative Accounts .................................................................................................................. 7-18
Diagnostic Framework Overview ............................................................................................. 7-20
Diagnostic Framework Business Process ................................................................................. 7-22
Error Handling............................................................................................................................. 7-23
Journal Entry Sequencing ........................................................................................................... 7-24
Summary ...................................................................................................................................... 7-27
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Overview of Subledger Accounting

What is Subledger Accounting?
Subledger Accounting is a set of services for R12 that significantly enhances accounting support
across the E-Business Suite.
Subledger Accounting is a data store in the same way as General Ledger but Subledger
Accounting provides the detailed data whereas General Ledger provides a summarized
version. Subledger Accounting is therefore a “true” subledger.
Introduction to Subledger Accounting

Subledger Accounting is mainly a rule-based accounting engine that centralizes accounting for
Oracle E-Business Suite products in R12.
Subledger Accounting is not a separate product in itself, but is Oracle’s engine catering to the
accounting needs of Oracle applications.
Together with the new ledger support, Subledger Accounting enables support of multiple
accounting requirements concurrently in a single instance. Different accounting regulations can
be satisfied by maintaining and applying different sets of rules to different sets of transactions;
or accounting for the same transaction with multiple methods.
By maintaining a full link between the transaction and accounting data, Subledger Accounting
allows powerful reconciliation and auditing capabilities.
Since Subledger Accounting provides the setup and inquiry user interface and data model for
accounting across modules, Subledger Accounting enables consistency in reporting, analysis,
and user experience.

Let us assume a US based corporation with operations in the UK and France.
The French operation is subject to French accounting regulations, and therefore must report its
activities to the local authorities in Euros, according to the French business calendar, French
chart of accounts, and the French interpretation of IFRS (International Financial Reporting
Standards).
The UK operation, similarly, is subject to the UK regulations, which for this example’s sake are
not as restrictive as the French ones. Thus, the UK operation does its local reporting in the local
currency, the British Pound, but according to the US business calendar, US chart of accounts
(COA), and US GAAP.
The US operation reports in the USD according to the US business calendar, US COA, and
GAAP.
In the R12 ledger setup, each of these operations would be defined as three separate ledgers to
satisfy local reporting requirements.
The US headquarters/parent company would need to have a consolidated global visibility of

the worldwide operations, however, it would not be very meaningful to consolidate or compare
each of these entities with each other. Firstly, because the reporting currencies are different.
Secondly, the COA and the method of accounting for the French activities may be considerably
different than those in the UK and US. For example, in France, purchases or inventory will be
reported as expenses, whereas in the UK and the US they will be reported as inventory items.
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Therefore, a simple currency conversion will not suffice. With the R12 ledger architecture and
Subledger Accounting, the following model can be implemented to solve this business need:
For the UK operation, activities can be converted to the US equivalent simply by converting the
currency since the calendar, COA, and accounting methods are the same. You can set this up by
adding a reporting currency to the UK ledger.
For the French operation, a currency conversion alone will not work. You will need to define a
secondary ledger for the French ledger, which will share the same currency, COA, calendar, and
accounting method as those at HQ.
By defining the reporting currency and secondary ledgers, the three operations can satisfy local
regulations, and also allow comparison and consolidation.
In the definition above, Subledger Accounting allows:

 multiple accounting methods to be defined
 separate accounting methods to be used on different ledgers
Journal entries to be created on multiple ledgers for a single business event (French activities
accounted for on the primary ledger according to the IFRS method, and on the secondary ledger
according to the US GAAP method).

You can see at a glance exactly where the accounting comes from.
This is a journal entry created upon the validation of an accounts payable invoice. Notice the
description on the journal entry as well as information from the invoice itself which will help in
associating the entry with the transaction.

Subledger Accounting tracks how the journal entry is built from a transaction.
On the left-hand side of the screen, you can see an invoice for two items, freight, and tax.
On the right, you can see two entries have been created: one on the US corporate ledger and the
other on the FR statutory ledger.
The expense entry is created for the two line items of the invoice.
The next two lines (2 and 3) are for freight and tax respectively.
The rules have been set up to summarize all of this information and create a single liability
entry. You could also configure the rule so that 3 or 4 separate liability lines are created.
Subledger Accounting stores and enables you to track how each line of the invoice contributed
to the journal entry.

Let us go back to the previous example and look at a payment that pays off the invoice. The
SLA data model not only allows keeping the transaction-to-accounting link, but the inherent
features also allow the transaction flows to be reflected on the accounting side. You can see here
that a particular payment is applied to a particular invoice liability.
Using the SLA Business Flows functionality, we are able to go back to the journal created for the
invoice and view the exact liability account, at the exact rate that the invoice was converted at, if
it was a foreign currency one, at the time of accounting for the payment.
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What is a subledger?
Example: The Receivables subledger stores receivables by customer, but this detail is not
needed in a general ledger.
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Subledger Balances
Subledger Balances
Control Account: An asset or liability account (receivable or payable) to which only entries for
subledger transactions with trading partners (suppliers or customers) can be booked. No
manual GL adjustments are allowed. Subledger balances are tracked at an account and trading
partner level.
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Summary
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Create a New User

Sign on
1. Switch to the System Administrator responsibility.
 (I) Black Hat (on toolbar)
 Responsibility = System Adminstrator
Create a New User
2. Navigate to the Define User form
 (N) Security : User > Define
 User Name = XXUSER, where XX is your terminal ID.
 Password = welcome (tab, re-enter to verify)
 Person = The employee you created in the first practice
Add Responsibilities
3. Add the following responsibilities to your new username
Responsibility Security Group

General Ledger, Vision Operations (USA) Standard
Payables, Vision Operations (USA) Standard
Purchasing, Vision Operations (USA) Standard
Cash Management, Vision Operations (USA) Standard
US HRMS Manager Standard
Human Resources, Vision Enterprises Standard
iExpenses Standard
System Administrator Standard
Oracle Payments Payment Administrator Standard
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4. Save and Close Form.
Login as New User

5. Exit Oracle Applications
 (M) File > Exit Oracle Applications
 (B) OK
6. From the Oracle e-Business Suite home page:
 (L) Logout
7. Log back into the system with your newly created User ID and password.
 Old Password = welcome1
 New Password = XXuser (Tab, re-enter to verify)
8. (B) Submit.
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Create a Supplier With Two Sites

Overview
Your supervisor has notified you that the company will be purchasing materials and services
from new suppliers. In this practice, you will create a pay group and a supplier with two sites.
Assumptions
 Replace XX with your terminal number or initials.
 You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Responsibility = Purchasing, Vision Operations

1. Create a new pay group.
 (N) Setup : Purchasing > Lookup Codes
Code Meaning Description

XXPAY GROUP XXPay Group XXPay Group
2. Switch to the Payables, Vision Operations (USA) responsibility

3. Create a supplier.
 (N) Suppliers > Entry
 (B) Create
 Supplier Type = Standard supplier
 Organization Name = XXIBM Corporation
 Type = Manufacturing
 Party Risk Profile = No Risk
 Allow Tax Applicability = Checked
 Create Debit Memo from RTS Transaction = Checked
 Receipt Routing = Standard Receipt
 Allow Substitute Receipts = Checked
 Match Approval Level = 3-Way
 Invoice Match Option = Purchase Order
 Terms = Immediate
 Pay Group = XXPay Group
 Always Take Discount = Checked
 Payment Method : Electronic = Checked
4. Create a pay site.

 Address Line 1 = 1 Main St.
 City = San Francisco
 County = San Francisco
 State = CA
 Postal Code = 94105
 Address Name = San Francisco
 Addressee = San Francisco
 Phone Area Code = 415
 Phone Number = 555-1234
 Email Address = sanfrancisco@xxibm.com
 Address Purpose, Payment option = Checked
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5. Assign the San Francisco address to the Vision Operations operating unit.
6. Create a purchasing site.

 Address Line 1 = 520 Madison Ave.
 City = New York
 County = New York
 State = NY
 Address Name = New York
 Addressee = New York
 Email Address = newyork@xxibm.com
 Address Purpose, Purchasing option = Checked
7. Assign the New York address to the Vision Operations operating unit.
8. Create a contact for the pay site.

 Navigate to (L) Contact Directory
 (B) Create
 First Name = John
 Last Name = Doe
 Email Address = johndoe@xxibm.com
 Phone Extension = 1234
 Create User Account for this Contact = Checked
 iSupplier Portal Full Access = Checked
9. Create a contact for the purchasing site.

 (B) Create
 First Name = Jane
 Last Name = Doe
 Email Address = janedoe@xxibm.com
10. Set the Tolerance level for the San Francisco and New York supplier sites to Vision
Operations – Tolerance.
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Create a Supplier With Two Sites

Responsibility = Purchasing, Vision Operations (USA)
Create a New Pay Group
We will create a new pay group and assign it to your suppliers. The Pay Group will default to
new supplier sites you enter and from your supplier sites to all invoices you enter. When we
select invoices for payment during this course, you will use your pay group so you select only
YOUR invoices for payment!
1. Navigate to the Oracle Purchasing lookups

 (N) Setup : Purchasing > Lookup Codes
2. Query the PAY GROUP lookup code
 (F11)
 Enter search criteria ‘P%G%’ in the Type field
 (Ctrl)+(F11)
3. Create a new pay group by inserting your cursor in the bottom of the grid, then clicking (I)
Add New Row. Use the information below to create the new pay group:
Code Meaning Description

XXPAY GROUP XXPay Group XXPay Group
4. Save. Close the form to return to the Navigator.
Create a Supplier
5. Switch to the Payables, Vision Operations (USA) responsibility.
 (I) Black Hat (on toolbar)
 Responsibility = Payables, Vision Operations (USA)
6. Navigate to the Suppliers page.
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 (N) Suppliers > Entry

7. (B) Create Supplier.
 Supplier Type = Standard supplier
 Organization Name = XXIBM Corporation
8. (B) Apply.
9. Navigate to (L) Organization.
 Type = Manufacturing
 Party Risk Profile = No Risk
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10. (B) Save.

11. Navigate to (L) Tax and Reporting.
 Allow Tax Applicability = Checked
12. (B) Save.

13. Navigate to (L) Purchasing.
 Create Debit Memo from RTS Transaction = Checked
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Note: Enable the Create Debit Memo From RTS Transaction option if you want the system
to automatically create a Debit Memo in Payables when you enter a Return to Supplier
(RTS) in Purchasing. The value for supplier site defaults from the Purchasing Options
window.
14. (B) Save.

15. Navigate to (L) Receiving.
 Note: To find Standard Receipt:
 (I) Search
 Change the search criteria to Routing Name, not Routing Description.
 Match Approval Level = 3-Way
 Allow Substitute Receipts = Checked
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16. (B) Save.

17. Navigate to (L) Invoice Management.
 Invoice Match Option = Purchase Order
 Terms = Immediate
 Pay Group = XXPay Group
 Always Take Discount = Checked
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18. (B) Save.

19. Navigate to (L) Payment Details.
 Payment Method : Electronic = Checked
20. (B) Save.
Create a Pay Site

21. Navigate to (L) Address Book.
22. (B) Create.
23. Enter the supplier site address information as follows:
 Country = United States
 Address Line 1 = 1 Main St.
 City = San Francisco
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 County = San Francisco

 State = CA
 Address Name = San Francisco
 Addressee = San Francisco
 Email Address = sanfrancisco@xxibm.com
 Address Purpose, Payment = Checked
Note: This address should be complete as this is the address that will appear on any checks
cut to this site!
24. (B) Continue.
Note: If you get a message about the postal code, click (B) Continue to accept the Zip code.
25. Assign the address to the Vision Operations operating unit, enable the Select check box.
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26. (B) Apply. This creates the basic supplier site.

27. To update the supplier site attributes, click Manage Sites.
28. (T) Uses.

 Pay = Checked
 Primary Pay = Checked
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29. (T) Communication.

 Supplier Notification Method = Print
30. Apply.
Create a Purchasing Site

31. In the Address Book page, click (B) Create.
32. Enter the supplier site address information as follows:
 Country = United States
 Address Line 1 = 520 Madison Ave.
 City = New York
 County = New York
 State = NY
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 Address Name = New York
 Addressee = New York
 Email Address = newyork@xxibm.com
 Address Purpose, Purchasing option = Checked
Note: This address should be complete as this is the address that will appear on any checks
cut to this site!
33. (B) Continue.
34. Assign the address to the Vision Operations operating unit, by enabling the Select check
box.
35. (B) Apply. This creates the basic supplier site.
36. To update the New York supplier site attributes, click Manage Sites.
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37. (T) Communication.

 Supplier Notification Method = Print
Note: When you enter and approve purchase orders for this supplier, the Supplier
Notification Method will default. We’ve chosen printed document here. However, if we
chose e-Mail and specified an e-mail address, that information would default during
purchase order approval so we could send the purchase order using the supplier’s
preferred method. Valid options are e-Mail, Fax and Printed Document.
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38. Apply.
Create a Contact for the Pay Site

39. Navigate to (L) Contact Directory.
40. (B) Create.
 First Name = John
 Last Name = Doe
 Email Address = johndoe@xxibm.com
 Phone Extension = 1234
41. In the Addresses for the Contact Region, click (B) Add Another Row.
42. Type 'San Francisco' in the Address Name Field.
43. (B) Apply.
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Create a Contact for the Purchasing Site

44. Navigate to (L) Contact Directory.
45. (B) Create.
 First Name = Jane
 Last Name = Doe
 Email Address = janedoe@xxibm.com
46. In the Addresses for the Contact Region, click (B) Add Another Row.
47. Type 'New York' in the Address Name Field.
48. (B) Apply.
Set the Supplier Site Tolerance

49. (L) Invoice Management
50. Scroll to the Supplier Sites region.
51. (ST) Invoicing
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52. For the New York and San Francisco sites, select Vision Operations – Tolerance from the list
of values.
 (L) More . . .
 Search = Vision Operations – Tolerance
 (B) Go
 (B) Select
53. (B) Save.

54. Close the form back to the Navigation menu.
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Create a Customer (Required)

Overview
Before creating a customer, use the Customer Search page to determine if the customer already
exists and minimize the possibility of creating a duplicate.
The Create Customer page displays differently, depending upon your customer type selection,
Organization or Person, on the Customer Search page.
In this practice, you will create an Organization customer.
Assumptions
 You have the Receivables, Vision Operations (USA) or Order Management Super User,
Vision Operations (USA) responsibility.
 Replace XX in the Practice with a unique identifier such as your initials or terminal
number. (For Instructor Led Training classes, this number will be assigned to you).
This is necessary in order to create unique records within the database when
performing the Practice.
Create an Organization Customer

1. Navigate to the Customer Search page.
 (N) Customers > Customers > Customer Search
2. Search for the customer XXMegamart.
3. If the customer does not exist, click (B) Create Customer.
4. Enter the following data:
Enter the following customer information to create the new Organization customer:
Field Name Value
Organization Name XXMegamart
Alias Platinum
Enter the following account information to create the new Organization customer:
Field Name Value
Account Description XX- XXMegamart Account1
Account Number XX-7556
Profile Class XXGOOD CREDIT
Account Type External
Note: The Account Number must be unique. You need not enter a customer account
number if the Automatic Customer Numbering System Option is enabled on the (T) Trans
and Customers of the System Options window.
Enter the following account site information to create the new Organization customer:
Field Name Value
Country United States
Address Line 1 200 E Randolph Street
City Chicago
County Cook
State IL
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Postal Code 60601

Operating Unit Vision Operations
Address Description Western United States
Business Purposes Bill To
5. Click (B) Save And Add Details to go to the Account Overview page. Alternatively, click
(B) Apply to go to the Customer Overview page.
6. Click Apply on the Account Overview page (or on the Customer Overview page if you
clicked (B) Apply in Step 5) to save the customer and return to the Customer Search page.
7. Repeat these steps to create a second customer named XXGiant Distributors.
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Create Accounting and Transfer Journal Entries to General Ledger

Create Accounting Program Overview

Eligible accounting events are defined as follows:
 Event needs to be for a completed transaction
 Rules must be defined to process the transaction type/event type
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Draft Accounting
Draft Accounting
When you select draft accounting, Subledger Accounting creates the relevant journal entries in
draft mode. Draft entries are not posted to General Ledger. You can review the resulting entries,
update the transactions, or update the accounting rules. Any changes will be reflected when the
transaction is processed again for accounting.
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Online Accounting
Online Accounting
Final entries are ready to be transferred to General Ledger and cannot be modified. The
transactions are considered as processed for accounting. Any changes to the rules will not
impact final entries.
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Straight-Through Accounting
Straight-Through Accounting
If you select Final Post, Subledger Accounting posts the journal entries all the way through to
General Ledger. This means that you can update GL balances straight from the invoice entry (or
any other transaction entry) window.
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Create Accounting Program Parameters
Create Accounting Program

The Create Accounting program creates subledger journal entries. In general, the parameters
described in the table above determine which accounting events are processed.
Navigation Paths
Payables: Other > Requests > Run
Receivables: View > Requests (B) Submit a New Request
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Create Accounting Program Parameters
Create Accounting Program

The Create Accounting program generates one or more accounting programs depending on the
volume to be processed.
The Subledger Accounting Program report is generated by the Create Accounting program and
documents the results of the Create Accounting program. It lists the following:
 Successful events and the subledger journal entries created for those events
 Errors for failed events
You can run the report in summary, detail, or no report mode which are described as follows:
 Summary mode provides a summary of events processed and detailed information
about their errors.
 Detail mode provides details of subledger journal entries generated from the
processing of completed events and a detailed error report.
 No report mode will show an error count without actually generating the report.
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Transfer Journal Entries to GL Program Overview
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Transfer Journal Entries to General Ledger Program
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Oracle Subledger Accounting Program Report
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Oracle Subledger Accounting Program Report
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Transfer Journal Entries to GL Report
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Setting Profile Options
Setting Profile Options

The profile options listed above relate to data access and security and impact how accounting is
generated through SLA in R12.
SLA: Enable Subledger Transaction Security in GL
 Use this profile option to combine subledger transactions security with data access
security for General Ledger responsibilities when drilling down to multi-organization
enabled subledger application. Transaction security in the respective subledger
application is always applied when drilling down from subledger transactions to
subledger journal entries.
SLA: Enable Data Access Security in Subledger

 This profile option determines whether the General Ledger Access Set security
mechanism is applied for a subledger application responsibility when viewing,
reporting, or creating subledger journal entries associated with a given ledger. The
General Ledger Access Set security mechanism is always applied for responsibilities
associated with the General Ledger application.
 The profile option enables you to combine data access security with subledger
transaction security and therefore control access to subledger journal entries
depending on the ledger to which they belong. For example, you can implement a
Multi-Org Security Profile that allows you to create Oracle Receivables Invoices for
two different operating units each associated with different ledgers but restrict drill-
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down from the subledger transaction to the associated subledger journal entry based
upon the destination ledger contained in the Access Set.
SLA: Additional Data Access Set

 The SLA: Additional Data Access Set profile option, in conjunction with the GL: Data
Access Set profile option, controls which ledgers and balancing or management
segment values you can access when logging onto a responsibility. If SLA: Enable Data
Access Security in Subledgers is enabled for the responsibility, you have access only to
the ledgers and balancing or management segment values included in the data access
sets assigned to the SLA: Additional Data Access Set and GL: Data Access Set profile
options.
SLA: Allow Reports Journal Source Override

 This profile option applies only to the following reports:
 Open Account Balances Listing
 Third Party Balances Report
 Enable this option to change the Journal Source parameter during report submission. If
the option is set to No, then you cannot change the value defaulted during report
submission.
For example:
 Should the general ledger data access set security be enforced when generating
accounting? For example, should journal entries be created if the user does not have
ledger clearance even if they may have multiorg access to the operating unit?
 Should the transaction security model be applied when drilling down from GL? For
example, should the user be allowed to inquire on journal entries of certain operating
units if they do not have MO access, but have ledger clearance?
 If there are secondary ledgers and data access set security is enforced in the subledger
module, then an additional data access set needs to be assigned to the user to enable
access to the secondary ledger.
 Should the user be able to run certain reports across data from multiple subledger
applications?
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Summary
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Enter an Invoice with Two Lines that are Distributed to Different Departments
Enter Invoice
1. Navigate to the Invoices window.
 (N) Invoices > Entry > Invoices
2. Enter an invoice using the following information:
Trading Invoice Invoice Description Payment Payment

Partner Num Amount terms Method
XXIBM XX1000 10000 Promotional Immediate Electronic
Corporation Giveaway
Enter Two Invoice Lines and Distribute Each Line to a Different Department
3. (T) Lines
4. Enter the invoice lines according to the following table:
Num Type Amount Distribution Account

1 Item 4000 01-402-7110-0000-000
2 Item 6000 01-404-7110-0000-000
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5. Save.
6. (B) All Distributions. Note that because you entered the Distribution account for each Item
line, the distributions are automatically created for these lines.
7. Close the form back to the Navigation menu.
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Create an Invoice
Overview
In this practice you will create a receivables invoice.
Assumptions
 If you are not attending training at an Oracle University or Authorized Partner
Education Center, you must have access to an Oracle Application Vision database or
comparable training test instance on which to complete this Practice.
 Replace XX in the Practice with a unique identifier such as your initials or a number.
(For Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Create an Invoice
Responsibility = Receivables Manager
1. Navigate to the Transactions window
 (N) Transactions > Transactions
 Source: Manual
 Class: Invoice
 Type: Invoice
2. Create an invoice for XX-Big City using the following information:
Line Item Quantity Unit Price Tax

Number Number
1 CS03755 10 1500 Location
2 CS32698 5 1750 Location
3. Complete the invoice

4. Note Transaction Number: ____________________________________
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Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to
GL Program in Payables
Responsibility: Payables, Vision Operations (USA)
Run the Create Accounting Program
1. (N) Other > Requests > Run
2. (B) OK
3. In the Name field, select Create Accounting.
4. Enter the following information in the Parameters window:

Field Name Value
Ledger Vision Operations (USA)
Process Category Invoices
End Date <today’s date>
Mode Final
Errors Only No
Report Detail
Transfer to General Ledger Yes
Post in General Ledger No
Include User Transaction No
Identifier
5. (B) OK
6. (B) Submit
7. View - Requests.
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Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to
GL Program in Receivables
Responsibility: Receivables, Vision Operations (USA)
Run the Create Accounting Program
1. (M) View > Requests
2. (B) Submit a New Request
3. (B) OK
5. Enter the following information in the Parameters window:

Field Name Value
Ledger Vision Operations (USA)
Process Category Transactions
End Date <today’s date>
Mode Final
Errors Only No
Report Detail
Transfer to General Ledger Yes
Post in General Ledger No
Include User Transaction No
Identifier
6. (B) OK
7. (B) Submit
8. (B) No
9. (B) Find to view requests.
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Inquiries
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Objectives
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Accounting Events Inquiry Process
Accounting Events Inquiry Process

 Navigate to the Accounting Events Inquiry page.
 Payables: Accounting > Subledger Accounting > Journal Entries (T) Accounting
Events
 Receivables: Inquiry > Subledger Accounting > Journal Entries (T) Accounting
Events
 Execute a search for specific accounting events.
 View accounting events.
 View subledger journal entry information by clicking View Journal Entries.
 View detailed entry information about the subledger journal entry by clicking the
ledger link.
 View the T-account by clicking View T-Account.
 View reversing entry. Note that this button is only available if you are viewing an
accrual entry that has been reversed.
 View multiperiod accounting associated with the accrual journal entry by clicking the
Multiperiod icon in the Lines region. Note that the Multiperiod icon is only available if
you are viewing a multiperiod journal entry.
 Compare two journals by clicking Compare.
 Click View Transaction to view the underlying transaction.
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The View Subledger Journal Entry page is displayed only if there is more than one subledger
journal entry created for an accounting event. If there is only one subledger journal entry for an
accounting event, the View Subledger Journal Entry page is displayed.
The following conditions apply:

 If the balance type is Actual, the reference date is displayed.
 If the balance type is Budget, the Budget Version field is displayed.
 If the balance type is Encumbrance, the Encumbrance Type field is displayed.
 If the entry is for public sector and funds approval is required, the Funds Status
field is displayed.
 If viewing an accrual reversal journal entry in the View Subledger Journal Entry page,
the View Accrual Entry button is displayed to view the accrual journal entry details. If
viewing an accrual journal entry, the View Reversing Entry button is displayed to view
the accrual reversal journal entry details.
 The View Transaction button appears only if drilldown is enabled.
 The Multiperiod icon on the lines is displayed only if the entry is a multiperiod journal
entry.
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Viewing Subledger Journal Entry Lines
Viewing Subledger Journal Entry Lines

 Navigate to the Subledger Journal Entries page from a subledger application.
 Payables: Accounting > Subledger Accounting > Journal Entries
 Receivables: Inquiry > Subledger Accounting > Journal Entries
 You can use the subledger application responsibility for any application using
Subledger Accounting.
 Execute a search.
 View subledger journal entries.
 Delete, update, duplicate, reverse, and complete entries.
 View detailed journal entry information by selecting the ledger link.
 View journal entry information in a T-account format by clicking View T-Account.
 View reversing entry. If viewing an accrual reversal journal entry in the View
Subledger Journal Entry page, the View Accrual Entry button is displayed to view the
accrual journal entry. If viewing an accrual journal entry, the View Reversing Entry
button is displayed to view the accrual reversal journal entry.
 View multiperiod accounting. View multiperiod lines associated with the accrual
journal entry by clicking the Multiperiod icon in the Lines region.
 Create journal entry. Create journal entries page by clicking Create Journal Entry in the
Subledger Journal Entries page.
 Compare entries. Compare subledger journal entries by clicking Compare in the
Subledger Journal Entries page.
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Subledger Journal Entry Lines Inquiry Process
Subledger Journal Entry Lines Inquiry Process

Payables: Accounting > Subledger Accounting > Journal Entries (Lines)
Receivables: Accounting > Subledger Accounting > Journal Entries (Lines)
1. Navigate to the Subledger Journal Entry Lines page from a subledger application.
2. Execute a search.
3. View subledger journal entry lines in the results region.
4. View subledger journal entries for a selected journal entry line by clicking View Journal
Entry.
5. View journal line information in T-account format by clicking View T-account in the View
Subledger Journal Entry page.
6. View reversing entry. If viewing an accrual reversal journal entry in the View Subledger
Journal Entry page, the View Accrual Entry button is displayed to view the accrual journal
entry details. If viewing an accrual journal entry, the View Reversing Entry button is
displayed to view the accrual reversal journal entry details.
7. View multiperiod accounting. View multiperiod lines associated with the accrual journal
entry line by clicking the Multiperiod icon in the Lines region.
8. View the transaction associated with the subledger journal entry by clicking View
Transaction in the Subledger Journal Entry Lines page. This button appears only if
drilldown is enabled.
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Drilldown from GL
Drilldown from GL
The figure above shows the drilldown from GL journal lines inquiry to subledger journal entry
lines in Subledger Accounting. From here, users can navigate to the subledger journal entries or
drill down to the subledger transaction.
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Summary
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Inquiring on Subledger Journal Entries

Inquiring on Subledger Journal Entries for Payables and Receivables
Responsibility = Payables, Vision Operations (USA) or Receivables, Vision Operations

(USA)
1. Navigate to the Subledger Journal Entries window.
 In Payables: (N) Accounting > Subledger Accounting > Journal Entries
 In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries
2. Ensure that the Headers tab is selected.
3. In the Advanced Search window, enter the following search information:

 Ledger: Vision Operation (USA)
 From GL Date: <today’s date>
 To GL Date: <today’s date>
4. (B) Go
The subledger journal entries are displayed in the Results region.
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5. To view the details of an entry, click on the appropriate ledger link to display the Subledger
Journal Entry window.
6. To view detailed line information, click the appropriate Show link. For example, the
screenshot below shows detailed information for the Item Expense line.
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Accounting Methods Builder (AMB)
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Objectives
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Accounting Methods Builder (AMB) Overview
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This diagram shows a hierarchy of the AMB, indicating how the components fit together.
The transaction objects and the sources carry transaction information into the rules defined for
each component of an entry.
These components, i.e. journal line type, account derivation rule, and journal entry descriptions
are grouped together as a journal line definition (JLD) for a particular event. For example, you
can set up a JLD for an invoice validation event, another for payment creation, and another for
payment clearing. The set of rules for a particular subledger application is called the application
accounting definition (AAD). The set of AADs for multiple applications is called the subledger
accounting method.
You can maintain multiple accounting methods. You can set up as many components as you
like and use them for different accounting methods. You can set up an accounting method that
creates entries in compliance with US GAAP, and another one that complies with IFRS. These
two methods could share components, such as entry descriptions, because the journal entry
components are modular.
The accounting methods are then assigned to each ledger, which determines the rules that are
applied when accounting is being generated for a particular ledger. If your setup has a primary
and a secondary ledger, you could have different accounting methods attached to and used for
each ledger.
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AMB Process
AMB Process
The components listed above are used by the Subledger Accounting program to create
subledger journal entries. Before creating or modifying any components or definitions, check
whether the seeded application accounting definitions meet your requirements.
You can modify existing definitions or create new definitions.
Group application accounting definitions that comply with a common set of accounting
requirements into a subledger accounting method. Each subledger accounting method can be
assigned to one or more ledgers.
Use application accounting definitions to group journal lines definitions and header
assignments for event classes and event types. Also, indicate whether to create accounting for a
particular event class or event type. For example, when using cash basis accounting, you would
not create a journal entry to record the accrual of an invoice.
Use journal lines definitions to group and assign journal line types, account derivation rules,
and journal entry descriptions into a complete set of journal entries within an event class or
event type. Share these sets across application accounting definitions for the same application.
Account derivation rules determine the account combinations for subledger journal entries. You
can also define conditions that determine when a particular rule is used.
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Use mapping sets in the account derivation rules setup. By mapping input values to different
outputs, mapping sets provide flexibility in the creation of account derivation rules. The use of
mapping sets is optional.
Define the journal entry description for the subledger journal entry. Descriptions are assigned to
the journal header and lines.
Set up journal line types for a particular event class and determine the characteristics of the
subledger journal entry lines. Also, set up conditions for the use of the journal line type.
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In order to make rule setup as flexible as possible, the journal entry has been split into
components, as follows:
 Description of the entry or its individual lines; you can set up as many descriptions as
you want by using data from the transaction and constant values. The screenshot
above shows a description for an invoice, indicating the event (invoice validation), the
invoice number, type, date, and description.
 Line Type; defines whether this is a debit or a credit, the accounting class, and where
the amount should come from. You can set up as many line types as you need for a
particular entry. You can have a single invoice line or distribution create as many
debits or credits as needed.
 Account Derivation Rule; determines to which GL account a line is booked. There is a
lot of flexibility around the account derivation rules. You can simply set up a rule for
each account combination to be used, or you can provide more detail and build each
account combination segment by segment by combining multiple rules. These rules
can be set up to derive the accounts or segment values from transactional data,
including conditions of when to use specific rules.
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Copy and Modify Functionality
Copy and Modify Functionality

The copy and modify functionality is provided for the following components of the AMB:
 Subledger accounting methods
 Application accounting definitions
 Journal lines definitions
 Journal line types
 Account derivation rules
 Journal entry descriptions
The copy functionality reduces the need to repeat data entry functions when there are
substantial similarities between two definitions. Definitions created by users are not overwritten
by upgrades to Subledger Accounting. However, upgrades can still affect definitions if those
definitions use seeded components. Use the merge analysis feature to assess whether any
upgrades to the AMB impact any user-defined application accounting definitions.
Assign custom components only to custom definitions. For example, assign a custom account
derivation rule (one that has been copied from an existing account derivation rule and
modified) only to a custom journal lines definition. Assign a journal lines definition only to
custom application accounting definitions and custom subledger accounting methods.
You can optionally mix and match custom and seeded lower-level components with custom
higher-level components.
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Transaction Chart of Accounts
Transaction Chart of Accounts

The transaction chart of accounts represents the INPUTs to Subledger Accounting rules, for
example, if you have an SLA rule that does something based on whether the incoming account
uses the cost center 410.
For example, a Receivables invoice is entered. The item, tax, freight, and other account
combinations for the invoice contain the structure and values from the transaction chart of
accounts. Similarly, recording the receipt of goods and invoices, as well as issuing payments,
are all done in the context of a transaction chart of accounts structure.
Values for account combination sources stored in the transaction objects are taken from the
transaction chart of accounts. Use these source values in the AMB account derivation rules and
conditions.
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Accounting Chart of Accounts
Accounting Chart of Accounts

The accounting chart of accounts is for the OUTPUT of Subledger Accounting rules. This is the
chart of accounts of the resulting journal entries that Subledger Accounting produces.
The transaction and accounting charts of accounts are always the same for the primary ledger.
They can be different in cases where users create secondary multiple representations.
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Event Model
Event Model
The event model defined in SLA for each subledger represents the transaction/document types
and the lifecycle of each transaction:
 The event class classifies transaction types. An invoice, for example, is an event class.
 The event type defines possible actions on each event class with potential accounting
significance, for example, validation of an invoice.
 The journal creation rules are defined for each event class and event type.
 Accounting events represent transactions that have a financial accounting impact.

Examples of accounting events are issuing an invoice and disposing of an asset.
Financial accounting information can be recorded for these events. Accounting events
cannot be compared to system events and programs that update transaction tables;
instead they should be analyzed from a business perspective. Events are captured
when transactions are committed in the subledgers.
 As an example, a Payables invoice is created, then approved, possibly adjusted, and

then paid or cancelled. The accounting events representing these transactions can
create one or more subledger journal entries and subsequently link the originating
transaction to its corresponding journal entries.
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Event Classes
Event Classes
Examples of event classes for Payables are: invoices, debit memos, and payments. Notice how
these correspond to the document types.
Similarly, for Receivables, event class examples are invoices, deposits, and receipts; and for
Assets, additions and adjustments.
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Event Types
Event Types
An accounting event for a Payables invoice, for example, would be the validation, adjustment,
or cancellation of the invoice. Similarly, for a Receivables receipt, accounting events would be
the creation, application, or reversal of the receipt. Therefore, every time one of these actions is
taken on a receipt transaction, an accounting event will be created. Based on the rule setup,
there may or may not be a resulting journal entry. You may set up rules to generate journal
entries for some events, but not for others.
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Subledger Accounting Method
Subledger Accounting Method

Navigation Paths
 Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting
Methods Builder > Methods and Definitions > Subledger Accounting Methods
 Receivables: Setup > Accounting > Accounting Methods Builder > Methods and
Definitions > Subledger Accounting Methods
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Subledger Accounting Methods

Grouping AADs ensures that a consistent method of accounting for all subledgers feeding into
a particular ledger is maintained.
For example, a subledger accounting method entitled French GAAP can be defined to group
application accounting definitions that are accounted for using French GAAP criteria. As
another example, a Cash Basis Accounting Method can be defined to group application
accounting definitions that are used to account for transactions on a cash basis.
By assigning different subledger accounting methods to ledgers, the AMB enables you to create
multiple accounting representations of transactions.
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Setting Up Subledger Accounting Methods
Setting Up Subledger Accounting Methods

The subledger accounting method (SLAM) is a collection of accounting definitions for all the
applications that you will be generating accounting for. Each primary and subledger level or
adjustment secondary ledger is associated with a SLAM, which determines the accounting rules
and standards that will be applied when generating entries for that ledger.
Oracle seeds a number of accounting methods to support standard accrual, cash basis
accounting, as well as accrual and cash basis encumbrance accounting and US Federal
accounting.
If the accounting standards change over time, existing rules can be end-dated, and new ones
activated.
Notice that all of the components can be defined specifically for a given chart of accounts, or can
be generic across several chart of accounts. This is especially important if you define rules using
chart of accounts (COA) specific account combinations or segment values, which would not be
meaningful when generating entries for ledgers with a different COA structure.
In the hierarchy of the Subledger Accounting AMB, each component under a subledger
accounting method must share the same chart of accounts as the subledger accounting method
or be generic to COAs.
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If there is a subledger level secondary ledger defined, as the transaction is being processed for
accounting, there will be a separate journal entry generated for the primary and secondary
ledgers, both according to the accounting method on each ledger.
Note: Generic rules can be shared but you may find you are limited as to how you can
apply them. By their very nature generic rules can be shared but because they can be
shared they are also limited to the lowest common denominator. For example, this will
preclude you from using mapping sets as you need to be able to set segments or account
combinations to specific values which is inherently chart of accounts specific.
You should also be aware that generic lower level components can be assigned to specific
higher level components, for example, a generic Account Derivation Rule can be assigned to a
specific Journal Line Definition, but this will not work in reverse.
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Application Accounting Definition
Application Accounting Definition

Navigation Paths
Methods Builder > Methods and Definitions > Application Accounting Definitions
Definitions > Application Accounting Definitions
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Application Accounting Definitions

Each event class and event type assignment consists of a header assignment and one or more
journal lines definition assignments.
You can assign multiple journal lines definitions to an event class or event type. Subledger
Accounting generates a single journal entry for each accounting event and ledger using the line
assignments from all the journal lines definitions assigned to the event class or event type.
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For example, use a complete set of US GAAP accounting definitions for Payables as an
application accounting definition for the ledger US Applications. Use a complete set of French
GAAP accounting definitions for Payables as an application accounting definition for the ledger
French Operations. These definitions have differences based on the setup of the various
components that make up their application accounting definitions.
Seeded application accounting definitions are provided for all Oracle subledgers. If specific
requirements are not met by start-up accounting definitions, you can copy and modify the
seeded definitions and their assignments.
The Applications Accounting Definitions (AAD) Loader enables you to import and export
application accounting definitions and journal entry setups between different database
instances. The AAD Loader also supports concurrent development and version control of the
application accounting definitions.
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Importing Application Accounting Definitions
Importing Application Accounting Definitions

The Import Application Accounting Definitions concurrent program imports the application
accounting definitions from a data file to the Accounting Methods Builder (AMB) context
specified in the SLA: Accounting Methods Builder Context profile option and produces a report
of the results.
When running the Import Application Accounting Definitions concurrent program, users
specify whether to run the merge analysis, merge, or overwrite processes.
The Merge Analysis Only parameter determines whether merge analysis is performed to the
imported application accounting definitions. The default is Yes.
The Import Option is only enabled and required if the Merge Analysis Option parameter is set
to No. This parameter indicates whether the application accounting definitions from the data
file should be merged or overwritten to the database. The default is Merge.
The Force Overwrite parameter is only enabled and required if the Merge Analysis Only
parameter is set to No and the Import Option parameter is set to Overwrite. This parameter
indicates whether Subledger Accounting should allow an application accounting definition to
be overwritten from the data file to the database if the version in the data file is lower than the
version in the database. The default is No.
When the Import Application Accounting Definitions program is completed successfully, a

report highlighting all the imported application accounting definitions and their versions as
well as all the errors that occurred during the import process is produced.
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Exporting Application Accounting Definitions
Exporting Application Accounting Definitions

When completed successfully, the Export Application Accounting Definitions program
produces a report highlighting all the exported application accounting definitions as well as any
errors that may have occurred.
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Journal Line Types
Journal Line Types

Navigation Paths
Methods Builder > Journal Entry Setups > Journal Line Types
 Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry
Setups > Journal Line Types
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Journal Line Types
Journal Line Types

The definition of a journal line type includes the following features:
Subledger Accounting uses rounding class along with the transaction rounding reference to
group journal lines tighter and calculate transaction rounding. Subledger transaction rounding
differences can occur when a transaction has multiple distributions.
The journal entry line can have an actual, budget, or encumbrance balance type.
 For products like Oracle public sector applications that use encumbrance accounting,
separate journal line types can be created for encumbrance lines.
Journal line types specify if the journal line is to be a debit, credit, or gain/loss line.
 For example, when a Payables invoice is generated, the liability account should
normally be credited. The journal line type must therefore specify the Side option as
Credit. On the other hand, the payment of the Payables invoice must be accounted
with a debit to the liability account. A separate journal line type must be defined to
create this debit line.
 The gain/loss amount is the difference in the ledger currency due to foreign currency
fluctuations. Gain or loss amounts occur when two related transactions, such as an
invoice and its payment, are entered in a currency other than the ledger currency, and
the conversion rate fluctuates between the time that the two are accounted.
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You can specify whether the gain or loss has been calculated in the primary ledger so that the
gain or loss amount is not converted to the reporting currency or non-valuation method
secondary ledgers.
You can specify whether to derive journal entry components from a related journal entry.
 The business flow method determines if and how a journal line should inherit journal
entry values.
You can specify whether to apply multiperiod accounting to a journal line type.
Journal entry lines are transferred to General Ledger in summary or detail mode.
You can define conditions to restrict the use of a journal line type by controlling when a
particular journal line type is used by the Subledger Accounting program.
You can assign accounting attributes.

 If an accounting attribute is relevant to the accounting event's underlying transaction,
then its value is required to generate subledger journal entries for the transaction. By
assigning standard sources to accounting attributes in the Accounting Attributes
window, you can use standard source values as the values for accounting attributes.
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Journal Line Types
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Journal Line Types
Journal Line Types

The journal line type determines the type of entry to generate.
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Journal Line Types
Journal Line Types

This is a sample journal entry for an invoice validation.
There are two line types defined in the example above, a credit line type (Line 1) and debit line
type (Lines 2 to 4).
You can see 4 lines on this entry, one for the liability (Line 1) and 3 for the item expense (Lines 2
to 4). The reason why there are only 2 journal line types and there are 4 journal entry lines is
because the transaction included 3 lines for 3 separate expense items; one for 5000, one for 4500,
and another for 500. The 2 journal line types were applied to all 3 transaction lines generating 6
journal entry lines: 3 expense lines and 3 liability lines. The 3 liability lines were identical so
they were merged, resulting in 4 journal entry lines.
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Account Derivation Rules
Account Derivation Rules

Navigation Paths
Methods Builder > Journal Entry Setups > Account Derivation Rules
 Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry
Setups > Account Derivation Rules
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Account Derivation Rule

You can set up a separate rule for each account combination to be used, or if you require more
detail you can build each account combination segment by segment by combining multiple
rules. These rules can be set up to derive the accounts or segment values from transactional
data, including conditions determining when specific rules are used.
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Defining Account Derivation Rules
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Deriving the value from another account derivation rule is mainly used between products. For
example, Oracle Projects has an account derivation rule for expense. A Payables user is defining
an expense account derivation rule but if the invoice is project-related then the account should
be derived using the same methodology as Oracle Projects. In this case, the Payables user adds
one priority to the account derivation rule referencing the Projects account derivation rule. The
Payables user could use the Project sources but referencing the account derivation rule is a
short-cut.
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Account Combination Rules
Account Combination Rules

Source value type
 For account combination rules, accounts entered on transactions have been defined as
sources and are available to be used as accounts on journal entries. Derive the account
combination by specifying a source such as the Distribution Account in the rule. The
Subledger Accounting program then obtains the account by referencing the
distribution account combination on the transaction. The transaction or accounting
chart of accounts does not need to be known when this type of rule is defined.
Constant value type

 Establish the account as a constant value. For example, the constant could be the
account combination 01.000.2210.0000.000 from the accounting chart of accounts
specified. This is the simplest way to derive an account.
Mapping Set value type

 Derive the account combination by referencing a mapping set. Set up a mapping set
rule to determine the complete account combination from the accounting chart of
accounts specified.
Note: An accounting chart of accounts must be specified for rules using either constants or
mapping sets.
Account Derivation Rule value type
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 Derive the account by referencing another account derivation rule. If the account
derivation rule has an accounting chart of accounts, then all account derivation rules
that are assigned must have the same or no chart of accounts.
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Segment Rules
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Segment Rules
Segment Rules
Source value type
 For Segment rules, all sources marked as account combination segment qualifiers or
account combinations are available. If the source is an account combination, take the
value of the corresponding qualified segment of the account on the transaction. For
example, derive a segment value from the cost center segment of the liability account
combination. In addition, use sources that are not account combinations.
Note: When creating rules for an account combination qualifier, only sources that are
marked as account combination sources or the same account combination qualifier segment
as the qualifier specified for the rule can be selected.
Constant value type

 Establish the segment value as a constant. For example, the company segment can be
set to 01.

 Use a mapping set to determine the value of the segment. For example, using a
mapping set that maps supplier types to departments, the supplier type can determine
the department segment value.
Note: An accounting chart of accounts must be specified for rules using either constants or
mapping sets.

 Derive the account by referencing another account derivation rule. The transaction or
accounting chart of accounts does not need to be specified when defining this type of
rule. If the account derivation rule has an accounting chart of accounts, then all account
derivation rules that are assigned must have the same or no chart of accounts.
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Oracle-Owned vs. User-Owned AMB Components
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Value Set Rules
Value Set Rules

Source value type
 For value set based rules, all sources that are data type Alphanumeric and are not
marked as account combinations or account combination qualifiers are available.
Constant value type

 Establish the segment value as a constant. This list of values is based on the value set
defined for the rule.

 Use a mapping set to determine the value of the value set based rule. In this case, the
mapping set must be created for the same output value set as the value set for the
account derivation rule.

 Derive the account by referencing another account derivation rule. The transaction or
accounting chart of accounts does not need to be specified when defining this type of
rule. If the account derivation rule has an accounting chart of accounts, then all account
derivation rules that are assigned must have the same or no chart of accounts. When
the value type is Account Derivation Rule, select only account derivation rules with
matching output types.
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Mapping Sets
Mapping Sets
Navigation paths:
Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting
Methods Builder > Journal Entry Setups > Mapping Sets
Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry Setups >
Mapping Sets
To define a mapping set, pairs of values are specified. For each input value, specify a
corresponding account segment or account combination output value. One or more related
pairs of these input values and segment or account combination output values form a mapping
set. Use value sets or lookup types to validate the input values of the mapping set.
For example, it is possible to create a mapping set based on two input values, Yes and No.
Apply these input values to determine the balancing segment value of an account: 01 if the
input value is Yes and 02 if it is No. Use this mapping set in one of the rules that builds the
segment values of an account. The rule compares the value of a source to see if it is Yes or No
and determines the segment value accordingly.
Prerequisite for defining mapping sets:

 Using value sets and lookup types prevents data entry errors when entering input
values. If planning to use either value sets or lookup types to validate the input values,
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they must be defined before setting up mapping sets. If neither a value set nor a
lookup type is selected, you can enter any value in the Input Value field.
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Journal Entry Descriptions

Navigation Paths
Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting
Methods Builder > Journal Entry Setups > Journal Entry Descriptions
Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry Setups >
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Journal Entry Description

A description can be assigned to the journal entry header, or different descriptions can be
assigned to each of the lines of the entry. For example, you could add a description on the entry
for a payables invoice containing general information about the particular invoice, or add a
description on the item expense line containing information about the item or expense itself.
Build descriptions using any of the available sources for the application. For example, a
transaction number can be included in the description. Use literal strings or a combination of
both sources and literals. Some of the sources can only be used for descriptions applied at the
line level. For example, a source associated with an invoice line number can only be applied to a
line description.
Assign descriptions to journal entry lines in the Journal Lines Definitions window and to
journal entry headers in the Application Accounting Definition window.
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The final component that makes up a journal entry is the description.
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Journal Lines Definition
Journal Lines Definition

Navigation Paths
Methods Builder > Methods and Definitions > Journal Lines Definitions
Definitions > Journal Lines Definitions
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Journal Lines Definitions

The journal line type, description, and account derivation rules are grouped together as a
journal line definition to create the rule for a particular event type.
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Summary
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Running the Create Accounting Program for Payables

Overview
In this practice, you will do the following:
 Enter an invoice
 Run the Create Accounting program in draft mode from the Invoices Workbench or
alternatively from the Requests window
Assumptions
 Responsibility selected to complete this practice is Payables, Vision Operations (USA).
Tasks
Log on to the system
 User Name = operations
 Password = welcome
 Responsibility = Payables, Vision Operations (USA)
Enter an invoice
In the Invoices window, create an invoice based on the following information:
 Trading Partner: IBM Corporation
 Invoice number: XX5000
 Invoice amount: 15000
 Description: Promotional Giveaway
 Payment method: Electronic
 Enter 2 lines, one for 10,000 and another for 5,000.
 Use distribution account: 01-402-7710-0000-000 for the first line and 01-402-7120-0000-
000 for the second line.
Run the Create Accounting program:
- for invoices up to and including today’s date
- in draft mode
- don’t include events with an Error status
- generate a detailed report
- don’t display user identifiers
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Running the Create Accounting Program for Payables

Entering an invoice
1. Navigate to the Invoice Workbench:
 (N) Invoices > Entry > Invoices
2. In the Trading Partner field, select IBM Corporation.
3. In the Invoice Number field, enter XX5000.
4. In the Invoice Amount field, enter 15,000.
5. In the Description field, enter Promotional Giveaway.
6. In the Payment Method field, select Electronic.
7. Select the Lines tab.
8. In the Amount field, enter 10000.
9. In the Product Type field, select Goods.
10. In the Distribution Account field, enter 01-402-7710-0000-000.
11. Enter a second line, where the amount is 5000 for Goods and use the distribution account
01-402-7120-0000-000.
12. To validate the invoice, (B) Actions.

13. Select the Validate check box and (B) OK.
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You can now generate draft accounting from the Invoice Workbench (proceed to step 14) or
you can submit the Create Accounting program (proceed to step 16) from the Requests
window. If you generate the draft accounting from the Invoice Workbench then you are
just generating accounting for that particular transaction. If you generate accounting from
the Requests window then you will generate accounting for any outstanding transactions,
including the transaction you just entered.
Note: If you have recently made changes to the Subledger Accounting setup you may find
that you are unable to generate accounting from the Invoice Workbench. If you receive a
message indicating that accounting cannot be generated then you should submit a request
via the Requests window.
Generating Draft Accounting from the Invoice Workbench

14. (B) Actions
15. Select the Create Accounting check box.
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16. Select the Draft radio button.

17. (B) OK.
Generating Draft Accounting from the Requests window

18. Navigate to the Submit a New Request window.
 (N) Other > Requests > Run
19. (B) Single Request
20. (B) OK
21. In the Name field, select Create Accounting. The Parameters dialog box appears.
22. In the Ledger field, select Vision Operations (USA). This is a required field and limits
accounting events selected for processing to those of a particular ledger.
23. In the Process Category field, select Invoices. This is an optional field and restricts the
events selected for accounting to a particular process category.
24. In the End Date field, enter today’s date. This is a required field and processes only those
events with event dates on or before the end date.
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25. In the Mode field, select Draft. This is a required field and determines whether the
subledger journal entries are created in draft or final mode.
26. In the Errors Only field, select No. This is a required field and limits the creation of
accounting to those events for which accounting has previously failed. If you selected Yes,
then the Create Accounting processes all events with a status of Error.
27. In the Report field, select Detail. This is a required field and determines whether to
generate a report showing the results of the Subledger Accounting program in summary or
detail format.
28. Leave the General Ledger Batch Name field blank. This is an optional field and is the user-
entered batch name that appears on the transferred General Ledger subledger journal
entries. The Transfer to GL option must be set to Yes.
29. In the Include User Transaction Identifiers field, select No. This is a required field and
controls whether the report displays user identifiers’ names and values.
30. (B) OK
31. (B) Submit
32. (M) View – Requests, to check the request status.
Inquire on the journal entry

 (N) Accounting > Subledger Accounting > Journal Entries
 Ledger: Vision Operations (USA)
36. (B) Go
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37. To view the details of the entry you just created, click on the appropriate ledger link to
display the Subledger Journal Entry window.
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Running the Create Accounting Program for Receivables

Overview
 Enter an invoice
 Run the Create Accounting program in draft mode from the Requests window
 Inquire on the journal entry you create
Assumptions
 Responsibility selected to complete this practice is Receivables, Vision Operations
(USA).

 Responsibility = Receivables, Vision Operations (USA)
Enter an invoice
1. Navigate to the Transactions window:
2. In the Transactions window, enter an invoice based on the following information:

 Source: Manual
 Class: Invoice
 Type: Invoice
 Reference: XXConsulting Services
 Ship-To Name: XX_Customer
3. Enter 3 lines as follows:

Num Item Description UOM Quantity Unit
Price
1 Principal Hrs 10 425
Consultant
2 AS54888 Sentinal Each 3 1400
Standard
Desktop
3 Network Tech. Hrs 5 350
4. Run the Create Accounting program:

- for transactions up to and including today’s date
- in draft mode
- don’t include events with an Error status
- generate a detailed report
- don’t display user identifiers
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Running the Create Accounting Program for Receivables

Entering an invoice
1. Navigate to the Transactions window:
2. In the Source field, select Manual.
3. In the Class field, select Invoice.
4. In the Type field, select Invoice.
5. In the Reference field, select XXConsulting Services.
6. In the GL Date field, enter today’s date.
7. Select the Main tab.
8. In the Ship To Name field, select XX_Customer.
9. (B) Line Items

10. Enter 3 lines based on the following information:
Num Item Description UOM Quantity Unit Price
1 Principal Hrs 10 425
Consultant
2 Sentinal Standard Each 3 1400
Desktop
3 Network Tech. Hrs 5 350
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11. Save your work.

12. Close the Lines window.
13. (B) Complete
Note: You can now generate accounting from the Tools menu by selecting Create
Accounting or from the Requests window.
Generating Draft Accounting from the Requests window

14. Navigate to the Submit Request window:
 (M) View > Requests
15. (B) Submit a New Request
16. (B) OK.
17. In the Name field, select Create Accounting. The Parameters dialog box appears.
18. In the Ledger field, select Vision Operations (USA). This is a required field and limits
accounting events selected for processing to those of a particular ledger.
19. In the Process Category field, select Transactions. This is an optional field and restricts the
events selected for accounting to a particular process category.
20. In the End Date field, enter today’s date. This is a required field and processes only those
events with event dates on or before the end date.
21. In the Mode field, select Draft. This is a required field and determines whether the
subledger journal entries are created in draft or final mode.
22. In the Errors Only field, select No. This is a required field and limits the creation of
accounting to those events for which accounting has previously failed. If you selected Yes,
then the Create Accounting processes all events with a status of Error.
23. In the Report field, select Detail. This is a required field and determines whether to
generate a report showing the results of the Subledger Accounting program in summary or
detail format.
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24. Leave the General Ledger Batch Name field blank. This is an optional field and is the user-
entered batch name that appears on the transferred General Ledger subledger journal
entries. The Transfer to GL option must be set to Yes.
25. In the Include User Transaction Identifiers field, select No. This is a required field and
controls whether the report displays user identifiers’ names and values.
26. (B) OK.

27. (B) Submit.
28. (M) View – Requests, to check the request status.

 (N) Inquiry > Subledger Accounting > Journal Entries
32. (B) Go
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Defining Subledger Accounting Methods
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Defining Subledger Accounting Methods in Payables

Copying and modifying an existing Subledger Accounting Method
1. Navigate to the Subledger Accounting Methods window.
 (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Subledger Accounting Methods
2. In the Method Name field, enter Standard Accrual.
3. (B) Find
4. (B) Copy
5. In the Method Code field, enter XX_STANDARD_ACCRUAL.
6. In the Name field, enter XX Standard Accrual.
7. In the Description field, enter XX Standard Accrual.
8. In the Accounting field, select Operations Accounting Flex.
9. (B) OK
10. (B) Done
End-date an existing Application Accounting Definition and add a new one

11. Place the cursor in the Payables line and enter an end-date of 31-Dec-2006.
12. Add a new line.
13. In the Applications field, select Payables.
14. In the Name field, select XX Accrual Basis for Payables.
15. (B) OK
16. In the Start Date field, enter 01-Jan-2007.
17. (M) File – Save
Assigning the Subledger Accounting Method to the Vision Operations (USA) ledger
18. (N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups
19. Search for the Vision Operations (USA) ledger.
20. Click Update Accounting Options next to the ledger.
21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger.
22. In the Subledger Accounting Method field, update the subledger accounting method to XX
Standard Accrual.
23. (B) Select
24. (B) Finish
Run the Create Accounting program

To view the changes you have made to the setup, run the Create Accounting program in draft
mode for a second time.
26. Select Single Request.
27. (B) OK
29. In the Ledger field, select Vision Operations (USA).
30. In the Process Category field, select Invoices.
31. In the End Date field, enter today’s date.
32. In the Mode field, select Draft.
33. In the Errors Only field, select No.
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34. In the Report field, select Detail.

35. (B) OK
36. (B) Submit
37. (M) View – Requests, check the request status.

 (N) Accounting > Subledger Accounting > Journal Entries
41. (B) Go
(Optional) Update Merge Matching Lines setting and rerun the Create Accounting program
You previously set the Merge Matching Lines setting for the journal line types to No and then
generated draft accounting. Now that you have completed setting up Subledger Accounting,
you could set the option to All, generate draft accounting again and view the difference in the
results. In the first instance you saw multiple lines displayed for similar journal entry lines even
though all of the information is identical with the exception of the amount. In the second
instance the same journal entry lines would be combined. To view the difference when lines are
merged, follow these instructions:
43. Navigate to the Journal Lines Types window.
Builder > Journal Entry Setups > Journal Line Type
44. Search for the XX Liability journal line type you previously created.
45. In the Merge Matching Lines field, select All.
47. Navigate to the Application Accounting Definitions window.
Builder > Methods and Definitions > Application Accounting Definitions
48. Search for the XX Accrual Basis for Payables application accounting definition you
previously created.
49. (B) Validate
(Optional) Run the Create Accounting program

To view the changes you have made to the setup, run the Create Accounting program in draft
mode for a second time.
52. (B) OK
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55. In the Process Category field, select Invoices.

60. (B) OK
61. (B) Submit
View the Create Accounting report

64. Ensure the All My Requests radio button is selected and (B) Find.
65. Select the Create Accounting report you have just generated and (B) View Output.
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Defining Subledger Accounting Methods for Payables

 Copy an existing subledger accounting method.
 End-date an existing application accounting definition and add a new one.
 Assign the subledger accounting method to the Vision Operations (USA) ledger.
Assumptions

Copy an existing subledger accounting method

 Navigate to the Subledger Accounting Methods window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
 Copy the Standard Accrual subledger accounting method and save it as
XX_STANDARD_ACCRUAL.
 Assign the subledger accounting method to the Operations Accounting Flex
Accounting chart of accounts.

 Enter an end-date of 31-Dec-2006 for the Payables application accounting definition.
 Add a new line and enter a new Payables application accounting definition, called XX
Payables Accrual.
 Enter a start date of 01-Jan-2007.
Assign the Subledger Accounting Method to the Vision Operations (USA) ledger
 Navigate to the Accounting Setups window:
(N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups
 Drill-down to the Vision Operations (USA) ledger.
 Change the subledger accounting method to XX Standard Accrual.
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Defining Subledger Accounting Methods for Payables


The Find Subledger Accounting Methods window appears.
2. In the Method Name field, enter Standard Accrual.
3. (B) Find
The Subledger Accounting Methods window appears.
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4. (B) Copy
5. In the Method Code field, enter XX_STANDARD_ACCRUAL.
8. In the Accounting field, select Operations Accounting Flex.
9. (B) OK
10. (B) Done
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End-dating an existing Application Accounting Definition and adding a new one

11. Place the cursor in the Payables line and enter an end-date of 31-Dec-2006.
12. Add a new line.
13. In the Application field, select Payables.
14. In the Name field, select XX Payables Accrual.
15. (B) OK
18. Navigate to the Accounting Setups window:
(N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups
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22. In the Subledger Accounting Method field, change the subledger accounting method to XX
Standard Accrual.
23. (B) Select
24. (B) Finish
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Defining Subledger Accounting Methods in Receivables

 (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
2. In the Method Name field, select Standard Accrual.
3. (B) Find
4. (B) Copy
5. In the Method Code field, enter XX_ STANDARD_ACCRUAL.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
9. (B) OK
10. (B) Done

11. Place the cursor in the Receivables Default Accrual line and enter an end-date of 31-Dec-
2006.
12. Add a new line.
13. In the Application field, select Receivables.
14. In the Name field, select XX Receivables Accrual Basis.
15. (B) OK
(N) Setup > Financials > Accounting > Ledger > Accounting Setups
22. In the Subledger Accounting Method field, update the subledger accounting method to XX
Standard Accrual.
23. (B) Select
24. (B) Finish
Running the Create Accounting program

 (M) View > Requests and click Submit a New Request
27. (B) OK
30. In the Process Category field, select Transactions.
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35. (B) OK
36. (B) Submit
Inquiring on the journal entry

 (N) Inquiry > Subledger Accounting > Journal Entries
39. (T) Headers
41. (B) Go
(Optional) Updating the Merge Matching Lines setting

43. Navigate to the Journal Line Types window.
 (N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups >
Journal Line Types
44. Search for the XX Invoice Receivable journal line type.
45. In the Merge Matching Lines field, select All.
48. Search for the XX Receivables Accrual Basis application accounting definition.
49. (B) Validate
(Optional) Running the Create Accounting program

 (M) View > Requests and click Submit a New Request
52. (B) OK
55. In the Process Category field, select Transactions.
60. (B) OK
61. (B) Submit
View the Create Accounting report

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65. Select the Create Accounting report you have just generated and (B) View Output.
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Defining Subledger Accounting Methods for Receivables

 Copy an existing subledger accounting method.
 End-date an existing application accounting definition and add a new one.
 Assign the subledger accounting method to the Vision Operations (USA) ledger.
Assumptions
(USA).

Copy an existing subledger accounting method

 Navigate to the Subledger Accounting Methods window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
 Copy the Standard Accrual subledger accounting method and save the code as
XX_STANDARD_ACCRUAL and the name as XX Standard Accrual.
 Assign the subledger accounting method to the Operations Accounting Flex

 Enter an end-date of 31-Dec-2006 for the Receivables application accounting definition.
 Add a new line and enter a new Receivables application accounting definition, called
XX Receivables Accrual Basis.
 Enter a start date of 01-Jan-2007.
Assign the Subledger Accounting Method to the Vision Operations (USA) ledger
 Navigate to the Accounting Setups window:
 Drill-down to the Vision Operations (USA) ledger.
 Change the subledger accounting method to XX Standard Accrual.
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Defining Subledger Accounting Methods for Receivables

The Find Subledger Accounting Methods window appears.
2. In the Method Name field, select Standard Accrual.
3. (B) Find
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4. (B) Copy
The Copy Subledger Accounting Method window appears.
5. In the Method Code field, enter XX_ STANDARD_ACCRUAL.
9. (B) OK
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10. (B) Done


11. Place the cursor in the Receivables Default Accrual line and enter an end-date of 31-Dec-
2006.
12. Add a new line by pressing the down arrow key.
13. In the Application field, select Receivables.
14. In the Name field, select XX Receivables Accrual Basis.
15. (B) OK
17. Save the accounting method:

(M) File – Save
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22. In the Subledger Accounting Method field, change the subledger accounting method to XX
Standard Accrual.
23. (B) Select
24. (B) Finish
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Defining Application Accounting Definitions
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Defining an Application Accounting Definition in Payables

2. In the Definition Name field, enter Accrual Basis.
3. (B) Find
4. (B) Copy
5. In the Definition Code field, enter XX_ACC_BASIS.
6. In the Definition Name field, enter XX Accrual Basis for Payables.
7. Optionally, enter a description, for example XX AP Accrual Basis.
9. (B) Done
10. In the Event Class and Event Type Assignments region, select the Invoices event class.
11. In the Journal Lines Definition Name field, delete the Accrual, Invoices All journal lines
definition.
12. In the Journal Lines Definition Name field, assign the XX AP Accrual Invoices journal lines
definition to the Invoices event class.
13. (B) Validate
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Defining an Application Accounting Definition for Payables

Overview
 Copy an existing application accounting definition and then modify it to use the rules
you created in earlier practices.
Assumptions

Copy and modify an accrual basis application accounting definition

2. Search for the Accrual Basis application accounting definition and make a copy of it.
3. Save the new definition code as XX_ACC_BASIS and the definition name as XX Accrual
Basis for Payables.
4. Assign this application accounting definition to the Operations Accounting Flex
5. Select the Invoices event class, delete the existing journal lines definition, and assign the XX
Accrual Invoices journal lines definition.
6. Validate the definition.
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Defining an Application Accounting Definition for Payables

Copying and modifying an existing Application Accounting Definition
Responsibility = Payables, Vision Operations (USA)
The Find Application Accounting Definitions window appears.
2. In the Definition Name field, select Accrual Basis.

3. (B) Find.
The Application Accounting Definitions window appears.
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4. (B) Copy.
The Copy Application Accounting Definitions window appears.
5. In the Definition Code field, enter XX_ACC_BASIS.
6. In the Definition Name field, enter XX Accrual Basis for Payables.
7. Optionally, enter a description, for example XX AP Accrual Basis.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. If a chart of
accounts is selected the application accounting definition can only be assigned to a
subledger accounting method with the same chart of accounts.
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9. (B) Done
The Application Accounting Definitions window is displayed.
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The application name defaults from the application associated with the responsibility, in
this example, Payables.
The Owner field is automatically populated. For components seeded by Oracle, the value is
Oracle. For components created on site by users, the value is User.
The Enabled check box should remain selected so that the application accounting definition
is available.
10. In the Event Class and Event Type Assignments region, select the Invoices event class.
11. In the Journal Lines Definition Name field, delete the Accrual, Invoices All journal lines
definition, (M) Edit > Delete.
12. In the Journal Lines Definition Name field, assign the XX Accrual Invoices journal lines
definition previously defined.
13. (B) Validate to validate the application accounting definition.
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Defining an Application Accounting Definition in Receivables

2. In the Definition Name field, select Receivables Default Accrual.
3. (B) Find.
4. (B) Copy
5. In the Definition Code field, enter XX_AR_ACCRUAL_BASIS.
6. In the Definition Name field, enter XX Receivables Accrual Basis.
7. In the Description field, enter Accrual Basis Accounting Definition.
9. (B) Done
10. In the Event Class and Event Type Assignments region, select the Invoice event class.
11. In the Journal Lines Definition Name field, delete the Invoices – Default Accrual journal
lines definition.
definition to the Invoice event class.
13. (B) Validate
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Defining an Application Accounting Definition for Receivables

Overview
 Copy an existing application accounting definition and then modify it to use the rules
you created in earlier practices.
Assumptions
(USA).

Copy and modify an accrual basis application accounting definition

2. Search for the Receivables Accrual Basis application accounting definition and make a copy
of it.
3. Save the new definition code as XX_AR_ACCRUAL_BASIS and the definition name as XX
Accrual Basis Accounting Definition.
4. Assign this application accounting definition to the Operations Accounting Flex
5. Select the Invoice event class and delete the Invoices – Default Accrual journal lines
definition.
6. Assign the XX Accrual Invoices journal lines definition you previously defined to the
Invoice event class.
7. Validate the definition.
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Defining an Application Accounting Definition for Receivables

Copying and modifying an existing Application Accounting Definition
Responsibility = Receivables, Vision Operations (USA)
The Find Application Accounting Definitions window appears.
2. In the Definition Name field, select Receivables Default Accrual.

3. (B) Find.
The Application Accounting Definitions window appears.
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4. (B) Copy.
The Copy Application Accounting Definition window appears.
5. In the Definition Code field, enter XX_AR_ACCRUAL_BASIS.
6. In the Definition Name field, enter XX Receivables Accrual Basis.
7. Optionally, enter a description, for example Accrual Basis Accounting Definition.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. If a chart of
accounts is selected the application accounting definition can only be assigned to a
subledger accounting method with the same chart of accounts.
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9. (B) Done
The Application Accounting Definitions window is displayed.
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this example, Receivables.
The Enabled check box should remain selected so that the application accounting definition
is available.
10. In the Event Class and Event Type Assignments region, select the Invoice event class.
11. In the Journal Lines Definition Name field, delete the Invoices – Default Accrual journal
lines definition.
definition to the Invoice event class.
13. (B) Validate to validate the application accounting definition.
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Defining Journal Line Types
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Defining Journal Line Types in Payables

Builder > Journal Entry Setups > Journal Line Types
2. (B) New.
3. In the Event Class field, select Invoices.
4. In the Line Type Code field, enter XX_MISC_EXPENSE.
5. In the Name field, enter XX Miscellaneous Expense.
6. In the Description field, enter XX Miscellaneous Expense.
7. In the Accounting Class field, select Miscellaneous Expense.
8. In the Balance Type region, select Actual.
9. In the Side region, select Debit.
10. Select Yes from the Switch Debit/Credit dropdown list.
11. In the Merge Matching Lines field, select No.
12. In the Transfer to GL region, select Summary.
13. (B) Conditions.
14. In the Seq field, enter 10.
15. In the Source field, select Invoice Distribution Type.
16. In the Operator field, select ‘=’.
17. In the Value Type field, select Constant.
18. In the Value field, select Item.
20. (M) File – Close Form
21. Save the Expense journal line type.
22. Create a Liability journal line type based on the following information:
Field Name Liability Journal Line Type
Event Class Invoices
Line Type Code XX_AP_LIAB_INV
Name XX Liability
Description XX Liability when invoice
validated
Accounting Class Liability
Balance Type Actual
Side Credit
Switch Debit/Credit Yes
Merge Matching Lines No
Transfer to GL Summary
Note: No conditions are required for the Liability journal line type.
23. (I) Save
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Defining Journal Line Types for Payables

Overview
 Define two journal line types, as follows:
 Expense
 Liability
Assumptions


2. Create two journal line types using the following information:

Field Name Expense Journal Line Liability Journal Line
Type Type
Event Class Invoices Invoices
Line Type Code XX_MISC_EXPENSE XX_AP_LIAB_INV
Name Miscellaneous Liability
Expense
Description Miscellaneous Liability when
Expense invoice validated
Accounting Class Miscellaneous Liability
Expense
Balance Type Actual Actual
Side Debit Credit
Switch Debit/Credit Yes Yes
Merge Matching No No
Lines
Transfer to GL Summary Summary
3. Save the journal line types.
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Defining Journal Line Types for Payables

The Find Journal Line Types window appears.
2. (B) New.
The Journal Line Types window appears.
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The Application field is automatically populated with the application name associated with
the user’s responsibility, in this example, Payables.
The Enabled field is automatically enabled, and makes this journal line type available for
use.
3. In the Event Class field, select the event class from the list of values, for example, Invoices.
4. In the Line Type Code field, enter a code, for example, XX_MISC_EXPENSE.
Note: You cannot modify a seeded journal line type or any other seeded component as it
could get overwritten in an upgrade. Instead you can copy the seeded type and then
modify it appropriately. The copied journal line type has an Owner type of User. The list of
values displays the component name and the owner to distinguish between seeded and
user-defined components.
5. In the Name field, enter XX Miscellaneous Expense.
6. In the Description field, optionally enter a description, for example, XX Miscellaneous
Expense.
7. In the Accounting Class field, select Miscellaneous Expense.
The accounting class is shared across applications and enables you to classify journal entry
lines.
The list of values for this field contains all accounting classes that are seeded but you can
add new accounting classes.
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The Rounding Class defaults to the accounting class, in this example, Miscellaneous
Expense.
The rounding class, along with the transaction rounding reference accounting attribute,
groups lines together in order to determine whether rounding is necessary.
9. In the Side region, select Debit.
This option determines whether negative amounts will result in negative amounts on the
same side or positive amounts on the opposite side.
This option summarizes subledger journal lines within each subledger entry. Journal entry
lines with matching criteria are merged.
12. In the Transfer to GL region, select Summary to summarize subledger journal entry lines by
account combination.
13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous
expense when an invoice is validated.
15. In the Source field, select Invoice Distribution Type.
18. In the Value field, select Item.

The Journal Line Types window should now look like this:
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21. Save the Expense journal line type.

22. Create a Liability journal line type based on the following information:
Field Name Liability Journal Line Type
Event Class Invoices
Line Type Code XX_AP_LIAB_INV
Name XX Liability
Description XX Liability when invoice
validated
Accounting Class Liability
Balance Type Actual
Side Credit
Switch Debit/Credit Yes
Merge Matching Lines No
Note: No conditions are required for the Liability journal line type.
23. (I) Save
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Defining Journal Line Types in Receivables

Journal Line Types
2. (B) New.
3. In the Event Class field, select Invoice.
4. In the Line Type Code field, enter XX_INV_REV.
5. In the Name field, enter Invoice Revenue.
6. In the Description field, optionally enter a description, for example, Revenue for Invoices.
7. In the Accounting Class field, select Revenue.
9. In the Side region, select Credit.
12. In the Transfer to GL region, select Summary.
expense when a credit memo is validated.
15. In the Source field, select Transaction Distribution Account Class.
18. In the Value field, type REV.
19. Save the condition.
20. Close the window.
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Defining Journal Line Types for Receivables

Overview
In this practice, you will create two journal line types as follows:
 Revenue
 Receivables
Assumptions
(USA).


Journal Line Types
2. Create journal line types using the following information:

Field Name Revenue Receivable
Journal Line Journal Line
Type Type
Event Class Invoice Invoice
Line Type XX_INV_REV XX_AR_REC
Code
Name XX Invoice XX Invoice
Revenue Receivable
Description XX Revenue XX
for Invoices Receivable for
Invoices
Accounting Revenue Receivable
Class
Balance Type Actual Actual
Side Credit Debit
Switch Yes Yes
Debit/Credit
Merge No No
Matching Lines
Transfer to GL Summary Summary
3. Save the journal line types.
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Defining Journal Line Types for Receivables

Defining a Revenue Journal Line Type
Journal Line Types
The Find Journal Line Types window appears.
2. (B) New.
The Journal Line Types window appears.
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The Application field is automatically populated with the application name associated with
the user’s responsibility, in this example, Receivables.
The Enabled field is automatically enabled, and makes this journal line type available for
use.
3. In the Event Class field, select the Invoice event class from the list of values.
4. In the Line Type Code field, enter a code, for example, XX_INV_REV.
Note: You cannot modify a seeded journal line type or any other seeded component as it
could get overwritten in an upgrade. Instead you can copy the seeded type and then
modify it appropriately. The copied journal line type has an Owner type of User. The list of
values displays the component name and the owner to distinguish between seeded and
user-defined components.
5. In the Name field, enter XX Invoice Revenue.
6. In the Description field, optionally enter a description, for example, Revenue for Invoices.
7. In the Accounting Class field, select Revenue.
The accounting class is shared across applications and enables you to classify journal entry
lines.
The list of values for this field contains all accounting classes that are seeded but you can
add new accounting classes.
The Rounding Class defaults to the accounting class, in this example, Revenue.
The rounding class, along with the transaction rounding reference accounting attribute,
groups lines together in order to determine whether rounding is necessary.
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9. In the Side region, select Credit.
This option determines whether negative amounts will result in negative amounts on the
same side or positive amounts on the opposite side.
This option summarizes subledger journal lines within each subledger entry. Journal entry
lines with matching criteria are merged.
12. In the Transfer to GL region, select Summary to summarize subledger journal entry lines by
account combination.
expense when a credit memo is validated.
18. In the Value field, enter REV.

20. Close the Journal Line Type Conditions window.
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21. Save the Revenue journal line type.

22. Create a Receivable journal line type based on the following information:
Field Name Receivable Journal Line Type
Event Class Invoice
Line Type XX_AR_REC
Code
Name XX Invoice Receivable
Description Receivable for Invoices
Accounting Receivable
Class
Balance Type Actual
Side Debit
Switch Yes
Debit/Credit
Merge No
Matching
Lines
23. (B) Conditions to add a condition for the Invoice Receivable journal line type.
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28. In the Value field, select REC.

30. Close the Journal Line Type Conditions window.
31. Save the Receivable journal line type.
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Defining Account Derivation Rules
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Defining Account Derivation Rules for Payables

Creating an Account Derivation Rule for the Liability Journal Line Type
1. Navigate to the Journal Lines Definitions window.
Builder > Methods and Definition > Journal Lines Definitions
2. In the Definition Name field, select XX AP Accrual Invoices.
3. (B) Find
4. Select the XX Liability journal line type.
5. (B) Account Derivation Rule
6. (B) New
7. In the Rule Code field, enter XX_LIAB_ACC.
8. In the Rule Name field, enter XX Liability Account.
9. In the Description field, enter XX Liability Account.
11. Select the Flexfield radio button.
12. In the Priority field, enter 1.
14. In the Value field, enter 01-520-2210-0000-000.
17. In the Journal Lines Definitions window, select the XX Liability journal line type.
18. In the Segment field, select All Segments.
19. In the Rule Name field, select XX Liability Account.
20. (M) File - Save
Creating an Account Derivation Rule for the Expense Journal Line Type
21. Select the XX Miscellaneous Expense journal line type.
 Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
select the next journal line type if pressing the down arrow key doesn’t work.
23. (B) New
24. In the Rule Code field, enter XX_EXPENSE_ACCOUNT.
25. In the Rule Name field, enter XX AP Expense Account.
26. In the Description field, enter XX Expense Account.
28. In the Value Type field, select Source.
29. In the Value field, select Invoice Distribution Account.
32. In the Journal Lines Definitions window, place the cursor in the XX Miscellaneous Expense
line.
34. In the Rule Name field, select XX Expense Account.
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Defining Account Derivation Rules for Payables

Creating an Account Derivation Rule for the Liability Journal Line Type
The Find Journal Lines Definitions window appears.
2. In the Definition Name field, select XX Accrual Invoices.

3. (B) Find
The Journal Lines Definitions window appears.
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4. Select the XX Liability journal line type.

The Find Account Derivation Rules window appears.
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6. (B) New
The Account Derivation Rules window appears.
this example, Payables.
The Owner field is automatically populated by Subledger Accounting. For components
seeded by Oracle, the value is Oracle. For components created on site by users, the value is
User.
Retain the default for the Enabled check box which is selected to make the account
derivation rule available for use.
7. In the Rule Code field, enter XX_LIAB_ACC.
8. In the Rule Name field, enter XX Liability Account.
9. In the Description field, enter XX Liability Account.
11. Select the Flexfield radio button.

Rules are evaluated in ascending order, where the highest priority has the lowest number,
until a condition is met. It is advantageous to list the most commonly met rules and
conditions first. The order in which rules and conditions are evaluated can be changed by
updating the priority number instead of by deleting and rewriting detail lines. Once the
conditions associated with a detail line are satisfied, the value from that line is used and
other lines are ignored.
13. In the Value Type field, select Constant to specify the method of deriving the account
combination or segment value.
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15. Save your work:

(M) File – Save
16. Close the Account Derivation Rules window:
(M) File – Close Form
17. In the Journal Lines Definitions window, select the XX Liability journal line type.
19. In the Rule Name field, select XX Liability Account.
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20. Save your work:

(M) File - Save
Creating an Account Derivation Rule for the Expense Journal Line Type
21. In the Journal Lines Definitions window, select the XX Miscellaneous Expense journal line
type.
The Find Account Derivation Rule window appears.
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23. (B) New

24. In the Rule Code field, enter XX_EXPENSE_ACCOUNT.
25. In the Rule Name field, enter XX AP Expense Account.
26. In the Description field, enter XX Expense Account.
28. In the Output Type region, select the Flexfield radio button.
31. In the Value field, select Invoice Distribution Account.
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32. Save your work:

(M) File – Save
34. In the Journal Lines Definitions window, place the cursor in the XX Miscellaneous Expense
line.
36. In the Rule Name field, select XX AP Expense Account.
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37. Save your work:

(M) File – Save
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Defining Account Derivation Rules in Receivables

Create a new Receivables Account Derivation Rule
3. (B) Find.
4. In the Journal Line Type field, select XX Invoice Receivable.
5. (B) Account Derivation Rule.
6. (B) New.
7. In the Rule Code field, enter XX_REC_ACC.
8. In the Rule Name field, enter XX Receivables Account.
9. In the Description field, enter Receivables Account.
11. In the Output Type region, select Flexfield.
15. (M) File - Save
Assign the XX Receivables Account rule to the XX Invoice Receivable journal line type
17. In the Journal Lines Definitions window, place the cursor in the XX Invoice Receivable line.
19. In the Rule Name field, select XX Receivables Account.
Create a new Revenue Account Derivation Rule

21. In the Journal Lines Definition window, select the XX Invoice Revenue journal line type.
Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
23. (B) New.
24. In the Rule Code field, enter XX_TRX_DIST_GL.
25. In the Rule Name field, enter XX Transaction Distribution GL Account.
26. In the Description field, enter Transaction Distribution GL Account.
31. In the Value field, select Transaction Distribution GL Account.
32. (M) File- Save
Assign the XX Transaction Distribution GL Account rule to the XX Invoice Revenue journal
line type
34. In the Journal Lines Definitions window, place the cursor in the XX Invoice Revenue line.
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36. In the Rule Name field, select XX Transaction Distribution GL Account.
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Defining Account Derivation Rules for Receivables

Create a new Receivables Account Derivation Rule

3. (B) Find.
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4. In the Journal Line Type field, select XX Invoice Receivable.

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6. (B) New.
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User.
7. In the Rule Code field, enter the code name, for example, XX_REC_ACC.
8. In the Name field, enter the rule name, for example, XX Receivables Account.
9. In the Description field, optionally enter a description, for example, Receivables Account.
Rules are evaluated in ascending order, where the highest priority has the lowest number,
until a condition is met. It is advantageous to list the most commonly met rules and
conditions first. The order in which rules and conditions are evaluated can be changed by
updating the priority number instead of by deleting and rewriting detail lines. Once the
conditions associated with a detail line are satisfied, the value from that line is used and
other lines are ignored.
13. In the Value Type field, select Constant to specify the method of deriving the account
combination or segment value.
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The Account Derivation Rules window should now look like this:
15. Save the rule:

(M) File > Save
Assign the XX Receivables Account rule to the XX Invoice Receivable journal line type
17. In the Journal Lines Definitions window, place the cursor in the XX Invoice Receivable line.
19. In the Rule Name field, select XX Receivables Account.
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20. Save the definition:

(M) File – Save
Create a new Revenue Account Derivation Rule

21. In the Journal Lines Definition window, select the XX Invoice Revenue journal line type.
Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
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23. (B) New.

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User.
24. In the Rule Code field, enter XX_TRX_DIST_GL.

25. In the Rule Name field, enter XX Transaction Distribution GL Account.
26. In the Description field, enter Transaction Distribution GL Account.
31. In the Value field, select Transaction Distribution GL Account.
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32. Save the rule:

File- Save
Assign the XX Transaction Distribution GL Account rule to the XX Invoice Revenue journal
line type
34. In the Journal Lines Definitions window, place the cursor in the XX Invoice Revenue line.
36. In the Rule Name field, select XX Transaction Distribution GL Account.
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37. Save the definition:

(M) File – Save
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Defining Journal Lines Definitions
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Defining Journal Lines Definitions for Payables

Overview
 Define a journal line definition for accrual invoices.
Assumptions

Define a journal lines definition

1. Navigate to the Journal Lines Definitions window:
2. Create a new journal lines definition.
3. Save the definition code as XX_ACCRUAL_INVOICES.
4. Save the definition name as XX AP Accrual Invoices.
5. Set the event type to All.
6. Select the Operations Accounting Flex accounting chart of accounts.
7. Apply the journal line types previously created, XX Miscellaneous Expense and XX
Liability.
8. Save your work.
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Defining Journal Lines Definitions for Payables

2. (B) New.
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The application name defaults from the application associated with the responsibility.
The Enabled check box is enabled by default and makes the journal lines definition
available for use for this application and the selected chart of accounts (if applicable).
3. In the Event Class field, select Invoices from the dropdown list.
4. In the Event Type field, select All.
5. In the Definition Code field, enter XX_ACCRUAL_INVOICES.
6. In the Definition Name field, enter XX AP Accrual Invoices.
7. Optionally, enter a description, for example, XX Accrual Invoices.
9. In the Journal Line Type field, assign the Expense journal line type you previously created
to the event type by selecting XX Miscellaneous Expense.
The Owner field is automatically populated based on the journal line type selected.
10. In the Line Description field, select Invoice Distribution Description.
This is the journal entry description to be used to populate the subledger journal entry
lines.
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11. Ensure the Active check box is selected to use this line assignment to generate subledger
journal entries.
12. In the Journal Line Type field, assign the Liability journal line type you previously created
to the event type by selecting XX Liability.
13. In the Line Description field, select Invoice Distribution Description.
14. Ensure the Active check box is selected.
The Journal Lines Definitions window should now look like this:
15. Save the journal line definition:

(M) File - Save
RAJU CHINTHAPATLA
Defining Journal Lines Definitions for Receivables

Overview
 Define a journal line definition for accrual invoices.
Assumptions
(USA).
Tasks
Define a journal lines definition
1. Navigate to the Journal Lines Definitions window:
 (N) Setup > Accounting > Accounting Methods Builder > Methods and Definition >
2. Create a new journal lines definition.
3. Save the definition code as XX_ACCRUAL_INVOICES.
4. Apply the journal line types previously created, XX Invoice Receivable and XX Invoice
Revenue.
5. Save the definition name as XX Accrual Invoices.
6. Set the event type to All.
7. Select the Operations Accounting Flex accounting chart of accounts.
8. Apply the Invoice Header Description line descriptions to both of the journal line types.
9. Save the journal lines definition.
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Defining Journal Lines Definitions for Receivables

 (N) Setup > Accounting > Accounting Methods Builder > Methods and Definition >
2. (B) New.
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The application name defaults from the application associated with the responsibility.
The Enabled check box is enabled by default and makes the journal lines definition
available for use for this application and the selected chart of accounts (if applicable).
3. In the Event Class field, select Invoice.

4. In the Definition Code field, enter XX_ACCRUAL_INVOICES.
5. In the Definition Name field, enter XX Accrual Invoices.
6. Optionally, enter a description, for example, XX Receivables Accrual Invoices.
7. In the Event Type field, select All.
9. In the Journal Line Type field, assign the Receivable journal line type you previously
created to the event type by selecting XX Invoice Receivable.
The Owner field is automatically populated based on the journal line type selected.
10. In the Line Description field, select Invoice Header Description.
This is the journal entry description to be used to populate the subledger journal entry
lines.
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11. Ensure the Active check box is selected to use this line assignment to generate subledger
journal entries.
12. In the Journal Line Type field, assign the Revenue journal line type you previously created
to the event type by selecting XX Invoice Revenue.
13. Ensure the Active check box is selected.
The Journal Lines Definitions window should now look like this:
14. Save the journal line definition:

(M) File – Save
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Reports
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Objectives
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Subledger Accounting Reports Overview

Subledger Accounting provides the following reports:
 Journal Entries Report
 Account Analysis Report
 Third Party Balances Report
 Period Close Exceptions Report
 Open Account Balances Listing
BI Publisher (formerly known as XML Publisher) is a template-based publishing tool that is

delivered with the Oracle E-Business suite that enables users to rapidly develop and maintain
custom report formats. You can design and control how the reports are presented by using
report templates. When generating a report, BI Publisher merges report template files with
report data to create documents that support numerous formatting options, including colors,
images, font styles, and headers and footers.
System administrators can define new concurrent programs using any subset of the parameters.
Users can create new BI Publisher templates using any subset of the data elements.
The parameters in some of the following reports are categorized as follows:

Selection parameters: filter the information retrieved by the report
Custom parameters: used to pass information to the template, such as boilerplate text or
formatting options.
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Custom Parameters
Custom Parameters
Each report has five custom parameters which can be enabled via the Concurrent Program
window using the Application Developer responsibility.
Navigation Path
Concurrent > Program
These parameters enable you to pass custom information to be included in the report. The
information can be entered by the user if you make the parameter enterable or via SQL
statement if you keep the parameter hidden and define an appropriate statement.
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Journal Entries Report
Journal Entries Report

Navigation paths for generating reports:
Payables: Other > Requests > Run
Receivables: (M) View > Requests (B) Submit a New Request
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Journal Entries Report Parameters

Important: Only selected report parameters are shown for each of the reports in this lesson. The
report parameters may differ according to the product you are using. Please refer to the
Subledger Accounting Implementation Guide and product user guides for a complete
description.
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Account Analysis Report
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Account Analysis Report Parameters
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Account Analysis Report Parameters
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Third Party Balances Report
Third Party Balances Report

This report retrieves the following information:
 Third party balances for third party control accounts
 Subledger journal entry lines that add up to the total period activity for each control
account, third party, and third party site
 Third party and third party site information
 User transaction identifiers for the associated event
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Third Party Balances Report Parameters
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Subledger Period Close Exceptions Report
Subledger Period Close Exceptions Report

This report is automatically submitted by General Ledger when closing a GL period if there are
unprocessed accounting events or untransferred journal entries.
You can also generate the Subledger Period Close Exceptions Report through a concurrent
request as follows:
 For the application associated with the responsibility
 For all applications that use Subledger Accounting if the report is run from a General
Ledger responsibility
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Subledger Period Close Exceptions Report Parameters
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Subledger Period Close Exceptions Report Parameters
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Open Account Balances Listing Overview

You can create your own layout and publish your reports using Oracle BI Publisher.
Create open account balance definitions in the Create Open Account Balances Listing Definition
page. Optionally, to update Open Account Balances Listing processing options, navigate to the
Update Open Account Balances Listing Processing Options page by clicking Processing Options
in the Open Account Balances Listing Definition Search page.
Create subledger journal entries and transfer them to General Ledger.

Submit the Open Account Balances Listing.
Subledger Accounting seeds the following templates for the display options of the report:
 Group by Account, Applied Transaction Detail
 This template groups the output by General Ledger account. For each account, the
report shows the General Ledger balance and the transactions (grouped by third
party) that contribute to the balance of that account.
 Group by Account, Summarized
 This template groups and summarizes the output by General Ledger account.
 Group by Third Party, Applied Transaction Detail
 This template groups output by third party. For each third party, the report
displays the General Ledger accounts and transactions with outstanding balances.
 Group by Third Party, Summarized
 This template groups the output by third party with one row summarizing each
account. No transactions are displayed. For each third party, one row is displayed
for every General Ledger account having an outstanding balance.
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The business flow feature is used to link transactions which is why the Open Account Balances
Listing Data Manager is required to build these linkages in advance of running the report.
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Creating and Updating Open Account Balances Listing Definitions
Creating and Updating Open Account Balances Listing Definitions

You can define as many definitions as necessary.
Prerequisites
 Define a ledger.
 Create journal entries and transfer to General Ledger using the Create Accounting
program.
1. Define the accounts to be tracked in the Open Account Balances Listing in the Create Open
Account Balances Listing Definition page.
2. Define the report definitions either by account combination or by account segments.
3. Associate each definition with a single ledger, which indicates the chart of accounts. The
chart of accounts sets the context for the following information in the definition details
region:
 General Ledger accounts
 General Ledger account segments
4. Define as many definitions as necessary. If defining a report definition by segment, indicate
a single segment value, a range of segment values, or a combination of individual values
and ranges for different account segments. If defining a report by account combination,
include one or more entire General Ledger accounts.
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Open Account Balances Listing
Open Account Balances Listing

This report displays the actual accounted balance and does not include encumbrance or
budgetary accounts in General Ledger. You can view the report in detail or summary mode.
This report displays information that originates from subledger journal entries only. Journal
entries created manually in General Ledger or anywhere outside of Subledger Accounting are
not included. Only transactions with nonzero outstanding balances are displayed.
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Open Account Balances Listing Parameters
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Open Account Balances Listing Parameters
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Summary
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Generating the Journal Entries report
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Generating the Journal Entries Reports for Payables

Generate the Journal Entries report for the Vision Operations (USA) ledger for the current
month and view the output.
1. Navigate to the Submit Request window.
The Submit a New Request pop-up window appears.
2. Select the Single Request radio button and (B) OK.
The Submit Request window appears.
3. In the Name field, select Journal Entries Report from the dropdown list.
The Parameters window appears.
4. In the Ledger/Ledger Set field, select Vision Operations (USA) from the dropdown list.
5. In the Period From field, select XXX-07, where XXX is the current month.
The Period To field automatically defaults to the same month.
6. In the Journal Entry Status field, select Final.
7. (B) OK to accept the rest of the defaults.

8. (B) Submit to generate the report.
Viewing the Journal Entries Report

11. Select the Journal Entries report you have just generated and (B) View Output.
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Sample of the Journal Entries Report
 Note: A number of journal entries are missing from this report so that the header and
footer information could be displayed on the same page.
.
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Generating the Journal Entries Reports for Receivables

Generate the Journal Entries report for the Vision Operations (USA) ledger for the current
month and view the output.
1. Navigate to the Submit Request window.
 (M) View> Requests
2. (B) Submit a New Request.
The Submit a New Request pop-up window appears.
3. Select the Single Request radio button and (B) OK.
The Submit Request window appears.
4. In the Name field, select Journal Entries Report from the dropdown list.
The Parameters window appears.
5. In the Ledger/Ledger Set field, select Vision Operations (USA) from the dropdown list.
6. In the Period From field, select XXX-07, where XXX is the current month.
The Period To field automatically defaults to the same month.
7. In the Journal Entry Status field, select Final.
8. (B) OK to accept the rest of the defaults.

9. (B) Submit to generate the report.
Viewing the Journal Entries Report

12. Select the Journal Entries report you have just generated and (B) View Output.
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Sample of the Journal Entries Report
 Note: A number of journal entries are missing from this report so that the header and
footer information could be displayed on the same page.
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Creating Manual Subledger Journal Entries
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Subledger Journal Entries Overview
Subledger Journal Entries Overview

A manual subledger journal entry is not associated with a subledger transaction. When the
manual subledger journal entry is complete, Subledger Accounting assigns the appropriate
sequence names, sequence numbers, and creates the reporting currency journal entries if
appropriate.
Enter manual subledger journal entries only against a primary or secondary ledger. Manual
journal entries created for the primary ledgers are automatically posted to the reporting
currency and not to the secondary ledger.
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Manual Journal Entries
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Creating Subledger Journal Entries
Creating Subledger Journal Entries

Navigation Paths:
Payables: Accounting > Subledger Accounting > Journal Entries
Receivables: Inquiry > Subledger Accounting > Journal Entries
Ledger - The primary and secondary ledgers displayed in the ledger list of values are
determined by the system profile option SLA: Enable Data Access Security in Subledgers. If this
profile option is set to Yes, the list of values displays only the primary and secondary ledgers
defined in the GL: Data Access Set and the SLA: Additional Data Access Set profile options. If
the profile option is set to No, the list of values displays all primary and secondary ledgers.
If Encumbrance is selected in the Balance Type field, the list of values only displays ledgers that
are enabled for budgetary control.
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Creating Subledger Journal Lines
Creating Subledger Journal Lines

Why would I create a manual subledger journal?
Manual entries are adjustments, and if the adjustments are due to specific subledger activity,
such as Payables, then you may want to enter an SLA manual entry instead of a GL
entry. Entries recorded in SLA are tied to the subledger source and therefore provide more
accurate subledger accounting reporting.
 Enter account, debit and credit amounts, and accounting class.
 Optionally enter third party information, description, and currency details for each line
of the subledger journal entry.
 If third party control accounts are enabled for the application and the account entered
is a third party control account, third party information must be entered. For example,
if Payables is set up to support only Supplier, you cannot select third party control
accounts that have been set up to support only Customer.
 View the total accounted amounts of all subledger journal entry lines in the ledger
currency.
Default Currency Options - Opens the Default Currency Options page to default an entered
currency, conversion type, conversion date, and conversion rate information for each new
subledger journal entry line. Use the currency controls available in the Details region of each
journal entry line to override the default set.
Third Party Type - Defaults from the application associated with the responsibility used to
access the manual subledger journal entry pages. The values for name, site, number, and
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taxpayer ID must match the third party type. These values are required if the account on the
line is a third party control account. If the account is not a third party control account, but party
type is selected, party information should be provided.
Conversion Rate - If the conversion type is User, you must enter a conversion rate.
Continue - Select to review the manual subledger journal entry and complete it.
Reviewing and Completing Subledger Journal Entries

The Complete button is enabled if the journal entry is a manual journal entry with a status of
Draft, Error, or Incomplete.
Reviewing and Completing Subledger Journal Entries

Note: If the subledger journal entry is for a ledger with reporting currencies, Subledger
Accounting creates subledger journal entries for these representations.
Duplicating Subledger Journal Entries

Note: If changing the ledger in a duplicated journal entry and the new ledger has a different
chart of accounts, all lines are cleared because the account combination structure is dependent
on the new ledger.
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Creating Manual Subledger Journal Entries in Payables

Overview
 Create manual subledger journal entries in Payables.
Assumptions

Creating a manual subledger journal entry in Payables

(N) Accounting > Subledger Accounting > Journal Entries
2. (B) Create Journal Entry.
3. Use the following setup information:
 Vision Operations (USA) ledger
 Use today’s date as the GL date
 Purchase Invoices journal category
 Enter a description of XX Project Meeting
4. Enter the following lines:

Operations Accounting Flex Accounting Class Entered DR Entered CR
01-450-7640-0000-000 Item Expense 1702
01-450-7670-0000-000 Item Expense 750
01-450-7650-0000-000 Item Expense 455
01-000-2210-0000-000 Liability 2907
5. Calculate the totals.

6. Continue to the Review Subledger Journal Entry window and complete the journal entry in
Draft mode.
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Creating Manual Subledger Journal Entries in Payables

(N) Accounting > Subledger Accounting > Journal Entries
The primary and secondary ledgers displayed in the ledger list of values are determined by
the system profile option SLA: Enable Data Access Security in Subledgers. If this profile
option is set to Yes, the list of values displays only the primary and secondary ledgers
defined in the GL: Data Access Set and the SLA: Additional Data Access Set profile options.
If the profile option is set to NO, the list of values displays all primary and secondary
ledgers.
4. In the GL Date field, enter today’s date. This is the GL date for posting the subledger
journal entry.
5. In the Category field, select the Purchase Invoices journal category.
6. In the Description field, enter XX Project Meeting.
7. If the lines are not displayed, (B) Add 5 Lines.
01-450-7640-0000-000 Item Expense 1702
01-450-7670-0000-000 Item Expense 750
01-450-7650-0000-000 Item Expense 455
01-000-2210-0000-000 Liability 2907
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9. (B) Calculate Totals
10. (B) Continue to review all subledger journal entry header and line information.
The Review Subledger Journal Entry window is displayed.
11. In the Complete field, select Draft.
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Note: Draft status indicates that the results cannot be transferred or posted to General
Ledger. Entries can be updated and deleted. Funds reservation cannot be performed.
12. (B) Finish
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Creating Manual Subledger Journal Entries in Receivables

Overview
 Create manual subledger journal entries in Receivables.
Assumptions
(USA).

Creating a manual subledger journal entry in Receivables

(N) Inquiry > Subledger Accounting > Journal Entries
3. Use the following setup information:
 Vision Operations (USA) ledger
 Use today’s date as the GL date
 Sales Invoices journal category
 Enter a description of XX Sentinal Standard Desktop

01-600-1210-0000-800 Receivable 2238.30
01-000-2520-2113-000 Tax 126.70
01-600-2925-0000-800 Revenue 2111.60
5. Calculate the totals.

6. Continue to the Review Subledger Journal Entry window and complete the journal entry in
Draft mode.
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Creating Manual Subledger Journal Entries in Receivables

(N) Inquiry > Subledger Accounting > Journal Entries

The primary and secondary ledgers displayed in the ledger list of values are determined by
the system profile option SLA: Enable Data Access Security in Subledgers. If this profile
option is set to Yes, the list of values displays only the primary and secondary ledgers
defined in the GL: Data Access Set and the SLA: Additional Data Access Set profile options.
If the profile option is set to No, the list of values displays all primary and secondary
ledgers.
4. In the GL Date field, enter today’s date. This is the GL date for posting the subledger
journal entry.
5. In the Category field, select the Sales Invoices journal category.
6. In the Description field, enter XX Sentinal Standard Desktop.
7. If the lines are not displayed, (B) Add 5 Lines.

01-600-1210-0000-800 Receivable 2238.30
01-000-2520-2113-000 Tax 126.70
01-600-2925-0000-800 Revenue 2111.60
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9. (B) Calculate Totals
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10. (B) Continue to review all subledger journal entry header and line information.
The Review Subledger Journal Entry window is displayed.
11. In the Complete field, select Draft.
Note: Draft status indicates that the results cannot be transferred or posted to General
Ledger. Entries can be updated and deleted. Funds reservation cannot be performed.
12. (B) Finish
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SLA – Oracle Subledger Accounting Training Manual OracleApps88

Overview of Subledger Accounting ........................................................................................... 1-1

Entering an Invoice ..................................................................................................................... 2-20

Inquiring on Subledger Journal Entries in Payables or Receivables ................................ 3-15

Accounting Methods Builder (AMB) ......................................................................................... 4-1

Running the Create Accounting Program in Draft Mode ..................................................... 4-61

Defining Subledger Accounting Methods ............................................................................... 4-79

Defining Application Accounting Definitions ........................................................................ 4-102

Defining an Application Accounting Definition for Payables .......................................... 4-105

Defining Journal Line Types ...................................................................................................... 4-118

Defining Account Derivation Rules .......................................................................................... 4-139

Defining Journal Lines Definitions ........................................................................................... 4-166

Reports ............................................................................................................................................. 5-1

Creating Manual Subledger Journal Entries ............................................................................ 6-1

Creating Manual Subledger Journal Entries in Payables ................................................... 6-14

Advanced Options ......................................................................................................................... 7-1

Overview of Subledger Accounting

Introduction to Subledger Accounting

Introduction to Subledger Accounting

The US headquarters/parent company would need to have a consolidated global visibility of

In the definition above, Subledger Accounting allows:

Introduction to Subledger Accounting

Introduction to Subledger Accounting

Introduction to Subledger Accounting

Create a New User

Responsibility Security Group

4. Save and Close Form.

Login as New User

Create a Supplier With Two Sites

Responsibility = Purchasing, Vision Operations

Code Meaning Description

2. Switch to the Payables, Vision Operations (USA) responsibility

4. Create a pay site.

6. Create a purchasing site.

8. Create a contact for the pay site.

9. Create a contact for the purchasing site.

Create a Supplier With Two Sites

1. Navigate to the Oracle Purchasing lookups

Code Meaning Description

4. Save. Close the form to return to the Navigator.

 (N) Suppliers > Entry

10. (B) Save.

12. (B) Save.

14. (B) Save.

16. (B) Save.

18. (B) Save.

20. (B) Save.

Create a Pay Site

 County = San Francisco

26. (B) Apply. This creates the basic supplier site.

28. (T) Uses.

29. (T) Communication.

Create a Purchasing Site

 Postal Code = 10022

37. (T) Communication.

Create a Contact for the Pay Site

43. (B) Apply.

Create a Contact for the Purchasing Site

Set the Supplier Site Tolerance