Press "Enter" to skip to content

Oracle EBusiness Suite R12 Introduction to Subledger Accounting Module SLA

Oracle EBusiness Suite R12 Introduction to Subledger Accounting Module SLA
Oracle EBusiness Suite R12 Introduction to Subledger Accounting Module SLA

pOracle EBusiness Suite R12 Introduction to Subledger Accounting Module SLAp phello welcome to handson erp calm this is husband mia in this tutorial im going to talk about introduction to some ledger accounting module also known as SLA lets start with the basics accounting information is created in different modules in Oracle ebusiness suite and sent over to general ledger why is it sent over to general ledger module because financial reports are run from general ledger module and financial reports display all this accounting information that has been sent over to general ledger from different modules examples of financial reports are income statement balance sheet and cash flow statements and most of these reports are reviewed by the stakeholders like management owners stockholders etc and these reports tells you the health of the company okay so this is the floor business event takes place then you enter a transaction in the system representing that business event as a result accounting is created and finally accounting is sent over to general ledger module now the business event basically takes place outside the system okay for example you purchase something you buy a phone call out through a website or by physically going to the vendors retail shop etc so the business event took place outside your system or Oracle applications now at some point a transaction would be entered in Oracle Applications and that transaction would represent the business event and thats the only way the application would know that business event has taken place so transactions are entered in in different modules for example in payables you would enter invoices that had has been sent over by the vendor to you and in accounts receivable you would enter the invoices that you are sending to customers etc etc so module would register different business events by means of a transaction okay so this is the first interaction with Oracle application at this level the transaction level now when you enter the transaction then accountant would be created based on that transaction for example when you enter an invoice expense account is debited and accounts payable account is credited which means your liability has increased and your expense has included as well so this is just an example each transaction would result in two different accounting or no accounting it all depends on what kind of transaction it is now again the last step the transaction would be sent over to general ledger as we have discussed this before now what Im going to do right now is Im going to point out differences between 11 Ill and release 12 and thats the best way to understand the concept of SLA module because that is something new and release 12 so in leith 11 I what used to happen is let me go back so this flow that Ive shown you basically I want to tell you what used to happen at least 11 I which was the previous release then release 12 when the system would reach this third step like where Im saying accounting is created accounting is created in respective module so here this flow Im talking about strictly for release 11 I okay so you enter the transaction in respective module wherever the tradition belong to and the accounting that will be created would also reside in that particular module for example if you enter an invoice in accounts payable the accounting would be created in accounts payable and finally the accounting would be sent over to general ledger from accounts payable module so look at this diagram here these are all different modules okay this dot dot is representing all the remaining modules in the system transactions are residing in the module and accounting is also residing in the module and once the accounting is created youre going to run the transfer to GL program from each of these modules and accounting information would be transferred to general ledger okay now look at some drawbacks of this concept okay the concept of accounting being residing in in the modules and then being sent over to general ledger each module has its own implementation of transfer to GL program okay the best example is accounts receivable system here the transfer to GL program was very different than any other module it was not even a program it was a form okay screen and screen you would tell different parameters that it was going to run a transfer to GL as a result you will not be able to even schedule this program to run automatically because its not even a program it was just a form or screen in payables it was a proper transfer GL program you can schedule it if you like now each module has its own price for the GL program it would take different parameters right so if one user is using three different system they have to learn to run transfer to GL program in three different ways okay and that creates inconsistency and not a very good user experience now other drawbacks are accounting to transaction tieback was inconsistent throughout across different modules now what happens is when a accounting is created from a transaction its central to general ledger and user in journal ledger usually have an ability to drill down from the accounting information back to the transaction but each module which would create its own accounting and the tieback from accounting to transaction is not consistent from across modules as some module would provide a limited time back for example if you want to go from accounting information back to the actual transaction intermodules you will be able to do that very easily in some module you dont have enough detail at the accounting level to let you go back to the transaction level so the tablet was very inconsistent because each module has its own accounting in engine to create the accounting ok so here you could see inconsistencies across modules some model would would create detailed accounting while other modules would create summary accounting or not very detailed accounting and not enough to give you enough information where the actual accounting is coming from so and this in some module the tieback was not even possible once the accounting is created you will not even be able to go back to the transaction ok now other problems in at least 11 I was no central repository was were was present for inquiry and reporting on accounting as you already know that accounting would reside in each of the module so there was no central place where users could go and view all the accounting before it was sent over to general ledger in in this drop form by having one window just to see all the ROI accounting created or a central place to run reports on single repository of accounting if you want to do inquiry on accounting created by payables you would have to log into payables and run it on program if you want to see accounting created by account receivable you would have to go into account receivable and run its own inquiry and program and reports available for you doing the accounting of course were talking about before the accounting is central to general once it sent over to general ledger then of course you can run general ledger reports but we are talking about before the accounting is converted into general ledger journals okay and release twelve most of these problems were fixed and thanks to the SLA modules which sits in the center now this sub ledger accounting module now what happens is when the transactions are entered in sub ledger mode in different modules accounting is not really created in Indi modules okay the event is sent over to the SLA module so she simply comes payable module will tell the SLA that account that invoice has been entered and these are the details now the accountant would be actually created by the SLA module for on behalf of all the modules in account in Oracle Applications whichever modules are capable of generating accounting SLA would create accounting for all those modules so no accountant would be treated outside SLA okay so accountant would be created by isolate and it would reside in SLA and then it would be sent over to join later from SLA okay now SLA module is new feature in the NIST 12 okay now events are passed over to SLA now accounting information is not being sent over to SLA because it doesnt even exist transactions are entered now simply payable is going to send as a center work event information to SLA saying that this invoice has been entered and these are the details for the invoice okay so the hell event information is central to SLA please keep that in mind so this is how it works this is the body of a transaction is entered in this module and this module is going to send or the event information and event to the SLA saying that this event has taken place and especially wants SLA can extract all the event details from this module because this transaction object is sitting here so all the transaction details could by Ursula from this module but based on this event SLA would create the actual accounting and finally this accounting would be sent over to general ledger now SSL for central repository for inquiry and porting on on accounting information now if somebody wants to do an inquiry they can go to Excel a screen and view all the accounting they can run reports from isolated pores to see any accounting details so now we have a central place where all the accounting information is stored so this a consistent way is now offered for reporting an inquiry and now theres one single program to do the transfer to GL or case called create accounting program now that would create accounting as well as do the transfer to gia ok and that program is owned by Excel even though you can call that program from all different modules that feeds accounting but that program is basically run by SLS owned by SLA ok so now it offers consistency no way so no matter from which module you are running that program it will always have the same parameters and same way of running ok so now in from a our two GL if you want to do the transfer youre going to call the create accounting program and same program would be called from any other module like accounts payable ok now we have a consistent way of running transfer to GL you can define how to create accounting from from the events now Ill have more tutorials on this topic ok but very briefly when you pass over the event to the SLA you have some rules defined in SLA because youre just passing over the event based on the event accounting would be created of it and accounting would be created based on the rules that you have defined so you transfer the event over SLS theyll read all the accounting rules that you are defined and based on those rules actual accounting would be created ok so here is the flow that happens in SLA you the event to the slomo module as you can see in this small diagram here the module is sending over the event to a seller then what happened how does this accounting generated from this event you have some set of rules in the system in SLA based on these rules the counting is generated the Oracle comes with some seeded rules for examples tender the cool and standard cash okay you can create your own rules its called conventions it you can create your custom conventions or you can modify the seeded rules in the system okay so remember when you were creating a ledger you had to choose one of the conventions and you chose one of this convention that came seeded with the system you can define your own convention and thats a very powerful feature of least well Im going to have more tutorials on that topic okay so now here is what we have SLM or you can create accounting for third party modules as well why because all SLA takes as input is the event and based on the event I sell it could create accounting of course with the help of rules that here and find so now a customer application can pass an event as well to SLA and you can fee it all you you can keep all your accounting engine logic in one module that would be SLA okay so this is something that you need to understand how I sell it fits with the external world and how I sell it fits with the with the custom apps now in eleven I firsttime application would send accounting directly to general ledger so again all the accounting logic would have to reside in custom application you can still do that in at least well but the better way is the custom apps should pass event to SLA and accounting generation logic should reside in SLA okay so this was a very brief tutorial on this new module called sub ledger accounting and Ill create more tutorials to explain you how SLA works and you will be visiting this create accounting program from different modules like AP and AR so when you running that program you should keep this whole tutorial in mindp

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *