accounting in 80 ways

8/4/2019 Accounting in 80 Ways

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Accounting Around the World in 80 Ways

Cynthia PrierSenior InstructorOracle University



Disclaimer

This document in any form, software or printed matter, contains

information that is the exclusive property of Oracle. Your accethis confidential material is subject to the terms and conditionSoftware License and Service Agreement, which has been exewhich you agree to comply. This document and information cmay not be disclosed, copied, reproduced or distributed to anOracle without prior written consent of Oracle. This documenlicense agreement nor can it be incorporated into any contracwith Oracle or its subsidiaries or affiliates.

This document is for informational purposes only and is intendeyou in planning for the implementation and upgrade of the prdescribed. It is not a commitment to deliver any material, codand should not be relied upon in making purchasing decisiondevelopment, release, and timing of any features or functionathis document remains at the sole discretion of Oracle.

Due to the nature of the product architecture, it may not be possinclude all features described in this document without riskin

destabilization of the code.



Agenda

• Introduction

• Business Benefits

• Key Concepts

• Major Features

• Setup and Process

• Dependencies and Interactions

• Demonstration of Oracle Applications R12

• Questions and Answers



Introduction



Subledger Accounting Around World in 80 Ways

• In R12, Oracle Financials introduces Subledger Aand significantly enhances the accounting supportacross the Oracle e-Business suite.

• Subledger Accounting is a new set of tools, accouengine, and repository



Subledger Accounting Descrip

• Rule-based accounting engine, toolset and reposisupporting both Oracle E-Business Suite and extemodules

• Allows multiple accounting representations for a sbusiness event

• Retains the most granular level of detail in the SubAccounting model

• Introduces a common data model and UI across sreplacing various Oracle E-Business Suite 11 set

providing a single source of truth for financial andmanagement analysis



Business Benefits



Business Benefits

• Enables compliance with multiple legislative, indusgeography requirements concurrently in a single ithrough configurable rules

• Increases transparency and enables full auditabilittransaction and accounting data through the new

• Improves accounting reconciliation through suppobusiness flows across modules



US US

US

Business Benefits Example

US US

US

US US

US

Fren

PlanFren

Operations in US, UK, France

SimultaneousAccounting for all

entities

Ensures corporatevisibility and local

compliance



Business Benefits

• On a journal important pieces of information from transaction are shown on the entry, exactly whereaccounting came from

• There are also tools to enable further descriptive ito be tied on entries

• For example, for a journal entry created upon the an accounts payable invoice, you will see:

• A description on the journal entry

• Information from the invoice itself whichhelps to associate the entry with thetransaction.



Business Benefits

Ledger: FR StatutoryLedger: FR Statutory

GL Date: 2GL Date: 2--MarMar--20062006

Invoice# 100Invoice# 100

Supplier: ABC NetworksSupplier: ABC NetworksLedger: US CorporateLedger: US Corporate

GL Date: 2GL Date: 2--MarMar--20062006

Invoice# 100Invoice# 100

Supplier: ABC NetworksSupplier: ABC Networks

CR CR

1 Expense 011 Expense 01--EXPEXP--200 $150200 $150

2 Freight 012 Freight 01--FRFR--200 $100200 $100

3 Tax 013 Tax 01--TXTX--200 $110200 $110

4 Liability 014 Liability 01--LIABLIAB--200 200

Invoice #100

ABC Networks

2 Monitors – Marketing

5 Printers – Marketing

Freight

Tax

Total

$ 1000

$ 500

$ 100

$ 110

$ 1710

Line 4

Line 3

Line 2

Line 1



Business Benefits

$100$100Pmt 1101 forPmt 1101 for

Invoice #100Invoice #100 --

Pmt 1101 forPmt 1101 for

Invoice #100Invoice #100 --$400$400

0101--CASHCASH--200200

DRDR CRCR

00

DRDR

$400$400 -- Pmt 1101Pmt 1101

for Invoicefor Invoice

#100#100

Invoice #100 $1000Invoice #100 $1000

0101--EXPEXP--200200DRDR CRCR

$800$800

0101--EXEXDRDR

$200$200Invoice #100Invoice #100 -- Invoice #100Invoice #100 --

0101--LIABLIAB--200200

DRDR CRCR

0101--LIALIA

DRDR

-- Invoice #100Invoice #100$800$800

Payment #1101 $500Payment #1101 $500

Invoice #100Invoice #100



Key Concepts



Key Concepts

• Event Model: Definition of the subledger transactioand lifecycle

• Event Class: Classifies transaction types for acrule purposes

• Event Type: For each transaction type, defines

actions with accounting significance• Transaction Object: Data model containing transa

information to be used in accounting

• Source: Any attribute of a transaction that can be defining the journal entry rules and whengenerating an entry



Event Classes

• Payables

• Invoice

• Debit Memo

• Prepayment

• Payments

• Refunds

• Receivables

• Invoice

• Deposit

• Receipt

• Bill Receivable

• Purchasing

• Requisition

• Purchase Ord



Events

• Payables Invoice

• Validated

• Adjusted

• Cancelled

• Receipt

• Created

• Applied

• Unapplied

• Updated

• Reversed

• Purchase Order

• Created

• Distributed

• Cancelled

• Rejected

• Finally completed



Major Features



Major Features

• Accounting Methods Builder

• Multiple Accounting Representations

• Accounted Amount and Exchange Rate Calculatio

• Business Flows

• Multiperiod Accounting

• Automatic Scheduling of Accrual Reversals

• Date Effective Accounting Definitions

• Accounting per Process Category

• Online Accounting

• Straight Through Accounting Processing

• Draft Accounting



Major Features

• Online Inquiries

• XML Reports

• Errors Accounting and Reporting

• Diagnostics Framework

• Accounting Definitions Loader

• Manual Subledger Journal Entries

• Replacement of Disabled Accounts

• Journal Entry Sequencing

• Third Party Control Accounts

• Third Party Merge Accounting

N



Accounting Methods Builder

• Accounting Methods Builder

• Toolset to define journal entry rules for the transacevents of a subledger application

• Allows defining multiple sets of rules to be used cofor different requirements




• Journal entries are split into components:

• Descriptions

• Line Types

• Account Derivation rules

Journal LineTypes Account DerivationRules JoD




FR Statutory Ledger

Standard IAS Subledger Accounting Method

Payables Application Accounting Definition

Journal LineTypes

Account DerivationRules

JoD

Payment Journal Line Definition

Transaction Objects

Sources



Online Accounting

• Generate journal entries in the Payables IEntry window

• Click the actions button

• Select Create Accounting options

• Draft, Final, or Final and Post



Inquiries

• The accounting for a transaction is accessible fromtransaction view

• This function queries entries created for the transaincluding multiple representations such as reportinand secondary ledgers



Inquiries

• The accounting for a transaction is accessible fromtransaction view

• This function queries entries created for this traincluding multiple representations such as repocurrency and secondary ledgers, as well

• From the inquiry screen, you can:• Navigate back to the transaction windows

• View further details of the journal entry

• Compare two entries side by side

• View the entry in t-account format



Offline Accounting

• You can submit an offline process to create accoumultiple transactions.

• By specifying the end date, you can process alunaccounted events or a subset of them basedprocess category.

• By using the standard scheduling capabilities, youaccounting processed automatically every night



Standard Reports



Setup and Process



Setup

Define/copy andmodify accountderivation rules

JOURNAL ENTRYSETUPS

Define/copy andmodify descriptions

Define/copy andmodify journal line

types

METHODS ANDDEFINITIONS

Define/copy andmodify journal line

definitions

Define/copy andmodify application

accounting definition

Validate applicationaccounting definition

LED

AssAcco

Define/copy andmodify Subledger

Accounting method



SetupJournal Line Type

• On journal entries for payables invoice validation (accrual) there are lines for:

• Liability

• Item expense

• You can have, for example, one credit line type de

liability, and one debit line type defined for item exwhich generates a separate entry line for each lineinvoice




• Identify the natural side

• Debit

• Credit

• Gain/Loss

• Determine the accounting class

• Set the conditions under which rule will create a jo

• Define the values needed for entry line generationamount, currency, conversion rate information

• Control behavior for certain features, i.e. multiperioaccounting, business flows, line merging and sum




1

2

34

5



SetupAccount Derivation Rule

• The account derivation rule determines to which Gan entry should be posted

• There is a lot of flexibility in defining account deriv




• Determines if a rule is generic or specific for a giveaccounts

• Identifies what is derived

• Flexfield

• Segment/qualifier

• Value Set

• Defines how the value is derived

• Constant

• Source value

• Mapping Set

• Another Account Derivation Rule• Sets under which conditions the rule derives a val




• An account derivation rule can be defined specificgiven chart of accounts, or generic for any Chart o

• It can be defined to derive the value of the entir just a single segment or qualifier, or a value se

• It can be defined to return the value of a source

attribute of the underlying transaction, a constamapping set, or another account derivation rule



SetupJournal Entry Description

• Define how the description on a journal entry or onlines will be built:

• Constant

• Source value

• Set the conditions for which the rule is used



SetupJournal Line Definition

• Identifies the journal line types, descriptions, and aderivation rules that are used to create a journal eparticular event type

• Can be Generic or specific for a chart of accounts

• Defines processing options for features such as m

accounting and business flows



SetupJournal Line Definition



SetupApplication Accounting Definition

• For a subledger application, identifies the event clevent types for which entries should be created

• Identifies the journal line definitions to create the e

• Defines how the GL date of an entry is to be deter

• Can be generic or specific for a chart of accounts



SetupApplication Accounting Definition

• As the rules to be used for each event class and eare identified, the remaining final definitions are doApplication Accounting Definitions form.

• For example, the description to be on the header o journal entry, the set of balanced lines.

• This is also where the GL date derivation rule ishould the GL date be the transaction date or sdate, for example.



SetupSubledger Accounting Method

• Subledger Accounting Method aka SLAM

• Use to define the accounting methods to be used such as Cash Basis, Accrual Basis, IAS/IFRS, US

• Assign an application accounting definition for eacapplication

• Activate new set of rules using effective dates

• Generic or specific for a chart of accounts

• Provided out of the box:

• Standard Accrual

• Standard Cash

• Encumbrance and US Federal methods



SetupSubledger Accounting Method

• If the accounting standards change over time, exiscan be end-dated, and new ones activated.

• All components can be defined specifically for a gaccounts, or generic across chart of accounts.

• This is especially important if you define rules u

of Account specific flexfields or segment valueswould not be meaningful when generating entrledgers with a different COA structure.



Ledger Setup and SLAM Assig

• Each primary and secondary ledger is assigned a determine the standard of accounting for that ledg

• For example, when accounting is generated fotransactions of an operating unit, the accountinassociated with the ledger of that operating uni



Secondary Ledger: US Co

SLAM: US G

COA: US C

Calendar: U

Currency: U

Ledger Setup and SLAM Assig

Primary Ledger: FR Statu

SLAM: Stan

COA: Plan C

Calendar: F

Currency: E

Invoice



SetupSet Key Profile Options

• SLA: Enable Subledger Transaction Security in G

• SLA: Enable Data Access Set Security in Subledg

• SLA: Additional Data Access Set

• SLA: Allow Reports Journal Source Override



Dependencies andInteractions



SLA

Dependencies and Interactions

Transactions

AccountingEvents

SubledgerApplication

JournalEntry Setup

AccountingProgram

SubledgerBalances

SubledgerJournalEntries

AccountingConfigurations



DEMONSTRATION



Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S



R12 Subledger AccounFundamentals (E-Busines

Check at

http://education.oracle.c

Coming to a Classroom near y



For More Information

• For more information about our Products

• http://oracle.com/products/

• For Metalink information

• http://metalink.oracle.com/

• Oracle product documentation• http://appsnet/products/documentation/content.htm

• E-Business Suite TOI Center

• http://ebiz.us.oracle.com/toicenter/byrelease/



The preceding is intended to outline our genproduct direction. It is intended for informatiopurposes only, and may not be incorporatedcontract. It is not a commitment to deliver anmaterial, code, or functionality, and should nrelied upon in making purchasing decisions.The development, release, and timing of anyfeatures or functionality described for Oracleproducts remains at the sole discretion of O

accounting in 80 ways

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