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Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12
Release 12.1
Part Number E13482-03
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Oracle Subledger Accounting

This chapter covers the following topics:

Overview

Oracle Subledger Accounting gives users the ability to create the accounting definitions to address their specific accounting requirements. Users that do not have specific requirements can use the seeded accounting definitions that are provided out of the box.

Using Oracle Subledger Accounting Out of the Box

When you use Oracle Subledger Accounting out of the box, you can generate the accounting equivalent to the one generated by Oracle E-Business Suite applications in Release 11i. To use Oracle Subledger Accounting, refer to the Oracle Subledger Accounting Implementation Guide.

Using Oracle Subledger Accounting with Oracle E-Business Suite Subledgers

If you use Oracle Subledger Accounting with the Oracle E-Business Suite subledgers, you can tailor the accounting journal entries to take full benefit of the Subledger Accounting features as follows:

Using the Oracle Financial Services Accounting Hub

You can use the Oracle Financial Services Accounting Hub to create subledger accounting for third-party applications. This allows you to take advantage of the full potential of the Oracle Subledger Accounting engine to generate accounting journal entries in a consistent way across your Oracle and third-party applications.

Note: The Oracle Financial Services Accounting Hub is licensed separately.

For functional and technical information on the Oracle Financial Services Accounting Hub, refer to the Oracle Financial Services Accounting Hub Implementation Guide.

Upgrade Modes for Oracle Subledgers

Each Oracle subledger has adopted a different strategy concerning the upgrade of accounting data into Subledger Accounting, based on functional considerations:

Note: When running the Subledger Accounting Upgrade program for EMEA VAT, rerun the SLA upgrade as required to process all accounting since the earliest final reported transaction date.

The following table shows the upgrade mode for each subledger:

Subledger Upgrade Mode
Payables Partial upgrade
Receivables Partial upgrade
Assets Partial upgrade
Cost Management (includes Purchasing and Inventory) Partial upgrade
Projects Partial upgrade
Global Accounting Engine Full upgrade
Loans Full upgrade
Processing Manufacturing No upgrade
Cash Management No upgrade
Property Management No upgrade
Federal/Public Sector No upgrade

Subledger Accounting Postupgrade Process

This section describes the SLA postupgrade process.

You can run the SLA postupgrade process to upgrade existing data at any time after the upgrade. Review the following sections and your existing requirements to plan your postupgrade strategy.

Oracle Subledger Accounting Considerations

To avoid a long downtime period, the user can choose to upgrade only a subset of the accounting data, if, for example, historical data do not need to be permanently available for daily operations. This decision has a direct impact on hardware resources because less data requires less storage space. During normal business operations, however, some situations may require historical data to be available. For example, if the user needs to reverse an old invoice, Oracle Subledger Accounting requires the original accounting data for the invoice to generate the correct accounting reversal.

The SLA postupgrade process allows the user to upgrade accounting data that was not upgraded as part of the downtime upgrade process. This can be performed at any time and for any number of periods. For example, the user may want to run the SLA postupgrade process for a complete year or for only one period.

At any time after the downtime upgrade has been run, the user may experience the need to access some accounting data that has not been upgraded during the Subledger Accounting upgrade (because the corresponding period was not included in the range of periods to be upgraded). There may be many reasons for this:

For example, an invoice has been accounted in July 2005 and the journal entry has been generated in the same period. But the journal entry has not been upgraded because only the data for the fiscal year 2006 has been upgraded. When a new transaction occurs against the invoice (such as a cancellation or a payment) and the new journal entry requires some information from the original journal entry (such as the liability account), Subledger Accounting requires the existence of the original journal entry. In this case, the user has the possibility of running the SLA postupgrade process to upgrade the accounting data for the corresponding period.

Because the SLA postupgrade process is run while the system is up and running, it is important that users consider the following elements when deciding the number of periods to upgrade:

Impact on Resources

It is important to consider the impact on resources when determining the upgrade strategy: