As we have seen in the Part 4 of SLA, the Application Accounting definition is used to decide two things
a. When a specific event within Subledger example Payables or Receivables becomes eligible for Accounting
b. How the journal is constructed.
However, each Primary Ledger[ 11i equivalent of primary set of book] and also each secondary ledger should be able to generate Journals as per their respective legislator requirements for all the modules implemented. This is where "Subledger Accounting Method" [SLAM] comes into the play. If you recollect from previous article, Application Accounting Definition is connected to only one module like Payables or Receivables etc. However a Ledger[11i SOB equivalent] needs accounting entries to be processed across many modules. Hence SLAM provides an umbrella to join accounting entries from various modules so that they can be channelled through to Oracle General Ledger. In other words a SLAM is a collection of accounting definitions for various modules in Oracle Apps. A SLAM is then attached to the Ledger[11i equivalent of Set Of Books].
Therefore the flow of accounting entries from (top to bottom) appears as shown below:
a. When a specific event within Subledger example Payables or Receivables becomes eligible for Accounting
b. How the journal is constructed.
However, each Primary Ledger[ 11i equivalent of primary set of book] and also each secondary ledger should be able to generate Journals as per their respective legislator requirements for all the modules implemented. This is where "Subledger Accounting Method" [SLAM] comes into the play. If you recollect from previous article, Application Accounting Definition is connected to only one module like Payables or Receivables etc. However a Ledger[11i SOB equivalent] needs accounting entries to be processed across many modules. Hence SLAM provides an umbrella to join accounting entries from various modules so that they can be channelled through to Oracle General Ledger. In other words a SLAM is a collection of accounting definitions for various modules in Oracle Apps. A SLAM is then attached to the Ledger[11i equivalent of Set Of Books].
Therefore the flow of accounting entries from (top to bottom) appears as shown below:
1. A transaction is created and an event takes place against transaction for example invoice payment.
2. The transaction belongs to a ledger (11i SetOfBook), and hence SLAM is determined.
3. An API within SLA is called. To this API the module and the event type, event id etc are passed.
4. Based on the parameters passed to SLA Engine API, AAD is identified against the SLAM determined in Step 2
5. Rules within the Journal line Definition are executed based on conditions and priority of the rules
6. A Journal is constructed and stored in Sub- Ledger accounting tables.
7. This Journal can later be transferred and posted to Oracle General Ledger
The flow represented in simple equation appears as below
Ledger Defined in GL-->SLAM-->AAD--> [Event Class and Event Type]-->Liability Lines-->[JED+JLT+ADR]
Ledger Defined in GL-->SLAM-->AAD--> [Event Class and Event Type]-->Expense Lines-->[JED+JLT+ADR]
In order to assign the SLAM to a ledger, go to the General Ledger Super User responsibility and click on menu as shown below.
Click on update against the ledger
Attach the SLAM to this ledger
You can also modify the SLA accounting using below steps:
The flow represented in simple equation appears as below
Ledger Defined in GL-->SLAM-->AAD--> [Event Class and Event Type]-->Liability Lines-->[JED+JLT+ADR]
Ledger Defined in GL-->SLAM-->AAD--> [Event Class and Event Type]-->Expense Lines-->[JED+JLT+ADR]
In order to assign the SLAM to a ledger, go to the General Ledger Super User responsibility and click on menu as shown below.
Click on update against the ledger
Attach the SLAM to this ledger
You can also modify the SLA accounting using below steps:
1. Click on update Accounting options.
2.Drafts allows you to re-execute Create Accounting Process, thus allowing you to change config in SLA.
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Comments
Thanks again for re-enforcing the concepts on SLA. It would be really great if you could provide a simple example where in we can generate custom accounting entries for a given event. Looking forward for your next post
Thanks
Jo y
Thanks
Anil Passi
Anil, thank you very much for sharing your well illustrated information of SLA,
keep it up,
greets Steve
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