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Oracle EBS R12-SLA-Subledger Accounting-Etree-66th_Session

>>>​ ​Introduction:-
Oracle Subledger Accounting is a rule-based accounting engine that centralizes journal entry creation
across the E-Business Suite. Acting as an intermediate step between a subledger application, such as
Oracle Cash Management, and Oracle General Ledger, Oracle Subledger Accounting creates journal
entries for subledger transactions and transfers them to Oracle General Ledger.

With the introduction of Oracle EBS R12, accounting-related functions and structures change
significantly from previous releases. Many of the original design limitations, such as the inability to
journal easily across ledgers (sets of books) as well as the existence of complex setups, the use of global
shared service centers, separate business tax sub-systems, and separate customer and supplier masters
have been resolved.

SLA is a new functionality introduced in EBS R12. SLA is a powerful and flexible rules-based accounting
engine, with a centralized data model and repository that generates accounting entries based on source
transactions for all Oracle Applications transactions. With the introduction of SLA, customers now have a
unified view of all the Oracle Application Subledgers across all modules with accounting entries. SLA
helps to do a single step posting to all ledgers and also provides real-time/online accounting information
as well as an audit trail for all transactions.

​ ere are some more facts about SLA

H

• ​SLA works with Oracle General Ledger (GL) to provide an accounting system tailored to
your requirements.

• ​SLA supports user-defined accounting rules.

• ​SLA allows multiple accounting representations for a single transaction

• ​SLA establishes a common data model and interface for all subledgers.

• ​SLA is not a module or application or product but a service within a product.

•​There is no separate responsibility available for SLA. In order to get to the Subledger accounting rules,
you will have to use the module specific responsibility and then get to accounting setup to define the
Subledger accounting rules.
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SLA also keeps the Subledgers and GL tied out. SLA controls that the GL balances and SLA balances tie
together and that both tie to the document sources for e.g. AR Invoices, AP payments etc. ​Here is how
the transaction flows all the way through GL via the SLA module.

Figure-2
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Subledger Accounting Components

Subledger Accounting comprises five components. (Figure 3)

>>For more on this ref. file name as ‘’ ​SLAM-Subledger Accounting-Oracle EBS​’’. On office system or
google drive.
Note: Other than GL all are known as sub ledger like AP, AR, FA, CM, PO, OM, etc.

How the accounting will happened in above subledger application this is based on predefined rules in SLA like
which accounts should be Debit or which account should be Credit.
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Here can see the accounting entry created by SLA in AP application under reports & view accounting and after
create accounting program run and transfer to GL program run we can see the accounting in GL too.
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Henceforth after create accounting run program, we can see the accounting in to GL;
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By above Line Drill Down option we can go to sub ledger application from GL application.

>>Accrual Method:​ This is added at Primary Ledger Level once

configuring the accounting method;
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Note​: File name “SLAM-Subledger Accounting-Oracle EBS’’ can ne fetch to get more into above;

Note: Oracle is giving predefined seeded accounting rules under SLAM but if company are require any custom
accounting rules as per any complex business rules then we can created custom rule

>>>SLAM SETUP AT PRIMARY LEDGER LEVEL IN GL APPLICATION;

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How the create accounting happening based on above SLAM setup;

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So here based on above defaults accounting program option at SLAM level is getting triggered
at create accounting of AP application program level.
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Here based on following SLAM component accounting entry is getting created;

Following component are considered -
Account Derivative Rules (ADR),
Journal Line Type(JLT)
Journal Line Description(JLD)
Event Class, etc.
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Also ref. one more illustration related to above;

>>How to create custom accounting rules in SLAM to get expected

accounting transaction;
Note: Go to SLAM rules we can go from any of the application or responsibility or check for the same in
respective responsibility;

EXAMPLE:Based on Debit item(Expenses) in AP ,cost center wise distribution line can be created but
system will not default the same on Credit side of supplier liability account.
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Many method can able to see above as this is vision instance;

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Click on Application Accounting Definition Tab in above form to see the accounting rules
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>>Some example for SLAM:

Here we can see two cost center added on distribution side but due to seeded rules Liabilities ‘Account
class’ coming as single line only for Rs. 50000/- henceforth with custom setup we can create rules with
two different cost center of Rs. 25000/- each. Ref. the cost center as in above picture.

>>How to do further to create the new custom SLA based on system can create cost center wise
account code combination: ---
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Note: we can’t change anything in seeded rules but whenever if need any change we can copy and
edit the same seeded rules.
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Under payable application under application accounting definition assignments, click on Copy, as
change or modification can be done in copy environment only;
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Now we are in user or copy environment where one can change the custom rules;
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After tab out and click on Done one can get own AAD as below and Compilation Status showing as Not
Validated, so, validate the same we can click on validate tab on bottom of the below form;

Henceforth after validation status will be change as below on form;

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Click on JLD to define the journal lines;

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This is again in seeded mode, so we can click on Copy Definition Tab to create the custom JLD;
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After click on Done Tab we can go to created JLD as below;

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In above form we have to create liability account line type under Journal Line Type name as ‘’Liability ,
Basic’’ then click on Account Der. Rules tab as above;
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In below form click on Add line button as above

Note:​In above form showing Oracle seeded one, but no need to be copied the same, here we can make
it by add new form as above by clicking on ​+ form.
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Than save and close the above form, here we have created new ‘Account Derivation Rules’ as
‘ERPTREE COST LIABILITY’.
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So this new custom rules ‘ERPTREE COST LIABILITY’ will be assigned to JLD under ADR in following
illustration;

Then further add above new JLD name as ‘ERPTREE AP INVOICES’ under AAD(Application Accounting
Definitions).
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Then removed the existing JLD Name & add our custom JLD in same form ref. in same form as below;
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Post adding the custom JLD as above form then click on ​Validate tab to validate the form & data.
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Also we have to assign above new custom AAD name as ‘ERPTREE PAYABLES’ to our custom SLAM in
following form;
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In above custom SLAM here we can remove the existing application, save the form & add the new
custom application.
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Add the new AAD create as ERPTREE PAYABLES & save the form,

After this activity we have to assign the above new created SLAM in to Primary Ledger.
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Then click on Finish tab & close the page.

Post assigning the new SLAM on Primary ledger level we have run concurrent program under ‘System
Admin’ responsibility name as
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Then create the invoice with different cost center on invoice distribution based on this transaction will
happen.
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