SLA: The Basics

VOUG & ESOAUG October 14, 2010

Copyright 2009 Rolta International, Inc., All Rights Reserved

Agenda
What is SLA? Advantages of SLA Inquiries Accounting Methods Builder (AMB) Event Model COA

What is SLA?
Rule based engine for generating subledger accounting entries Creates a true subledger for accounting entries Allows multiple accounting representations for a single event Common data model and interface for all subledgers Not a product, but services within a product

Advantages of SLA
Centralized accounting rules Predefined validations Date effective policies Error handling Audit trail Bidirectional drilldowns Detailed journal entries Online inquiries

SLA Transaction Flow

Inquiries
Drilldown from a transaction to event Inquiry on GL account balances and drilldown to subledger transaction Drill up from subledger to view accounting information View information about the event/transaction (ex- error) View journal entry in T-account format

Inquiries

Inquiries

Subledger Accounting Output Example

Event Model
Definition of subledger transaction types and lifecycle Event Class: accounting rule transaction types
Examples: AP Invoice, Asset Depreciation, AR Receipt

Event Type: possible accounting action definitions from transaction types

Examples: AP Invoice Validation, Asset Depreciation, AR Receipt Applied

COA - Transactional
Transaction Chart of Accounts Input to SLA rules COA for the primary ledger Referenced when transaction account combinations are entered Used to enter and maintain data required to support daily operations

COA - Accounting
Accounting Chart of Accounts Output to SLA rules Creates account combinations from subledger journal entries Derived from the ledger where journal entries were created Account Derivation Rules derive accounts all journal entries created by SLA are performed here

Accounting Methods Builder (AMB)

Use to define how subledger transactions are accounted Allows for creation and modification of subledger journal line setups and application accounting definitions Definitions are grouped into subledger accounting methods and assigned to a ledger

AMB Overview

AMB Steps
Step 0: Define Mapping Sets (optional) Step 1: Define Account Derivation Rules (ADR) Step 2: Define Journal Line Types (JLT) Step 3: Define Journal Entry Descriptions Step 4:Define Journal Line Definitions (JLD) Step 5: Define Application Accounting Definition (AAD) Step 6: Define Subledger Accounting Method (SLAM) Step 7: Assign SLAM to Ledger

AMB Overview - ADR

Account Derivation Rule (ADR)

Used to determine account combinations for subledger journal entries Can be derived by segment or entire combination using:
Account combination Segment/qualifier value Value from value set

Define how value will be derived: Constant Source Value Mapping Set Another Account Derivation Rule

ADR Setup Example

AMB Overview - JLT

Journal Line Types (JLT)

Defined for an event class Assigned to journal line definition Can be actual, budget, or encumbrance balance types Specify debit, credit, gain/loss line

JLT Setup Example

AMB Overview Journal Entry Descriptions

Journal Entry Descriptions

Controls the description of the journal entry or entry lines Descriptions can be built from any available source for the application

Journal Entry Description Setup Example

AMB Overview JLD

Journal Line Definition (JLD)

Used to create sets of line assignments for an event class or event type Sets can be shared across applications Journal line type, description, and account derivation rules are grouped together as a journal line definition

JLD Setup Example

AMB Overview AAD

Application Accounting Definition (AAD)

Used to assign journal line definitions and header descriptions to event classes and event types Enables subledger accounting requirement of multiple accounting representations Multiple subledgers can be grouped into a single accounting method Can import/export Application Accounting Definitions (AAD) from a flat file

AAD Setup Example

AMB Overview SLAM

Subledger Accounting Method (SLAM)

Collection of accounting definitions for the applications for which accounting will be generated Examples: Cash Basis, Accrual Basis, Encumbrance Accrual or Cash, US Federal

SLAM Setup Example

Copy and Modify Available for AMB components including:

SLAM, AAD, JLD, JLT, ADR, JE Descriptions

Reduced need to repeat data entry functions

Can leverage Oracle defined components and create User components User definitions not overwritten by SLA upgrades

Copy and Modify - SLAM

Copy and Modify - AAD

Summary Reviewed SLA fundamentals

Transaction flow Inquiries

Reviewed AMB
Creating and modifying subledger journal line setups and AAD Describing building account definitions

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Thank You

Q U E S T I O N S A N S W E R S

Presenter Information

Nicole Wilson
wilsonn@tusc.com

Rolta TUSC
333 E. Butterfield Road Suite 900 Lombard, IL 60148 (630) 960-2909 www.tusc.com