Sub Ledger

R12 Oracle Subledger
Accounting Fundamentals
Student Guide
D49304GC10
Edition 1.0
June 2007
D51689

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Copyright 2007, Oracle. All rights reserved.

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy and
print this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.
Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,
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of Oracle.

The information contained in this document is subject to change without notice. If you find any problems in the document, please
report them in writing to: Oracle University, 500 Oracle Parkway, Redwood Shores, California 94065 USA. This document is not
warranted to be error-free.

If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the United
States Government, the following notice is applicable:

U.S. GOVERNMENT RIGHTS
The U.S. Governments rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted
by the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract.

Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may
be trademarks of their respective owners.
Author
Melanie Featherstone
Technical Contributors and Reviewers
Ayse Aba, Julianna Dodick, Ivy Farren, Miranda Ho, Suzanne Miller, Neil Ramsay, Pamela
Rietz, Christine Rudd, Lata Sundar, Kathryn Wohnoutka, Linda Wong, Robert Zwiebach
This book was published using: oracletutor

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Copyright Oracle, 2007. All rights reserved.
R12 Oracle Subledger Accounting Table of Contents
i
Table of Contents
Overview of Subledger Accounting................................................................................................................1-1
Overview of Subledger Accounting ..............................................................................................................1-3
Objectives......................................................................................................................................................1-4
What is Subledger Accounting? ....................................................................................................................1-5
Introduction to Subledger Accounting...........................................................................................................1-6
Subledger Accounting Features.....................................................................................................................1-7
Subledger Accounting Example ....................................................................................................................1-9
Subledger Accounting Screenshot .................................................................................................................1-11
Subledger Accounting Invoice Example .......................................................................................................1-12
Subledger Accounting Payment Example .....................................................................................................1-13
Applications that use Subledger Accounting.................................................................................................1-14
What is a subledger?......................................................................................................................................1-15
Subledger Balances........................................................................................................................................1-16
Third Party Control Accounts........................................................................................................................1-17
Alternative Accounts .....................................................................................................................................1-19
Summary........................................................................................................................................................1-21
Create Accounting Program and Transfer Journal Entries to GL Program.............................................2-1
Create Accounting Program and Transfer Journal Entries to GL Program...................................................2-3
Objectives......................................................................................................................................................2-4
Create Accounting Program Overview..........................................................................................................2-5
Draft Accounting...........................................................................................................................................2-7
Online Accounting.........................................................................................................................................2-8
Straight-Through Accounting........................................................................................................................2-9
Create Accounting Program..........................................................................................................................2-10
Create Accounting Program continued......................................................................................................2-11
Transfer Journal Entries to GL Program Overview.......................................................................................2-12
Transfer Journal Entries to General Ledger Program....................................................................................2-13
Oracle Subledger Accounting Program Report .............................................................................................2-14
Transfer Journal Entries to GL Report ..........................................................................................................2-16
Summary........................................................................................................................................................2-17
Practice 1: Run the Create Accounting and Transfer Journal Entries to GL Programs ................................2-18
Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Programs in
Payables.....................................................................................................................................................2-19
Inquiries............................................................................................................................................................3-1
Inquiries.........................................................................................................................................................3-3
Objectives......................................................................................................................................................3-4
Objectives continued.................................................................................................................................3-5
Accounting Events Inquiry Process...............................................................................................................3-6
Subledger Journal Entry Headers Inquiry Process.........................................................................................3-8
Subledger Journal Entry Lines Inquiry Process.............................................................................................3-10
Drilldown from GL........................................................................................................................................3-12
Summary........................................................................................................................................................3-13
Summary continued...................................................................................................................................3-14
Practice 1: Inquiring on Subledger Journal Entries ......................................................................................3-15
Guided Demonstration - Inquiring on Subledger Journal Entries in Payables or Receivables ..................3-16
Practice - Inquiring on Subledger Journal Entries for Payables and Receivables......................................3-17
Solution Inquiring on Subledger Journal Entries for Payables and Receivables ....................................3-18
Accounting Methods Builder (AMB) .............................................................................................................4-1
Accounting Methods Builder (AMB) ............................................................................................................4-3
Objectives......................................................................................................................................................4-4
Accounting Methods Builder (AMB) Overview...........................................................................................4-5

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AMB Process.................................................................................................................................................4-8
Accounting Methods Builder (AMB) ............................................................................................................4-10
Copy and Modify Functionality.....................................................................................................................4-11
Transaction Chart of Accounts ......................................................................................................................4-13
Accounting Chart of Accounts ......................................................................................................................4-14
Event Model ..................................................................................................................................................4-15
Event Classes.................................................................................................................................................4-17
Event Types...................................................................................................................................................4-18
Journal Line Types ........................................................................................................................................4-19
Journal Entry Description..............................................................................................................................4-23
Mapping Sets .................................................................................................................................................4-26
Account Derivation Rule...............................................................................................................................4-27
Account Combination Rules..........................................................................................................................4-30
Segment Rules ...............................................................................................................................................4-32
Oracle-Owned vs. User-Owned AMB Components......................................................................................4-35
Value Set Rules .............................................................................................................................................4-36
Defining Account Derivation Rules ..............................................................................................................4-38
Journal Lines Definitions...............................................................................................................................4-39
Application Accounting Definitions..............................................................................................................4-40
Application Accounting Definition ...............................................................................................................4-42
Importing Application Accounting Definitions .............................................................................................4-43
Exporting Application Accounting Definitions .............................................................................................4-44
Subledger Accounting Methods ....................................................................................................................4-45
Subledger Accounting Method......................................................................................................................4-46
Setting Up Subledger Accounting Methods ..................................................................................................4-47
Setting Profile Options ..................................................................................................................................4-49
Summary........................................................................................................................................................4-51
Practice 1: Running the Create Accounting Program..................................................................................4-52
Practice - Running the Create Accounting Program for Payables .............................................................4-53
Solution Running the Create Accounting Program for Payables............................................................4-55
Practice - Running the Create Accounting Program for Receivables ........................................................4-62
Solution Running the Create Accounting Program for Receivables.......................................................4-64
Practice 2: Defining Journal Line Types .....................................................................................................4-70
Guided Demonstration - Defining Journal Line Types in Payables...........................................................4-71
Guided Demonstration - Defining Journal Line Types in Receivables .....................................................4-73
Practice - Defining Journal Line Types for Payables ................................................................................4-74
Solution Defining Journal Line Types for Payables ...............................................................................4-76
Practice - Defining Journal Line Types for Receivables ...........................................................................4-81
Solution Defining Journal Line Types for Receivables ..........................................................................4-83
Practice 3: Defining Journal Lines Definitions............................................................................................4-90
Guided Demonstration - Defining Journal Lines Definitions for Receivables ..........................................4-91
Guided Demonstration - Defining Account Derivation Rules for Payables ..............................................4-92
Practice - Defining Journal Lines Definitions for Payables.......................................................................4-94
Solution Defining Journal Lines Definitions for Payables .....................................................................4-95
Practice - Defining Journal Lines Definitions for Receivables..................................................................4-99
Solution Defining Journal Lines Definitions for Receivables ................................................................4-101
Practice 4: Defining Account Derivation Rules...........................................................................................4-105
Guided Demonstration - Defining Account Derivation Rules for Payables ..............................................4-106
Guided Demonstration - Defining Account Derivation Rules in Receivables...........................................4-108
Practice - Defining Account Derivation Rules for Payables......................................................................4-110
Solution Defining Account Derivation Rules for Payables ....................................................................4-112
Practice 5: Defining Application Accounting Definitions...........................................................................4-120
Guided Demonstration - Defining an Application Accounting Definition in Payables.............................4-121
Guided Demonstration - Defining an Application Accounting Definition in Receivables........................4-122
Practice - Defining an Application Accounting Definition for Payables...................................................4-123
Solution Defining an Application Accounting Definition for Payables..................................................4-125
Practice - Defining an Application Accounting Definition for Receivables..............................................4-130

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Solution Defining an Application Accounting Definition for Receivables ............................................4-132
Practice 6: Defining Subledger Accounting Methods..................................................................................4-137
Guided Demonstration - Defining Subledger Accounting Methods in Payables.......................................4-138
Guided Demonstration - Defining Subledger Accounting Methods in Receivables..................................4-142
Practice - Defining Subledger Accounting Methods for Payables.............................................................4-146
Solution Defining Subledger Accounting Methods for Payables ...........................................................4-149
Practice - Defining Subledger Accounting Methods for Receivables........................................................4-159
Solution Defining Subledger Accounting Methods for Receivables ......................................................4-162
Reports .............................................................................................................................................................5-1
Reports...........................................................................................................................................................5-3
Objectives......................................................................................................................................................5-4
Subledger Accounting Reports Overview.....................................................................................................5-5
Journal Entries Report ...................................................................................................................................5-7
Account Analysis Report...............................................................................................................................5-8
Third Party Balances Report..........................................................................................................................5-9
Multiperiod Accounting Reports ...................................................................................................................5-10
Subledger Period Close Exceptions Report ...................................................................................................5-11
Open Account Balances Listing Overview....................................................................................................5-12
Creating and Updating Open Account Balances Listing Definitions ............................................................5-14
Running the Open Account Balances Data Manager Program......................................................................5-16
Open Account Balances Listing ....................................................................................................................5-17
Summary........................................................................................................................................................5-18
Practice 1: Generating the Journal Entries report .........................................................................................5-19
Practice - Generating the Journal Entries Report for Payables ..................................................................5-20
Solution Generating the Journal Entries Reports for Payables ...............................................................5-21
Practice - Generating the Journal Entries Report for Receivables.............................................................5-24
Solution Generating the Journal Entries Reports for Receivables ..........................................................5-25
Creating Manual Subledger Journal Entries ................................................................................................6-1
Creating Manual Subledger Journal Entries ..................................................................................................6-3
Objectives......................................................................................................................................................6-4
Subledger Journal Entries Overview.............................................................................................................6-5
Manual Journal Entries..................................................................................................................................6-6
Creating Subledger Journal Entries ...............................................................................................................6-7
Creating Subledger Journal Lines..................................................................................................................6-8
Summary........................................................................................................................................................6-10
Practice 1: Creating Manual Subledger Journal Entries ...............................................................................6-11
Guided Demonstration - Creating Manual Subledger Journal Entries in Payables....................................6-12
Guided Demonstration - Creating Manual Subledger Journal Entries in Receivables ..............................6-13
Advanced Options............................................................................................................................................7-1
Advanced Options .........................................................................................................................................7-3
Objectives......................................................................................................................................................7-4
Custom Sources .............................................................................................................................................7-5
Business Flows ..............................................................................................................................................7-6
Business Flow Methods.................................................................................................................................7-7
Multiperiod Accounting ................................................................................................................................7-9
Accrual Reversals..........................................................................................................................................7-11
Diagnostic Framework Overview..................................................................................................................7-13
Diagnostic Framework Features ....................................................................................................................7-14
Diagnostic Framework Business Process ......................................................................................................7-15
__SLA: Enable Diagnostics Profile Option...................................................................................................7-16
Purge Transaction Objects Diagnostics .........................................................................................................7-17
Currency Conversion.....................................................................................................................................7-18
Gain/Loss Calculations..................................................................................................................................7-19
Journal Entry Sequencing..............................................................................................................................7-20
Accounting and Reporting Sequences ...........................................................................................................7-22

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Reporting Sequence Process..........................................................................................................................7-24
Subledger Period Close Exceptions Report ...................................................................................................7-26
Rounding Rule...............................................................................................................................................7-27
Error Handling...............................................................................................................................................7-28
Summary........................................................................................................................................................7-29

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Preface
Profile
Before You Begin This Course
Thorough knowledge of Oracle Applications.
Prerequisites
There are no prerequisites for this course.
How This Course Is Organized
R12 Oracle Subledger Accounting is an instructor-led course featuring lecture and hands-on
exercises. Online demonstrations and written practice sessions reinforce the concepts and skills
introduced.

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Related Publications
Oracle Publications
Title Part Number
Oracle Subledger Accounting Implementation Guide B13984-02
Oracle Receivables User Guide B31211-01
Oracle Payables User Guide B25454-02
Additional Publications
System release bulletins
Installation and users guides
Read-me files
International Oracle Users Group (IOUG) articles
Oracle Magazine

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vii
Typographic Conventions
Typographic Conventions in Text

Convention Element Example
Bold italic Glossary term (if
there is a glossary)
The algorithm inserts the new key.
Caps and
lowercase
Buttons,
check boxes,
triggers,
windows
Click the Executable button.
Select the Cant Delete Card check box.
Assign a When-Validate-Item trigger to the ORD block.
Open the Master Schedule window.
Courier new,
case sensitive
(default is
lowercase)
Code output,
directory names,
filenames,
passwords,
pathnames,
URLs,
user input,
usernames
Code output: debug.set (I, 300);
Directory: bin (DOS), $FMHOME (UNIX)
Filename: Locate the init.ora file.
Password: User tiger as your password.
Pathname: Open c:\my_docs\projects
URL: Go to http://www.oracle.com
User input: Enter 300
Username: Log on as scott
Initial cap Graphics labels
(unless the term is a
proper noun)
Customer address (but Oracle Payables)
Italic Emphasized words
and phrases,
titles of books and
courses,
variables
Do not save changes to the database.
For further information, see Oracle7 Server SQL Language
Reference Manual.
Enter user_id@us.oracle.com, where user_id is the
name of the user.
Quotation
marks
Interface elements
with long names
that have only
initial caps;
lesson and chapter
titles in cross-
references
Select Include a reusable module component and click Finish.

This subject is covered in Unit II, Lesson 3, Working with
Objects.
Uppercase SQL column
names, commands,
functions, schemas,
table names
Use the SELECT command to view information stored in the
LAST_NAME
column of the EMP table.
Arrow Menu paths Select File > Save.
Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:
[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

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viii
Typographic Conventions in Code

Convention Element Example
Caps and
lowercase
Oracle Forms
triggers
When-Validate-Item

Lowercase Column names,
table names
SELECT last_name
FROM s_emp;

Passwords DROP USER scott
IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (prod_pie_layer))

Lowercase
italic
Syntax variables CREATE ROLE role
Uppercase SQL commands and
functions
SELECT userid
FROM emp;
Typographic Conventions in Oracle Application Navigation Paths
This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.
2. (M) From the menu, select Query then Find.
3. (B) Click the Approve button.
Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab

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Typographical Conventions in Oracle Application Help System Paths
This course uses a navigation path convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example
(Help) General Ledger > Journals > Enter Journals
represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.

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Overview of Subledger Accounting
Chapter 1 - Page 1
Overview of Subledger
Accounting
Chapter 1

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Chapter 1 - Page 2

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Chapter 1 - Page 3

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Chapter 1 - Page 4
Objectives

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Chapter 1 - Page 5
What is Subledger Accounting?

What is Subledger Accounting?
Subledger Accounting is a set of services for R12 that significantly enhances accounting
support across the E-Business Suite.

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Chapter 1 - Page 6
Introduction to Subledger Accounting

Introduction to Subledger Accounting
Subledger Accounting is mainly a rule-based accounting engine that centralizes accounting for
Oracle E-Business Suite products in R12.
Subledger Accounting is not a separate product in itself, but is Oracles engine catering to the
accounting needs of Oracle applications.
Together with the new ledger support, Subledger Accounting enables support of multiple
accounting requirements concurrently in a single instance. Different accounting regulations can
be satisfied by maintaining and applying different sets of rules to different sets of transactions;
or accounting for the same transaction with multiple methods.
By maintaining a full link between the transaction and accounting data, Subledger Accounting
allows powerful reconciliation and auditing capabilities.
Since Subledger Accounting provides the setup and inquiry user interface and data model for
accounting across modules, Subledger Accounting enables consistency in reporting, analysis,
and user experience.

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Chapter 1 - Page 7
Subledger Accounting Features

Subledger Accounting Features
Subledger Accounting provides the following services to Oracle Applications:
Generation and storage of detailed accounting entries
Storage of subledger balances
Subledger accounting entries; with drilldown to transactions
Subledger reporting; for example, Subledger journal reports, open account balances listing
Oracle Subledger Accounting features include:
Centralized accounting rules
Predefined Validations
Date effective policies
Sophisticated error handling
Full audit trail
Bidirectional drilldowns
Detailed Journal Entries
Configurable Reference Information

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Chapter 1 - Page 8
Consistent Balances
Online inquiries

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Chapter 1 - Page 9
Subledger Accounting Example

Subledger Accounting Example
Let us assume a US based corporation with operations in the UK and France.
The French operation is subject to French accounting regulations, and therefore must
report its activities to the local authorities in Euros, according to the French business
calendar, French chart of accounts, and the French interpretation of IFRS (International
Financial Reporting Standards).
The UK operation, similarly, is subject to the UK regulations, which for this examples
sake are not as restrictive as the French ones. Thus, the UK operation does its local
reporting in the local currency, the British Pound, but according to the US business
calendar, US chart of accounts (COA), and US GAAP.
The US operation reports in the USD according to the US business calendar, US COA,
and GAAP.
In the R12 ledger setup, each of these operations would be defined as three separate ledgers to
satisfy local reporting requirements.
The US headquarters/parent company would need to have a consolidated global visibility
of the worldwide operations, however, it would not be very meaningful to consolidate or
compare each of these entities with each other. Firstly, because the reporting currencies

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Chapter 1 - Page 10
are different. Secondly, the COA and the method of accounting for the French activities
may be considerably different than those in the UK and US. For example, in France,
purchases or inventory will be reported as expenses, whereas in the UK and the US they
will be reported as inventory items. Therefore, a simple currency conversion will not
suffice. With the R12 ledger architecture and SLA, the following model can be
implemented to solve this business need:
For the UK operation, activities can be converted to the US equivalent simply by
converting the currency since the calendar, COA, and accounting methods are the same.
You can set this up by adding a reporting currency to the UK ledger.
For the French operation, a currency conversion alone will not work. You will need to
define a secondary ledger for the French ledger, which will share the same currency,
COA, calendar, and accounting method as those at HQ.
By defining the reporting currency and secondary ledgers, the three operations can satisfy
local regulations, and also allow comparison and consolidation.
In the definition above, Subledger Accounting allows:
multiple accounting methods to be defined
separate accounting methods to be used on different ledgers
Journal entries to be created on multiple ledgers for a single business event (French
activities accounted for on the primary ledger according to the IFRS method, and on the
secondary ledger according to the US GAAP method).

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Chapter 1 - Page 11
Subledger Accounting Screenshot

Subledger Accounting Screenshot
You can see at a glance exactly where the accounting comes from.
This is a journal entry created upon the validation of an accounts payable invoice. Notice the
description on the journal entry as well as information from the invoice itself which will help
in associating the entry with the transaction.

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Chapter 1 - Page 12
Subledger Accounting Invoice Example

Subledger Accounting Invoice Example
Subledger Accounting tracks how the journal entry is built from a transaction.
On the left-hand side of the screen, you can see an invoice for two items, freight, and tax.
On the right, you can see two entries have been created: one on the US corporate ledger
and the other on the FR statutory ledger.
The expense entry is created for the two line items of the invoice.
The next two lines (2 and 3) are for freight and tax respectively.
The rules have been set up to summarize all of this information and create a single liability
entry. You could also configure the rule so that 3 or 4 separate liability lines are created.
Subledger Accounting stores and enables you to track how each line of the invoice
contributed to the journal entry.

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Chapter 1 - Page 13
Subledger Accounting Payment Example

Subledger Accounting Payment Example
Let us go back to the previous example and look at a payment that pays off the invoice. The
SLA data model not only allows keeping the transaction-to-accounting link, but the inherent
features also allow the transaction flows to be reflected on the accounting side. You can see
here that a particular payment is applied to a particular invoice liability.
Using the SLA Business Flows functionality, we are able to go back to the journal created for
the invoice and view the exact liability account, at the exact rate that the invoice was converted
at, if it was a foreign currency one, at the time of accounting for the payment.

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Chapter 1 - Page 14
Applications that use Subledger Accounting

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Chapter 1 - Page 15
What is a subledger?

What is a subledger?
Example: The Receivables subledger stores receivables by customer, but this detail is not
needed in a general ledger.

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Subledger Balances

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Third Party Control Accounts

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Third Party Control Accounts

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Alternative Accounts

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Alternative Accounts

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Summary

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Create Accounting Program and Transfer Journal Entries to GL Program
Chapter 2 - Page 1
Create Accounting Program
and Transfer Journal Entries
to GL Program
Chapter 2

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Chapter 2 - Page 3
Create Accounting Program and Transfer Journal Entries to GL
Program

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Objectives

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Create Accounting Program Overview

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Create Accounting Program Overview

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Chapter 2 - Page 7
Draft Accounting

Draft Accounting
When you select draft accounting, Subledger Accounting creates the relevant journal entries in
draft mode. Subledger Accounting does not post anything to General Ledger. You can review
the resulting entries, make any changes, and rerun the accounting as required.

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Chapter 2 - Page 8
Online Accounting

Online Accounting
If you select Final, Subledger Accounting generates the journal entries and transfers them to
General Ledger. You can also run the Accounting Program in bulk using the Standard Request
Submission.

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Chapter 2 - Page 9
Straight-Through Accounting

Straight-Through Accounting
If you select Final Post, Subledger Accounting posts the journal entries all the way through to
General Ledger. This means that you can update GL balances straight from the invoice entry
(or any other transaction entry) window.

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Chapter 2 - Page 10

The Create Accounting program creates subledger journal entries. In general, the parameters
described in the table above determine which accounting events are processed.

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Create Accounting Program continued

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Transfer Journal Entries to GL Program Overview

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Transfer Journal Entries to General Ledger Program

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Chapter 2 - Page 14
Oracle Subledger Accounting Program Report

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Oracle Subledger Accounting Program Report

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Transfer Journal Entries to GL Report

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Summary

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Chapter 2 - Page 18
Practice 1: Run the Create Accounting and Transfer Journal
Entries to GL Programs

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Chapter 2 - Page 19
Guided Demonstration - Run the Create Accounting Program and
Transfer Journal Entries to GL Programs in Payables
Responsibility: Payables, Vision Operations (USA)
Run the Create Accounting Program
1. (N) Other > Requests > Run
2. (B) OK
3. In the Name field, select Create Accounting.
4. Enter the following information in the Parameters window:
Field Name Value
Ledger Vision Operations (USA)
Process Category Invoices
End Date <todays date>
Mode Final
Errors Only No
Report Detail
Transfer to General Ledger No
Post in General Ledger No
Include User Transaction Identifier No
5. (B) OK
6. (B) Submit
7. View - Requests.
Run the Transfer Journal Entries to General Ledger Program
8. (N) Other > Requests > Run
9. (B) OK
10. In the Name field, select Transfer Journal Entries to GL.
11. Enter the following information in the Parameters window:
Field Name Value
Ledger Vision Operations (USA)

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Chapter 2 - Page 20
Process Category Invoices
End Date <todays date>
Post in General Ledger Yes
12. (B) OK
13. (B) Submit
14. View - Requests.

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Chapter 3 - Page 1
Inquiries
Chapter 3

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Chapter 3 - Page 3
Inquiries

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Chapter 3 - Page 4
Objectives

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Chapter 3 - Page 5
Objectives continued

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Chapter 3 - Page 6
Accounting Events Inquiry Process

Accounting Events Inquiry Process
1. Navigate to the Accounting Events Inquiry page.
2. Execute a search for specific accounting events.
3. View accounting events.
4. View subledger journal header information by clicking View Journal Headers.
5. View detailed entry information about the subledger journal entry header by clicking the
ledger link.
6. View the T-account by clicking View T-Account.
7. View reversing entry.
8. View multiperiod accounting associated with the accrual journal entry by clicking the
Multiperiod icon in the Lines region.
9. Compare subledger journal entry header and line information for two selected journals by
clicking Compare.
10. Click View Transaction to view the transaction associated with the accounting event.

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Chapter 3 - Page 7
The View Subledger Journal Entry Headers page is displayed only if there is more than one
subledger journal entry created for an accounting event. If there is only one subledger journal
entry for an accounting event, the View Subledger Journal Entry page is displayed.
The following conditions apply:
- If the balance type is Actual, the reference date is displayed.
- If the balance type is Budget, the Budget Version field is displayed.
- If the balance type is Encumbrance, the Encumbrance Type field is displayed.
- If the entry is for public sector and funds approval is required, the Funds Status field
is displayed.
If viewing an accrual reversal journal entry in the View Subledger Journal Entry page, the
View Accrual Entry button is displayed to view the accrual journal entry details. If
viewing an accrual journal entry, the View Reversing Entry button is displayed to view the
accrual reversal journal entry details.
The View Transaction button appears only if the drilldown procedure is registered for the
subledger application.

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Chapter 3 - Page 8
Subledger Journal Entry Headers Inquiry Process

Subledger Journal Entry Headers Inquiry
1. Navigate to the Subledger Journal Entry Headers page from a subledger application. You
can use the subledger application responsibility for any application using Subledger
accounting.
2. Execute a search.
3. View subledger journal entry headers.
4. Delete, update, duplicate, reverse, and complete entries.
5. View detailed header and line information by selecting the ledger link.
6. View journal entry information in a T-account format by clicking View T-Account.
7. View reversing entry. If viewing an accrual reversal journal entry in the View Subledger
Journal Entry page, the View Accrual Entry button is displayed to view the accrual
journal entry. If viewing an accrual journal entry, the View Reversing Entry button is
displayed to view the accrual reversal journal entry.
8. View multiperiod accounting. View multiperiod lines associated with the accrual journal
entry by clicking the Multiperiod icon in the Lines region.

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Chapter 3 - Page 9
9. Create journal entry. Create journal entries page by clicking Create Journal Entry in the
Subledger Journal Entries page.
10. Compare entries. Compare subledger journal entries by clicking Compare in the
Subledger Journal Entries page.

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Chapter 3 - Page 10
Subledger Journal Entry Lines Inquiry Process

Subledger Journal Entry Lines Inquiry Process
1. Navigate to the Subledger Journal Entry Lines page from a subledger application. Use the
subledger application responsibility for any application using Subledger Accounting.
2. Execute a search.
3. View subledger journal entry lines in the results region.
4. View subledger journal entry lines and header for a selected journal entry line by clicking
View Journal Entry.
5. View journal line information in T-account format by clicking View T-account in the
View Subledger Journal Entry page.
6. View reversing entry. If viewing an accrual reversal journal entry in the View Subledger
Journal Entry page, the View Accrual Entry button is displayed to view the accrual journal
entry details. If viewing an accrual journal entry, the View Reversing Entry button is
displayed to view the accrual reversal journal entry details.
7. View multiperiod accounting. View multiperiod lines associated with the accrual journal
entry line by clicking the Multiperiod icon in the Lines region.

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8. View the transaction associated with the subledger journal entry by clicking View
Transaction in the Subledger Journal Entry Lines page. This button appears only if the
drilldown procedure is registered for the subledger application.

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Chapter 3 - Page 12
Drilldown from GL

Drilldown from GL
The figure above shows the drilldown from GL journal lines inquiry to subledger journal entry
lines in Subledger Accounting. From here, users can navigate to the subledger journal entries
or drill down to the subledger transaction.

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Chapter 3 - Page 13
Summary

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Chapter 3 - Page 14
Summary continued

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Chapter 3 - Page 15
Practice 1: Inquiring on Subledger Journal Entries

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Chapter 3 - Page 16
Guided Demonstration - Inquiring on Subledger Journal Entries in
Payables or Receivables
Responsibility = Payables, Vision Operations (USA) or Receivables, Vision
Operations (USA)
1. Navigate to the Subledger Journal Entries window.
In Payables: (N) Accounting > Subledger Accounting > Journal Entries
In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries
2. (T) Headers
3. In the Advanced Search window, enter the following search information:
Ledger: Vision Operation (USA)
From GL Date: <todays date>
To GL Date: <todays date>
4. (B) Go
5. To view the details of an entry, click on the appropriate ledger link to display the Subledger
Journal Entry window.
6. To view detailed line information, click the appropriate Show link.

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Chapter 3 - Page 17
Practice - Inquiring on Subledger Journal Entries for Payables
and Receivables
Overview
In this practice, you will do the following:
Inquire on subledger journal entries for the Vision Operations (USA) ledger.
Note: This practice applies to both Oracle Payables and Oracle Receivables.
Assumptions
You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
Responsibility selected to complete this practice is Payables, Vision Operations (USA)
or Receivables, Vision Operations (USA).
Tasks
Log on to the system
User Name = operations
Password = welcome
Operations (USA)
Inquire on Subledger Journal Entries
Inquire on subledger journal entries for the Vision Operations (USA) ledger for todays date.

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Inquiries
Chapter 3 - Page 18
Solution Inquiring on Subledger Journal Entries for Payables
and Receivables
Inquiring on subledger journal entries for the Vision Operations (USA) ledger.
Operations (USA)
In Payables: (N) Accounting > Subledger Accounting > Journal Entries
In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries
2. Ensure that the Headers tab is selected.
Ledger: Vision Operation (USA)

4. (B) Go
The subledger journal entries are displayed in the Results region.

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Inquiries
Chapter 3 - Page 19

5. To view the details of an entry, click on the appropriate ledger link to display the Subledger
Journal Entry window.

6. To view detailed line information, click the appropriate Show link. For example, the
screenshot below shows detailed information for the Item Expense line.

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Inquiries
Chapter 3 - Page 20

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Accounting Methods Builder (AMB)
Chapter 4 - Page 1
Accounting Methods Builder
(AMB)
Chapter 4

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Chapter 4 - Page 2

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Chapter 4 - Page 3

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Chapter 4 - Page 4
Objectives

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Chapter 4 - Page 5
Accounting Methods Builder (AMB) Overview

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Chapter 4 - Page 6

This diagram shows a hierarchy of the AMB, indicating how the components fit together.
The transaction objects and the sources carry transaction information into the rules defined for
each component of an entry.
These components, i.e. journal line type, account derivation rule, and journal entry descriptions
are grouped together as a journal line definition (JLD) for a particular event. For example, you
can set up a JLD for an invoice validation event, another for payment creation, and another for
payment clearing. The set of rules for a particular subledger application is called the
application accounting definition (AAD). The set of AADs for multiple applications is called
the subledger accounting method.
You can maintain multiple accounting methods. You can set up as many components as you
like and use them for different accounting methods. You can set up an accounting method that
creates entries in compliance with US GAAP, and another one that complies with IFRS. These
two methods could share components, such as entry descriptions, because the journal entry
components are modular.
The accounting methods are then assigned to each ledger, which determines the rules that are
applied when accounting is being generated for a particular ledger. If your setup has a primary

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Chapter 4 - Page 7
and a secondary ledger, you could have different accounting methods attached to and used for
each ledger.

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Chapter 4 - Page 8
AMB Process

AMB Process
The components listed above are used by the Subledger Accounting program to create
subledger journal entries. Before creating or modifying any components or definitions, check
whether the seeded application accounting definitions meet your requirements. You can
modify existing definitions or create new definitions.
Set up journal line types for a particular event class and determine the characteristics of the
subledger journal entry lines. Also, set up conditions for the use of the journal line type. This is
start-up data seeded by Oracle. Modify these definitions or create new ones.
Define the journal entry description for the subledger journal entry. Descriptions are assigned
to the journal header and lines. This is start-up data seeded by Oracle. Modify these definitions
or create new ones.
Use mapping sets in the account derivation rules setup. By mapping input values to different
outputs, mapping sets provide flexibility in the creation of account derivation rules. The use of
mapping sets is optional.
Account derivation rules determine the account combinations for subledger journal entries.
You can also define conditions that determine when a particular rule is used. This is start-up
data seeded by Oracle. Modify these definitions or create new ones.

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Chapter 4 - Page 9
Use journal lines definitions to group and assign journal line types, account derivation rules,
and journal entry descriptions into a complete set of journal entries within an event class or
event type. Share these sets across application accounting definitions for the same application.
The use of journal lines definitions is required.
Use application accounting definitions to group journal lines definitions and header
assignments for event classes and event types. Also, indicate whether to create accounting for a
particular event class or event type. For example, when using cash basis accounting, you would
not create a journal entry to record the accrual of an invoice. This is start-up data seeded by
Oracle. Modify these definitions or create new ones.
Group application accounting definitions that comply with a common set of accounting
requirements into a subledger accounting method. Each subledger accounting method can be
assigned to one or more ledgers. This is start-up data seeded by Oracle. Modify these
definitions or create new ones.

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Chapter 4 - Page 10

In order to make rule setup as flexible as possible, the journal entry has been split into
components, as follows:
Description of the entry or its individual lines; you can set up as many descriptions as you
want by using data from the transaction and constant values. The screenshot above shows
a description for an invoice, indicating the event (invoice validation), the invoice number,
type, date, and description.
Line Type; defines whether this is a debit or a credit, the accounting class, and where the
amount should come from. You can set up as many line types as you need for a particular
entry. You can have a single invoice line or distribution create as many debits or credits as
needed.
Account derivation rule; determines to which GL account a line is booked. There is a lot
of flexibility around the account derivation rules. You can simply set up a rule for each
account combination to be used, or you can provide more detail and build each account
combination segment by segment by combining multiple rules. These rules can be set up
to derive the accounts or segment values from transactional data, including conditions of
when to use specific rules.

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Chapter 4 - Page 11
Copy and Modify Functionality

Copy and Modify Functionality
The copy and modify functionality is provided for the following components of the AMB:
Subledger accounting methods
Application accounting definitions
Journal lines definitions
Journal line types
Account derivation rules
Journal entry descriptions
The copy functionality reduces the need to repeat data entry functions when there are
substantial similarities between two definitions. Definitions created by users are not
overwritten by upgrades to Subledger Accounting. However, upgrades can still affect
definitions if those definitions use seeded components. Use the merge analysis feature to assess
whether any upgrades to the AMB impact any user-defined application accounting definitions.
Assign custom components only to custom definitions. For example, assign a custom account
derivation rule (one that has been copied from an existing account derivation rule and

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Chapter 4 - Page 12
modified) only to a custom journal lines definition. Assign a journal lines definition only to
custom application accounting definitions and custom subledger accounting methods.
Use seeded components in custom application accounting definitions.

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Chapter 4 - Page 13
Transaction Chart of Accounts

Transaction Chart of Accounts
For example, a Receivables invoice is entered. The item, tax, freight, and other account
combinations for the invoice contain the structure and values from the transaction chart of
accounts. Similarly, recording the receipt of goods and invoices, as well as issuing payments,
are all done in the context of a transaction chart of accounts structure.
Values for account combination sources stored in the transaction objects are taken from the
transaction chart of accounts. Use these source values in the AMB account derivation rules and
conditions.

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Chapter 4 - Page 14
Accounting Chart of Accounts

Accounting Chart of Accounts
The transaction and accounting charts of accounts are always the same for the primary ledger.
They can be different in cases where users create secondary multiple representations.

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Chapter 4 - Page 15
Event Model

Event Model
The event model defined in SLA for each subledger represents the transaction/document types
and the lifecycle of each transaction:
The event class classifies transaction types. An invoice, for example, is an event class.
The event type defines possible actions on each event class with potential accounting
significance, for example, validation of an invoice.
The journal creation rules are defined for each event class and event type.
Accounting events represent transactions that have a financial accounting impact.
Examples of accounting events are issuing an invoice and disposing of an asset. Financial
accounting information can be recorded for these events. Accounting events cannot be
compared to system events and programs that update transaction tables; instead they
should be analyzed from a business perspective. Events are captured when transactions
are committed in the subledgers.
As an example, a Payables invoice is created, then approved, possibly adjusted, and then
paid or cancelled. The accounting events representing these transactions can create one or
more subledger journal entries and subsequently link the originating transaction to its
corresponding journal entries.

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Chapter 4 - Page 16
Accounting events are categorized into event types. Event types are grouped into event
classes that in turn are grouped into event entities. These groupings play a prominent role
in the setup of the AMB. The definition of several components in the AMB is by event
class or event type.

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Chapter 4 - Page 17
Event Classes

Event Classes
Examples of event classes for Payables are: invoices, debit memos, and payments. Notice how
these correspond to the document types.
Similarly, for Receivables, event class examples are invoices, deposits, and receipts; and for
Purchasing, requisitions and purchase orders.

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Chapter 4 - Page 18
Event Types

Event Types
An accounting event for a Payables invoice, for example, would be the validation, adjustment,
or cancellation of the invoice. Similarly, for a Receivables receipt, accounting events would be
the creation, application, or reversal of the receipt. Therefore, every time one of these actions is
taken on a receipt transaction, an accounting event will be created. Based on the rule setup,
there may or may not be a resulting journal entry. You may set up rules to generate journal
entries for some events, but not for others.

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Chapter 4 - Page 19
Journal Line Types

Journal Line Types
The definition of a journal line type includes the following features:
Subledger Accounting uses rounding class along with the transaction rounding reference to
group journal lines tighter and calculate transaction rounding. Subledger transaction rounding
differences can occur when a transaction has multiple distributions.
The journal entry line can have an actual, budget, or encumbrance balance type.
For products like Oracle public sector applications that use encumbrance accounting,
separate journal line types can be created for encumbrance lines.
Journal line types specify if the journal line is to be a debit, credit, or gain/loss line.
For example, when a Payables invoice is generated, the liability account should normally
be credited. The journal line type must therefore specify the Side option as Credit. On the
other hand, the payment of the Payables invoice must be accounted with a debit to the
liability account. A separate journal line type must be defined to create this debit line.
The gain/loss amount is the difference in the ledger currency due to foreign currency
fluctuations. Gain or loss amounts occur when two related transactions, such as an invoice
and its payment, are entered in a currency other than the ledger currency, and the
conversion rate fluctuates between the time that the two are accounted.

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Chapter 4 - Page 20
You can specify whether to merge matching journal entry lines. Note: You can only merge
matching lines if every aspect of the resulting journal entry lines other than the amount is
identical.
You can specify whether the gain or loss has been calculated in the primary ledger so that the
gain or loss amount is not converted to the reporting currency or non-valuation method
secondary ledgers.
You can specify whether to derive journal entry components from a related journal entry.
The business flow method determines if and how a journal line should inherit journal
entry values.
You can specify whether to apply multiperiod accounting to a journal line type.
Journal entry lines are transferred to General Ledger in summary or detail mode.
You can define conditions to restrict the use of a journal line type by controlling when a
particular journal line type is used by the Subledger Accounting program.
You can assign accounting attributes.
If an accounting attribute is relevant to the accounting event's underlying transaction, then
its value is required to generate subledger journal entries for the transaction. By assigning
standard sources to accounting attributes in the Accounting Attributes window, you can
use standard source values as the values for accounting attributes.

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Chapter 4 - Page 21
Journal Line Types

Journal Line Types
The journal line type determines the type of entry to generate.

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Chapter 4 - Page 22
Journal Line Types

Journal Line Types
This is a sample journal entry for an invoice validation.
There are two line types defined in the example above, a credit line type (Line 1) and debit line
type (Lines 2 to 4).
You can see 4 lines on this entry, one for the liability (Line 1) and 3 for the item expense
(Lines 2 to 4). The reason why there are only 2 journal line types and there are 4 journal entry
lines is because the transaction included 3 lines for 3 separate expense items; one for 5000, one
for 4500, and another for 500. The 2 journal line types were applied to all 3 transaction lines
generating 6 journal entry lines: 3 expense lines and 3 liability lines. The 3 liability lines were
identical so they were merged, resulting in 4 journal entry lines.

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Chapter 4 - Page 23
Journal Entry Description

A description can be assigned to the journal entry header, to the set of debits and credits, or
different descriptions can be assigned to each of the lines of the entry. For example, you could
add a description on the liability entry containing information about the supplier, and a
description on the item expense line containing information about the item or expense itself.
Build descriptions using any of the available sources for the application. For example, an
individual segment of an account combination can be included in the description. Use literal
strings or a combination of both sources and literals. Some of the sources can only be used for
descriptions applied at the line level. For example, a source associated with an invoice line
number can only be applied to a line description.
Assign description to journal entry lines in the Journal Lines Definitions window and to journal
entry headers in the Application Accounting Definition window.

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Chapter 4 - Page 24

The final component that makes up a journal entry is the description.

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Chapter 4 - Page 25

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Chapter 4 - Page 26
Mapping Sets

Mapping Sets
To define a mapping set, pairs of values are specified. For each input value, specify a
corresponding account segment or account combination output value. One or more related
pairs of these input values and segment or account combination output values form a mapping
set. Use value sets or lookup types to validate the input values of the mapping set.
For example, it is possible to create a mapping set based on two input values, Yes and No.
Apply these input values to determine the balancing segment value of an account: 01 if the
input value is Yes and 02 if it is No. Use this mapping set in one of the rules that builds the
segment values of an account. The rule compares the value of a source to see if it is Yes or No
and determines the segment value accordingly.
Prerequisite for defining mapping sets:
Using value sets and lookup types prevents data entry errors when entering input values. If
planning to use either value sets or lookup types to validate the input values, they must be
defined before setting up mapping sets. If neither a value set nor a lookup type is selected,
you can enter any value in the Input Value field.

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Chapter 4 - Page 27
Account Derivation Rule

You can set up a separate rule for each account combination to be used, or if you require more
detail you can build each account combination segment by segment by combining multiple
rules. These rules can be set up to derive the accounts or segment values from transactional
data, including conditions determining when specific rules are used.

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Chapter 4 - Page 28

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Chapter 4 - Page 29

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Chapter 4 - Page 30
Account Combination Rules

Account Combination Rules
Source value type
For account combination rules, all the code combination identifiers from the transaction
chart of accounts that have been setup as sources are available to create the account.
Derive the account combination by specifying a source such as the Distribution Account
in the rule. The Subledger Accounting program then obtains the account by referencing
the distribution account combination. The transaction or accounting chart of accounts does
not need to be known when this type of rule is defined. If no chart of accounts is specified,
the value derived from the source uses the default chart of accounts for the subledger
application.
Constant value type
Establish the account as a constant value. For example, the constant could be the account
combination 01.000.2210.0000.000 from the accounting chart of accounts specified. This
is the simplest way to derive an account.
Mapping Set value type

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Chapter 4 - Page 31
Derive the account combination by referencing a mapping set. Set up a mapping set rule to
determine the complete account combination from the accounting chart of accounts
specified.
Note: An accounting chart of accounts must be specified for rules using either constants or
mapping sets.
Account Derivation Rule value type
Derive the account by referencing another account derivation rule. You cannot select
account derivation rules that already have an assigned account derivation rule. The
transaction or accounting chart of accounts does not need to be specified when defining
his type of rule. If the account derivation rule has an accounting chart of accounts, then all
account derivation rules that are assigned must have the same or no chart of accounts.
When the value type is Account Derivation Rule, select only account derivation rules with
matching output types.

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Chapter 4 - Page 32
Segment Rules

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Segment Rules

Segment Rules
Source value type
For Segment rules, all sources defined for the application are available. If the source is an
account combination, take the value from a particular segment of the transaction chart of
accounts. For example, derive a segment value from the cost center segment of the
liability account combination. In addition, use sources that are not account combinations.
For example, take the value for a Project segment from a Project Number source. Use
sources that are marked as account combination qualifiers and use them to derive the
value for the segment.
Note: When creating rules for an account combination qualifier, only sources that are
marked as account combination sources or the same account combination qualifier
segment as the qualifier specified for the rule can be selected.
Constant value type
Establish the segment value as a constant. For example, the company segment can be set
to 01.

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Use a mapping set to determine the value of the segment. For example, using a mapping
set that maps supplier types to departments, the supplier type can determine the
department segment value.
Note: An accounting chart of accounts must be specified for rules using either constants or
mapping sets.
his type of rule. If the account derivation rule has an accounting chart of accounts, then all
account derivation rules that are assigned must have the same or no chart of accounts.

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Oracle-Owned vs. User-Owned AMB Components

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Value Set Rules

Value Set Rules
Source value type
For value set based rules, all sources that are data type Alphanumeric and are not marked
as account combinations or account combination qualifiers are available.
Constant value type
Establish the segment value as a constant. This list of values is based on the value set
defined for the rule.
Use a mapping set to determine the value of the value set based rule. In this case, the
mapping set must be created for the same output value set as the value set for the account
derivation rule.
this type of rule. If the account derivation rule has an accounting chart of accounts, then

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all account derivation rules that are assigned must have the same or no chart of accounts.

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Defining Account Derivation Rules

Defining Account Derivation Rules
Note: Oracle strongly recommends that you do not modify a seeded rule or any other seeded
component as it could get overwritten in an upgrade. Instead, copy a seeded rule and then
modify it appropriately. The modified rule has an Owner type of User. When you select rules
and other components from a list of values in AMB windows, the name as well as the Owner
of the component is displayed. This enables you to distinguish between seeded and user-
defined components.

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Journal Lines Definitions

The journal line type, description, and account derivation rules are grouped together as a
journal line definition to create the rule for a particular event type.

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Application Accounting Definitions

Storing the validation status of the accounting definitions at the event class and event level
enables you to generate subledger journal entries for certain event classes or event types even if
the accounting definitions for other event classes or event types are invalid.
Each event class and event type assignment consists of a header assignment and one or more
journal lines definition assignments. A header assignment includes a journal entry description
and journal lines definition.
You can assign multiple journal lines definitions to an event class or event type. Subledger
Accounting generates a single journal entry for each accounting event and ledger using the line
assignments from all the journal lines definitions assigned to the event class or event type. The
following can be assigned to a journal lines definition:
Journal entry description
Journal line type
Account derivation rules
Sources are used by all of the above components.

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For example, use a complete set of US GAAP accounting definitions for Payables as an
application accounting definition for the ledger US Applications. Use a complete set of French
GAAP accounting definitions for Payables as an application accounting definition for the
ledger French Operations. These definitions have differences based on the setup of the various
components that make up their application accounting definitions.
Seeded application accounting definitions are provided for all Oracle subledgers. If specific
requirements are not met by start-up accounting definitions, you can copy and modify the
seeded definitions and their assignments.
The Applications Accounting Definitions (AAD) Loader enables you to import and export
application accounting definitions and journal entry setups between the file system and
database instances. The AAD Loader also supports concurrent development and version
control of the application accounting definitions.

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Application Accounting Definition

Application Accounting Definition
When copying an application accounting definition, copy the header and line assignments
associated with the original definition, or copy a definition and create the assignments
manually.

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Importing Application Accounting Definitions

Importing Application Accounting Definitions
When running the Import Application Accounting Definitions concurrent program, users
specify whether to run the merge analysis, merge, or overwrite processes.
When the Import Application Accounting Definitions program is completed successfully, a
report highlighting all the imported application accounting definitions and their versions as
well as all the errors that occurred during the import process is produced.

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Exporting Application Accounting Definitions

Exporting Application Accounting Definitions
When completed successfully, the Export Application Accounting Definitions program
produces a report highlighting all the exported application accounting definitions as well as all
the errors that occurred during the export process.

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Subledger Accounting Methods

Grouping AADs reduces setup time and ensures that a consistent method of accounting for all
subledgers feeding into a particular ledger is maintained.
For example, a subledger accounting method entitled French GAAP can be defined to group
application accounting definitions that are accounted for using French GAAP criteria. As
another example, a Cash Basis Accounting Method can be defined to group application
accounting definitions that are used to account for transactions on a cash basis.
By assigning different subledger accounting methods to ledgers, the AMB enables you to
create multiple accounting representations of transactions.

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Subledger Accounting Method

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Setting Up Subledger Accounting Methods

Setting Up Subledger Accounting Methods
The subledger accounting method (SLAM) is a collection of accounting definitions for all the
applications that you will be generating accounting for. Each primary and secondary ledger is
associated with a SLAM, which determines the accounting rules and standards that will be
applied when generating entries for that ledger.
Oracle seeds a number of accounting methods to support standard accrual, cash basis
accounting, as well as accrual and cash basis encumbrance accounting and US Federal
accounting.
If the accounting standards change over time, existing rules can be end-dated, and new ones
activated.
Notice that all of the components can be defined specifically for a given chart of accounts, or
can be generic across several chart of accounts. This is especially important if you define rules
using chart of accounts (COA) specific account combinations or segment values, which would
not be meaningful when generating entries for ledgers with a different COA structure.
In the hierarchy of the Subledger Accounting AMB, each component under a subledger
accounting method must share the same chart of accounts as the subledger accounting method
or be generic to COAs.

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If there is a secondary ledger defined, as the transaction is being processed for accounting,
there will be a separate journal entry generated for the primary and secondary ledgers, both
according to the accounting method on each ledger.
Note: Generic rules can be shared but you may find you are limited as to how you can apply
them. By their very nature generic rules can be shared but because they can be shared they are
also limited to the lowest common denominator. For example, this will preclude you from
using mapping sets as you need to be able to set segments or account combinations to specific
values which is inherently chart of accounts specific.
You should also be aware that generic lower level components can be assigned to specific
higher level components, for example, a generic Account Derivation Rule can be assigned to a
specific Journal Line Definition, but this will not work in reverse.

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Setting Profile Options

Setting Profile Options
The profile options listed above relate to data access and security and impact how accounting is
generated through SLA in R12.
SLA: Enable Subledger Transaction Security in GL
Use this profile option to combine subledger transactions security with data access
security for General Ledger responsibilities when drilling down to multi-organization
enabled subledger application. Transaction security in the respective subledger application
is always applied when drilling down from subledger transactions to subledger journal
entries.
SLA: Enable Data Access Security in Subledger
This profile option determines whether the General Ledger Access Set security
mechanism is applied for a subledger application responsibility when viewing, reporting,
or creating subledger journal entries associated with a given ledger. The General Ledger
Access Set security mechanism is always applied for responsibilities associated with the
General Ledger application.
The profile option enables you to combine data access security with subledger transaction
security and therefore control access to subledger journal entries depending on the ledger

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to which they belong. For example, you can implement a Multi-Org Security Profile that
allows you to create Oracle Receivables Invoices for two different operating units each
associated with different ledgers but restrict drill-down from the subledger transaction to
the associated subledger journal entry based upon the destination ledger contained in the
Access Set.
SLA: Additional Data Access Set
The SLA: Additional Data Access Set profile option, in conjunction with the GL: Data
Access Set profile option, controls which ledgers and balancing or management segment
values you can access when logging onto a responsibility. If SLA: Enable Data Access
Security in Subledgers is enabled for the responsibility, you have access only to the
ledgers and balancing or management segment values included in the data access sets
assigned to the SLA: Additional Data Access Set and GL: Data Access Set profile options.
SLA: Allow Reports Journal Source Override
This profile option applies only to the following reports:
- Open Account Balances Listing
- Third Party Balances Report
Enable this option to change the Journal Source parameter during report submission. If the
option is set to No, then you cannot change the value defaulted during report submission.
For example:
Should the general ledger data access set security be enforced when generating
accounting? For example, should journal entries be created if the user does not have ledger
clearance even if they may have multiorg access to the operating unit?
Should the transaction security model be applied when drilling down from GL? For
example, should the user be allowed to inquire on journal entries of certain operating units
if they do not have MO access, but have ledger clearance?
If there are secondary ledgers and data access set security is enforced in the subledger
module, then an additional data access set needs to be assigned to the user to enable access
to the secondary ledger.
Should the user be able to run certain reports across data from multiple subledger
applications?

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Summary

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Practice 1: Running the Create Accounting Program

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Practice - Running the Create Accounting Program for Payables
Overview
Enter an invoice
Run the Create Accounting program in draft mode from the Invoices Workbench or
alternatively from the Requests window
Assumptions
Replace XX with your terminal number or initials.
Responsibility selected to complete this practice is Payables, Vision Operations (USA).
Tasks
Password = welcome
Responsibility = Payables, Vision Operations (USA)
Enter an invoice
In the Invoices window, create an invoice based on the following information:
Trading Partner: IBM Corporation
Invoice number: XX5000
Invoice amount: 15000
Description: Promotional Giveaway
Payment method: Electronic
Enter 2 lines, one for 10,000 and another for 5,000.

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Use distribution account: 01-402-7710-0000-000 for the first line and 01-402-7120-
0000-000 for the second line.
Run the Create Accounting program:
- for invoices up to and including todays date
- in draft mode
- dont include events with an Error status
- generate a detailed report
- dont display user identifiers

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Solution Running the Create Accounting Program for Payables
Password = welcome
Entering an invoice
1. Navigate to the Invoice Workbench:
(N) Invoices > Entry > Invoices
2. In the Trading Partner field, select IBM Corporation.
3. In the Invoice Number field, enter XX5000.
4. In the Invoice Amount field, enter 15,000.
5. In the Description field, enter Promotional Giveaway.
6. In the Payment Method field, select Electronic.
7. Select the Lines tab.
8. In the Amount field, enter 10000.
9. In the Product Type field, select Goods.
10. In the Distribution Account field, enter 01-402-7710-0000-000.
11. Enter a second line, where the amount is 5000 for Goods and use the distribution account
01-402-7120-0000-000.

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12. To validate the invoice, (B) Actions.
13. Select the Validate check box and (B) OK.

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You can now generate draft accounting from the Invoice Workbench (proceed to step 14) or
you can submit the Create Accounting program (proceed to step 16) from the Requests
window. If you generate the draft accounting from the Invoice Workbench then you are just
generating accounting for that particular transaction. If you generate accounting from the
Requests window then you will generate accounting for any outstanding transactions,
including the transaction you just entered.
Note: If you have recently made changes to the Subledger Accounting setup you may find
that you are unable to generate accounting from the Invoice Workbench. If you receive a
message indicating that accounting cannot be generated then you should submit a request via
the Requests window.
Generating Draft Accounting from the Invoice Workbench
14. (B) Actions

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15. Select the Create Accounting check box.
16. Select the Draft radio button.
17. (B) OK.

Generating Draft Accounting from the Requests window
18. Navigate to the Submit a New Request window.
(N) Other > Requests > Run
19. (B) Single Request
20. (B) OK

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21. In the Name field, select Create Accounting. The Parameters dialog box appears.
22. In the Ledger field, select Vision Operations (USA). This is a required field and limits
accounting events selected for processing to those of a particular ledger.
23. In the Process Category field, select Invoices. This is an optional field and restricts the
events selected for accounting to a particular process category.
24. In the End Date field, enter todays date. This is a required field and processes only those
events with event dates on or before the end date.
25. In the Mode field, select Draft. This is a required field and determines whether the subledger
journal entries are created in draft or final mode.
26. In the Errors Only field, select No. This is a required field and limits the creation of
accounting to those events for which accounting has previously failed. If you selected Yes,
then the Create Accounting processes all events with a status of Error.
27. In the Report field, select Detail. This is a required field and determines whether to generate
a report showing the results of the Subledger Accounting program in summary or detail
format.
28. Leave the General Ledger Batch Name field blank. This is an optional field and is the user-
entered batch name that appears on the transferred General Ledger subledger journal entries.
The Transfer to GL option must be set to Yes.
29. In the Include User Transaction Identifiers field, select No. This is a required field and
controls whether the report displays user identifiers names and values.

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30. (B) OK
31. (B) Submit
32. (M) View Requests, to check the request status.
Inquire on the journal entry
(N) Accounting > Subledger Accounting > Journal Entries
Ledger: Vision Operations (USA)
36. (B) Go

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37. To view the details of the entry you just created, click on the appropriate ledger link to
display the Subledger Journal Entry window.

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Practice - Running the Create Accounting Program for
Receivables
Overview
Enter an invoice
Run the Create Accounting program in draft mode from the Requests window
Inquire on the journal entry you create
Assumptions
Responsibility selected to complete this practice is Receivables, Vision Operations
(USA).
Tasks
Password = welcome
Responsibility = Receivables, Vision Operations (USA)
Enter an invoice
1. Navigate to the Transactions window:
(N) Transactions > Transactions
2. In the Transactions window, enter an invoice based on the following information:
Source: Manual
Class: Invoice
Type: Invoice

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Reference: XXConsulting Services
Ship-To Name: XX_Customer
3. Enter 3 lines as follows:
Num Item Description UOM Quantity Unit Price
1 Principal
Consultant
Hrs 10 425
2 AS54888 Sentinal
Standard
Desktop
Each 3 1400
3 Network
Tech.
Hrs 5 350
4. Run the Create Accounting program:
- for transactions up to and including todays date
- in draft mode
- dont include events with an Error status
- generate a detailed report
- dont display user identifiers

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Solution Running the Create Accounting Program for
Receivables
Password = welcome
Entering an invoice
1. Navigate to the Transactions window:
(N) Transactions > Transactions
2. In the Source field, select Manual.
3. In the Class field, select Invoice.
4. In the Type field, select Invoice.
5. In the Reference field, select XXConsulting Services.
6. Select the Main tab.
7. In the Ship To Name field, select XX_Customer.

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8. (B) Line Items
9. Enter 3 lines based on the following information:
Num Item Description UOM Quantity Unit Price
1 Principal
Consultant
Hrs 10 425
2 Sentinal
Standard
Desktop
Each 3 1400
3 Network
Tech.
Hrs 5 350

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10. Save your work.
11. Close the Lines window.
12. (B) Complete
Note: You can now generate accounting from the Tools menu by selecting Create
Accounting or from the Requests window.
Generating Draft Accounting from the Requests window
13. Navigate to the Submit Request window:
(M) View > Requests
14. (B) Submit a New Request
15. (B) OK.
16. In the Name field, select Create Accounting. The Parameters dialog box appears.
17. In the Ledger field, select Vision Operations (USA). This is a required field and limits
accounting events selected for processing to those of a particular ledger.
18. In the Process Category field, select Transactions. This is an optional field and restricts the
events selected for accounting to a particular process category.

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19. In the End Date field, enter todays date. This is a required field and processes only those
events with event dates on or before the end date.
20. In the Mode field, select Draft. This is a required field and determines whether the subledger
journal entries are created in draft or final mode.
21. In the Errors Only field, select No. This is a required field and limits the creation of
accounting to those events for which accounting has previously failed. If you selected Yes,
then the Create Accounting processes all events with a status of Error.
22. In the Report field, select Detail. This is a required field and determines whether to generate
a report showing the results of the Subledger Accounting program in summary or detail
format.
23. Leave the General Ledger Batch Name field blank. This is an optional field and is the user-
entered batch name that appears on the transferred General Ledger subledger journal entries.
The Transfer to GL option must be set to Yes.
24. In the Include User Transaction Identifiers field, select No. This is a required field and
controls whether the report displays user identifiers names and values.

25. (B) OK.
26. (B) Submit.
27. (M) View Requests, to check the request status.

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(N) Inquiry > Subledger Accounting > Journal Entries
31. (B) Go


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Chapter 4 - Page 70
Practice 2: Defining Journal Line Types

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Guided Demonstration - Defining Journal Line Types in Payables
Defining Journal Line Types
1. Navigate to the Journal Line Types window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types
2. (B) New.
3. In the Event Class field, select Invoices.
4. In the Line Type Code field, enter XX_MISC_EXPENSE.
5. In the Name field, enter XX Miscellaneous Expense.
6. In the Description field, enter XX Miscellaneous Expense.
7. In the Accounting Class field, select Miscellaneous Expense.
8. In the Balance Type region, select Actual.
9. In the Side region, select Debit.
10. Select Yes from the Switch Debit/Credit dropdown list.
11. In the Merge Matching Lines field, select No.
12. In the Transfer to GL region, select Summary.
13. (B) Conditions.
14. In the Seq field, enter 10.
15. In the Source field, select Invoice Distribution Type.
16. In the Operator field, select =.
17. In the Value Type field, select Constant.
18. In the Value field, select Item.
19. (M) File Save
20. (M) File Close Form

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21. Save the Expense journal line type.
22. Create a Liability journal line type based on the following information:
Field Name Liability Journal Line Type
Event Class Invoices
Line Type Code XX_AP_LIAB_INV
Name XX Liability
Description XX Liability when invoice
validated
Accounting Class Liability
Balance Type Actual
Side Credit
Switch Debit/Credit Yes
Merge Matching Lines No
Transfer to GL Summary
Note: No conditions are required for the Liability journal line type.

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Chapter 4 - Page 73
Guided Demonstration - Defining Journal Line Types in
Receivables
Responsibility: Receivables, Vision Operations (USA)
Username/Password = operations/welcome
(N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups >
Journal Line Types
2. (B) New.
3. In the Event Class field, select Invoice.
4. In the Line Type Code field, enter XX_INV_REV.
5. In the Name field, enter Invoice Revenue.
6. In the Description field, optionally enter a description, for example, Revenue for Invoices.
7. In the Accounting Class field, select Revenue.
9. In the Side region, select Credit.
12. In the Transfer to GL region, select Summary.
13. Save the credit memo journal line type.

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Chapter 4 - Page 74
Practice - Defining Journal Line Types for Payables
Overview
Define two journal line types, as follows:
Expense
Liability
Assumptions
Tasks
Password = welcome
2. Create two journal line types using the following information:
Field Name Expense Journal Line
Type
Liability Journal Line
Type
Event Class Invoices Invoices
Line Type Code XX_MISC_EXPENSE XX_AP_LIAB_INV
Name Miscellaneous Expense Liability

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Description Miscellaneous Expense Liability when invoice
validated
Accounting Class Miscellaneous Expense Liability
Balance Type Actual Actual
Side Debit Credit
Switch Debit/Credit Yes Yes
Merge Matching
Lines
No No
Transfer to GL Summary Summary
3. Save the journal line types.

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Chapter 4 - Page 76
Solution Defining Journal Line Types for Payables
The Find Journal Line Types window appears.

2. (B) New.
The Journal Line Types window appears.

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Chapter 4 - Page 77

The Application field is automatically populated with the application name associated with
the users responsibility, in this example, Payables.
The Owner field is automatically populated. For components seeded by Oracle, the value is
Oracle. For components created on site by users, the value is User.
The Enabled field is automatically enabled, and makes this journal line type available for
use.
3. In the Event Class field, select the event class from the list of values, for example, Invoices.
4. In the Line Type Code field, enter a code, for example, XX_MISC_EXPENSE.
Note: You cannot modify a seeded journal line type or any other seeded component as it
could get overwritten in an upgrade. Instead you can copy the seeded type and then modify
it appropriately. The copied journal line type has an Owner type of User. The list of values
displays the component name and the owner to distinguish between seeded and user-defined
components.
5. In the Name field, enter XX Miscellaneous Expense.
6. In the Description field, optionally enter a description, for example, XX Miscellaneous
Expense.

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Chapter 4 - Page 78
7. In the Accounting Class field, select Miscellaneous Expense.
The accounting class is shared across applications and enables you to classify journal entry
lines.
The list of values for this field contains all accounting classes that are seeded but you can
add new accounting classes.
The Rounding Class defaults to the accounting class, in this example, Miscellaneous
Expense.
The rounding class, along with the transaction rounding reference accounting attribute,
groups lines together in order to determine whether rounding is necessary.
9. In the Side region, select Debit.
This option determines whether negative amounts will result in negative amounts on the
same side or positive amounts on the opposite side.
This option summarizes subledger journal lines within each subledger entry. Journal entry
lines with matching criteria are merged.
12. In the Transfer to GL region, select Summary to summarize subledger journal entry lines by
account combination.
13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous
expense when an invoice is validated.
15. In the Source field, select Invoice Distribution Type.
18. In the Value field, select Item.

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Chapter 4 - Page 79

19. (M) File Save
The Journal Line Types window should now look like this:

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Chapter 4 - Page 80

21. Save the Expense journal line type.
22. Create a Liability journal line type based on the following information:
Field Name Liability Journal Line Type
Event Class Invoices
Line Type Code XX_AP_LIAB_INV
Name XX Liability
Description XX Liability when invoice
validated
Accounting Class Liability
Balance Type Actual
Side Credit
Switch Debit/Credit Yes
Merge Matching Lines No
Note: No conditions are required for the Liability journal line type.

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Chapter 4 - Page 81
Practice - Defining Journal Line Types for Receivables
Overview
In this practice, you will create two journal line types as follows:
Revenue
Receivables
Assumptions
(USA).
Tasks
Password = welcome
Journal Line Types
2. Create journal line types using the following information:
Field Name Revenue
Journal Line
Type
Receivable
Journal Line
Type
Event Class Invoice Invoice
Line Type Code XX_INV_REV XX_AR_REC
Name XX Invoice
Revenue
XX Invoice
Receivable

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Description XX Revenue
for Invoices
XX Receivable
for Invoices
Accounting
Class
Revenue Receivable
Balance Type Actual Actual
Side Credit Debit
Switch
Debit/Credit
Yes Yes
Merge Matching
Lines
No No
Transfer to GL Summary Summary
3. Save the journal line types.

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Chapter 4 - Page 83
Solution Defining Journal Line Types for Receivables
Defining a Revenue Journal Line Type
Journal Line Types
The Find Journal Line Types window appears.

2. (B) New.
The Journal Line Types window appears.

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Chapter 4 - Page 84

The Application field is automatically populated with the application name associated with
the users responsibility, in this example, Receivables.
The Enabled field is automatically enabled, and makes this journal line type available for
use.
3. In the Event Class field, select the event class from the list of values, for example, Invoice.
4. In the Line Type Code field, enter a code, for example, XX_INV_REV.
Note: You cannot modify a seeded journal line type or any other seeded component as it
could get overwritten in an upgrade. Instead you can copy the seeded type and then modify
it appropriately. The copied journal line type has an Owner type of User. The list of values
displays the component name and the owner to distinguish between seeded and user-defined
components.
5. In the Name field, enter XX Invoice Revenue.
6. In the Description field, optionally enter a description, for example, Revenue for Invoices.
7. In the Accounting Class field, select Revenue.

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Chapter 4 - Page 85
The accounting class is shared across applications and enables you to classify journal entry
lines.
The list of values for this field contains all accounting classes that are seeded but you can
add new accounting classes.
The Rounding Class defaults to the accounting class, in this example, Revenue.
The rounding class, along with the transaction rounding reference accounting attribute,
groups lines together in order to determine whether rounding is necessary.
9. In the Side region, select Credit.
This option determines whether negative amounts will result in negative amounts on the
same side or positive amounts on the opposite side.
This option summarizes subledger journal lines within each subledger entry. Journal entry
lines with matching criteria are merged.
12. In the Transfer to GL region, select Summary to summarize subledger journal entry lines by
account combination.
13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous
expense when a credit memo is validated.
15. In the Source field, select Transaction Distribution Account Class.
18. In the Value field, select REV.

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19. Save the condition.
20. Close the Journal Line Type Conditions window.

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Chapter 4 - Page 87

21. Save the Revenue journal line type.
22. Create a Receivable journal line type based on the following information:
Field Name Receivable Journal Line Type
Event Class Invoice
Line Type Code XX_AR_REC
Name XX Invoice Receivable
Description Receivable for Invoices
Accounting
Class
Receivable
Balance Type Actual
Side Debit
Switch
Debit/Credit
Yes
Merge
Matching Lines
No

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Chapter 4 - Page 88
23. (B) Conditions to add a condition for the Invoice Receivable journal line type.
25. In the Source field, select Transaction Distribution Account Class.
28. In the Value field, select REC.

29. Save the condition.
30. Close the Journal Line Type Conditions window.
31. Save the Receivable journal line type.

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32. Save the journal line type.

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Chapter 4 - Page 90
Practice 3: Defining Journal Lines Definitions

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Chapter 4 - Page 91
Guided Demonstration - Defining Journal Lines Definitions for
Receivables
1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
2. (B) New
4. In the Event Type field, select Invoice Created.
5. In the Definition Code field, enter XX_AR_ACCRUAL_INVOICES.
6. In the Definition Name field, enter XX Accrual Invoices.
7. Optionally, enter a description, for example, XX Receivables Accrual Accounting
Definition.
8. In the Chart of Accounts Accounting field, select Operations Accounting Flex.
9. In the Line Assignments region, enter the following information based on the journal line
types you previously defined:
Journal Line Type Line Description
XX Invoice Revenue Invoice Header Description
XX Invoice Receivable Invoice Header Description
XX Invoice Tax Invoice Header Description
XX Invoice Freight Invoice Header Description
10. In the Segment field, select All Segments.
11. In the Rule Name field, apply the ADR you previously created by selecting XX Transaction
Distribution GL Account.
12. (M) File - Save.

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Guided Demonstration - Defining Account Derivation Rules for
Payables
Creating an Account Derivation Rule for the Liability Journal Line Type
Builder > Methods and Definition > Journal Lines Definitions
2. In the Definition Name field, select XX Payables Accrual.
3. (B) Find
4. Select the XX Liability journal line type.
5. (B) Account Derivation Rule
6. (B) New
7. In the Rule Code field, enter XX_LIAB_ACC.
8. In the Rule Name field, enter XX Liability Account.
9. In the Description field, enter XX Liability Account.
10. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
11. Select the Flexfield radio button.
12. In the Priority field, enter 1.
14. In the Value field, enter 01-520-2210-0000-000.
15. (M) File Save
17. In the Journal Lines Definitions window, select the XX Liability journal line type.

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19. In the Rule Name field, select XX Liability Account.
20. (M) File - Save
Creating an Account Derivation Rule for the Expense Journal Line Type
21. Select the XX Miscellaneous Expense journal line type.
Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
select the next journal line type if pressing the down arrow key doesnt work.
23. (B) New
24. In the Rule Code field, enter XX_EXPENSE_ACCOUNT.
25. In the Rule Name field, enter XX AP Expense Account.
26. In the Description field, enter XX Expense Account.
28. In the Value Type field, select Source.
29. In the Value field, select Invoice Distribution Account.
30. (M) File Save
32. In the Journal Lines Definitions window, place the cursor in the XX Miscellaneous Expense
line.
34. In the Rule Name field, select XX Expense Account.
35. (M) File Save

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Chapter 4 - Page 94
Practice - Defining Journal Lines Definitions for Payables
Overview
Define a journal line definition for accrual invoices.
Assumptions
Tasks
Password = welcome
Define a journal lines definition
1. Navigate to the Journal Lines Definitions window:
2. Create a new journal lines definition.
3. Save the definition code as XX_ACCRUAL_INVOICES.
4. Save the definition name as XX AP Accrual Invoices.
5. Apply the definition to all event types.
6. Assign the definition to the Operations Accounting Flex accounting chart of accounts.
7. Apply the journal line types previously created, XX Miscellaneous Expense and XX
Liability.
8. Save your work.

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Chapter 4 - Page 95
Solution Defining Journal Lines Definitions for Payables
Defining Journal Lines Definitions
The Find Journal Lines Definitions window appears.

2. (B) New.
The Journal Lines Definitions window appears.

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Chapter 4 - Page 96

The application name defaults from the application associated with the responsibility.
The Enabled check box is enabled by default and makes the journal lines definition available
for use for this application and the selected chart of accounts (if applicable).
3. In the Event Class field, select Invoices from the dropdown list.
4. In the Event Type field, select All.
5. In the Definition Code field, enter XX_ACCRUAL_INVOICES.
6. In the Definition Name field, enter XX AP Accrual Invoices.
7. Optionally, enter a description, for example, XX Accrual Invoices.

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9. In the Journal Line Type field, assign the Expense journal line type you previously created
to the event type by selecting XX Miscellaneous Expense.
The Owner field is automatically populated based on the journal line type selected.
10. In the Line Description field, select Invoice Distribution Description.
This is the journal entry description to be used to populate the subledger journal entry lines.
11. Ensure the Active check box is selected to use this line assignment to generate subledger
journal entries.
12. In the Journal Line Type field, assign the Liability journal line type you previously created
to the event type by selecting XX Liability.
13. In the Line Description field, select Invoice Distribution Description.
14. Ensure the Active check box is selected.
The Journal Lines Definitions window should now look like this:

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15. Save the journal line definition:
(M) File - Save

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Chapter 4 - Page 99
Practice - Defining Journal Lines Definitions for Receivables
Overview
Define a journal line definition for accrual invoices.
Assumptions
(USA).
Tasks
Password = welcome
Define a journal lines definition
1. Navigate to the Journal Lines Definitions window:
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definition >
2. Create a new journal lines definition.
3. Save the definition code as XX_ACCRUAL_INVOICES.
4. Apply the journal line types previously created, XX Invoice Receivable and XX Invoice
Revenue.
5. Save the definition name as XX Accrual Invoices.
6. Apply the definition to all event types.
7. Assign the definition to the Operations Accounting Flex accounting chart of accounts.

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Chapter 4 - Page 100
8. Apply the Invoice Header Description line descriptions to both of the journal line types.
9. Save the journal lines definition.

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Solution Defining Journal Lines Definitions for Receivables
Defining Journal Lines Definitions
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definition >

2. (B) New.

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The application name defaults from the application associated with the responsibility.
The Enabled check box is enabled by default and makes the journal lines definition available
for use for this application and the selected chart of accounts (if applicable).
4. In the Definition Code field, enter XX_ACCRUAL_INVOICES.
5. In the Definition Name field, enter XX Accrual Invoices.
6. Optionally, enter a description, for example, Receivables Accrual Invoices.
7. In the Event Type field, select All.

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9. In the Journal Line Type field, assign the Receivable journal line type you previously
created to the event type by selecting XX Invoice Receivable.
The Owner field is automatically populated based on the journal line type selected.
10. In the Line Description field, select Invoice Header Description.
This is the journal entry description to be used to populate the subledger journal entry lines.
11. Ensure the Active check box is selected to use this line assignment to generate subledger
journal entries.
12. In the Journal Line Type field, assign the Revenue journal line type you previously created
to the event type by selecting XX Invoice Revenue.
13. In the Line Description field, select Invoice Header Description.
14. Ensure the Active check box is selected.
The Journal Lines Definitions window should now look like this:

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15. Save the journal line definition:
(M) File - Save

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Practice 4: Defining Account Derivation Rules

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Guided Demonstration - Defining Account Derivation Rules for
Payables
2. In the Definition Name field, select XX Payables Accrual.
3. (B) Find
6. (B) New
15. (M) File Save

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20. (M) File - Save
21. Select the XX Miscellaneous Expense journal line type.
23. (B) New
30. (M) File Save
line.
34. In the Rule Name field, select XX Expense Account.
35. (M) File Save

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Guided Demonstration - Defining Account Derivation Rules in
Receivables
Create a new Receivables Account Derivation Rule
2. In the Definition Name field, select XX Accrual Invoices.
3. (B) Find.
4. In the Journal Line Type field, select XX Invoice Receivable.
5. (B) Account Derivation Rule.
6. (B) New.
7. In the Rule Code field, enter XX_REC_ACC.
8. In the Rule Name field, enter XX Receivables Account.
9. In the Description field, enter Receivables Account.
11. In the Output Type region, select Flexfield.
15. (M) File - Save
Assign the XX Receivables Account rule to the XX Invoice Receivable journal line
type
17. In the Journal Lines Definitions window, place the cursor in the XX Invoice Receivable line.

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19. In the Rule Name field, select XX Receivables Account.
20. (M) File Save
Create a new Revenue Account Derivation Rule
21. In the Journal Lines Definition window, select the XX Invoice Revenue journal line type.
22. (B) Account Derivation Rule.
23. (B) New.
24. In the Rule Code field, enter XX_TRX_DIST_GL.
25. In the Rule Name field, enter XX Transaction Distribution GL Account.
26. In the Description field, enter Transaction Distribution GL Account.
28. In the Output Type region, select Flexfield.
31. In the Value field, select Transaction Distribution GL Account.
32. (M) File- Save
Assign the XX Transaction Distribution GL Account rule to the XX Invoice
Revenue journal line type
34. In the Journal Lines Definitions window, place the cursor in the XX Invoice Revenue line.
36. In the Rule Name field, select XX Transaction Distribution GL Account.
37. (M) File Save

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Practice - Defining Account Derivation Rules for Payables
Overview
Define two account derivation rules; one for the Liability journal line type and another
for the Expense journal line type.
Assign the account derivation rules to the relevant journal line types in the Journal
Lines Definitions window.
Assumptions
Tasks
Password = welcome
Create an account derivation rule for the Liability journal line type
2. Search for the XX Accrual Invoices journal line definition.
4. Go to the Account Derivation Rule window.
5. Create a new account derivation rule code called XX_LIAB_ACC with a rule name of XX
Liability Account.
6. Associate this rule with the Operations Accounting Flex chart of accounts.

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7. Enter a flexfield rule for the constant 01-520-2210-0000-000.
8. Save the liability rule.
Assign the Liability account derivation rule to the Liability journal line type
10. In the Account Derivation Rules region, apply the XX Liability Account rule to all
segments.
11. Save your work.
Create an account derivation rule for the Expense journal type
12. Select the XX Miscellaneous Expense journal line type in the Journal Lines Definitions
window.
13. Go to the Account Derivation Rule window.
14. Create a new account derivation rule code called XX_EXPENSE_ACC with a rule name of
XX Expense Account.
15. Associate this rule with the Operations Accounting Flex chart of accounts.
16. Enter a flexfield rule for the Invoice Distribution Account source.
17. Save the expense rule.
Assign the Liability account derivation rule to the Expense journal line type
18. In the Journal Lines Definitions window, select the XX Miscellaneous Expense journal line
type.
19. In the Account Derivation Rules region, apply the XX Expense Account rule to all
segments.
20. Save your work.

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Solution Defining Account Derivation Rules for Payables
Password = welcome

2. In the Definition Name field, select XX Accrual Invoices.
3. (B) Find

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The Find Account Derivation Rules window appears.

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6. (B) New
The Account Derivation Rules window appears.
The application name defaults from the application associated with the responsibility, in this
example, Payables.
The Owner field is automatically populated by Subledger Accounting. For components
seeded by Oracle, the value is Oracle. For components created on site by users, the value is
User.
Retain the default for the Enabled check box which is selected to make the account
derivation rule available for use for any application with reference objects used in this
account derivation rule and accounting chart of accounts.
Rules are evaluated in ascending order, where the highest priority has the lowest number,
until a condition is met. It is advantageous to list the most commonly met rules and

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conditions first. The order in which rules and conditions are evaluated by updating the
priority number instead of by deleting and rewriting detail lines can be changed. Once the
conditions associated with a detail line are satisfied, the value from that line is used and
other lines are ignored.
13. In the Value Type field, select Constant to specify the method of deriving the account
combination or segment value.

15. Save your work:
(M) File Save
16. Close the Account Derivation Rules window:
(M) File Close Form

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20. Save your work:
(M) File - Save
21. In the Journal Lines Definitions window, select the XX Miscellaneous Expense journal line
type.
The Find Account Derivation Rule window appears.

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23. (B) New
The Account Derivation Rules window appears.
28. In the Output Type region, select the Flexfield radio button.

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32. Save your work:
(M) File Save
33. Close the Account Derivation Rules window:
(M) File Close Form
line.
36. In the Rule Name field, select XX AP Expense Account.

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37. Save your work:
(M) File Save

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Practice 5: Defining Application Accounting Definitions

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Guided Demonstration - Defining an Application Accounting
Definition in Payables
1. Navigate to the Application Accounting Definitions window.
Builder > Methods and Definitions > Application Accounting Definitions
2. In the Definition Name field, enter Accrual Basis.
3. (B) Find
4. (B) Copy
5. In the Definition Code field, enter XX_ACC_BASIS.
6. In the Definition Name field, enter XX Accrual Basis for Payables.
7. Optionally, enter a description, for example XX AP Accrual Basis.
9. Deselect Line Assignments.
10. (B) Done
11. In the Journal Lines Definition Name field, select the journal line definition previously
defined, XX Accrual Invoices.
12. (B) Validate

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Guided Demonstration - Defining an Application Accounting
Definition in Receivables
2. In the Definition Name field, select Receivables Default Accrual.
3. (B) Find.
4. (B) Copy
5. In the Definition Code field, enter XX_AR_ACCRUAL_BASIS.
6. In the Definition Name field, enter XX Receivables Accrual Basis.
7. In the Description field, enter Accrual Basis Accounting Definition.
9. Deselect Line Assignments.
10. (B) Done
11. In the Event Class and Event Type Assignments region, select the Invoice event class.
12. In the Journal Lines Definition Name field, select XX Accrual Invoices.
13. (B) Validate

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Practice - Defining an Application Accounting Definition for
Payables
Overview
Copy an existing application accounting definition and then modify it to use the rules
you created in earlier practices.
Assumptions
Tasks
Password = welcome
Copy and modify an accrual basis application accounting definition
2. Search for the Accrual Basis application accounting definition and make a copy of it.
3. Save the new definition code as XX_ACC_BASIS and the definition name as XX Accrual
Basis for Payables.
4. Assign this application accounting definition to the Operations Accounting Flex Accounting
chart of accounts.
5. Ensure that Line Assignments are deselected.
6. Select the Invoices event class and assign the XX Accrual Invoices journal lines definition.

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7. Validate the definition.

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Solution Defining an Application Accounting Definition for
Payables
Copying and modifying an existing Application Accounting Definition
The Find Application Accounting Definitions window appears.

2. In the Definition Name field, select Accrual Basis.
3. (B) Find.
The Application Accounting Definitions window appears.

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4. (B) Copy.
The Copy Application Accounting Definitions window appears.
5. In the Definition Code field, enter XX_ACC_BASIS.
6. In the Definition Name field, enter XX Accrual Basis for Payables.
7. Optionally, enter a description, for example XX AP Accrual Basis.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. If a chart of
accounts is selected the application accounting definition can only be assigned to a
subledger accounting method with the same chart of accounts.
9. Deselect the Line Assignments check box.

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10. (B) Done
The Application Accounting Definitions window is displayed.

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example, Payables.
The Enabled check box should remain selected so that the application accounting definition
is available.
11. In the Event Class and Event Type Assignments region, select the Invoices event class.
defined, XX Accrual Invoices, to assign the journal line definition to the Invoices event
class.

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13. (B) Validate to validate the application accounting definition.

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Practice - Defining an Application Accounting Definition for
Receivables
Overview
Copy an existing application accounting definition and then modify it to use the rules
you created in earlier practices.
Assumptions
(USA).
Tasks
Password = welcome
Copy and modify an accrual basis application accounting definition
2. Search for the Receivables Accrual Basis application accounting definition and make a copy
of it.
3. Save the new definition code as XX_AR_ACCRUAL_BASIS and the definition name as
XX Accrual Basis Accounting Definition.
4. Assign this application accounting definition to the Operations Accounting Flex Accounting
chart of accounts.
5. Ensure that Line Assignments are deselected.

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6. Select the Invoice event class and assign the XX Accrual Invoices journal lines definition.
7. Validate the definition.

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Solution Defining an Application Accounting Definition for
Receivables
Copying and modifying an existing Application Accounting Definition
The Find Application Accounting Definitions window appears.

2. In the Definition Name field, select Receivables Default Accrual.
3. (B) Find.
The Application Accounting Definitions window appears.

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4. (B) Copy.
The Copy Application Accounting Definition window appears.
5. In the Definition Code field, enter XX_AR_ACCRUAL_BASIS.
6. In the Definition Name field, enter XX Receivables Accrual Basis.
7. Optionally, enter a description, for example Accrual Basis Accounting Definition.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. If a chart of
accounts is selected the application accounting definition can only be assigned to a
subledger accounting method with the same chart of accounts.
9. Deselect the Line Assignments check box.

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10. (B) Done
The Application Accounting Definitions window is displayed.

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example, Receivables.
The Enabled check box should remain selected so that the application accounting definition
is available.
11. In the Event Class and Event Type Assignments region, select the Invoice event class.
defined, XX Accrual Invoices, to assign the journal line definition to the Invoices event
class.

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13. (B) Validate to validate the application accounting definition.

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Practice 6: Defining Subledger Accounting Methods

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Guided Demonstration - Defining Subledger Accounting Methods
in Payables
Copying and modifying an existing Subledger Accounting Method
1. Navigate to the Subledger Accounting Methods window.
Builder > Methods and Definitions > Subledger Accounting Methods
2. In the Method Name field, enter Standard Accrual.
3. (B) Find
4. (B) Copy
5. In the Method Code field, enter XX_STANDARD_ACCRUAL.
6. In the Name field, enter XX Standard Accrual.
7. In the Description field, enter XX Standard Accrual.
8. In the Accounting field, select Operations Accounting Flex.
9. (B) OK
10. (B) Done
End-date an existing Application Accounting Definition and add a new one
11. Place the cursor in the Payables line and enter an end-date of 31-Dec-2006.
12. Add a new line.
13. In the Applications field, select Payables.
14. In the Name field, select XX Payables Accrual.
15. (B) OK
16. In the Start Date field, enter 01-Jan-2007.
17. (M) File Save

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Assigning the Subledger Accounting Method to the Vision Operations (USA)
ledger
18. (N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups
19. Search for the Vision Operations (USA) ledger.
20. Click Update Accounting Options next to the ledger.
21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger.
22. In the Subledger Accounting Method field, update the subledger accounting method to XX
Standard Accrual.
23. (B) Select
24. (B) Finish
Run the Create Accounting program
To view the changes you have made to the setup, run the Create Accounting program in draft
mode for a second time.
26. Select Single Request.
27. (B) OK
29. In the Ledger field, select Vision Operations (USA).
30. In the Process Category field, select Invoices.
31. In the End Date field, enter todays date.
32. In the Mode field, select Draft.
33. In the Errors Only field, select No.
34. In the Report field, select Detail.
35. (B) OK
36. (B) Submit
37. (M) View Requests, check the request status.

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41. (B) Go
(Optional) Update Merge Matching Lines setting and rerun the Create Accounting
program
You previously set the Merge Matching Lines setting for the journal line types to No and then
generated draft accounting. Now that you have completed setting up Subledger Accounting, you
could set the option to All, generate draft accounting again and view the difference in the results.
In the first instance you saw multiple lines displayed for similar journal entry lines even though
all of the information is identical with the exception of the amount. In the second instance the
same journal entry lines would be combined. To view the difference when lines are merged,
follow these instructions:
43. Navigate to the Journal Lines Types window.
Builder > Journal Entry Setups > Journal Line Type
44. Search for the XX Liability journal line type you previously created.
45. In the Merge Matching Lines field, select All.
46. (M) File Save
48. Search for the XX Payables Accrual application accounting definition you previously
created.

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49. (B) Validate
(Optional) Run the Create Accounting program
52. (B) OK
60. (B) OK
61. (B) Submit

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Guided Demonstration - Defining Subledger Accounting Methods
in Receivables
2. In the Method Name field, select Standard Accrual.
3. (B) Find
4. (B) Copy
5. In the Method Code field, enter XX_ STANDARD_ACCRUAL.
9. (B) OK
10. (B) Done
End-dating an existing Application Accounting Definition and adding a new one
11. Place the cursor in the Receivables Default Accrual line and enter an end-date of 31-Dec-
2006.
12. Add a new line.
13. In the Application field, select Receivables.
14. In the Name field, select XX Receivables Accrual Basis.
15. (B) OK

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17. (M) File Save
ledger
18. Navigate to the Accounting Setups window:
(N) Setup > Financials > Accounting > Ledger > Accounting Setups
22. In the Subledger Accounting Method field, update the subledger accounting method to XX
Standard Accrual.
23. (B) Select
24. (B) Finish
Running the Create Accounting program
(M) View > Requests and click Submit a New Request
27. (B) OK
30. In the Process Category field, select Transactions.
35. (B) OK
36. (B) Submit

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Inquiring on the journal entry
39. (T) Headers
41. (B) Go
(Optional) Updating the Merge Matching Lines setting
Journal Line Types
44. Search for the XX Invoice Receivable journal line type.
46. (M) File Save
48. Search for the XX Receivables Accrual Basis application accounting definition.
49. (B) Validate
(Optional) Running the Create Accounting program
(M) View > Requests and click Submit a New Request

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52. (B) OK
60. (B) OK
61. (B) Submit

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Practice - Defining Subledger Accounting Methods for Payables
Copy an existing subledger accounting method.
End-date an existing application accounting definition and add a new one.
Assign the subledger accounting method to the Vision Operations (USA) ledger.
Run the Create Accounting program.
Inquire on the journal entry.
Optionally, update the merge matching lines setting and rerun the Create Accounting
program.
Assumptions
Tasks
Password = welcome
Copy an existing subledger accounting method
Navigate to the Subledger Accounting Methods window.
Copy the Standard Accrual subledger accounting method and save it as
XX_STANDARD_ACCRUAL.

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Assign the subledger accounting method to the Operations Accounting Flex Accounting
chart of accounts.
Enter an end-date of 31-Dec-2006 for the Payables application accounting definition.
Add a new line and enter a new Payables application accounting definition, called XX
Payables Accrual.
Enter a start date of 01-Jan-2007.
Assign the Subledger Accounting Method to the Vision Operations (USA) ledger
Navigate to the Accounting Setups window:
(N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups
Drill-down to the Vision Operations (USA) ledger.
Change the subledger accounting method to XX Standard Accrual.
Navigate to the Submit a New Request window:
Run the Create Accounting program for the Vision Operations (USA) ledger in Draft
mode. Use todays date as the end date and generate a detailed report.
Navigate to the Subledger Journal Entries window:
Search for the Vision Operations (USA) ledger, entering todays date for the GL dates.
Select the entry you just created and view the details.
Optionally, update the Merge Matching Lines setting
Navigate to the Journal Lines Types window:
Search for the XX Liability journal line type you previously created.

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Update the Merge Matching Lines option to All.
Navigate to the Application Accounting Definitions window.
Search for the XX Payables Accrual application accounting definition you previously
created and validate it.
Optionally, rerun the Create Accounting program
Run the Create Accounting program for the Vision Operations (USA) ledger in draft

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Solution Defining Subledger Accounting Methods for Payables
The Find Subledger Accounting Methods window appears.
2. In the Method Name field, enter Standard Accrual.

3. (B) Find
The Subledger Accounting Methods window appears.

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4. (B) Copy
5. In the Method Code field, enter XX_STANDARD_ACCRUAL.
8. In the Accounting field, select Operations Accounting Flex.
9. (B) OK

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10. (B) Done
11. Place the cursor in the Payables line and enter an end-date of 31-Dec-2006.
12. Add a new line.
13. In the Application field, select Payables.
14. In the Name field, select XX Payables Accrual.
15. (B) OK

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17. (M) File Save
ledger
(N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups

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22. In the Subledger Accounting Method field, change the subledger accounting method to XX
Standard Accrual.
23. (B) Select

24. (B) Finish
27. (B) OK

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35. (B) OK
36. (B) Submit

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41. (B) Go

44. Search for the XX Liability journal line type you previously created.

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46. (M) File Save
48. Search for the XX Payables Accrual application accounting definition you previously
created.

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49. (B) Validate
52. (B) OK

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60. (B) OK
61. (B) Submit

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Practice - Defining Subledger Accounting Methods for
Receivables
Copy an existing subledger accounting method.
End-date an existing application accounting definition and add a new one.
Assign the subledger accounting method to the Vision Operations (USA) ledger.
Run the Create Accounting program.
Inquire on the journal entry.
Optionally, update the merge matching lines setting and rerun the Create Accounting
program.
Assumptions
(USA).
Tasks
Password = welcome
Copy an existing subledger accounting method
Navigate to the Subledger Accounting Methods window.
Copy the Standard Accrual subledger accounting method and save the code as
XX_STANDARD_ACCRUAL and the name as XX Standard Accrual.

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Assign the subledger accounting method to the Operations Accounting Flex Accounting
chart of accounts.
Enter an end-date of 31-Dec-2006 for the Receivables application accounting definition.
Add a new line and enter a new Receivables application accounting definition, called
XX Receivables Accrual Basis.
Enter a start date of 01-Jan-2007.
Assign the Subledger Accounting Method to the Vision Operations (USA) ledger
Navigate to the Accounting Setups window:
Drill-down to the Vision Operations (USA) ledger.
Change the subledger accounting method to XX Standard Accrual.
(M) View > Requests and (B) Submit a New Request
Run the Create Accounting program for the Vision Operations (USA) ledger in Draft
Navigate to the Subledger Journal Entries window:
Search for the Vision Operations (USA) ledger, entering todays date for the GL dates.
Select the entry you just created and view the details.
Optionally, update the Merge Matching Lines setting
Navigate to the Journal Lines Types window:
Journal Line Types
Search for the XX Invoice Receivable journal line type you previously created.

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Update the Merge Matching Lines option to All.
Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and
Definitions > Application Accounting Definitions
Search for the XX Receivables Accrual Basis application accounting definition you
previously created and validate it.
Optionally, rerun the Create Accounting program
Run the Create Accounting program for the Vision Operations (USA) ledger in draft

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Solution Defining Subledger Accounting Methods for
Receivables
The Find Subledger Accounting Methods window appears.
2. In the Method Name field, select Standard Accrual.

3. (B) Find

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4. (B) Copy
The Copy Subledger Accounting Method window appears.
5. In the Method Code field, enter XX_ STANDARD_ACCRUAL.
9. (B) OK

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10. (B) Done
11. Place the cursor in the Receivables Default Accrual line and enter an end-date of 31-Dec-
2006.
12. Add a new line by pressing the down arrow key.
13. In the Application field, select Receivables.
14. In the Name field, select XX Receivables Accrual Basis.
15. (B) OK

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17. Save the accounting method:
(M) File Save
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22. In the Subledger Accounting Method field, change the subledger accounting method to XX
Standard Accrual.
23. (B) Select

24. (B) Finish

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27. (B) OK

35. (B) OK
36. (B) Submit

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41. (B) Go


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44. Search for the XX Invoice Receivable journal line type you previously created.

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46. (M) File Save
48. Search for the XX Receivables Accrual Basis application accounting definition you
previously created.

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49. (B) Validate
52. (B) OK

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60. (B) OK
61. (B) Submit

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Chapter 5 - Page 1
Reports
Chapter 5

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Reports

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Objectives

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Subledger Accounting Reports Overview

Subledger Accounting Reports Overview
Subledger Accounting provides the following reports:
Journal Entries Report
Account Analysis Report
Third Party Balances Report
Multiperiod Accounting Reports
Period Close Exceptions Report
XML Publisher is a template-based publishing tool that is delivered with the Oracle E-Business
suite that enables users to rapidly develop and maintain custom report formats. You can design
and control how the reports are presented by using report templates. When generating a report,
XML Publisher merges report template files with report data to create documents that support
numerous formatting options, including colors, images, font styles, and headers and footers.
System administrators can define new concurrent programs using any subset of the parameters.
Users can create new XML Publisher templates using any subset of the data elements.
The parameters in some of the following reports are categorized as follows:
Selection parameters: filter the information retrieved by the report

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Chapter 5 - Page 6
Custom parameters: used to pass information to the template, such a boilerplate text or
formatting options.
The subledger accounting reports include subledger journals for the sources that use Subledger
Accounting and provide more detailed information than can be found in General Ledger
journals. The reports are comprehensive from a financial standpoint and include the best source
of information for each type of journal entry. These reports can therefore be used in lieu of the
General Ledger based journals and account analysis reports.

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Note: To avoid duplication with subledger journal entries, General Ledger journal entries
imported from Subledger Accounting are not included in the report.

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Note: To avoid duplication with subledger journal entries, General Ledger journal entries
imported from Subledger Accounting are not included in the report.

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This report retrieves the following information:
Third party balances for third party control accounts
Subledger journal entry lines that add up to the total period activity for each control
account, third party, and third party site
Third party and third party site information
User transaction identifiers for the associated event

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Multiperiod Accounting Reports

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Subledger Period Close Exceptions Report

This report is automatically submitted by General Ledger when closing a GL period if there are
unprocessed accounting events or untransferred journal entries.
You can also generate the Subledger Period Close Exceptions Report through a concurrent
request as follows:
For the application associated with the responsibility
For all applications in the General Ledger responsibility

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Open Account Balances Listing Overview

Open Account Balances Listing Overview
You can create your own layout and publish your reports using Oracle XML Publisher.
For each ledger used for open account balance reporting, Subledger Accounting defaults the
number of processors to 1 and the processing unit size to 5000. Change these defaults to
improve the performance of the Open Account Balances Listing Data Manager.
Note: A processing unit is the number of transactions processed by the Open Account Balances
Listing Data Manager in one commit cycle.
1. Create open account balance definitions in the Create Open Account Balances Listing
Definition page. Optionally, to update Open Account Balances Listing processing options,
navigate to the Update Open Account Balances Listing Processing Options page by
clicking Processing Options in the Open Account Balances Listing Definition Search
page.
2. Create subledger journal entries and transfer them to General Ledger.
3. After journal entries are transferred to General Ledger, Subledger Accounting
automatically submits the Open Account Balances Listing Data Manager program, which
maintains the records in the open account balances tables according to the open account

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balances listing definitions. You can also manually submit this program as a concurrent
request.
4. Submit the Open Account Balances Listing.

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Creating and Updating Open Account Balances Listing Definitions

Creating and Updating Open Account Balances Listing Definitions
You can define as many definitions as necessary.
Prerequisites
Define a ledger.
Create journal entries and transfer to General Ledger using the Create Accounting
program.
Identify links between source transactions and applied transactions by mapping
appropriate sources to the Applied-to accounting attributes.
Note: The Open Account Balances Listing relies on the Applied-to accounting attributes,
which also support the business flow feature, to determine how an applied transaction
affects the outstanding balance of a source transaction.
1. Define the accounts to be tracked in the Open Account Balances Listing in the Create
Open Account Balances Listing Definition page.
2. Define the report definitions either by account combination or by account segments.

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3. Associate each definition with a single ledger, which indicates the chart of accounts. The
chart of accounts sets the context for the following information in the definition details
region:
- General Ledger accounts
- General Ledger account segments
- General Ledger account segment values
4. Define as many definitions as necessary. If defining a report definition by segment,
indicate a single segment value, a range of segment values, or a combination of individual
values and ranges for different account segments. If defining a report by account
combination, include one or more entire General Ledger accounts.

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Running the Open Account Balances Data Manager Program

Running the Open Account Balances Data Manager Program
When changes are applied to a Open Account Balances Listing Definition, the Open Account
Balances Data Manager program is automatically submitted for the changed definition.
The Open Account Balances Data Manager processes subledger journal entries that are
transferred to General Ledger and also final accounted journal entries that are flagged as No
Transfer because these entries are already represented in General Ledger.
In the Submit Request window, select Open Account Balance Data Manager.
Enter the following parameters:
- Ledger: Provides the context for handling open account balance reportable data.
- Report Definition: Limits processing to the report definition entered.

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Open Account Balances Listing

Open Account Balances Listing
This report displays the actual accounted balance and does not include encumbrance or
budgetary accounts in General Ledger. You can view the report in detail or summary mode.
This report displays information that originates from subledger journal entries only. Journal
entries created manually in General Ledger or anywhere outside of Subledger Accounting are
not included. Only transactions with nonzero outstanding balances are displayed.

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Summary

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Practice 1: Generating the Journal Entries report

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Practice - Generating the Journal Entries Report for Payables
Overview
Generate the Journal Entries report.
View the Journal Entries report.
Assumptions
Tasks
Password = welcome
Generating the Journal Entries Report
Generate the Journal Entries report for the Vision Operations (USA) ledger for the current month
and view the output.

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Solution Generating the Journal Entries Reports for Payables
Generate the Journal Entries report for the Vision Operations (USA) ledger for the
current month and view the output.
1. Navigate to the Submit Request window.
The Submit a New Request pop-up window appears.
2. Select the Single Request radio button and (B) OK.
The Submit Request window appears.
3. In the Name field, select Journal Entries Report from the dropdown list.
The Parameters window appears.
4. In the Ledger/Ledger Set field, select Vision Operations (USA) from the dropdown list.
5. In the Period From field, select XXX-07, where XXX is the current month.
The Period To field automatically defaults to the same month.
6. In the Journal Entry Status field, select Draft.

7. (B) OK to accept the rest of the defaults.

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8. (B) Submit to generate the report.
Viewing the Journal Entries Report
9. (M) View > Requests
10. Ensure the All My Requests radio button is selected and (B) Find.
11. Select the Journal Entries report you have just generated and (B) View Output.

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Sample of the Journal Entries Report

Note: A number of journal entries are missing from this report so that the header and
footer information could be displayed on the same page.

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Chapter 5 - Page 24
Practice - Generating the Journal Entries Report for Receivables
Overview
Generate the Journal Entries report.
View the Journal Entries report.
Assumptions
(USA).
Tasks
Password = welcome
Generating the Journal Entries Report
Generate the Journal Entries report for the Vision Operations (USA) ledger for the current month
and view the output.

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Solution Generating the Journal Entries Reports for Receivables
Generate the Journal Entries report for the Vision Operations (USA) ledger for the
current month and view the output.
1. Navigate to the Submit Request window.
(M) View> Requests
2. (B) Submit a New Request.
The Submit a New Request pop-up window appears.
3. Select the Single Request radio button and (B) OK.
The Submit Request window appears.
4. In the Name field, select Journal Entries Report from the dropdown list.
The Parameters window appears.
5. In the Ledger/Ledger Set field, select Vision Operations (USA) from the dropdown list.
6. In the Period From field, select XXX-07, where XXX is the current month.
The Period To field automatically defaults to the same month.
7. In the Journal Entry Status field, select Final.
8. (B) OK to accept the rest of the defaults.
9. (B) Submit to generate the report.
Viewing the Journal Entries Report
10. (M) View > Requests
11. Ensure the All My Requests radio button is selected and (B) Find.
12. Select the Journal Entries report you have just generated and (B) View Output.

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Sample of the Journal Entries Report

Note: A number of journal entries are missing from this report so that the header and
footer information could be displayed on the same page.

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Creating Manual Subledger Journal Entries
Chapter 6 - Page 1
Creating Manual Subledger
Journal Entries
Chapter 6

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Chapter 6 - Page 3

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Objectives

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Subledger Journal Entries Overview

Subledger Journal Entries Overview
A manual subledger journal entry is not associated with a subledger transaction. When the
manual subledger journal entry is complete, Subledger Accounting assigns the appropriate
sequence names, sequence numbers, and creates the reporting currency journal entries if
appropriate.
Enter manual subledger journal entries only against a primary or secondary ledger. Manual
journal entries created for the primary ledgers are automatically posted to the reporting
currency and not to the secondary ledger.

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Manual Journal Entries

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Creating Subledger Journal Entries

Creating Subledger Journal Entries
Ledger - The primary and secondary ledgers displayed in the ledger list of values are
determined by the system profile option SLA: Enable Data Access Security in Subledgers. If
this profile option is set to Yes, the list of values displays only the primary and secondary
ledgers defined in the GL: Data Access Set and the SLA: Additional Data Access Set profile
options. If the profile option is set to No, the list of values displays all primary and secondary
ledgers.
If Encumbrance is selected in the Balance Type field, the list of values only displays ledgers
that are enabled for budgetary control.

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Creating Subledger Journal Lines

Creating Subledger Journal Lines
Why would I create a manual subledger journal?
Manual entries are adjustments, and if the adjustments are due to specific subledger activity,
such as Payables, then you may want to enter an SLA manual entry instead of a GL entry.
Entries recorded in SLA are tied to the subledger source and therefore provide more accurate
subledger accounting reporting.
Enter account, debit, and credit amounts, and accounting class.
Optionally enter third party information, description, and currency details for each line of
the subledger journal entry.
If third party control accounts are enabled for the application and the account entered is a
third party control account, third party information must be entered. For example, if
Payables is set up to support only Supplier, you cannot select third party control accounts
that have been set up to support only Customer.
View the total accounted amounts of all subledger journal entry lines in the ledger
currency.
Default Currency Options - Opens the Default Currency Options page to default an entered
currency, conversion type, conversion date, and conversion rate information for each new

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subledger journal entry line. Use the currency controls available in the Details region of each
journal entry line to override the default set.
Third Party Type - Defaults from the application associated with the responsibility used to
access the manual subledger journal entry pages. The values for name, site, number, and
taxpayer ID must match the third party type. These values are required if the account on the
line is a third party control account. If the account is not a third party control account, but party
type is selected, party information should be provided.
Conversion Rate - If the conversion type is User, you must enter a conversion rate.
Continue - Select to review the manual subledger journal entry and complete it.
Reviewing and Completing Subledger Journal Entries
The Complete button is enabled if the journal entry:
Is a manual journal entry with a status of Draft, Error, or Incomplete
Is an accrual reversal or multiperiod accounting recognition entry with an Incomplete
status
Does not belong to a reporting currency
Reviewing and Completing Subledger Journal Entries
Note: If the subledger journal entry is for a ledger with reporting currencies, Subledger
Accounting creates subledger journal entries for these representations.
Duplicating Subledger Journal Entries
Note: If changing the ledger in a duplicated journal entry and the new ledger has a different
chart of accounts, all lines are cleared because the account combination structure is dependent
on the new ledger.

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Summary

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Chapter 6 - Page 11
Practice 1: Creating Manual Subledger Journal Entries

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Guided Demonstration - Creating Manual Subledger Journal
Entries in Payables
Login: operations/welcome
2. (B) Create Journal Entry.
4. In the GL Date field, enter todays date.
5. In the Category field, select Purchase Invoices.
6. In the Description field, enter Project Meeting.
7. (B) Add 5 Lines
8. Enter the following lines:
Operations Accounting Flex Accounting Class Entered DR Entered CR
01-450-7640-0000-000 Item Expense 1702
01-450-7670-0000-000 Item Expense 750
01-450-7650-0000-000 Item Expense 455
01-000-2210-0000-000 Liability 1750
9. (B) Calculate Totals
(B) Continue
In the Complete field, select Draft.
(B) Finish

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Chapter 6 - Page 13
Guided Demonstration - Creating Manual Subledger Journal
Entries in Receivables
Login: operations/welcome
2. (B) Create Journal Entry.
4. In the GL Date field, enter todays date.
5. In the Category field, select Sales Invoices.
6. In the Description field, enter Sentinal Standard Desktop.
7. (B) Add 5 Lines
8. Enter the following lines:
Operations Accounting Flex Accounting Class Entered DR Entered CR
01-600-1210-0000-800 Receivable 2238.30
01-000-2520-2113-000 Tax 126.70
01-740-7827-0000-000 Rounding 0.00
01-600-2925-0000-800 Revenue 2111.60
9. (B) Calculate Totals
10. (B) Continue
11. In the Complete field, select Draft.
12. (B) Finish

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Advanced Options
Chapter 7 - Page 1
Advanced Options
Chapter 7

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Chapter 7 - Page 2

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Advanced Options

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Chapter 7 - Page 4
Objectives

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Chapter 7 - Page 5
Custom Sources

Custom Sources
Use standard and system source values as parameters to write PL/SQL functions that create
custom sources.
Mapped to specific Subledger Accounting accounting attributes such as account, amount, GL
Date, and conversion rate type.
Custom sources are defined in the Custom Sources window.

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Chapter 7 - Page 6
Business Flows

Business Flows
The purpose of business flows is to:
Preserve General Ledger accounts or segment values across journal entries of related
transactions within a business flow.
Ensure proper General Ledger balances.
A business flow is a series of logically related business transactions and their accounting
where the creation of one transaction causes the creation of another transaction which
itself can result in another transaction.

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Chapter 7 - Page 7
Business Flow Methods

Business Flow Methods
Business flows are set up in the following windows:
Journal Line Types
Journal Lines Accounting Attribute Assignments
In the Journal Lines Types window, set up the following:
Assign a business flow class to a journal line type
Select a business flows method
The Journal Lines Accounting Attribute Assignments window displays all accounting
attributes assigned to an event class. If the Inherit check box is enabled, the values for the
selected attributes are inherited and are not available for update or entry.
In the Journal Lines Definitions window, set up the following:
Assign a journal line type to a journal lines definition.
For Same Entry and Prior Entry, indicate that the journal lines definition inherits the
journal entry description for the journal line type.
For the Same Entry and None business flows method, assign account derivation rules.

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Chapter 7 - Page 8
For the Same Entry and None business flows method, optionally inherit accounting
segment values.
Business Flow Class
The business flow class is a user-defined lookup that can be assigned to a journal line type
and used by more than one application.
The Subledger Accounting program uses the business flow class to identify the journal
entry line in the initial stage of the business flow from which current journal entries copy
certain journal entry values.

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Chapter 7 - Page 9
Multiperiod Accounting

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Multiperiod accounting is set up in the Journal Line Accounting Attributes Assignment
window.

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Accrual Reversals

Accrual Reversals
You can:
Indicate that an accounting event is eligible for accrual reversal
Schedule the reversal of accrual journal entries generated by the Subledger Accounting
program
Note: Users can override the accrual reversal GL date accounting attribute values on the
journal entry header in the Application Accounting Definitions window.
Running the Accrual Reversals Process
Create an accounting event in the subledger application.
Submit the Create Accounting program. The Create Accounting program creates the
accrual journal entry as well as accrual reversals and multiperiod journal entries. The
program creates the accrual reversal entry to negate the impact of the accrual entry.
Depending on the selection for Reversal Method for the ledger accounting options in the
Update Accounting Options window, the accrual reversal entry will have the debit and
credit signs reversed or it will have negative amounts. The status of the accrual reversal
journal entry and multiperiod journal entry is based upon the status of the GL period of the

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Chapter 7 - Page 12
GL date of the accrual reversal journal entry and the End GL Date specified in the Create
Accounting request parameters.
Submit the Complete Multiperiod Accounting program to complete accrual reversals in
future GL periods as the periods are opened. The Complete Multiperiod Accounting
program looks at the GL dates of all incomplete accrual reversal and multiperiod journal
entries as specified in the Complete Multiperiod Accounting request parameters. It
completes those entries with GL dates in open or future entry periods that fall on or before
the End GL Date parameter specified in the Complete Multiperiod Accounting request.
View accrual reversals.
Run the Complete Multiperiod Accounting program to complete the multiperiod journal
entries and accrual reversals. The Complete Multiperiod Accounting program checks the
GL dates of all incomplete journal entries that have a GL date that is on or before the end
GL date specified in the request parameters and completes these entries as their GL dates
fall into open periods.
Assign the Accrual Reversal GL Date accounting attribute at the event class level in the
Accounting Attribute Assignments window. Use this attribute to schedule the automatic
reversal of a journal entry at the time it is created. Assign any standard date source or one
of the following system sources to the accrual reversal GL date accounting attribute:
- Next Day: The GL date of the accrual reversal will be the next day following the GL
date of the accrual entry. If there is a transaction calendar assigned to the ledger, this
will be the next business day.
- First Day Next GL Period: The GL date of the accrual reversal entry will be the first
day of the following period. If there is a transaction calendar assigned to the ledger,
this will be the first business day.
- Last Day Next GL Period: The GL date of the accrual reversal entry will be the last
day of the following period. If there is a transaction calendar assigned to the ledger,
this will be the last business day.

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Chapter 7 - Page 13
Diagnostic Framework Overview

Diagnostic Framework Overview
The diagnostic framework provides the input data used for each transaction, such as the
following:
Transaction objects
Ledger information
System sources
Source values
The following examples describe typical uses of the diagnostic framework features:
In the implementation phase, users can launch the Transaction Objects Diagnostic report
to review the source values available in the transaction objects.
On a daily basis, users can use the Transaction Objects Diagnostic report to analyze issues
related to the generation of subledger journal entries.

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Chapter 7 - Page 14
Diagnostic Framework Features

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Chapter 7 - Page 15
Diagnostic Framework Business Process

Diagnostic Framework Business Process
The administrator sets the SLA: Enable Diagnostics profile option to Yes for the user or
responsibility.
Users submit the Create Accounting program which automatically executes the diagnostic
framework to populate the diagnostic tables.
The diagnostic framework gathers source values and other information from the transaction
objects.
Users submit the Transaction Objects Diagnostics concurrent request to view the diagnostic
report.
The administrator submits the Purge Transaction Objects Diagnostics concurrent request to
purge the results of the diagnostic framework.

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Chapter 7 - Page 16
__SLA: Enable Diagnostics Profile Option

SLA: Enable Diagnostics Profile Option
If you set the SLA: Enable Diagnostics profile option to Yes, the diagnostic framework is
executed simultaneously with the Create Accounting program. The diagnostic framework data
is stored in the diagnostic tables.
To view the diagnostic framework report, you can run the Transaction Objects Diagnostics
program.

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Chapter 7 - Page 17
Purge Transaction Objects Diagnostics

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Chapter 7 - Page 18
Currency Conversion

Currency Conversion
Currency settings can be updated in the Lines region of the Create Subledger Journal Entry
page.
Use the currency controls available in the Details region of each journal line to override the
default set.

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Chapter 7 - Page 19
Gain/Loss Calculations

Gain/Loss Calculations
Gain or loss amounts occur when two related transactions, such as an invoice and its payment,
are entered in a currency other than the ledger currency, and the conversion rate fluctuates
between the time that the two are accounted.
Journal line types specify if the journal line is to be a debit, credit or gain/loss line.

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Chapter 7 - Page 20
Journal Entry Sequencing

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Chapter 7 - Page 21
Journal Entry Sequencing

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Chapter 7 - Page 22
Accounting and Reporting Sequences

Accounting and Reporting Sequences
Accounting sequence
The accounting sequence is assigned to Subledger Accounting journal entries at the time
that the journal entry is completed. The sequence is assigned in the completion date order
using the GL date as the date criterion for determining the sequence to be used.
Accounting sequence is optional.
Reporting sequence
The reporting sequence is assigned to both Subledger Accounting journal entries and
General Ledger journal entries when the General Ledger period is closed. This sequence is
used by most of the legal reports required in some countries as the main sorting criterion
to display the journal entries.
Note: In some related documents, this sequence is referred to as the chronological
sequence.
These two sequences are not mutually exclusive and can coexist in the same journal entry.
In some cases, the completed journal entries can be functionally correct but the sequence
numbers assigned to them are wrong. For example, the user realizes that the sequencing

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Chapter 7 - Page 23
setup is not correct and wants to resequence all the journal entries that are sequenced
based on the wrong setup. Subledger Accounting provides an undo and redo accounting
feature to correct the original accounting. A key component of this feature is the Re-
sequencing of Journal Entries.
Reporting sequence is optional.

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Chapter 7 - Page 24
Reporting Sequence Process

Reporting Sequence Process
1. Define the sequence setup as part of the implementation process.
2. Create, complete, and post journal entries as part of the daily operations.
3. Close a General Ledger period as part of the period end operations and the reporting
sequence program is automatically run. After selecting the journal entries that belong to
this period and to all the subsequent consecutive closed periods, the reporting sequence
program calls the accounting sequence numbering program to perform the actual
sequencing. The reporting sequence program selects the journal entries in chronological
order based on the sequencing order.
- When a GL period is closed, the journal entries are sequenced if all the prior GL
periods are closed based on the sequence control date.
When there is one previous GL period open, the journal entries that belong to a closed
period are not eligible for sequencing.
4. Run the report that displays the journal entries whenever you want. The journal entries
that belong to a closed period appear in this report with their corresponding sequence
number, while the journal entries that belong to an open period are displayed without the
sequence number since they have not been sequenced yet.

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Chapter 7 - Page 25
5. Optionally, you can decide to open a closed period as part of the reconciliation process
and the reporting sequence program is automatically run. The program erases the
sequences that are assigned to the journal entries that belong to the reopened period. If
there are other succeeding closed periods, the sequences assigned to the journal entries
that belong to these periods are also erased. As the sequence assigned to the journal entries
is a gapless sequence, the reporting sequence program calls the accounting sequence
numbering program in erase mode with the lowest sequence assigned to the selected
journal entries to avoid gaps when the journal entries are resequenced.
6. Optionally, enter new journal entries into the period that has been reopened.
7. Optionally, close the period and the reporting sequence program is automatically run. The
reporting sequence program calls the accounting sequence numbering program to
sequence all the journal entries that belong to this period in chronological order based on
the sequencing order. The reporting sequence program selects the journal entries that
belong to the succeeding closed periods. The following journal entries can be assigned a
reporting sequence:
- In Subledger Accounting, journal entries that are complete and transferred to General
Ledger.
Note: Draft entries are not assigned a reporting sequence. In General Ledger, posted journal
entries.
8. Optionally, run the report that displays all the journal entries that belong to the closed
periods with their new sequence.

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Chapter 7 - Page 26

This report is automatically submitted by General Ledger when closing a GL period if there are
unprocessed accounting events or untransferred journal entries.
You can also generate the Subledger Period Close Exceptions Report through a concurrent
request as follows:
For the application associated with the responsibility
For General Ledger

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Chapter 7 - Page 27
Rounding Rule

Rounding Rule
The following rounding rule options are available:
Up; amount rounded up. For example, $5.983 is rounded to $5.99.
Down; amount rounded down. For example, $5.988 is rounded to $5.98.
Nearest; amount rounded to nearest number. However, if the difference between Up and
Down options is equal, the amount is rounded up. For example, $5.985 is rounded to
$5.99.
The rounding rule can be updated on the Update Accounting Options page.
Note: For examples described in the Rounding Rule Options table above, assume that the
precision is 2 and the minimum account unit is 0.01.

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Chapter 7 - Page 28
Error Handling

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Chapter 7 - Page 29
Summary

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Chapter 7 - Page 30

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