Introduction to Subledger Accounting Key Concepts

1)Event Model:Definition of the subledger transaction types and

lifecycle.
i)Event Class:Classifies transaction types for accounting rule
purposes.
ii) Event Type:For each trasaction type ,defines the possible actions
with accounting significance
Examples of Event Class
Payables
1)
2)
3)
4)
5)

Invoice
Debit Memo
Prepayment
Payments
Refunds

Purchasing
1) Requisition
2) Purchase Order
Receivables
1)
2)
3)
4)

Invoice
Deposit
Receipt
Bill Receivable

Examples of Event Types

Payables Invoice
i)
ii)
iii)

Validated
Adjusted
Cancelled

Receipt
i)
ii)
iii)
iv)
v)

Created
Applied
Unapplied
Updated
Reversed

Purchse Order
i)
ii)
iii)
iv)
v)

Created
Distributed
Cancelled
Rejected
Finally Completed

Transaction Object : Data Model containing transaction information to

be used in accounting
Source : any attribute of a transaction that can be used in defining the
journal entry rules and when generating an entry
Introduction to Subledger Accounting Major Features
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
xiv)
xv)
xvi)

Accounting Methods Builder

Multiple Accounting Representations
Accounted Amount and Exchange Rate Gain/Loss Calculations
Business Flows
Multiperiod Accounting
Automatic Scheduling of Accrual Reversals
Date Effective Accounting Definitions
Accounting per Process Category
Online Accounting
Straight Through Accounting Processing
Draft Accounting
Online Inquires
XML Reports
Errors Accounting and Reporting
Diagnostics Framework
Accounting Definitions Loader

xvii)
xviii)
xix)
xx)
xxi)

Manual Subledger Journal Entries

Replacement of Disabled Accounts
Journal Entry Sequencing
Third Patry Control Accounts
Third Party Merge Accounting

Accounting Methods Builder

-

Toolset to define journal entry rules for the transactions

and events of a subledger application
Allows defining multiple sets of rules to be used
concurrently for different requirements

Journal Entry Description ,Account Derivation rule,Line Type.

Components of Journal Line Definition
1) Journal Line Type
2) Account Derivation Rules
3) Journal Entry Descriptions
Hierarchy is as follows
Ledger
Subledger Accounting Method
Application Accounting Definition
Journal Line Definition
Journal Line Type Accounting Derivation rules Journal Entry
description

Subledger Accounting Setups

1) Journal
i)
ii)
iii)

Entr Setups
Define/Copy and modify journal line types
Define/Copy and modify account derivation rules
Define/Copy and modify descriptions

2) Methods and Definitions

i)
ii)
iii)
iv)

Define/Copy and modify journal line definitions

Define/Copy and modify application accounting
definition
Validate application accounting definition
Define/Copy and modify subledger accounting method

3) Ledger Setup
i)

Assign subledger accounting method to ledger

Setup Journal Line Type

-

Identify the natural side

i)
Debit
ii)
Credit
iii)
Gain/Loss

Determine the accounting class

Set under which conditions the rule will create a line
Define the values needed for entry line generation,such
as amount,currency,conversion rate information
Control behavior for certain features i.e multiperiod
accounting, business flows, line merging and
summarization.

Setup- Account Derivation Rule

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Determine if rule will be generic or specific for a given

chart of accounts
Identify what will be derive
i)
Flexfield
ii)
Segment/qualifier
iii)
Value Set
Define how the value will be derived
i)
Constant
ii)
Source Value
iii)
Mapping Set
iv)
Another Account Derivation Rule
Set under which conditions the rule will derive a value

Setup Journal Entry Description

-

Define how the description on a journal entry or on each

of its lines will be built:
i)
Constant
ii)
Source Value
Set under which conditions the rule will be used.

Setup Journal Line Definition

-

Identify the journal line types,descriptions, and

accounting derivation rules that will be used to create a
journal entry for a particular event type
Generic or specific for a chart of accounts
Define processing options for features such as multiperiod
accounting and business flows

Setup Application Accounting Definition

-

Identify the event class and event types for which entries
should be created.
Identify the journal line definitions to create the entries
Define how the GL Date of an entry is to be determined
Generic or Specific for a chart of accounts

Setup Subledger Accounting Method

-

Use to define the accounting methods to be used for

ledgers, such as Cash Basis, Accrual Basis, IAS/IFRS,
USGAAP
Assign an application accounting definition for each
subledger application
Activate new set of rules using effectivity dates
Generic or specific for a chart of accounts
Provided out of the box :
i)
Standard Accrual
ii)
Standard Cash
iii)
Encumberance and US Federal Methods

Setup Set Key Profile Options

SLA:
SLA:
SLA:
SLA:

Enable Subledger Transaction Security in GL

Enable Data Access Set Security in Subledger
Additional Data Access Set
Allow Reports Journal Source Override

Introduction to Subledger Accounting Dependencies and Interactions

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Payables
Receivables
Projects
Assets
Costing
OPM
Public Sector/Federal
Payroll
Property Manager
Loans
Lease Management
Intercompany
Cash Management
Globalizations