In the SLA Part 2 article you Entities, Event Class and Event Types. In the SLA Part 3 you learnt the high level basics of 
Journal Line Definitions.
Journal Line Definitions.In this Part 4, you will see how the "Journal that gets constructed using Journal Line Definition" is associated with an underlying transaction in the respective module.
As seen in the image above, the Application Accounting Definitions [AAD] is attached to one or more Journal Line definition [JLD].
Effectively it means that AAD = JLD for an Event Class+ Event Type combination = ADR+JED+JLT for an Event Class+ Event Type combination
As a thumb rule, you must remember that each Application Accounting Definition [AAD] belongs to a module. Therefore if you have one Ledger implemented [ 11i Set Of Books] and two modules implemented like AP and AR, then you will have 2 AAD's defined, i.e. one for Payables and another for Receivables.
In the above picture only one Event Class of Invoice is used in AAD. However in reality you will have more than one event classes like Invoices, Payments etc associated with a AAD for Payables module.
Seeded Application Accounting Definitions are provided for each module out of the box by Oracle. However if the existing definitions do not meet your business requirements, then you can copy the existing AAD's to a custom AAD, and then make alterations to the custom AAD, which means creating custom JLT, custom JED and custom ADR as appropriate. It is important to remember that you must create a custom copy of an existing SLA component before making modifications.
In the next article you will see Subledger Accounting Method.
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Comments
Thanks
Faiz
I was going through a seeded AAD "ACCRUAL", where I observed that for an Event Class say Invoices, all event types are attached to same JLD.
So my question is - How the application will get to know which line(s) in debit and credit should be chosen for a particular event type in the given event class ("Invoices") ?
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