In
the previous part of this SLA article, you have learnt creation of the
Journal Line Definition. Now it is time to create AAD, which is
"Application Accounting Definition". 
The
purpose of AAD in SLA is to dictate which "Journal Line Definition"
must be used when a specific event takes place against a specific type
of transaction in a specific module like Payables or Receivables. If you
recollect, the "Journal Line Definition" definition creates a Credit
Line and the Debit Line of a Journal.
Oracle ships out of the box an AAD for every simply module/application that uses SLA.
Hence
for each application like AP,AR,PA,PO etc there will exist an existing
AAD in the Subledger Modules. However, for this example we will create a
new AAD for Payables.
In
the previous article you created a Journal Line Definition that is
responsible for constructing a Journal. However, in AAD screen you will
specify when the Journal Line Definition will be used. In this case, as
per the image below, we are stating that journal line definition
ANIL_JLD should be used for creating journal whenever any event occurs
against an Invoice in Payables.
You
can also click on "Header Assignment" button in AAD to attached
"Journal Entry Description" [JED] which dictates how the Journal Header
description will be constructed. If you recollect, in Journal Entry
Description, we concatenate static text and dynamic content from SLA
Sources[mapped to DB columns or pl/sql functions] so as to construct a
description for Journal Line or Journal header.
In
this article we have seen that AAD is created for each module. However,
in any implementation there is a need to perform accounting for all the
modules. "APPS2FUSION UK" might be running Payables and Receivables and
also Project Accounting. Hence we need to create a SLAM-Subledger
Accounting Method.
Using
AAD we specify the Journal creation rules per module. In SLAM we
specify how the Journals must be built for the entire organization
"APPS2FUSION UK" across Payables and Receivables and Project Accounting.
The company "APPS2FUSION UK" will have a legal entity in UK, and hence
the SLAM will be attached to the UK Legal Entity.
Subscribe to this comment's feedwritten by Gona , December 16, 2010
Quick clarification on AAD,
Ex: Payables, Oracle ships out of the box an AAD for Payables. Can we create a new AAD(custom) for payables?
If yes, then we have two AAD packages created(one AAD for out of box and one for custom). When AAD is validated through form it will create a AAD Package dynamically which will be later invoked by create accounting program to create journals. If this is the case, how does create accounting know which AAD is to be invoked.
If no, each application/module can have only one AAD at any given point of time.
Thanks,
Gona
I need material for accounts payable implementation in oracle, could you please help me for this.
Thanks
CHakri