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Subledger Accounting (SLA) Configuration for OPM in R12

Shailendra Naithani, Principal Product Manager(OPM) Venkat Chukkapalli, Group Manager(OPM Development)

Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview Manufacturing Accounting Controller(MAC) vs. SLA

Setting up SLA for OPM SLA Use Case: Misc Receipt Accounting OPM Period End Closing using OPM Financials SLA Advanced Configuration:
Custom Sources

Q&A

Subledger Accounting Introduction

What is SLA?

Ledger Payables

Subledger Accounting
Subledger Accounting Subledger Accounting
Accounting representation strongly tied to subledger transactions

Receivables

General Ledger

OPM

Subledger Accounting Replaces MAC

OPM Costing with MAC OPM Costing with SLA

Completed material and resource transactions

Completed material and resource transactions

OPM Costing engine generates cost

OPM Costing engine generates cost

Preprocessor creates accounting events MAC processes transactions and creates journals

SLA processes these events to create journal entries

Key Changes Summary

Process Manufacturing Financials is the Subledger for all OPM transactions MAC Obsoletes and replaced by SLA
No need for separate accounting units and accounts No need for Ledger mappings

Account derivation based on flexible condition based rules Test Subledger update replaced by Create accounting-Draft Subledger Update replaced by Create accounting- Final mode Inventory Close for Process Organizations
Handled by OPM Costing Preliminary Close is still supported for Process Organizations Period Ending Balances saved in an OPM Costing Table (GMF_PERIOD_BALANCES) Inventory Valuation report available in OPM Costing reports
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Subledger Accounting Replaces MAC

OPM example with Order Management

Shipping

Shipping (OMSO) Order Management

Internal Order Shipments

Customer Returns(RMA)

Shipping

Shipping, Internal Order shipments, Customer Returns

MAC-11i SLA- R12

Event Event Class

Subevent Event Type

Event Model - Example

Subledger Accounting Replaces MAC

Equivalent functionality in SLA
OPM MAC
Event Sub-Event Account Titles

SLA
Event Class Event Type Journal Line Types (JLT) Application Accounting Definitions (AAD) (SLA) Sources Account Derivation Rules (ADR)

Comments

Accounting Template
Account Mapping Attributes Priorities and Account Mapping

OPM Currency, OPM Ledger, OPM Exchange Rates

Subledger Program Test and Actual Subledger Accounting Accounting Pre-Processor Draft and Final Accounting

Use GL set ups

Event Model- SLA vs MAC

Event Entity

Event Class

Event Type Event Subevent

11i

R12
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JLTs vs. Account Titles

11i

R12

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SLA ADR vs. MAC Account Mapping

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Subledger Accounting Method Structure Example- Vision Environment

Primary Ledger(OPM US) Subledger Accounting Method-Standard Accrual Application Accounting Definition (AAD for Process Manufacturing Financials) Journal Line Definitions

Journal Line Types

Account Derivation Rules

Journal Entry Descriptions

Sources
Transaction Objects
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Subledger Journal Entry

Description

Account Derivation Rule

Line Type
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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview MAC vs. SLA

Setting up SLA for OPM SLA Use Case: Misc Receipt Accounting OPM Period End Closing using OPM Financials(Costing and SLA) SLA Advanced Configuration:
Custom Sources

Q&A

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SLA Setup

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Setup Account Derivation Rules

Corresponds to Account Mapping and Priority setup of 11i OPM MAC Query a seeded rule and creates custom ADR with owner as User Output type can be an entire accounting flexfield or a specific segment in the accounting code combination Multiple conditions can be separated by AND/OR logic

Key Takeaways: Do not modify seeded ADRs. Create custom ADRs Define custom ADRs for rules such as AAC, AAP, DCOGS depending on your business needs
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Setup Journal Lines Definition

JLD created with owner User JLDs are created for an Event class and Event type combination Multiple journal line types (JLTs) are associated to a JLD. These JLTs correspond to Account Titles of MAC ADRs are associated to the JLTs

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Setup Applications Accounting Definition

AAD created with owner User Specific to a particular application Contains all event classes and event types

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Setup Subledger Accounting Method(SLAM)

SLAM created with owner User Specific to a ledger Contains AADs from all applications

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Assign SLAM to Primary Ledger

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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview MAC vs. SLA

Setting up SLA for OPM SLA Use Case: Misc Receipt Accounting OPM Period End Closing using OPM Financials(Costing and SLA) SLA Advanced Configuration:
Custom Sources

Q&A

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Perform a Miscellaneous Transaction

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Run OPM accounting preprocessor

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Run Create Accounting

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Output of create accounting- INV and IVA accounts

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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview MAC vs. SLA

Setting up SLA for OPM SLA Use Case: Misc Receipt Accounting OPM Period End Closing using OPM Financials(Costing and SLA) SLA Advanced Configuration:
Custom Sources

Q&A

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OPM with SLA - The Process

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Run the preliminary inventory close

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Run Preliminary cost update process

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Run OPM Accounting Pre-processor

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Run Detailed Subledger Report

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Review the accounting entries

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Inventory Close- Final

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Final Cost Update

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Create accounting final mode

On Submitting program, the following requests will be invoked:

Create Accounting Accounting Program Journal Import and Subledger Accounting

Balances Update

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Agenda
Subledger Accounting(SLA) - Introduction
Architecture overview MAC vs. SLA

Setting up SLA for OPM SLA Use Case: Misc Receipt Accounting OPM Period End Closing using OPM Financials(Costing and SLA) SLA Advanced Configuration:
Custom Sources

Q&A

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Custom Sources
Example1
Extend the list of sources available to application accounting definitions Used to derive accounts based on non-standard sources PL/SQL function used to derive the source Return value can be a string, an accounting flexfield or a value set

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Custom Sources
Example2
Business Case: Customer needs to capture purchasing details(PO Number, Line Number, Supplier Name, Item Number, Item Description) on the journal entry descriptions for Receive to Inspection accounting events. Solution Approach using custom sources:

1. Create PL/SQL Functions for Item Number, Item Description etc

create or replace FUNCTION GET_ITEM_NAME(p_inventory_item_id IN NUMBER , p_organization_id IN NUMBER) return varchar2 IS CURSOR c_item_name IS select concatenated_segments from mtl_system_items_kfv where inventory_item_id = p_inventory_item_id and organization_id = p_organization_id; l_item_name VARCHAR2(100) :=' '; BEGIN OPEN c_item_name; FETCH c_item_name INTO l_item_name; CLOSE c_item_name; RETURN l_item_name; END GET_ITEM_NAME;

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Custom Sources
Example2.continued
2. Create Custom Sources for PO Number, Line Number, Supplier Name, Item Number, Item Description 3. Create Journal Entry Description using custom sources

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Custom Sources
Example2.continued
4. Assign Journal Entry Description to the Receive to inspection Event type

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Custom Sources
Example2.continued
5. Run the Create Accounting Procedure

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Inventory valuation accounts using Subinventory

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Changes Summing up
NO LOSS of functionality by moving to SLA model A new sub-menu created under Cost Management for SLA forms. Fiscal Policy and Event Fiscal Policy screens retained with minor modifications. Most of the fields will be read-only. OPM Event model mapped to SLA event model. Account Titles replaced by Journal Line Types (JLT) in SLA. Account Mapping functionality replaced by Accounting Definition Rules (ADRs) in SLA. Test Account Mapping replaced with TAB Test Accounting Builder. Test Sub Ledger process replaced with Draft Sub Ledger Accounting in SLA Subledger Detail Report modified to go against SLA repository.

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Shailendra.naithani@oracle.com Venkat.chukkapalli@oracle.com
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