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Transitioning from Account Generators to

the R12 Subledger Accounting Engine

Alyssa Johnson

Agenda

Account Generators
Subledger Accounting Engine
Accounting Methods Builder (AMB)
Transitioning Account Generation to SLA
Steps to Define Rules in SLA Rules
Next: Create Accounting
Finally: Test Test Test
Exporting and Importing AADs
Summary
More Information
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Account Generators

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Account Generators
Account Generators are special Workflows
which automatically construct Accounting
Flexfield combinations using Oracle or userdefined business rules
Seeded Account Generators can be utilized to
generate accounts
If special business needs exists, users can
modify the Account Generators based on Oracle
rules that must be followed when customizing
the Account Generator
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Account Generators Pros & Cons


Pros
Flexibility in generating accounting
Workflow application is well-established and wellsupported

Cons
Some Account Generators require customization
Patching can often overwrite customized Account
Generators
Customizations are not protected during upgrades
Database has to be bounced for changes to Account
Generators to go into affect
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Seeded Account Generators


FA Account Generator (FAFLEXWF)
Used by Assets to generate the Accounting Combinations for
each Asset Transaction

OM: Generate Cost of Goods Sold Account


(OECOGS)
Generates the cost of goods sold account for each inventory
transaction line when invoices are imported into AR
These lines are inserted into Oracle Inventory via the Inventory
Interface Program

Inventory Cost of Goods Sold Account (INVFLXWF)


Called while processing Intercompany Transactions.

AR: Substitute Balancing Segment (ARSBALSG)


Updates the balancing segment during various accounting
activities against transactions and receipts
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Seeded Account Generators


PO Account Generator (POWFPOAG)
Used by Purchasing to derive the charge, budget, variance, and
accrual accounting distributions for each PO line
MUST be customized if using Oracle Projects
If not using Projects, it is still invoked but customization is not
mandatory

PO Requisition Account Generator (POWFRQAG)


Used by Purchasing to derive the charge, budget, variance, and
accrual accounting distributions for each requisition line
MUST be customized if using Oracle Projects
If not using Projects it is still invoked but customization is not
mandatory

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Seeded Account Generators


Project Supplier Invoice Account Generation (PAAPINVW)
Used by Payables to derive the Invoice Distribution Accounting
Combination if the distribution is Project related
MUST be customized if using Projects
If not using Projects, it is not invoked

Project Web Employees Account Generator (PAAPWEBX)


Used by iExpense to derive Accounting Combinations for expense
report lines that reference a project
MUST be customized if using Projects
If not using Projects, it is not invoked.

Project Budget Account Generation (PABDACWF)


Used by Projects to generate Accounting Combinations for all budget
items in an integrated project budget

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Seeded Account Generators


Public Sector
IAC Account Generator (IGIIACWF)
Used in Public Sector Assets for Inflation Accounting

MHCA Account Generator (IGIAMAWF)


Used in Public Sector Assets

IGC Charge Account Generator (IGCACGNC)


Used to generate a charge account for contract commitment
for Public Sector Contracts

IGC Budget Account Generator (IGCACGNB)


Used in Public Sector Contracts, to generate a budget
account for contract commitment
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Subledger Accounting Engine

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Subledger Accounting Engine


Powerful rules-based accounting engine with a
centralized data model and repository
Schema XLA
Supports user-defined accounting rules
Provides flexibility while maintaining necessary
control
Enables compliance with multiple geographic,
legislative, or industry requirements
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Subledger Accounting Engine


Consolidates and Standardizes Accounting
Across the Subledgers
Improves Control & Transparency
Separates processing from accounting
Performs Balancing at Subledger Level
Minimizes manual journal entries and
customization
Streamlines Reconciliation
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Subledger Accounting Engine


GENERAL LEDGER
Primary Ledger
Secondary Ledger(s)

Drilldown to Subledger
Accounting Details

Accounting

Subledger Accounting (SLA)


Drilldown to
Transaction Details

Subledger Accounting
Subledgers
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Subledger Accounting Engine

Purchasing
Payables
Assets
Receivables
Cash Management
Intercompany
Cost Management
Process
Manufacturing
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Projects
Payroll
Loans
Lease Management
Property Manager
Public Sector/Federal
Globalizations

Subledger Accounting Engine


The 4Cs of the Ledger

The Subledger Accounting Engine utilizes the Subledger


Accounting Method to generate the correct accounting
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Subledger Accounting Engine

Seeded Subledger Accounting Methods (SLAM)

User-defined Accounting Methods can be added using the Accounting


Methods Builder

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Accounting Methods Builder


(AMB)

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Accounting Methods Builder (AMB)


The functionality of AMB enables users to create
new Subledger Accounting Methods (SLAM)
Accounting rules are configure and maintained
using a forms-based structure
Supports logic such as prioritization and
conditional statements without using SQL
User-defined SLAMs retained during patching
and upgrades

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Configuring Subledger Journal Entries


Event Class
Accounting
Attributes
Account
Derivation
Rule

Journal Header

Journal Line

Journal
Lines
Description

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Journal
Header
Description

Journal
Line Type

SLAM Structure

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SLAM Structure
Subledger Accounting Method

Application Accounting Definitions


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Application Accounting Definition


(AAD) Structure
Oracle defined
Accounting Methods
are non-updateable

For user-defined
SLAMs, each
component must be
defined by the user

They can be copied

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Transitioning
Account Generation
to SLA

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Account Generators Retained in


Upgrade from 11i to 12
On upgrade from Release 11i to Release 12
Account Generators are respected
Post upgrade users can transition account
generation from the Workflow Account
Generators to the Subledger Accounting Engine
The Subledger Accounting Engine is the
technology moving forward
Workflow will be obsolete technology in Fusion

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FA Account Generator
On upgrade, the FA Account Generator (FAFLEXWF) is
retained
Profile Option FA: Use Workflow Account Generation is
set to Yes
Once Accounts can be generated using Subledger
Accounting rules, set Profile Option to No
Each Fixed Assets book can feed a ledger directly
Multiple representations for both corporate and tax
books are supported

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How does this translate in SLA?


Journal Line Definition
for the
Additions Event

Addition
Cost
Journal
Line Type

How is
Account
Derived?

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Account
Derivation
Rule

Conditional
Accounting

Evaluated
least to
greatest

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FA Account Generator
Account Generator has three journal type account levels:
Book, Category, and Asset. Journal types are divided up
between the different account levels.
SLA now provides greater flexibility because it does not
utilize journal type account levels
Each journal type can be modified individually to book
according to requirements
So users are not required to have only one account
generation methodology for a journal type account level

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Book Level
Proceed of Sale
Clearing
Proceed of Sale Gain
Proceed of Sale Loss
Cost of Removal Gain
Cost of Removal Loss
NBV Retired Gain
NBV Retired Loss
Revaluation Reserve
Retired Gain
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Revaluation Reserve Retired


Loss
Intercompany Payables
Intercompany Account
Receivables
Deferred Depreciation
Expense
Deferred Depreciation
Reserve
Depreciation Adjustment

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Category Level

Asset Cost
Asset Clearing
CIP Cost
CIP Clearing
Depreciation Reserve
Bonus Depreciation Reserve
Bonus Depreciation Expense
Revaluation Reserve
Revaluation Amortization
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Asset Level
Depreciation Expense

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Book-Level Account

Look at Name
(Cost of Removal
Clearing)

Look for Book rule


without Category
rule

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Category-Level Account

Look at Name
(Bonus
Depreciation
Expense)

Look for
Category rule
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Asset-Level Account

Look at Name
(Depreciation
Expense)

No other
Account
Segments
Defined

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AutoAccounting
AutoAccounting is still utilized even with SLA functionality
AutoAccounting creates the default accounts for transactions
SLA accounting rules are configured to accept these default
accounts without change
Optionally, additional user-defined accounting rules can be defined
in SLA
SLA rules override default accounts or individual segments of
accounts
Oracle Projects cost distribution, revenue generation, and
accounting event generation processes require AutoAccounting to
create default accounts during processing

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AutoAccounting
SLA allows multiple Receivables distributions.
However, they are not definable in AutoAccounting,
only in SLA
Setup basic default accounting and then let SLA
override this accounting using rules based on user
requirements
Could reduce the number of Transaction Types
needed in Receivables to support AutoAccounting

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Steps to Define Rules


in SLA

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Test Case
A client requires that disposals (natural account 8101) be
charged to cost center 210 instead of 000
The default Oracle account generator uses the default
account defined in the Book Level Controls and replaces
the account value with the value specified for disposals
in the Book Level Controls page
As defined, this generates an account for disposals with
the cost center = 000 and the account = 8101
The customization builds the combination, then checks
to see if the account = 8101. If so, then the cost center
is replaced with 210, else no changes are made
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FA Account Generator

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1. Determine Accounting Requirements


Because of the increased flexibility of the
Accounting Methods Builder work closely with
accountants to assess accounting requirements
Greater flexibility exists in SLA than in the
Account Generator so some rules which could
be implemented may not have been
implemented in the past
Only assign user-defined rules where required

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2. Copy Subledger Accounting Method


Owner:
Oracle
Subledger
Accounting
Method

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Naming
Convention Vital

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3. Copy Application Accounting Definition

Event
Class
Specify Accounting CoA
if using Mapping Sets

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4. Copy Journal Line Definitions for


Events requiring a user-defined rule
Event
Class

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5. Create New Mapping Set (optional)


Input
Operations
Account

Accounting CoA must be defined


if Type is Flexfield or Segment

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Output
Department
Segment
which is
Cost Center

6. Create New Account Derivation Rules


One for Every Required Journal Line Type
Output Type
Department
Segment
which is the
Cost Center
segment

Accounting
CoA must
be defined if
Output type
Segment

Input Source
Journal Line
Type Account

Value Type: Source, Constant,


Account Derivation Rules,
Mapping Set
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All user-defined
components have
been created or
copied

Now work
back up the
tree assigning
user-defined
components

Application
Accounting
Definition

Event Class Type

Journal Header
Assignments

Journal Entry
Descriptions

Journal Lines Definitions

Journal Line Types

Account Derivation
Rules

Over 3000 Sources Defined


Custom Sources Can Be Utilized

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7. Assign ADR to each associated Journal Line Type


for User-Defined Journal Lines Definition

Journal Line Type

Cost of
Removal
Clearing
Dept Rule
Added

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Users can
reuse ADRs

Different
Event Class

Same
Journal Line
Type

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8. Assign User-Defined Journal


Line Definitions to Event Class

Event Class

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9. Validate Event Classes

Users can also run the


Validate Application
Accounting Definition
Concurrent Program

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10. Assign Used-Defined AAD to


User-Defined SLAM

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11. Assign User-Defined SLAM to Ledger


GL SuperUser Responsibility
Accounting Setup Manager

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Next: Create Accounting

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Create Accounting
Final
Accounting Entries
cannot be changed;
Transferred to GL
Users can now
choose the mode
in which to create
accounting

Final Post
Accounting Entries
Transferred and
Posted to GL

Draft
Use to determine
accounting impact
of journal entries

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Create Accounting

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Create Accounting
Draft Mode

Determine accounting impact of journal entries


Can be deleted and recreated
Transaction or accounting definition can be altered
Can be included on accounting reports
Cannot be transferred to General Ledger
Does not update balances or reserve funds

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Finally:
TEST TEST TEST

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Test
Thorough and complete testing of accounting
rule changes is imperative
Change one rule and test to verify approach
Create Accounting in Draft Mode
Test all Event Classes
If some unaccounted Release 11i transactions
still exist, be sure to test both Release 11i and
Release 12 transactions
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Exporting and Importing


Application Accounting
Definitions

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Exporting
Once AADs have been tested in a development instance
they can be exported to the file system and then
imported to test and production
Can also be used for version control
Concurrent Program
Export Application Accounting Definitions

Parameters
Account Method Builder Context
Destination File Path including full file name
Example: /home/jdoe/out/APAAD.ldt

Versioning Mode (Standard, Leapfrog, Supersede)


User Version
Export Comment
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Setting an AMB Context


Set an AMB Context to work on your own copy
of components and perform changes
Define Additional AMB Context Code in SLA
Lookup XLA_AMB_CONTEXT_TYPE
Profile Option
SLA: Accounting Methods Builder Context

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Importing
Import new AADs from a data file which has been
exported
Concurrent Program
Import Application Accounting Definitions

Parameters

AMB Context
Source Data File
Merge Analysis Only
Batch Name for merge analysis report
Import Option
Validate
Force Overwrite

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Summary

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Summary
Major shift in how accounting has been
performed
Support Multiple ERPs in one corporation
Maintenance is straightforward
No longer have to account by exception
Clear ownership of the ledgers
Consistency and Transparency
Security
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Summary
Straight through processing
Draft Accounting
User-defined accounting rules maintained in
future patching and upgrades
Accounting rules can only be applied to
transactions coming from subledgers
If you need AMB functionality for external
systems consider Financial Services Accounting
Hub (FSAH)
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Summary
If the generation of accounts is moved from
Account Generators to SLA, does this mean
users can stop using Workflow?
No, No, and No
Workflow is used in so many other ways than just in
Account Generators
Workflow is alive and well in Release 12

Workflow will be desupported in Fusion

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Summary

Make transitioning
your Account Generators
to SLA a part of your
post upgrade plans

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More Information

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Helpful Oracle Documents


Oracle Subledger Accounting Implementation
Guide Product B13984-02
SLA Cost Management Overview
MetaLink Doc ID: 471057.1

What is Subledger Accounting for Cost


Management?
MetaLink Doc ID: 466513.1

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The Release 12 Primer


Shining a Light on the
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The ABCs of Workflow for


Oracle E-Business Suite
Release 11i and Release 12

Questions and Answers


Thank you!
Alyssa Johnson
ajohnson@solutionbeacon.com

www.solutionbeacon.com
Real Solutions for the Real World.

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