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Quote To Cash SLA1

Mohan Iyer will present on Subledger Accounting (SLA) in Oracle R12, including an overview of SLA, accounting touchpoints in the quote to cash process, business cases for changing SLA configurations for product line accounting, cost accounting, management reporting, and multi-period accounting. He will also discuss reporting using SLA data, other SLA capabilities, and potential "gotchas".

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238 views34 pages

Quote To Cash SLA1

Mohan Iyer will present on Subledger Accounting (SLA) in Oracle R12, including an overview of SLA, accounting touchpoints in the quote to cash process, business cases for changing SLA configurations for product line accounting, cost accounting, management reporting, and multi-period accounting. He will also discuss reporting using SLA data, other SLA capabilities, and potential "gotchas".

Uploaded by

psaikrish
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Collaborative SIG: SLA Accounting in R12: Quote to Cash Process

Mohan Iyer Principal Consultant FSCP Solutions Inc [email protected] Session: 8710

Agenda
About the Presenter SLA Overview Accounting touch points Business Cases for SLA changes Reporting using SLA data Other capabilities of SLA Gotchas References
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About the Presenter


Mohan Iyer
Principal Consultant @ FSCP Solutions Inc. Over 20 years experience with Oracle Applications Functional consultant in Finance applications Multiple full cycle R12 implementations Currently working on R12.1.3 Founding Board Member of NorCalOAUG and GL SIG Board Member on MNSIG

SubLedger Accounting Overview


SLA is a rules engine that creates accounting for all transactions into GL This allows for the disconnect between a transaction and its accounting This also allows for a single process to create accounting entries into GL There is a layer between GL and the subledgers (AP, AR )
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SubLedger Accounting Overview


Oracle Subledger Accounting:
Oracle Subledger Accounting is a rulesbased engine for generating accounting entries based on source transactions from ALL Oracle Applications.

SubLedger Accounting Overview


GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry

Create Accounting Transaction


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SubLedger Accounting Overview


Ledger Subledger Accounting Method (SLAM) Application Accounting Definition (AAD) Journal Line Definition (JLD)

Journal Line Types (JLT)

Account Derivation Rules (ADR)

Journal Entry Descriptions (JED)

Sources Transaction Objects

SubLedger Accounting Overview

Quote to Cash Overview

Business Case for Product Line Accounting


Presented by Douglas Volz
Principal Consultant at Douglas Volz Consulting, Inc. 10+ years in industry in cost accounting staff & management positions 20+ years Oracle Experience as an Oracle systems designer, implementation consultant and project manager Specializing in advising on:
Efficient Cost Accounting processes Managing Oracle implementations and post-implementation support

Currently working on R12 Founding Board Member of OAUG Cost Management SIG Presentations at Collaborate 2011
60 Inventory Orgs & 6 Ledgers? No Worries, Reconcile Your G/L to Inventory in less than 60 Minutes! Co-Presenter: OAUG Cost Management SIG

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Business Case for SLA changes


Product Line Accounting
Use separate sub-accounts to denote your product line for variances, cost of goods sold and inventory

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Accounting Touchpoints
Every single transaction that ships has an effect on Shipment Inventory Cost Deferred COGS Invoicing COGS Receivables Revenue Unearned Revenue
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Accounting Touchpoints
Every single inventory and WIP transaction you use PO Receipts PO Deliveries Material Issues WIP Completions Cost Updates Subinventory Transfers Over 20 SLA transaction events to change
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Business Case for SLA changes


Cost Accounting
Standard
SLA will book purchase receipts with the following rules: Cost Management Default
Use the same offset accounts as normally used pre-SLA Use the same receiving, inventory and WIP valuation accounts Use the same variance and COGS accounts

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SLA changes
Two approaches:

Use Existing Sources and the Category Accounts


No custom sources Have to set up category accounts for each subinventory or costing

method

Create Custom Source for Item Master COGS Account


Have to set up a custom source Use the item master COGS account so overall you have less setup
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SLA changes
Product Line Accounting
Changes to make configuration changes to achieve the requirement
1. 2. 3. 4. 5. 6.

Custom Sources (depending on the approach) or Category Accounts Setup Account Derivation Rule (default Cost Management Account Derivation is now standard) Create Custom Journal Line Definitions and assign the Account Derivation Rule (over 20 journal lines types, depending on which transactions you use) Link Custom Journal Line Definitions to Application Accounting Definition Link Application Accounting Definition to Subledger Accounting Method Link Subledger Accounting Method to a Ledger
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SLA changes default ADR

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SLA changes line assignments


Example for Receiving Events:
Need to change both the receipt and deliver

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Business Case for SLA changes


Management Reporting
Standard reporting is delayed till close and too late to react to negative trends Manual reporting tasks to derive trends

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Business Case for Management Reporting


Presented by Thomas Simkiss
Chief Operating Officer and Lead Financials Architect at BizTech, a mid-Atlantic Oracle Certified Advantage Partner based in King of Prussia, Pennsylvania. has 14 years Oracle Applications experience both as an end-user and implementer across many industries, including Telecom, Retail, Membership Organizations, Healthcare, Government, and Social Services. Thomas has had a wide range of roles both utilizing and implementing Oracle Financials, Supply Chain, Discoverer and Business Intelligence as a business analyst, team lead, and project manager. Thomas is a member of the New Jersey State Society of Certified Public Accountants, and a member of the Pennsylvania and New Jersey Bar Association. BizTech is an Oracle Platinum Partner based in King of Prussia Pennsylvania. BizTech provides software, services and hosted Oracle software solutions with a primary focus on Oracle EBS, Business Intelligence, and Hyperion. Thomas has presented previously at the OAUG, MAOAUG, Collaborate 2007, 2008, 2009, 2010 and Oracle Open World. He can be reached at [email protected].
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Business Case for SLA changes


Management Reporting
Use secondary ledger to create a more frequent reporting analysis basis Spread certain expenses over weekly periods to avoid unusual spikes Timely reporting to support better analysis and on-time decisions to manage negative trends

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Business Case Multi-period Accounting


Copy the existing Journal Line Type and set the multiperiod flag
Accrual line type Recognition line type

Note: No conditions may be used 22 for a recognition line type

Business Case Multi-period Accounting


Configuration related to Multi-Period Accounting 1. In the Journal Line Accounting Attributes Assignments window, assign sources for the following accounting attributes:
Multiperiod: Specifies whether a journal line type is eligible for multiperiod accounting Multiperiod Start Date: Date to begin multiperiod accounting Multiperiod End Date: Date to end multiperiod accounting

2. In the Journal Line Types window, define the journal line types to be used for multiperiod accounting by setting the multiperiod option. 3. In the Journal Lines Definitions window, complete the following:
Assign the accrual journal line type Navigate to the Multiperiod Accounting window to define the multiperiod options In the Multiperiod Accounting window, users define the multiperiod options.

4. In the Line Assignments window, define the multiperiod line assignments as follows:
Update the line description for the accrual journal entry line type, which defaults from the Journal Lines Definitions window Assign the recognition journal line types Assign account derivation rules

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Business Case Multi-period Accounting

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Business Case Multi-period Accounting


Sources

Accounting Attributes Source Assignments

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Business Case Multi-period Accounting


Configure custom sources in Cost Management
Cost Management SLA: SLA Accounting Setup Accounting Methods Builder Sources Custom Sources

Required Attributes: 1. MP Flag 2. MP Start Date 3. MP End Date

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Business Case Multi-period Accounting


Assign custom sources to required accounting attributes

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Reporting using SLA data tables


Many reports now are generated from the SLA tables, given below are a few
Account Analysis (all modules) Accounts Payable Trial Balance Accounting Report while running Create Accounting

All account query capability is now drill-down through the SLA


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Other capabilities of SLA


SLA Transactions and Balances
SLA maintains its own Journal Entries and Balances as a middle level to maintain these data sets before they flow to GL Third Party Control Account Balances
Track balances by account and Customer/Supplier Statutory reporting requirement in certain countries Store an unlimited number of sources as supporting references on the accounting entries Optionally track balances by account and supporting reference Track balances by originating transactions and downstream applied transactions

Supporting Reference Balances


Open Account Balances (AP Trial Balance)

Balances calculated and stored AFTER Accounting Program Completes


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SLA Transactional Detail & Balances


GL Balances Posting GL Journal Entry Journal Import SLA Journal Entry Balance Calculation SLA Balances
(Supporting References & Open Account - AP TB)

Create Accounting Transaction


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SLA Supporting References


Supporting references may be used as follows
Provide additional business information for balances on transactions To establish a subledger balance for a particular source value or combination of source values For financial and managerial analysis Balances can be maintained Never no balances maintained only used for tracking purposes Based on Account based on the account that is source of this supporting reference Always continously maintains the balance for this source
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SLA Supporting References

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References
Prior OAUG papers on SLA
Cost Accounting As You Want It - R12 Cost Accounting with SLA http://www.volzconsulting.com/resources.html

? Metalink notes: Setting Up Product Line Accounting Using Release 12.1.1 Permanent Inventory Structure (CST-SLA) ID 788666.1 Supporting References in R12 (published document from Oracle Support)

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Gotchas

Making the update to every Event / Event Type combination Copying the seeded definition prior to making changes Coordinating all SLA changes in the Subledger Accounting Methods For product line changes you usually have to change over 20 events or journal line assignments very time-consuming and error-prone Test, test, test

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