|Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12|
Part Number E13482-03
This chapter covers the following topics:
The Public Sector Financials integrates with several products within the Oracle product family including Oracle General Ledger, Oracle Payables, Oracle Purchasing Oracle Costing and Oracle Subledger Accounting. Refer to the appropriate chapters of this document to gain an understanding of the detail-level impact of these products to Public Sector Financials.
This chapter details the additional impact to Public Sector Financials integration with Subledger Accounting, specifically:
Multi-Fund Accounting for Oracle Receivables.
Release 12 introduces the new Subledger Accounting (SLA) module for managing accounting across subledger transactions. With the introduction of SLA, accounting rules are available to be modified within the SLA rule's definition, beyond the seeded subledger accounting methods for encumbrance with standard accrual and standard cash.
The Subledger Accounting method is assigned at the ledger level. Based on the Release 11i setup, one of the following subledger accounting methods will be assigned to your ledger:
Encumbrance with Standard Accrual
Encumbrance with Standard Cash
Accounting rules available in SLA mimic the Release 11i encumbrance accounting behavior.
During the upgrade, the set up of Payables System Options - Allow Adjustments to Paid Invoices will be deselected, if previously was selected. Allow Adjustments to Paid Invoices must be unselected. Selecting this option may result in incorrect accounting.
Encumbrance journals in GL will not be migrated to SLA journals. SLA accounting reports will combine data from both GL and SLA journals. During normal processing, the SLA code will detect if a journal exists in SLA or GL and use the appropriate rule to create the accounting.
In Release 11i, encumbrance types were used to sub divide encumbrance balances for reporting and inquiry on encumbrance balances in General Ledger. In Release 12, only the encumbrance types provided by Subledger Accounting namely, Commitment, Obligation, Invoice, and Project is available for inquiry and reporting using the Funds Available Inquiry window, Budget - Funds Available Analysis report, and Funds Available Detail report. To inquire and report on custom encumbrance types you can use Account Inquiry and Encumbrance Detail Reports in General Ledger.
In Release 12, Subledger accounting allows you to report and inquiry journal entries at a much more granular level than with encumbrance types in General Ledger. All creation of accounting now resides in Subledger Accounting and thus the mapping of which journal line should go to which encumbrance type. The encumbrance types earlier assigned in the Financials Options window are obsolete and have moved to Subledger Accounting rules.
Accounting rules available in SLA mimic the Release 11i Multifund Receivables (MFAR) accounting behavior and are available in the following Application Accounting Definitions:
Multifund Account Receivables Accrual - Account Method.
Multifund Account Receivables Accrual - Balancing Method.
Migration of the data is done by the core Receivables upgrade.
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