Skip Headers

Oracle Subledger Accounting Implementation Guide
Release 12.1
Part Number E13628-04
Go to Table of Contents
Contents
Go to previous page
Previous
Go to next page
Next

Accounting Methods Builder

Accounting Methods Builder (AMB) Overview

The AMB enables you to create and modify subledger journal line setups and application accounting definitions. These definitions define the journal entries that enable an organization to meet specific fiscal, regulatory, and analytical requirements. These definitions are then grouped into subledger accounting methods and assigned collectively to a ledger.

By using the AMB, you can define the way subledger transactions are accounted. The AMB includes the following features that are discussed in this chapter:

The different elements of a subledger journal and their relationships to the AMB are displayed in the diagram below and explained in the subsequent text.

Elements of a Subledger Journal Entry

the picture is described in the document text

The AMB includes journal entry setup components to configure each of these elements:

The journal entry setup components are associated with journal lines definitions that are attached to application accounting definitions. You can group detailed subledger accounting definitions for different kinds of transactions into consistent sets, each of which addresses different needs. While one application accounting definition can generate subledger journal entries to meet a particular set of requirements, another definition can be defined to satisfy completely different requirements.

To use application accounting definitions, they must be included in a subledger accounting method and then assigned to a ledger. Users can group accounting definitions from multiple products, such as Oracle Payables, Oracle Receivables, and Oracle Assets into a single accounting method. You can assign a subledger accounting method to multiple ledgers.

As an example of these groupings and assignments, consider a set of definitions set up to create accrual accounting for payables in the U.S. These definitions can be grouped into the U.S. Payables Accrual application accounting definition. Accrual accounting application accounting definitions for each application in the U.S., such as U.S. Payables Accrual and U.S. Receivables Accrual, can be grouped into the U.S. Accrual Subledger Accounting Method.

The relationship between the various AMB components are displayed in the diagram below and is described in the succeeding text.

Accounting Methods Builder Components

the picture is described in the document text

The above diagram shows how the AMB predefined components, standard sources, event entities, event classes, and event types, can be used to create journal entry descriptions, journal line types, account derivation rules, and mapping sets. The mapping sets are used in the setup of account derivation rules. The journal line types, account derivation rules, and journal entry descriptions are assigned to journal lines definitions. The journal lines definitions and optional journal entry descriptions for the journal headers, are assigned at the application accounting definition level. Application accounting definitions are grouped in a subledger accounting method.

Oracle Applications development provides startup application accounting definitions and at least one subledger accounting method for all products using Oracle Subledger Accounting. If users do not have any special accounting requirements, these startup definitions may meet their needs and the only required setup step is to assign subledger accounting methods to the ledger.

If users have specific accounting requirements that are not met by the startup definitions, they can copy and modify the seeded definitions or create new definitions.

Accounting Methods Builder Process

The Components for Building Accounting Definitions figure below shows the components in the Accounting Methods Builder process for building accounting definitions and is described in the succeeding text.

Components for Building Accounting Definitions

the picture is described in the document text

The components in the figure 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. In the event that more detail is required than that provided by the default definitions, modify them or create new ones.

Since the flexibility for creating accounting definitions is dependent on source availability, Oracle subledgers provide standard sources. Create custom sources for use in accounting definitions.

Step 1. Define Journal Line Types

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 startup data seeded by Oracle. Modify these definitions or create new ones.

See: Journal Line Types

Step 2. Define Journal Entry Descriptions.

Define the journal entry description for the subledger journal entry. Descriptions are assigned to the journal header and lines.

This is startup data seeded by Oracle. Modify these definitions or create new ones.

See: Defining Journal Entry Descriptions

Step 3. Define Mapping Sets.

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.

See: Mapping Sets

Step 4. Define Account Derivation Rules.

Account derivation rules determine the Accounting Flexfields for subledger journal entries. You can also define conditions that determine when a particular rule is used.

This is startup data seeded by Oracle. Modify these definitions or create new ones.

See: Account Derivation Rules

Step 5. Define Supporting References.

Supporting references may be used as follows:

The use of supporting references is optional.

See: Defining Supporting References

Step 6. Define Journal Lines Definitions.

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.

See: Journal Lines Definitions

Step 7. Define Application Accounting Definitions.

Use application accounting definitions to group journal lines definitions and header assignments for event classes and event types. You can also optionally add one or more supporting references.

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 startup data seeded by Oracle. Modify these definitions or create new ones.

See: Application Accounting Definitions

Step 8. Define Subledger Accounting Methods.

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 startup data seeded by Oracle. Modify these definitions or create new ones.

See: Subledger Accounting Methods

Copy and Modify Functionality

If you have specific accounting requirements that are not covered by the seeded definitions, use the copy feature included in the AMB to create copies of the seeded definitions and customize them. Also, create new definitions and copy and modify them appropriately.

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.

The copy and modify functionality is provided for the following components of the AMB:

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 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.

Transaction and Accounting Charts of Accounts

Both the transaction chart of accounts and the accounting chart of accounts are used extensively in the AMB and are quite distinct. These fields appear in several setup windows.

Transaction Chart of Accounts

The transaction chart of accounts is the chart of accounts for the primary ledger and is referenced when users enter Accounting Flexfields for their transactions. This chart of accounts is employed when users enter and maintain the data required to support the daily operations of a company.

For example, a receivables invoice is recorded in the system. The item, tax, freight, and other Accounting Flexfields that users view and enter 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 the issue of payments are all done in the context of a transaction chart of accounts structure.

Values for Accounting Flexfield 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.

Accounting Chart of Accounts

Use the accounting chart of accounts to create the Accounting Flexfields for subledger journal entries. It is taken from the ledger for which the journal entries are created.

Account derivation rules derive accounts for a specific accounting chart of accounts. The creation of all journal entries by Subledger Accounting is therefore done in the context of the accounting chart of accounts.

Note: 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.

Multiple Representations

Assign each subledger accounting method to many ledgers. The combination of a subledger accounting method and ledger is called an accounting representation. The primary ledger reflects the primary accounting representation. In the primary ledger, the transaction and accounting charts of accounts are always the same.

Create multiple accounting representations by using secondary ledgers. Due to regulatory or other requirements, the accounting for these ledgers can be different than the accounting for the primary ledger. Each of these ledgers can have a different subledger accounting method assigned to it and is a secondary accounting representation. Create several secondary representations, each with a different currency, chart of accounts, calendar, and set of accounting definitions. An example of multiple accounting representations is described in the figure below.

Multiple Accounting Representations

the picture is described in the document text

Example: Multiple Representations and Transaction or Accounting Charts of Accounts

To illustrate the difference between the two charts of accounts, consider a data entry clerk in a French firm who is creating payables invoices in Payables. This individual creates transactions using the charts of accounts from the French primary ledger. The transactions are then used to create accounting events for accounting. The account code combination used during data entry is from the transaction chart of accounts. For the purposes of the illustration, this chart of accounts has a six segment structure:

Assume that French local requirements include a statutorily mandated Reporting Chart of Accounts for financial reporting. In most environments, both transaction entry and accounting representation is done in the context of a single ledger. It is normal to create the accounting for this transaction using the same chart of accounts as that used for transaction entry. The Reporting Chart of Accounts is used for both transaction and accounting charts of accounts. These two charts of accounts are always the same in the primary ledger.

In addition to the Reporting Chart of Accounts, assume that the firm requires a detailed Management Chart of Accounts for analytical purposes. This Management Chart of Accounts has a four segment structure:

Using the AMB, the firm can create accounting for a secondary representation in a secondary ledger, which is based on a different currency, chart of accounts, calendar, and set of accounting definitions.

In this example, it is assumed that the firm's management requires a different chart of accounts for analytical purposes. This is a secondary representation and uses the Management Chart of Accounts. When accounts and journal entries are created using the AMB, they are created for the accounting chart of accounts. The creation of all journal entries by Subledger Accounting in the secondary ledger is therefore done in the context of this Management Chart of Accounts.

Using the Transaction and Accounting Chart of Accounts

The transaction and accounting charts of accounts are both optional for application accounting definitions and subledger accounting methods. If these charts of accounts are not used, then the AMB uses the chart of accounts assigned to the primary ledger as a default.

You can create application accounting definitions and subledger accounting methods that are completely independent of the transaction and accounting charts of accounts. Oracle uses definitions of this kind for startup data since they are created before the user has decided upon the definition of their charts of accounts.

However, some features of the AMB are dependent on the transaction or accounting chart of accounts. If the transaction chart of accounts is defined, then its individual segments are not available for use in application accounting definitions. If the accounting chart of accounts is not defined, then you cannot set up rules to derive values for individual segments with the exception of Accounting Flexfield qualifier segments.

Assigning the Transaction and Accounting Chart of Accounts

If any component of an account definition is set up with a particular transaction or accounting chart of accounts, then it can only be assigned to an overlying definition with the same transaction or accounting chart of accounts. For example, assign a mapping set defined for an application with a particular accounting chart of accounts only to an account derivation rule with the same accounting chart of accounts.

As another example, if an application accounting definition is defined with a particular accounting chart of accounts, then it must be assigned to a subledger accounting method with the same accounting chart of accounts. Furthermore, you can assign this subledger accounting method only to a ledger with the same matching chart of accounts.

The transaction and accounting charts of accounts cannot be different if the subledger accounting method is to be assigned to the primary ledger. For the setup of a secondary accounting representation, while the accounting chart of accounts must be equal to the chart of accounts used by the ledger, the transaction chart of accounts can be different.

Chart of Accounts Mapping

A chart of accounts mapping is assigned at the ledger level and can be used to map Accounting Flexfield combinations from the transaction chart of accounts to the accounting chart of accounts. When subledger journal entries are generated for multiple representations, a chart of accounts mapping may be necessary to obtain values for the accounting chart of accounts in the secondary ledger.

A chart of accounts mapping is required if the following conditions are met:

The use of a chart of accounts mapping imposes the following limitation: the level of detail in the transaction chart of accounts must be greater or equal to the level of detail in the accounting chart of accounts. There should be a many to one relationship in the mapping of the transaction chart of accounts to the accounting chart of accounts. One or more Accounting Flexfield combinations from the transaction chart of accounts can be mapped to one and only one combination in the accounting chart of accounts.

Event Model

Accounting events represent transactions that have a financial accounting impact. Examples of accounting events are issuing an invoice and disposing 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 canceled. 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.

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.

See:

Custom Sources

Extend the list of sources available to application accounting definitions. Using standard and system source values as parameters, write PL/SQL functions that create custom sources.

It is used to extend the list of sources available to application accounting definitions. First, decide your primary goal in defining a custom source. Also be sure to explore other alternatives, as custom source may impact the performance of the create accounting program. If you need to define one custom source, then define a PL/SQL function. In the function, you determine the input and output parameters. The output parameters becomes the return data options that you need to provide the Custom Source page. The name of the PL/SQL function must be provided in the Custom Source page. Provide the input parameters that you need in the PL/SQL function in the Parameters section of the Custom Source page. A custom source's PL/SQL function may use the seeded sources that are available to the application accounting definition or any constant value. You have to define the PL/SQL function in the database.

Defining Custom Sources

In the Custom Sources window, define custom sources using seeded sources and constant values when sources required for the definition of accounting rules are not provided as seeded sources.

the picture is described in the document text

The table below describes selected fields in the Custom Sources window.

Selected Fields in the Custom Sources Window
Field Description
Enabled Retains the default to make the source available for use
Segment Marks a source as a segment for an Accounting Flexfield
Accounting Flexfield Marks a source as an Accounting Flexfield. If selected, the Lookup Application, Lookup Type, and Value Set fields are disabled.
Lookup Application Application to associate with a lookup type. If selected, the Value Set field is disabled.
Value Set The list of values includes all enabled independent and table-validated value sets and enforces the following rules:
  • Data type is not date.

  • The Accounting Flexfield check box is disabled.

  • No lookup application is selected.

Seq Sequence in which parameters are described in the plsql function name
Type Source type
Name Parameter name

Accounting Attributes Guideline

The accounting program uses accounting attributes values to create subledger journal entries. The types of accounting attributes values are as follows:

Each accounting attribute is associated with a level:

Accounting Attribute Assignments

The accounting program derives the values of accounting attributes by looking at the sources that are assigned to them. Almost all accounting attributes have sources assigned at the event class level. Depending on the accounting attribute, the accounting attribute assignment defaulted from the event class can be overridden on journal line types or application accounting definitions.

Post-Accounting Programs

A Post-Accounting program is a container for accounting classes. Subledger applications use the Post-Accounting program assignment to determine which journal entry lines to retrieve for a particular process. For example: for mass-additions, Oracle Payables needs to define a Post-Accounting program to identify the journal entry lines that need to be pushed to Assets.

Defining Post-Accounting Programs

In the Post-Accounting Programs window, define Post-Accounting Programs and create assignments that may be associated with a ledger.

In the Accounting Class Assignments window, assign accounting classes to an assignment definition.

Seeded programs and assignment definitions cannot be deleted or updated. You can copy a seeded assignment definition and modify the copy.

To Define Post-Accounting Programs

the picture is described in the document text

The table below describes selected fields and buttons in the Post-Accounting Programs window.

Selected Fields and Buttons in the Post-Accounting Programs Window
Field or Button Description
Owner Automatically populated. If seeded by Oracle developers, the owner is Oracle. Otherwise, the owner is User.
Primary Application Defaults from the responsibility
Ledger Ledger to seed ledger-specific assignments; disabled for assignment definitions seeded by Oracle development
Enable only one assignment definition for a specific ledger. Assignments created for a specific ledger override the ledger-independent assignments.
Enabled If selected, makes the program assignment available for use
Accounting Class Opens the Accounting Class Assignments window

Note: The following fields cannot be updated once the record is saved:

Downloading Post-Accounting Programs

You can download Post-Accounting Programs using the following syntax:

FNDLOAD <username>/<password>[@connect]0 Y DOWNLOAD @XLA:patch/115/import/xlapgseed.lct <datafile> XLA_POST_ACCT_PROGS APPLICATION_ID=<application_ID>

Business Flows

Use business flows to establish a link between the accounting of transactions that are related both within the same application and across applications. With this link, you can preserve key accounting information across related transactions instead of using the same set of rules to derive this information.

The purpose of business flows is:

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.

For example, when goods are received, an invoice is entered and the invoice is paid. The business flow at the transaction level is:

  1. The receiving transaction is entered to acknowledge the arrival of the goods.

  2. The invoice is entered to acknowledge that the supplier is owed for the goods and therefore references the receipt transaction.

  3. The payment is created to satisfy the amount owed on the invoice and therefore references the invoice.

The business flow at the accounting level is:

  1. The receipt generates an entry to the purchase order charge account.

  2. This entry is offset by an accrual entry representing a future invoice liability.

  3. The invoice reverses this accrual entry and creates the invoice liability, and the accounting for the payment reverses the invoice liability and generates the entry reducing the company's cash account.

The diagram below illustrates this example.

Basic Business Flow Example

the picture is described in the document text

Note: In the context of business flows, upstream refers to a transaction and its accounting that occurred before the current transaction. Downstream refers to a transaction and its accounting that come after the current transaction. For example, an invoice is upstream from the payment and a payment is downstream from the invoice.

In a business flow, it may be unreliable to copy the General Ledger account entered on an upstream transaction to the current journal entry. This is because the AMB provides the flexibility to override certain Accounting Flexfield values such that the General Ledger account on the transaction is different from the General Ledger account on its journal entry. The accounting side of a business flow is not preserved if the downstream journal entry copies the General Ledger account from the upstream transaction, which was actually accounted to a different General Ledger account.

Additionally, you can implement accounting rules that have identical conditions, but the source values used by these conditions can change between the time of the original entry and the time of the current entry. For example, a source can be a date or a project number.

However, you can copy accounting information from the actual journal entry of a related transaction instead of evaluating the same set of conditions or copying static transaction values. In the AMB, define rules that permit a transaction's accounting to inherit certain values instead of having them determined from sources, rules, or conditions. These values are inherited from either the journal entries of a related transaction in the initial stage of the business flow or from the other side of the current journal line.

Developers provide the identifiers that link transactions in the business flow. These links are provided in the transaction objects. Subledger Accounting uses these links, along with the accounting rules, to determine the means by which accounting data is copied.

Business Flows Features

Business Flow Method

The business flow method specifies how a journal line obtains certain journal entry values including accounting attributes for a journal entry. A business flow method is assigned to a journal line type in the Journal Line Types window.

Business Flow Method Options
Option Description
None Retains the existing business rules enforced by the Journal Line Types window. This option has no impact on the accounting program and the journal line does not rely on any other journal entry. Journal entries are created using the definitions and conditions assigned to the various journal entry components.
Prior Entry Instructs the Subledger Accounting program to:
  • Copy the entire General Ledger account and certain accounting attribute values from the journal entry of an upstream transaction

  • Optionally copy the journal entry description into the current entry instead of assigning a separate description

    See: Copy from Prior Journal Entry Business Flow Method Process

Same Entry Instructs the Subledger Accounting program to build the General Ledger account using segments from the offsetting entry of the current journal line. For example, it provides the option to overlay the balancing segment value on the credit side of the entry with the balancing segment value from the debit side. This option does not copy the accounting attribute values. It provides the ability to copy the journal entry description instead of assigning a separate description.

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.

Business Flow Setup Features

Set up business flow features in the following windows:

Journal Line Types Window

Set up the following in the Journal Line Types window:

See: Defining Journal Line Types

Journal Lines Accounting Attribute Assignments Window

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.

Journal Lines Definitions Window

Set up the following in the Journal Lines Definitions window:

See: To Define Journal Lines Definitions

Business Flows Setup Considerations and Tasks

In setting up business flows, developers and users should perform the following steps:

  1. Evaluate accounting dependencies between transactions to understand the accounting relationship between and across accounting events.

    In many business flows, it is worth preserving and propagating key accounting data to all transactions within the business flow. For example, developers can use the balancing segment value of a purchase order distribution on both the invoice and payment related to the purchase order.

  2. For the purpose of Prior Entry inheritance, evaluate references between related accounting events including links across applications, such as a Purchasing receipt to a Payables invoice, and within the application, such as a Receivables invoice to a Receivables cash receipt.

    Applications involved in the accounting of transactions involved in the business flow must agree on a consistent means of identifying distributions.

  3. For the Same Entry Method, evaluate accounting needs within a single transaction where key values need to be consistent across both sides of the journal entry for a single transaction.

  4. Ensure that a transaction distribution has a means of identifying a single transaction distribution with which it has a one-to-one relationship.

    For example, a Payables invoice distribution references only one Purchasing distribution. This information is typically captured during the creation of the transaction at the final stages of the business flow and needs to be at the level of granularity consistent with the accounting of the transaction.

  5. Seed necessary lookups for the business flow class.

  6. Seed journal line types and journal lines definitions for business flows to act effectively.

  7. Include and populate applied to columns in the transaction objects.

Copy from the Prior Journal Entry Business Flow Method Process

The Prior Journal Entry method process is:

  1. The Subledger Accounting program uses the applied to accounting attributes to identify the accounting for a transaction or event upstream in the business flow.

  2. The Subledger Accounting program searches the accounting event for entries having the same business flow class as the entry currently being created.

    Note: In budgetary control mode, the Subledger Accounting program ignores draft entries for business flows since Draft equates to funds checking which does not persist.

  3. Upon finding a match, the Subledger Accounting program copies certain values from this entry to the current entry.

Copy from Prior Entry Example

This example includes the following steps based on the purchase order described in the table below which describes two distributions for the purchase order.

Purchase Order Distributions
Distribution ID Distribution Amount Charge Account Accrual Account
1011 75.00 01-101-Exp 01-101-Accr
1012 25.00 01-102-Exp 01-102-Accr
  1. A receipt for this purchase order is entered and accounted as described in the table below.

    Journal Line Types Name Event Class Side Business Flow Method Business Flow Class
    PO Charges Goods Received DR None NULL
    PO Accruals Goods Received CR None Purchased Goods
  2. The Subledger Accounting program uses the journal line types in the table above to create journal entries as described in the table below.

    Note: The journal line type used to create an entry is not stored on the entry and it is referenced only for clarity.

    Goods Received Accounting Event Entry
    Line Number PO Distribution ID GL Account Debit Credit Business Flow Class Created Using Journal Line Type
    1 1011 01-101 Exp 75.00   NULL PO Charges
    2 1012 01-102-Exp 25.00
      NULL PO Charges
    3 1011 01-101-Accr   75.00 Purchased Goods PO Accruals
    4 1012 01-102-Accr   25.00 Purchased Goods PO Accruals
        Totals 100.00 100.00    

    The following notes relate to the table above.

  3. An invoice is entered and matched to the purchase order.

    The liability assigned to the invoice is 01-000-Liab. The table below describes the invoice distributions.

    Invoice Distributions
    Distribution Number Distribution ID Distribution Amount GL Account Applied to Distribution ID
    1 201 75.00 01-117-Chrg 1011
    2 202 25.00 01-118-Chrg 1012
  4. The invoice is accounted.

    The Subledger Accounting program uses the journal line types described in the table below to create a journal entry for the Invoice Validated accounting event.

    Journal Entry for Invoice Validated Account
    Journal Line Type Name Event Class Side Business Flow Method Business Flow Class
    AP Accruals Invoice Validated DR Prior Entry Purchased Goods
    AP Inv Liability Invoice Validated CR None NULL
  5. The accounting for the invoice creates the journal entry lines described in the table below.

    Invoice Validated Accounting Event Entry
    Line Number Invoice Distribution ID GL Account Debit Credit Business Flow Class Created Using Journal Line Type
    1 201 01-101-Accr 75.00   Purchased Goods AP Accruals
    2 202 01-102-Accr 25.00   Purchased Goods AP Accruals
    3 201 01-000-Liability   75.00 Purchased Goods AP Inv Liability
    4 202 01-000-Liability   25.00 NULL AP Inv Liability
        Totals 100.00 100.00    

Lines 1 and 2 of the journal entry of the Invoice Validated accounting event are created as follows:

  1. The Subledger Accounting program uses the identifiers in the Applied to Distribution column in the Invoice Distributions table, to find the most recent journal entry for those distributions.

    These values are entered in the PO Distribution ID column of the Goods Received Accounting Event Entry table.

  2. The Subledger Accounting program searches this entry for lines that have the same business flow class as the current entry.

    In this example, PO distributions 1011 and 1012 each occur twice in the journal entry as described in the Goods Received Accounting Event Entry table.

    Only lines 3 and 4 of the Goods Received accounting event have the same business flow class as the current lines, which are described in the Invoice Validated Accounting Event Entry table.

  3. The Subledger Accounting program copies the GL account in lines 3 and 4 of the Goods Received Accounting Event Entry table, from these lines onto the current lines, which are described in the Invoice Validated Accounting Event Entry table.

    Had the General Ledger account described in the Invoice Distributions table from the invoice distributions been used, the accounts credited on lines 3 and 4 of the Goods Received Accounting Event table would never have been reversed leading to unbalanced General Ledger accounts.

    Note: There is no special rule used to derive the invoice liability account. The liability account on lines 3 and 4 of the Invoice Validated Accounting Event Entry table are taken directly from the General Ledger account specified on the invoice itself.

Copy from the Same Entry Business Flow Method Process

When the business flow method is Same Entry, specify which accounting segment values should be copied from one side of the current entry to the other side of the current entry. For example, the balancing segment value used on the debit side of an entry can be copied to the credit side.

The purpose of the Same Entry business flow method is to support cases where certain General Ledger account segment values must be preserved throughout the life of the business flow. An example is when the business process requires that a cost center incurring an expense must also bear the invoice liability and cash outlay.

Copy from Same Entry Example

Consider the example described in the table below. For this entry, the General Ledger account for lines 3 and 4 was taken directly from the invoice header. However, this does not spread the liability across the cost center (101, 102) that incurred the cost, which is borne entirely by cost center 000.

Line Number Invoice Distribution ID GL Account Debit Credit Business Flow Class Created Using Journal Line Type
1 201 01-101-Accr 75.00   Purchased Goods AP Accruals
2 202 01-102-Accr 25.00   Purchased Goods AP Accruals
3 201 01-000-Liability   75.00 Purchased Goods AP Inv Liability
4 202 01-000-Liability   25.00 NULL AP Inv Liability
    Totals 100.00 100.00    

It is not sufficient to create an account derivation rule that takes the cost center value from the invoice distributions and overlays it onto the liability account from the invoice header. To do so would result in the Invoice Validated event journal entry described in the table below.

Invoice Validated Event Journal Entry
Line Number Invoice Distribution ID GL Account Debit Credit Business Flow Class Created Using Journal Line Type
1 201 01-101-Accr 75.00   Purchased Goods AP Accruals
2 202 01-102-Accr 25.00   Purchased Goods AP Accruals
3 201 01-117-Liability   75.00 Purchased Goods AP Inv Liability
4 202 01-118-Liability   25.00 NULL AP Inv Liability
    Totals 100.00 100.00    

This is incorrect because the cost center values (117 and 118) used on lines 3 and 4 are not the same as those on lines 1 and 2 (101 and 102), which results in an imbalance in all four General Ledger accounts. The values must be copied from actual journal entry lines to ensure that the correct accounts are built.

The correct accounts are shown in the GL Account column in the table below.

Invoice Validated Accounting Event Entry
Line Number Invoice Distribution ID GL Account Debit Credit Business Flow Class Created Using Journal Line Type
1 201 01-101-Accr 75.00   Purchased Goods AP Accruals
2 202 01-102-Accr 25.00   Purchased Goods AP Accruals
3 201 01-101-Liability   75.00 Purchased Goods AP Inv Liability
4 202 01-102-Liability   25.00 NULL AP Inv Liability
    Totals 100.00 100.00    

To accomplish this, the business flow method on the journal line type AP Inv Liability is changed from None to Same Entry. To create the General Ledger account, the journal lines definition has two rows in the Account Derivation Rules tab: one to derive an entire account (All Segments) and the other enabled to inherit the balancing segment value.

The journal entry is created as follows:

  1. The Subledger Accounting program determines that the business flow method on journal line type AP INV Liability is Same Entry. For this journal line type, the Side is Credit as described in lines 3 and 4 of the Invoice Validated Accounting Event Entry table.

  2. After the debit side lines are created, the Subledger Accounting program returns to processing the credit lines and uses a basic account derivation rule to get the liability account from the invoice header, which is 01-000-Liab in this example.

  3. The Subledger Accounting program copies the cost center segment value on the debit lines and overlays it onto the balancing segment of the credit lines as described in the GL Account column in the Invoice Validated Accounting Event Entry table.

  4. The cost center segment values on the invoice distribution, described in the Invoice Distributions table, are not used, thereby maintaining the integrity of the General Ledger account balances for the appropriate cost center segment values from the receiving through the invoicing parts of the business flow.

    Invoice Distributions
    Distribution Number Distribution ID Distribution Amount GL Account Applied to Distribution ID
    1 201 75.00 01-117-Chrg 1011
    2 202 25.00 01-118-Chrg 1012

Journal Line Types

This section includes the following topics:

Journal Line Types Features

Journal line types are defined for a particular event class. They must then be assigned to a journal lines definition along with supporting references, account derivation rules, and journal entry descriptions.

The definition of a journal line type includes the following features:

Defining Journal Line Types

This section includes the following sections:

To Define Journal Line Types

the picture is described in the document text

the picture is described in the document text

The table below describes selected fields and buttons in the Journal Line Types window.

Selected Fields and Buttons in the Journal Line Types Window
Field, Region, and Button Description
Application Automatically populated with the application name associated with the user's responsibility.
Line Type Code

Note: Users cannot modify a seeded journal line type or any other seeded component as it could get overwritten in an upgrade. Instead users 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.

Name Appears in the list of values when assigning the journal line type to a journal lines definition.
Accounting Class Shared across applications and enables users to classify journal entry lines.
For example, when a receipt is matched to a purchase order and the accrual method is On Receipt, an accrual journal line is created upon receipt creation. When the Payables invoice is matched to a purchasing document, Payables creates a journal line reversing the original accrual. In this case, Purchasing and Payables define journal line types to generate these accruals and both of them can assign the accounting class Accrual.
Accounting classes are defined using an extensible AOL lookup type. The list of values for this field contains all accounting classes that are seeded but users can add new accounting classes.
Rounding Class Defaults to the accounting class.
The rounding class, along with the transaction rounding reference accounting attribute, groups lines together in order to determine whether rounding is necessary.
Enabled If selected, makes this journal line type available for use.
Encumbrance If this balance type is selected and the business flow method is not Prior Entry, an encumbrance type must be selected from the drop-down list.
See: Defining Encumbrance Types, Oracle General Ledger User Guide
This field is disabled if Prior Entry is selected as the business flow method or if Accrual or Recognition is selected as the Multiperiod option.
Side A Gain/Loss journal line type creates a debit line for a loss and a credit line for a gain. The gain/loss side journal line type is used exclusively for the gain or loss amount automatically calculated by Subledger Accounting and can only be defined for the actual balance type.

Note: For journal line types with a side of Gain/Loss, the following accounting attributes are not displayed in the Accounting Attributes Assignments window when accessed from this window:

  • Applied to Application ID

  • Applied to Distribution Type

  • Applied to Entity Code

  • Applied to First Distribution Identifier

  • Applied to First System Transaction Identifier

  • Multiperiod End Date

  • Multiperiod Option

  • Multiperiod Start Date

  • Conversion Date

  • Conversion Rate

  • Conversion Rate Type

  • Entered Amount

  • Entered Currency Code

Note: If the business flow method Prior Entry or Same Entry is selected, the Gain/Loss option cannot be selected.

The Gain/Loss option can only be selected if the business flow method is set to None and the Multiperiod option is also set to None.

Switch Debit/Credit Determines whether negative amounts will result in negative amounts on the same side or positive amounts on the opposite side.

Note: If the Side is Gain/Loss, the Switch Debit/Credit field is disabled.

Merge Matching Lines Summarizes subledger journal lines within each subledger entry. Journal entry lines with matching criteria are merged.
The possible values are:
  • All: All matching lines within a subledger journal entry with the same values for the following attributes:

    • Accounting Class

    • Rounding Class

    • Transaction Rounding Reference

    • Switch Side flag

    • Gain or Loss flag

    • Business Flow Class code

    • Multiperiod Option

    • Currency

    • Conversion Rate Type

    • Conversion Date

    • Conversion Rate

    • Third Party

    • Third Party Site

    • Third Party Type

    • Accounting Flexfield

    • Description

    • Reconciliation Reference

    • Gain/Loss Reference

    • Encumbrance Type

    As a result of merging, a journal entry line with a net of zero amount can be created.

    Note that choosing All only merges all lines within a given subledger journal entry. This does not impact the transfer to General Ledger of summarized data. The latter is decided by making a choice in the Transfer to General Ledger region.

  • No: Matching lines are not merged.

  • Dr/Cr: Matching lines with the same debit or credit side are merged to produce a single debit or credit line when the attributes listed above are matching across debit or credit lines.

Note: Normally, users merge matching lines. However there are some exceptions. For example, in Italy, gain or loss amounts must be recorded for each invoice payment rather than at the total payment level. By setting the merge selection to No, users guarantee that journal entry lines are not merged, even though they are for the same transaction and entry.

Subledger Gain or Loss Yes indicates that gain/loss is calculated in the primary ledger. The gain/loss amount is therefore not converted to the reporting currency and non-valuation method secondary ledgers. Select No for Subledger Accounting to calculate the gain or loss.

Note: When Gain or Loss is set to Yes, multiperiod accounting is disabled.

Transaction Transaction chart of accounts.
See: Transaction and Accounting Charts of Accounts and Application Accounting Definitions
Method Business flow method
If Prior Entry or Same Entry is selected, the Gain/Loss option in the Side region cannot be selected.
If Prior Entry is selected, then the following accounting attributes are inherited from an upstream journal entry and cannot be selected or updated in the Accounting Attributes Assignments window:
  • Currency Code

  • Conversion Rate Type

  • Conversion Date

  • Conversion Rate

  • Party Type

  • Party Identifier

  • Party Site Identifier

  • Encumbrance Types

Class Business flow class; required if the business flow method is Prior Entry
Multiperiod
  • None: Journal line type will not create multiperiod accounting.

  • Accrual: To create the accrual journal line for the originating entry, such as prepaid expense

  • Recognition: To create the recognition journal line

Note: When Gain or Loss is set to Yes, multiperiod accounting is disabled and defaults to None.

See: Multiperiod Accounting
Transfer to GL Select Detail to maintain the same level of detail as the subledger journal entry line. Select Summary to summarize subledger journal entry lines by Accounting Flexfield.
One journal line is created in General Ledger to record the subledger activity.
See: Subledger Accounting Setup Options Description
Conditions Opens the Journal Line Type Conditions window.
See Defining Conditions for and To Define Journal Line Type Conditions
Accounting Attribute Assignments

Note: This button is enabled when the conditions are entered.

Opens the Journal Line Accounting Attribute Assignments window.
When creating a journal line type, accounting attribute assignments are automatically established based on the default accounting attribute assignments for that journal line type's event class or entity. In the Journal Line Accounting Attribute Assignments window, override this default mapping of standard sources to accounting attributes. The list of values for the Source field contains all header level sources that are assigned by developers to the accounting attribute and event class associated with the journal line type. Users can assign a source to the Reconciliation Reference accounting attribute which is used to meet accounting requirements in continental Europe.
Selected Fields in the Journal Line Accounting Attribute Assignments Window
Field Description
Inherited If selected, indicates the values of a selected accounting attribute can be inherited.
Source List of values includes all header level sources assigned to the accounting attribute and event class associated with the journal line type.

Note: You can assign a source to the Reconciliation Reference accounting attribute, which is used to meet accounting requirements in continental Europe.

Defining Conditions for Journal Line Types

To set conditions appropriately, specify the journal line types that the Subledger Accounting program uses to create a subledger journal entry.

For example, set up a condition to create journal entries using a particular journal line type only if the distribution line has the Oracle Assets' tracking option set to No. As another example, an inventory transaction to record transfers could be accounted using journal line types for material overhead.

Use sources to create these conditions. For example, the condition for use of a Payables Invoice Tax journal line type could be Where line type = Tax. Similarly, the condition for a Receivables Invoice Tax journal line type could be Where account class = Tax. The line type and account class mentioned here are examples of sources.

Journal line type conditions establish whether a journal line type and its associated account derivation rules and journal entry descriptions are to be used in the subledger journal entry. Use account derivation rules to specify how an account is constructed. Associated account derivation rule conditions define the conditions under which these accounts are built.

See: Account Derivation Rules Conditions

Examples of Journal Line Type Conditions

This section describes the following examples:

Example 1: Using the Values of a Source to Set Up a Journal Line Type Condition

This example describes how to create a journal line type to account for an invoice price variance (IPV). Due to changes in price, Payables uses the IPV to account for the difference between purchase order price and invoice price.

Consider an IPV journal line type. A condition is defined and attached to this journal line type, to ensure that the IPV is applied only to IPV lines. This condition can be expressed as follows:

Where

Distribution Type of the detailed distribution line = IPV.

Using the Value of a Source to Set Up a Journal Line Type Condition Example
Seq. ( Source Segment Operator Value Type Value Seg- ment ) And/Or
1 ( Distribution Type = Constant IPV   )  

Now consider a case where an invoice is entered and approved. The invoice involves variance distribution lines that need to be accounted. Assume the presence of a distribution line with a Distribution Type of IPV and another with a line type of tax.

Using the Value of a Source to Set Up a Journal Line Type Condition Example: Distribution Type and Distribution Lines
Source Distribution Line 1 Distribution Line 2
Distribution Type IPV Tax
Using the Value of a Source to Set Up a Journal Line Type Condition Example: Journal Line Type
Distribution Line Journal Entry Line
Distribution Line 1 IPV journal line type is used to create a subledger journal entry line.
Distribution Line 2 IPV journal line type is not applied.

For distribution line 1, a journal entry line for the IPV is created based upon the journal line type. Note that a separate journal line type and condition must be written to handle the non-IPV line type.

Example 2: Using Multiple Conditions with The And/Or Operator

This example involves multiple conditions that can be set up with the use of the And/Or operator. Consider requirements as follows:

For cost center #420, the gain/loss on retirements from the sale of assets must use a specific journal line type.

This condition can be expressed as follows:

Where

Cost Center of the asset retired = 420 And Retirement Type = Sale

Based on the above, the account derivation rule is entered as follows:

Using Multiple Conditions with the And/Or Operator Example: Account Derivation Rule
Seq. ( Source Segment Operator Value Type Value Segment ) And/Or
1 ( Distribution Account Cost Center = Constant 420   ) And
2 ( Retirement Type   = Constant Sale   )  

To Define Journal Line Type Conditions

the picture is described in the document text

  1. In the Journal Line Types window, click Conditions.

  2. In the Seq field, enter a Sequence number.

    The details of the condition are created from left to right according to this number. This number does not necessarily correspond to the evaluation of the condition, as parenthesis and logical operators precedence can affect the order.

  3. In the ( field, use the "(" and ")" symbols for grouping a section of a condition.

    This is useful when a condition spans multiple lines with the And/Or operators.

  4. In the Source field, select a source value.

    Source values are seeded by the subledger application or custom application but access to the custom sources defined is also provided. This value is the first operand in the condition line.

  5. In the Segment field, if the source is a key flexfield or an Accounting Flexfield, optionally select the segment.

    The table below describes the relationship between the Source and the Value Type fields based on the transaction chart of accounts.

    Transaction Chart of Accounts Nature of Source Segments in List of Values
    Null Accounting Flexfield All Accounting Flexfield qualifiers
    Not Null Accounting Flexfield All segments for the transaction chart of accounts
    N/A Key Flexfield All segments for the key flexfield and flexfield structure given by the source
  6. In the Operator field, select an operator to evaluate the condition.

  7. In the Value Type field, select the value type of the second operand that is evaluated in the condition line.

    The value types are:

    When defining a condition, you can compare one data source with another data source by using the comparison operator, for example, '=' or '<>'. In some cases, the value of one side of the data source could be null or blank when the extract data contains no value for the specific source that is being compared. In such cases, Subledger Accounting will return 'TRUE' or 'FALSE' depending on which comparison operators are used and which data source is being compared as shown in the table below.

    Condition Expected Value
    null source = constant or a non-null source false
    null source <> constant or a non-null source true
    null source = null source true
    null source <> null source false
  8. If the Segment field to the left of the Independent Value field has a dependent segment and the value type is Constant, in the Independent Value field, enter the value of the segment that the dependent segment is based upon.

    This is the value for the independent segment in the key flexfield that the dependent segment value is based upon. For example, the following condition, described in the table below, requires users to choose an independent value before choosing a value for the dependent segment.

    Source Segment Operator Value Type Independent Value Value
    Asset Category Flexfield Minor Category = Constant BUILDING ADMINISTRATION
  9. In the Value field, enter a value as follows:

  10. If a value type of Source and a value that represents an Accounting Flexfield code combination identifier are entered, optionally select a segment name in the Segment field.

    This segment value is used as the second operand in the condition line.

  11. In the ) field, use AND/OR values to concatenate two lines together when making complex conditions.

    Typically, the AND takes precedence over the OR. Parenthesis are only required to overwrite this precedence. As an example, consider a condition that should use a particular account derivation rule if the following are true:

Copying Journal Line Types and Their Associated Conditions

See Copy and Modify Functionality.

Note: If entering a transaction chart of accounts, the journal line type that is created supports this chart of accounts.

This field can only be entered if the line type being copied does not have a chart of accounts already assigned to it. If it does, the new line type that is created inherits the assigned chart of accounts and users cannot change the value.

If copying a nontransaction chart of accounts specific journal line types to a transaction chart of accounts specific journal line type, Subledger Accounting replaces any reference to Accounting Flexfield qualifiers in the conditions with the actual segment names for the qualifiers in the transaction chart of accounts. If no corresponding segment exists, an error message appears.

Defining Journal Entry Descriptions

Use the Journal Entry Descriptions window to define the elements of a description that appear on the subledger journal header and line. The definition determines both the content and sequence in which the elements of the description appear.

Build descriptions using any of the available sources for the application. For example, an individual segment of an Accounting Flexfield 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 invoice line number can only be applied to a line description.

Assign journal entry descriptions headers and lines in the Applications Accounting Definition window.

To Define a Journal Entry Description

the picture is described in the document text

The table below describes selected fields in the Journal Entry Descriptions window.

Selected Fields in the Journal Entry Descriptions Window
Field Description
Application Defaults from the application associated with the responsibility
Owner Automatically populated. Value is Oracle for seeded components. Value is User for components created on site by users.
Transaction Chart of Accounts Chart of accounts used to input and create transactions
See: Transaction and Accounting Charts of Accounts
Enabled Retain the default to make the description available for assignment to application accounting definitions
Priority Users can create more than one priority number for a journal entry description, each one with its own conditions and details.
Description details are evaluated in ascending priority order, where the highest priority has the lowest number until a condition is met. For performance reasons, use the most commonly met descriptions first.
Change the order in which description details are evaluated by updating the priority number instead of deleting and rewriting the descriptions. Once the conditions associated with a detail line are satisfied, the value from that line is used and other lines are ignored.
See: Journal Entry Description Conditions
If none of the conditions are met, enter a last line with no conditions associated to it. Because Subledger Accounting uses this line as a default, assign the lowest priority to this line.
The Journal Entry Description field displays a concatenation of the elements of the description created in the Journal Entry Description Details window as described in To Define Journal Entry Description Details.

To Define Journal Entry Description Details

Use the Journal Entry Description Details window to create the journal entry description that users see. Define the description content and the sequence in which it appears.

A journal entry description that uses sources that have values which vary by line cannot be assigned as a header level description.

the picture is described in the document text

Selected Fields in the Journal Entry Description Details Window
Field Description
Seq. Number for ordering the elements of a description
Use this field to quickly change the order of appearance of the journal entry description contents.
Constant If Constant is selected in the Value Type field, enter text to be used in the journal entry description.
For example, enter Check Number or Invoice Number. By defining several lines, users can use multiple sets of constant strings in the description definition. These can be concatenated with a source, as described in the Source field, and appear according to the sequence number of the line.
Source Note that the source selected serves as a placeholder. When the journal entry is created, this source value is replaced with appropriate source content. For example, the source Supplier Name populates the journal entry description with the actual name of the supplier. The same logic applies if the source is an Accounting Flexfield segment.
Segment Define which segment value appears in the accounting description. If a transaction chart of accounts is specified, the list of values for this field displays the name of all the segments. If there is no transaction chart of accounts specified, the list of values displays the flexfield qualifiers available in General Ledger.
Display Description Displays the segment description for an accounting flexfield segment source.

Journal Entry Description Conditions

Create journal entry description conditions in the same manner as described in Defining Conditions for Journal Line Types.

Copying Journal Entry Descriptions

See: Copy and Modify Functionality and Copying Journal Line Types.

Mapping Sets

Use mapping sets to associate a specific output value for an Accounting Flexfield or Accounting Flexfield segment. Based on the input value, a specific value can be assigned to a single segment or to the entire Accounting Flexfield. Use mapping sets in account derivation rules to build the Accounting Flexfield.

To define a Mapping Set, pairs of values are specified. For each input value, specify a corresponding account segment or Accounting Flexfield output value. One or more related pairs of these input values and segment or Accounting Flexfield output values form a mapping set. Use value sets or lookup types for validating 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.

As another example, suppose a business has three major regions: East, South, and West. Assume also that the business has a Region Code segment in the Accounting Flexfield. Region names can be input values in applications such as transaction type names and service codes. These input values can be included with other information about the transaction and become part of the source information available to the AMB. Users can create a mapping set that maps region names to the corresponding region code as described in the table below.

Mapping Region Names to Region Codes
Input Value Segment Value
East 01
South 02
West 03

It is possible to restrict a mapping set to a range of dates by entering the start and end dates. The GL date of the potential subledger entry is compared to the effective date range of the mapping set. This determines whether mapping set values should be applied.

Defining Mapping Sets

Prerequisite

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, users can enter any value in the Input Value field.

See: Overview of Values and Value Sets, Oracle Applications Flexfields User Guide

To Define Mapping Sets

the picture is described in the document text

Selected Fields in the Mapping Sets Window
Field Description
Enabled If selected, makes the mapping set available for use
Type region Based on this selection, the mapping set is defined for the setup of the entire Accounting Flexfield, an individual segment in the flexfield, or a value set.
The Flexfield and Segment options are disabled if the accounting chart of accounts is not specified. The Value Set option is disabled if the accounting chart of accounts is specified.
Segment If selected, enter the segment to be used to assign a value the mapping set.
Value Set If selected, select the value set.
Value Type If the Value Type is Input, then enter an input value.
If Input is selected and a value set or lookup type is defined, then the list of values includes all the allowable values defined for the lookup type or value set.
Use the value type Default in cases where the source value from the transaction is not equal to any of the input values in the mapping set. If a mapping set is used and the Subledger Accounting program encounters accounting definitions with undefined input values, journal entries cannot be successfully generated unless there is a default.
Using the example introduced earlier in this section, if there is a source value equal to Northwest, it would not map to any of the input values. Specify a default value of 04 for any regions not included as input values. This prevents entries from failing validation when the Subledger Accounting program is submitted.
Input Value If the value type Input is selected, enter an input value to be mapped to a corresponding output value.
Output Value For a given input value, enter the corresponding output value. The account derivation rule uses this value to populate either the accounting flexfield or accounting flexfield segment.
If the Value Set option in the Type region is selected, the output value is an individual value from the value set entered in the Value Set field of the Type region, and the list of values includes all values from this value set.
In the case where a mapping set is defined to populate an individual segment value, the output value is an individual segment value and the list of values includes all values for the segment entered in the Segment field.
If the Accounting Flexfield option in the Type region of the Mapping Sets window is selected, then the output value is the entire Accounting Flexfield and the list of values includes all enabled combinations for the accounting chart of accounts.
Start Date and End Date Effective range dates for the mapping set
Enabled If selected, makes the mapping set values available for use.

Mapping Sets Examples

Example 1.

When using the mapping set, the source values from the invoice includes the Small Business Option value. This is compared with the Mapping Set Input Values to determine the output segment value. Assume two transactions with the following values described in the corresponding tables.

  1. In this example, assume that if procurement is from a small business supplier, then cost center 100 should be used. A mapping set is defined with two input values Yes and No as described in the following table.

    Example 1 Mapping Set
    Input Value Output Value
    Yes 100
    No 200

    The first invoice is for the purchase of goods and services from a small business vendor. Therefore, the input value is Yes.

  2. The supplier of the second invoice does not meet the criteria to be categorized as a small business. Therefore the Input Value is No.

The output segment value is therefore derived as described in the following table.

Example 1 Output Segment Value
Invoice Cost Center
1 100
2 200

Example 2

In this example, the chart of accounts is setup with four segments. A mapping set is defined with a value set for Supplier Type as described in the following table.

Example 2 Mapping Set
Input Value Output Value
Services 01-100-6120-000
Consulting 01-400-6110-000

Assume that two invoices are entered into Payables, one for a supplier with a type of Services and one for a supplier with a type of Manufacturing.

When using the mapping set, the source value Supplier Type from the accounting event data is compared with the Mapping Set Input Values to determine the Accounting Flexfield. In this example, there is a match for the first case; the invoice with a supplier type of Services maps to an Input Value. However, the invoice with a supplier type of Manufacturing does not map to an input value. The accounts are derived and described in the following table.

Example 2 Derived Accounts
Invoice Supplier Type Output Value
1 Services 01-100-6120-000
2 Manufacturing No account generated

Note: To ensure that Transaction 2 is accounted for, the account derivation rule to which this mapping set is assigned may have to be modified. If not, a separate rule can be defined to provide for it. Otherwise, it cannot be successfully accounted.

Account Derivation Rules

Use account derivation rules to determine the Accounting Flexfields for subledger journal entries. In addition, specify the conditions under which these rules apply. Using these capabilities, develop complex rules for defining accounts under different circumstances to meet their specific requirements.

Define a rule by Accounting Flexfield, segment, or value set. If the rule is by Accounting Flexfield, the rule determines the entire Accounting Flexfield combination. For example, an account derivation rule defined by Accounting Flexfield can be used to determine the complete supplier liability Accounting Flexfield in Payables.

Define segment rules to derive the Accounting Flexfield segment by segment. For example, a particular segment like the company segment can be determined from the Distribution Accounting Flexfield. Another segment can be determined with the use of a constant value. Creating the Accounting Flexfield one segment at a time offers greater flexibility but also requires more setup.

You can use both segment-based and flexfield-based rules to derive a single account. Subledger Accounting uses segment-specific rules where they are defined and takes the remaining values from a flexfield-based rule. For example, a user can select an account derivation rule which is for All Segments and also separately select a rule which is for one particular segment. Subledger Accounting derives accounts based upon segment-specific rules and then fills in the remaining segments with the rule that specifies All Segments. Segment-specific rules take precedence over the All Segments flexfield-based rule.

If the Create Accounting program returns an account that is end-dated or disabled and a substitute account is defined in General Ledger, Subledger Accounting uses the substitute account. The original account is stored on the journal line for audit purposes. If the substitute account is invalid and a suspense account is defined, Subledger Accounting uses the suspense account. An error message is displayed if a valid suspense account is not available.

See: Adding or Changing Individual Accounts, Oracle General Ledger User Guide

Define account derivation rules based on value sets in the absence of an accounting chart of accounts.

See: Overview of Values and Values Sets, Oracle Applications Flexfield Guide

Share account derivation rules across applications in the following ways:

Note: To share an account derivation rule across applications, all sources used by the account derivation rule must be available for the event class.

When an account derivation rule is assigned to a journal line type in the Journal Lines Definition window, Subledger Accounting verifies whether all sources used by the account derivation rule are available for the journal line type event class.

Accounting Flexfield Rules

Set up Accounting Flexfield rules based upon four possible Value Types as follows:

Segment Rules

Set up segment rules as follows:

Set up segment rules using the same four methods discussed for Accounting Flexfield rules. By specifying different value types, users can choose the way in which the segment value is derived.

Value Set Rules

Value set based rules can be created when an accounting chart of accounts is not specified. This enables you to share the same rule between more than one accounting chart of accounts if the segments in these chart of accounts share the same value set. Set up Value Set based rules using the same four methods discussed in Accounting Flexfield Rules. By specifying different Value Types, you can choose the way in which the segment value is derived.

Account Derivation Rules Examples

Since no conditions are used in these examples, assume there is just a single detail account derivation rule line with priority one.

Accounting Flexfield Rules Examples

  1. Using a mapping set to derive an Accounting Flexfield

    Consider a mapping set Vendor Category, which assigns the following accounts based on input vendor category described in the following table.

    Accounting Flexfield Rules Example 1: Mapping Set Vendor Category
    Input Value Output Value
    Manufacturing 01-100-2210-0000
    Services 01-200-2210-0000
    Consulting 01-300-2210-0000

    For the given transaction, assume that the accounting event information includes a Source called Supplier Type. This serves as the Mapping Set Input Source. The account derivation rule is defined to use the mapping set as described in the following table.

    Accounting Flexfield Rules Example 1: Account Derivation Rule Mapping Set
    Priority Value Type Value Input Source
    1 Mapping Set Vendor Category Supplier Type

    To derive an account, the values of the Mapping Set Input Source specified in a rule are compared with the input values of the mapping set. In this example, Mapping Set Input Source values from the accounting event information include the Supplier Type source values. These are now compared with the Vendor Category input values to determine what the account should be.

    Assume that the accounting event data of the transaction to which the account derivation rule is applied has a value for the Source Supplier Type of Manufacturing. The account built by the Subledger Accounting program is derived by applying the account derivation rule to the transaction object data. Using the mapping set defined, if the supplier type is Manufacturing, the account created is 01-100-2210-0000.

  2. The assignment of segment qualifiers to an account derivation rule enables users to create accounts with a single consistent mechanism.

    See: Journal Lines Definitions Examples

Segment Rules Examples

  1. Using a specific source segment to derive the value of a different segment in a different chart of accounts.

    In this example, a segment rule is created to derive the cost center segment of the Accounting Flexfield. The structure of the charts of accounts is described in the table below.

    Segment Rules Example 1: Chart of Accounts Structure
    Chart of Accounts Name Structure
    Transaction Italy Balancing-Cost Center-Natural Account-Region
    Accounting Belgium Balancing-Cost Center-Natural Account

    The account derivation rule is defined to derive the cost center segment value from the Region segment of the Distribution Accounting Flexfield. Note that the account is always derived for the accounting chart of accounts.

    The table below describes the account derivation rule for Example 1.

    Segment Rules Example 1: Account Derivation Rule
    Priority Value Type Value Segment
    1 Source Distribution Account Region

    Assume that the data from the Italy transaction chart of accounts has the following values for the distribution Accounting Flexfield:

    02-640-2210-1234

    The segment built by the Subledger Accounting program is determined by applying the account derivation rule to the source values. According to the account derivation rule, the segment to be used to derive the cost center segment of the accounting chart of accounts is the Region segment, which has a value 1234.

    Note that other segment rules must be defined to build the remaining segments of the account.

Defining Account Derivation Rules

Note: Oracle strongly recommends that users 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 users 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 users to distinguish between seeded and user-defined components.

To Define Account Derivation Rules for Accounting Flexfields

the picture is described in the document text

The following procedure describes selected fields.

  1. Navigate to the Account Derivation Rules window, and in the Find Account Derivation Rules window, click New.

    The application name defaults from the application associated with the responsibility.

    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.

  2. 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.

  3. In the Chart of Accounts region, select values for the charts of accounts.

    If a value for the accounting chart of accounts is not selected, users can create an account derivation rule for an Accounting Flexfield qualifier, an Accounting Flexfield, or a value set.

    Note: Account derivation rules seeded by Oracle user are independent of the accounting and transaction chart of accounts.

    The table below describes the accounting chart of accounts configuration.

    Accounting Chart of Accounts Configuration
    Accounting Chart of Accounts Accounting Flexfield Rule Segment Rule Value Set Rule
    Null Value type must be Source and it must be an Accounting Flexfield or account derivation rule. Value type must be source and the nature of the source can be Accounting Flexfield or segment of an Accounting Flexfield. Value type can be Source, Mapping, or Constant.
    Entered Value type can be Source, Mapping Set, Constant, or Account Derivation Rule. Value type can be Source, Mapping Set, or Constant. Not allowed

    See: Transaction and Accounting Charts of Accounts

  4. In the Output Type region, select the option that the account derivation rule will be based on.

  5. If the output type Segment is selected, in the Segment field, select a segment from the list of values.

    If the accounting chart of accounts is specified, the list of values includes all enabled segments for the chart of accounts. If the accounting chart of accounts is not specified, the list of values includes all segment qualifiers for the flexfield application and title.

  6. If the output type Value Set is selected, in the Value Set field, select a value set from the list of values.

  7. In the Priority field, enter a priority number.

    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 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.

    See: Account Derivation Rule Conditions

    To handle the case in which none of the conditions are met, enter a last detail line with no conditions associated with it. As AMB uses this line as a default, assign the lowest priority to this line. Once a segment has a valid value, it cannot be overwritten and AMB proceeds with the building of the next segment value.

  8. To specify the method of deriving the Accounting Flexfield or segment value, in the Value Type field, select a value type.

  9. In the Value field, enter the value consistent with the value type selected.

    The table below summarizes the relationship between accounting chart of accounts, output type, value type, and values in the Value field.

    Accounting Chart of Accounts Output Type Value Type Value Field Values
    Null Flexfield Source All enabled sources for the application marked as Accounting Flexfield
    Null Accounting Flexfield Qualifier Source If creating an account derivation rule for Accounting Flexfield: all enabled sources for the application marked as Accounting Flexfield plus sources marked as the Accounting Flexfield qualifier corresponding to the segment to be derived in the account derivation rule
    Null Value Set Source If creating an account derivation rule for Accounting Flexfield: all enabled sources for the application marked as an Accounting Flexfield qualifier or Other that have the same value set
    Null Value Set Mapping Set All enabled mapping sets with the same value set
    Null Value Set Constant List of values from the value set
    Null Value Set Account Derivation Rule All account derivation rules with no account derivation rule assigned to it
    Not Null Flexfield Source All enabled sources for the application marked as Accounting Flexfield
    Not Null Flexfield Mapping Set All enabled mapping sets with the same accounting chart of accounts and whose output type is Flexfield
    Not Null Flexfield Constant All enabled combination for the accounting chart of accounts
    Not Null Flexfield Account Derivation Rule All account derivation rules with no account derivation rule assigned to it are available.
    Not Null Segment Source If creating an account derivation rule for Accounting Flexfield: all enabled sources for the application marked as Accounting Flexfield plus sources marked as the Accounting Flexfield qualifier corresponding to the segment to be derived in the account derivation rule plus sources marked as the Other segment
    Not Null Segment Mapping Set All enabled mapping sets with the same accounting chart of accounts and whose output type has the same segment as the segment to be derived in the account derivation rule
    Not Null Segment Constant All segment values for the accounting chart of accounts and segment
    Not Null Segment Account Derivation Rule All account derivation rules with no account derivation rule assigned to it
  10. If value type Mapping Set is selected, in the Input Source field, select the source name to be compared with the mapping set input value.

  11. If output type Segment and value type Source are selected, in the Segment field, select the segment from which the value is to be taken.

    The Segment field can be entered if the nature of source in the Value field is Accounting Flexfield or key flexfield or the nature of the input source is Accounting Flexfield or key flexfield.

Account Derivation Rules Conditions

In the Account Derivation Rules Conditions window, specify conditions for each rule detail line. Priorities determine the order in which account derivation rule conditions are examined. Depending on which of the defined conditions is met, a different account derivation rule detail is employed to create the account.

The Subledger Accounting program evaluates conditions based on the priority of the rule detail. If the conditions for a priority are met and the associated rule detail results in a valid account or segment value, no further priorities are evaluated. Otherwise, the Subledger Accounting program evaluates the conditions for the next priority until a valid account or segment value is derived or there are no more conditions to evaluate.

You can combine Accounting Flexfield rules with segment rules. In this case, Subledger Accounting uses the segment value derived from the segment rule to override the corresponding segment of the Accounting Flexfield. However, if the segment rule has conditions associated with the priorities and none of the conditions are met, no override occurs and therefore the segment value is derived from the Accounting Flexfield rule.

Account derivation rules conditions are created in the same manner as described in Defining Conditions for Journal Line Types.

Lookup Types

If a source is a lookup code, Subledger Accounting displays its corresponding meaning in the appropriate language when it is used in header and line descriptions or supporting references. Also, when defining conditions in the AMB, Subledger Accounting displays the translated meaning to the user and stores the untranslated lookup code. Since the untranslated lookup code is used in conditions, conditions can function independently of the language used by the ledger.

Lookup types:

Account Derivation Rules Conditions Examples

The following example illustrates the value of specific sources to set up an account derivation rule Condition.

Consider a rule HQ Capital Purchase as follows:

The rule is to be applied only if the distribution account cost center is the same as the liability account cost center and the Assets' tracking option is Yes. This condition can be expressed as:

Where

Distribution.Cost Center = Liability.Cost Center and

Asset Tracking option = Yes

The following tables describe the setup of the condition.

Account Derivation Rule Condition Example: Setup
Seq. ( Source Segment Operator Value Type Value Seg- ment ) And/Or
1 ( Distribution Account Cost Center = Source Liability Account Cost Center ) And
2 ( Asset Flag   = Constant Yes   )  

Now assume that the accounting event data, to which the account derivation rule and therefore the condition is applied, has two rows of data to be processed with the values described in the following table.

Account Derivation Rule Condition Example: Accounting Event Data
Account Invoice 1 Invoice 2 Asset Flag
Distribution Account 02-640-2210-1234 01-780-6120-0000 Yes
Liability Account 01-640-2210-0000 02-782-2210-0000 Yes

In the table above, assume the cost center segment as the second segment. Based on this set up, the account derivation rule is applied to derive the account of Invoice 1 only. For the second invoice, even though the Assets' tracking option is set to Yes, the cost center for the Distribution account and Liability account are not the same. Both conditions must be met in order for the rule to apply.

Supporting References

Define supporting references to store transaction information on your journal entry. You can choose to maintain balances for each account and supporting reference detail value combination.

After the supporting reference is defined, assign it to the application accounting definition on the journal line types or on the header for event class and type. The accounting program will then associate values from the transaction to the journal entry created, based on your application accounting definition. You can also enter supporting references for manual journal entries. Use the online inquiry to view the account balances for a specific ledger and supporting reference.

Supporting References Example

Example: A user decides to capture the Project Number on the Invoice Expenses lines, and defines and assigns a supporting reference on the journal line type Invoice Expense in the line assignments for the event class Invoices. The Subledger Journal Entry Exampledescribes the subledger journal entry that is booked.

Subledger Journal Entry Example
Event Class/Event Type Journal Line Type Account Amount Supporting Reference: Project Number
Invoice/All Invoice Expense 01-100-4001-0000 $400 100

As a result, $400 is added to the subledger balance for the account 01-100-4001-0000 and the project number 100. It is possible to execute an online inquiry on the subledger balances by project number for the account 01-100-4001-0000.

Users can also define supporting references without associated balances. These are mainly used as journal entry references and can be assigned at the journal entry header or line levels. In contrast, supporting references defined with balances can only be assigned at the line level.

Supporting References Setup

The following steps describe how to set up supporting references.

  1. Step 1: Create the Supporting References

  2. Step 2: Assign Sources to the Supporting References Details

  3. Step 3: Include the Supporting References in the Header and/or Line Assignments of the Journal Lines Definition

  4. Step 4: Validate the Application Accounting Definition

Step 1: Create the Supporting References Supporting references facilitate account analysis, reporting, and reconciliation by enabling users to break down their subledger balances in totals and subtotals. A supporting reference comprises one or more pieces of transaction information, each of which can be used to calculate a subtotal or total of the account balance.

Users must complete the following task to create a supporting reference:

Users must decide what type of information they would like to capture on journal entries and how they would like their account balances to be subtotaled and totaled.

Example 1: users determine that they want to have subtotals by transaction types and by salesperson for a revenue account. Therefore, they set up Transaction Type and Salesperson as supporting reference details.

The account balance breakdown using this grouping order is described in the table below.

Grouping Order Example 1
Account #01-100-3000-0000 - Sales Revenue Total
Transaction Type: Consulting Sales  
Total for Salesperson: Bill Smith $4,000
Total for Salesperson: Sue Davis $6,000
Transaction Type: Software Sales  
Total for Salesperson: Barry Hopkins $6,500
Total for Salesperson: Sue Davis $1,000

Example 2: Users determine that they want subtotals by project number, by project expenditure types and by project task number for an expense account. Therefore, they set up Project Number and Project Expenditure Types as supporting reference details.

In this example, there is no subtotal for Project 2010 and expenditure type Television Ads. This would occur because no subledger journal entry lines have been posted to account 01-100-4000-0000 for this combination of Project Number and Expenditure Type.

Grouping Order Example 2
Account #01-100-4000-0000 - Advertising Expense Total
Project Number: 1000  
Total for Expenditure Type: Television Ads $2,000
Total for Expenditure Type: Radio Ads $6,000
Project Number: 2010  
Total for Expenditure Type: Radio Ads $6,000

Step 2: Assign Sources to the Supporting References DetailsAfter users have decided the supporting references structure, they must select the sources that provide the values for the supporting references details. Each supporting reference detail can have one or more sources associated. A single source can be assigned for each application and event class that affects the account balance. This is particularly relevant when the supporting reference is used across different applications.

Example 1: Users want to break down the balance of an asset account by asset category. The source for this value in Oracle Assets can be called Asset Category, while in Oracle Projects it can be called Project Asset Category. Therefore, both sources need to be assigned to the support reference details for the applications Assets and Projects respectively.

Example 2: Users want to create a supporting reference for an inventory account to analyze the balance by inventory item. The source storing the inventory item for a purchase order can be called Purchase Order Item, while the one storing the item for a material receipt can be called Receipt Item. Therefore, both sources need to be assigned to the supporting reference detail, for the event classes corresponding to Purchase Orders and Material Receipts respectively.

Step 3: Include the Supporting Reference in the Header and/or Line Assignments in the Journal Lines Definition An organization can use the same general ledger account to record activity from different applications, event types and journal line types. This is especially true when the same general ledger account is used in different parts of a business cycle. To support this requirement, Subledger Accounting provides users with the ability to assign a supporting reference to multiple event classes, event types, and journal line types. This also allows the supporting reference to be independent from the general ledger accounts so that users need not know in advance all the accounts that are used in combination with certain supporting references.

Example 1: Users want to create a supporting reference to analyze revenue from Projects Billing and Account Receivables, which share the same account. Therefore, the same supporting reference must be assigned to all combinations of event class, event type, and journal line type that affects the revenue account from either Project Billing or Account Receivables.

Example 2: Users want to create a supporting reference to analyze capital projects expenditures by asset category. Therefore, the supporting reference must be assigned to all combinations of event class, event types, and journal line type used for capital expenditures in Projects as well as to all the ones used for asset additions, transfers, and retirements in Assets.

Example 3: Users want to create a supporting reference to analyze an inventory account by inventory item. Therefore, the supporting reference must be assigned to all combinations of event class, event type, and journal line type used for inventory purchase in Payables as well as to all the ones used for inventory issuances and cost adjustments in Oracle Inventory and Cost Management.

Step 4: Validate the Application Accounting Definition Once users have completed the supporting reference assignments, the application accounting definition must be validated so that the changes are taken into account.

To validate an application accounting definition, the user navigates to the Application Accounting Definitions window and clicks Validate. This submits a concurrent process that validates the application accounting definition and recreates the underlying database stored procedures. Once this concurrent process completes, the status of the application accounting definition changes to Valid. This indicates that the modified definition can now be used to generate subledger journal entries.

Year-End Carry Forward

For supporting references for which balances are maintained, users can specify whether the balances at the end of a fiscal year are carried forward to the next fiscal year. The alternatives are as follows:

Defining Supporting References

Use the Supporting References page to search for existing supporting references or navigate to the Create Supporting References page to define a new supporting reference and assign one or more sources to the details. You can define a maximum of five supporting reference details.

To define supporting references:

  1. Navigate to the Supporting References window.

  2. Click Create.

  3. In the Code field, enter a unique code for the supporting reference using a combination of upper case letters, digits, underscores and no spaces.

  4. In the Name field, enter a name for the supporting reference.

  5. In the remaining fields, optionally enter information as required.

  6. Click Add detail.

  7. In the Detail Code field, enter a unique detail code for the supporting reference detail.

  8. In the Detail Name field, enter a name for the supporting reference detail.

  9. In the Description field, optionally enter a description for the supporting reference detail.

  10. To assign a source to the selected supporting reference detail, click Assign Sources.

    You can search for sources defined for a particular application or event class and search by source name in the Assign Sources page.

  11. Enter search criteria and click Go.

  12. Select one or more sources from the search results and click Apply to assign the sources to the supporting reference detail.

    The Supporting References page appears confirming that the supporting reference has been updated.

Updating Supporting References

Use the Update Supporting Reference page to modify existing supporting references.

To update supporting references:

  1. Navigate to the Supporting References window.

  2. Enter search criteria as required.

  3. Click Go.

  4. Click the Update icon next to the supporting reference you wish to update.

    Note: The Update icon is disabled if the supporting reference is defined by Oracle, since Oracle-defined supporting references cannot be updated.

  5. Make changes as required in the Update Supporting References page.

    Note: You cannot update the Maintain Balances, Year End Carry Forward, and Stored Value options if the supporting reference is assigned to any application accounting definition.

Duplicating Supporting References

To duplicate supporting references:

Note: You can duplicate the supporting reference details or both the details and the source assignments.

  1. Navigate to the Supporting References window.

  2. Enter search criteria as required.

  3. Click Go.

  4. Click the Duplicate icon next to the supporting reference you wish to duplicate.

  5. In the Duplicate Supporting Reference Options page, enter the code and name of the new supporting reference.

  6. Choose whether to copy the details or the details and the source assignments.

    If you choose the details option, the detail code, name, and description are copied from the original supporting reference. Source assignments are not copied.

    If you choose the details and source assignments option, both supporting reference details and the source assignments are copied.

  7. Click Continue.

  8. Assign sources as required.

  9. Click Apply.

    A confirmation page indicates that you have successfully copied the supporting reference.

Deleting Supporting References

To delete supporting references:

Note: Supporting references cannot be deleted if they are assigned to an application accounting definition or if they have already been used on journal entries.

  1. Navigate to the Supporting References window.

  2. Enter search criteria as required.

  3. Click Go.

  4. Click the Delete icon next to the supporting reference you wish to delete.

    Note: The Update icon is disabled if the supporting reference is defined by Oracle, since Oracle-defined supporting references may not be updated.

  5. A warning message will ask if you are sure that you want to delete the supporting reference, click Yes to continue or No to cancel.

Journal Lines Definitions

Use journal lines definitions to create sets of line assignments for an event class or event type. These sets can be shared across application accounting definitions.

In the Journal Lines Definitions window, you can:

Journal Lines Definitions Examples

Example 1

A public sector agency buys computer equipment for $10,000. Besides accounting for the purchase, the agency wants to set aside money to cover for its replacements. The required journal entries are described in the table below.

Equipment Debit Credit
DR Computer Equipment $10,000  
CR Account Payable   $10,000
DR Fund Balance $10,000  
CR Reserve for Capital Equipment   $10,000

To achieve the above journal entries, two journal lines definitions are required as described in the following tables.

Standard Invoice Journal Lines
Journal Line Type
Expense
Liability
Public Sector Invoice Journal Lines
Journal Line Type
Fund Balance
Reserve for Equipment

Example 2

This example describes how to allocate an invoice's liability amount across multiple balancing segments on the invoice distributions.

The Accounting Flexfield structure is Balancing Segment-Cost Center-Account. The default liability account for supplier site ABC is 000-000-2300. If automatic offsets using the balancing method are enabled, an invoice entered for supplier site ABC is distributed as described in the table below.

Account Debit Credit
DR Expense 101-200-1245 $30  
DR Expense 201-300-3045 $50  
CR Liability 101-000-2300   $30
CR Liability 201-000-2300   $50

To achieve the above journal entry, the journal line definition is defined as described in the table below.

Invoice Journal Lines with Automatic Offsets
Journal Line Type
Expense
Liability

The Liability journal line type requires the following account derivation rules:

Segment Account Derivation Rule Name
All Segments Liability Account
Balancing Segment Invoice Distribution Balancing Segment

Defining Journal Lines Definitions

Prerequisites

Define the following:

To Define Journal Lines Definitions

the picture is described in the document text

This procedure describes selected fields in the Journal Lines Definitions window

  1. Navigate to the Journal Lines Definitions window, and in the Find Journal Lines Definitions window, click New.

    The application name defaults from the application associated with the responsibility.

    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.

  2. Retain the default for the Enabled check box, which is selected, to make the journal lines definition available for use for this application and the selected chart of accounts.

  3. To indicate that the journal lines definition is to be used only if the Create Accounting program is run in budgetary control mode, select the Budgetary Control check box.

  4. To assign a journal line type to an event type, in the Journal Line Type field, select a journal line type.

    The Owner field is automatically populated based on the journal line type selected.

  5. To inherit the journal line description from another journal line, select the Inherit Description check box.

    This check box is enabled only if the business flow method of the journal line entry is Prior Entry or Same Entry. If this check box is selected, the Line Description and Owner fields are disabled and cleared of any data.

  6. In the Line Description field, enter the journal entry description to be used to populate the subledger journal entry lines.

    The list of values includes all journal entry descriptions for the application to which the event class belongs that meets the following condition:

    The Owner field is automatically populated based on the line description entered.

  7. To use this line assignment to generate subledger journal entries, select the Active check box.

  8. In the Line Assignments region, select an accrual journal line type and click Multiperiod Accounting Assignment to define the multiperiod journal entry and the multiperiod options.

    See: To Define Multiperiod Accounting

  9. Select the Account Derivation Rules tab.

  10. In the Segment field, select an Accounting Flexfield segment or All Segments.

    If entering an accounting chart of accounts for the journal lines definition, the list of values includes all segments in the Accounting Flexfield structure. Otherwise, the list of values includes the following Accounting Flexfield qualifiers:

    If assigning both segment and Accounting Flexfield rules to a journal line type, segment rules take precedence over Accounting Flexfield rules enabling users to overwrite specific segments from the chart of accounts. If defining only qualifier segments in the Account Derivation Rules tab, the rule assignment is not complete. Define an assignment for All Segments.

    Alternately, select a segment and build the Accounting Flexfield one segment at a time. A separate account derivation rule must be applied to each segment.

  11. If the business flow method is Same Entry for the journal line type, to inherit the value in the Segment field from one side (debit or credit) of the current entry to the other, select the Inherit check box.

    If this field is selected, the Rule Name, Owner, Description, and Side fields are blank.

  12. In the Rule Name field, select the account derivation rule to populate the complete Accounting Flexfield or a particular segment based on the value for the Segment field.

    The list of values includes all account derivation rules associated with the application for which the journal lines definition is created which meet the following conditions:

    The Owner and Description fields are automatically populated based on the account derivation rule selected.

    The list of values includes the following:

    Transaction Chart of Accounts Accounting Chart of Accounts Segment Rule Name
    Null Null All Segments List of values includes all account derivation rules with no transaction and accounting chart of accounts and if the output type of the account derivation rule is Flexfield.
    Null Null Accounting Flexfield Qualifiers List of values includes all account derivation rules with no transaction chart of accounts and if the output type of the account derivation rule is the Accounting Flexfield qualifier.
    Null Not Null All Segments List of values includes all account derivation rules with no transaction and null or the same accounting chart of accounts as used by the accounting application definition and if the output type of the account derivation rule is All Segments.
    Null Not Null Segments List of values includes all account derivation rules with no transaction chart of accounts and the following:
    - no accounting chart of accounts if the output type has the same segment
    - no accounting chart of accounts, and whose output type is value set and that have the same value set as the one used by the Accounting Flexfield segment
    - same accounting chart of accounts, and whose output type is segment and that have the same segment as the one selected in the Segment field
    Not Null Null All Segments List of values includes all account derivation rules with the same transaction chart of accounts used by the journal lines definition or no transaction chart of accounts and no accounting chart of accounts and whose output type is Flexfield.
    Not Null Null Accounting Flexfield Qualifiers List of values includes all account derivations rules with the same transaction chart of accounts used by the journal lines definition or no transaction chart of accounts and no accounting chart of accounts and whose output type has the same segment qualifier as the one selected in the Segment field.
    Not Null Not Null All Segments List of values includes all account derivation rules with the same transaction chart of accounts used by the journal lines definition or no transaction chart of accounts and no accounting chart of accounts or the same accounting chart of accounts used by the journal lines definition and whose output type is Flexfield.
    Not Null Not Null Segments List of values includes all account derivation rules with the same transaction chart of accounts used by the journal lines definition or no transaction chart of accounts and the following:
    - no accounting chart of accounts and whose output type has an Accounting Flexfield qualifier that matches the one assigned to the segment
    - no accounting chart of accounts and whose output type has a value set that matches the value set used by the segment
    - same accounting chart of accounts and whose output type is the same segment
  13. Select the Supporting References tab to assign a supporting reference to the journal line type.

  14. In the Name field, select the appropriate supporting reference.

    The Owner and Description fields are automatically populated based on the supporting reference selected.

Upgrade Account Derivation Rules Tab

Users can enter account derivation rules for Prior-Entry business flow journal line types referring to non-upgraded journal entries. This tab is displayed only for federal installation when the FV: Federal Enabled profile option is enabled.

See: Profile Options, Oracle U.S. Federal Financials Implementation Guide

To Copy a Journal Lines Definition

See: Copy and Modify Functionality

the picture is described in the document text

Selected Fields in the Copy Journal Lines Definition Window
Field Description
Transaction Optionally, if the journal lines definition that is being copied has no transaction chart of accounts assigned to it, select a transaction chart of accounts; otherwise, the transaction chart of accounts defined in the Journal Lines Definitions window defaults to this field.
Accounting Optionally, if the journal lines definition that is being copied has no accounting chart of accounts assigned to it, select an accounting chart of accounts; otherwise, the accounting chart of accounts defined in the Journal Lines Definitions window defaults to this field.

Note: If there is no accounting chart of accounts, users cannot copy the journal lines definition to a specific chart of accounts if qualifiers used in the account derivations rules do not have a segment in the new accounting chart of accounts.

Copy Line Assignments Copies all line assignments to the journal lines definition
Display After Copy Automatically displays the new journal lines definition

Copying Journal Lines Definitions Across Chart of Accounts

You cannot copy the Journal Line Definitions (JLD) across Chart of Accounts as the line assignments are dependent on the Transaction and Accounting Chart of Accounts. For example, two Journal Line Types (Test Item Expense and Test Item Liability) are created with both the Transaction and Accounting Chart of Accounts (COA) as Operations Accounting Flex. And, two Account Derivation Rules (Test Item Expense Rule and Test Item Liability Rule) are defined with the same Transaction and Accounting chart of account attached to it.

Now define the journal lines definitions with different Transaction and Accounting chart of account, with Services Accounting Flex, then the above two journal lines definitions and account derivation rules are not available in the Line Assignments or the Account Derivation Rules tab. Therefore, when you define the journal lines definitions (Test Accrual) with the Transaction and Accounting chart of account as same as the above journal lines definition and account derivation rules that is Operations Accounting Flex and assign the two journal lines definitions and account derivation rules respectively.

The same rule applies to the Copy functionality. When you copy the journal lines definitions along with the Line Assignments, you cannot change the Transaction and Accounting chart of accounts because the copied journal line definitions and account derivation rules are created with the Transaction and Accounting chart of account of the old Journal Lines Definition. To copy the Journal Lines Definition with different Transaction and Accounting Chart of Account, then copy the Journal Lines Definition without enabling the Copy Line Assignments option. In this case, the application copies only the header information without line assignments and you can enter different Transaction and Accounting Chart of Accounts such as Services Accounting Flex.

Multiperiod Accounting

Multiperiod accounting enables users to create accounting for a single accounting event for more than one GL period. The functionality is primarily used to recognize revenue or a prepaid expense or revenue across multiple GL periods.

Multiperiod Accounting Process

The figure below is described in Multiperiod Accounting Process Steps.

Multiperiod Accounting Process Flow

the picture is described in the document text

Multiperiod Accounting Process Steps

The multiperiod accounting process includes the following steps:

  1. In the Journal Line Accounting Attributes Assignments window, assign sources for the following accounting attributes:

    See: To Define Journal Line Types

  2. In the Journal Line Types window, define the journal line types to be used for multiperiod accounting by setting the multiperiod option.

    See: To Define Journal Line Types

  3. In the Journal Lines Definitions window, complete the following:

    See: Journal Lines Definitions

  4. In the Line Assignments window, define the multiperiod line assignments as follows:

  5. Create transactions in subledger applications.

    For example, a company may receive a Payables invoice in January for the cost of services for a whole year. However, the company must recognize the expense during the period the expense is incurred. The company enters the originating invoice in Payables to record its receipt.

  6. Submit the Create Accounting program to create the originating journal entry as well as the multiperiod entries.

  7. Periodically, submit the Complete Multiperiod Accounting program to complete incomplete recognition journal entries as their periods become open.

  8. Once the multiperiod journal entries are processed, view the multiperiod journal entries in the inquiry pages for subledger journal entry headers, subledger journal entry lines, and accounting events.

Multiperiod Accounting Example

A company must prepay rent for the year. $1,200,000.00 must be paid on December 31, 2005. However, the company needs to recognize the expense over a twelve month period as shown in the table below.

Total Expense / Number of Months = Amount Recognized Each Month
$1,200,000.00 / 12 = $100,000.00

Assume that the multiperiod accounting duration is from 1-Jan-06 to 31-Dec-06 and that the multiperiod accounting options are as follows:

The table below describes the schedule to expense $100,000.00 each month over the next twelve months.

Period Amount
January 2006 $100,000.00
February 2006 $100,000.00
March 2006 $100,000.00
April 2006 $100,000.00
May 2006 $100,000.00
June 2006 $100,000.00
July 2006 $100,000.00
August 2006 $100,000.00
September 2006 $100,000.00
October 2006 $100,000.00
November 2006 $100,000.00
December 2006 $100,000.00

The following journal entry is created with GL Date 31-DEC-2005 to record the prepaid rent expense.

Account Entered DR Entered CR Account DR (USD) Account CR (USD)
Prepaid Rent Expense $1,200,000.00   $1,200,000.00  
Liability   $1,200,000.00   $1,200,000.00
Total: $1,200,000.00 $1,200,000.00 $1,200,000.00 $1,200,000.00

The following journal entry with GL date 01-JAN-2006 recognizes the rent expense for January.

Account Entered DR Entered CR Account DR (USD) Account CR (USD)
Rent Expense $100,000.00   $100,000.00  
Prepaid Rent Expense   $100,000.00   $100,000.00
Total: $100,000.00 $100,000. $100,000.00 $100,000.00

During the ensuing eleven months, the journal entry shown in the table above will be created to recognize the monthly rent expense as it is incurred.

Defining Multiperiod Accounting

Prerequisites

Define the following:

To Define Multiperiod Accounting

the picture is described in the document text

  1. In the Line Assignments region of the Journal Lines Definitions window, select the accrual journal line type which will create the originating entry and click Multiperiod Accounting.

    The Definition Name and Journal Line Type fields default from the Journal Lines Definitions window.

  2. Enter data as described in the table below.

    Field Description
    Header Description Description for the header of recognition entries
    Number of Journal Entries Number of multiperiod journal entries to be created. Options are:
    • One: One multiperiod journal entry is created to recognize the entire accrual amount.

      Note: If this option is selected, it is not possible to select a proration type since only one journal entry is created for the entire accrual amount.

    • One per GL Period: One multiperiod journal entry is created per GL period between the dates defined by the multiperiod start and end date accounting attributes.

    GL Dates Specifies when the multiperiod journal entries are created in the GL period

    Note: If a transaction calendar is assigned to the ledger, Subledger Accounting uses this calendar to ensure that the multiperiod accounting journal entries fall on business days.


    Options are:
    • First Day GL Period: Multiperiod journal entries have a GL date of the first day of the period. For example, if a company uses monthly periods, the date is October 1.

    • Last Day GL Period: Multiperiod journal entries have a GL date of the last day of the period. For example, if a company uses monthly periods, the date is October 31.

    • Originating Day: Multiperiod entries have the same GL date as the originating journal entry. For example, if the originating entry has a GL date of October 22, the multiperiod entries have GL dates of the 22nd of the ensuing GL periods, such as November 22 and December 22.

      Note: If the Originating day option is selected and the originating entry falls on a date that does not occur in every GL period, the closest day within that period is used. For example, if the originating entry has a GL date of October 31, the next multiperiod journal entry would have a GL date of November 30.

    Proration Type Specifies how the recognition amount per period should be calculated. Options are:
    • 360 days: Partial periods calculated by assuming 360 days in a year

    • Days in Period: Partial periods calculated by dividing the number of partial period days by the actual number of days in the period

    • First Period: Accrual amount divided by the number of periods and recognized evenly starting with the first period

    • Total Days in Period: Both the partial periods and the whole periods are based on the actual number of days in the period. The number of days within each period is then divided by the total number of days in the whole multiaccounting period. The result is then multiplied by the total amount due to arrive at an amount for each respective period.

  3. Click Line Assignments.

    The Definition Name, Owner, accrual Journal Line Type, and Line Description fields default from the Journal Lines Definitions window.

    The first accrual journal line creates a mirror image of the original accrual line, reversing the impact of the original journal entry to the same General Ledger account. Users cannot change this journal line type or the account derivation rules for it.

    The Inherit check box for the description defaults from the Inherit check box in the Journal Lines Definitions window for the accrual journal line type. If selected, users can deselect the check box and assign a new description.

  4. To assign journal line types to create the recognition journal line, enter data as described in the table below.

    Selected Fields in the Line Assignments Window
    Field Description
    Journal Line Type Select the corresponding recognition journal line type. The list of values includes only recognition journal line types with the same natural side and event class as the accrual journal line type.
    Name (Account Derivation Rule region) The Owner and Description fields default based on the rule selected.

Accrual Reversals

Use accrual reversal to define how and when accrual reversals are automatically performed. You can:

Accrual Reversal Process

The diagram below shows the accrual reversal process and is described in the Accrual Reversal Process Steps.

the picture is described in the document text

Accrual Reversal Process Steps

  1. 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:

    Note: Users can override the accrual reversal GL date accounting attribute values on the journal entry header in the Application Accounting Definitions window.

  2. Create an accounting event in the subledger application.

  3. 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 GL date of the accrual reversal journal entry and the End GL Date specified in the Create Accounting request parameters as described in the table below.

    GL Date Open or Future Entry GL Period Closed or Permanently Closed GL Period Never Opened GL Period
    The GL Date of the accrual reversal is on or before the End GL Date in the mode specified in the Create Accounting request Creates the journal entry with the status specified in the Create Accounting request
    • Adjusts the GL date to the next open period

    • Creates the journal entry with an adjusted GL date in the mode specified in the Create Accounting request if the GL date is prior to the end date of the request or with an incomplete if the date is after the end GL date of the request

    • Adjusts the GL date to the next open GL period

    • Creates the journal entry with an adjusted GL date in the mode specified in the Create Accounting request if the GL date is prior to the end date of the request or as incomplete if the date is after the end GL date in the Create Accounting request

    GL Date of the accrual reversal is after the END GL Date specified in the Create Accounting request Creates the journal entry with an incomplete status
    • Adjusts the GL date to the next open GL period

    • Creates the journal entry with an adjusted GL date in the mode specified in the Create Accounting request if the GL date is prior to the end date of the request or with an incomplete status if the date is after the end GL date of the request

    • If no open GL period is found, creates the journal entry with an error status

    Creates the journal entry with an incomplete status

    See: Setting Up Subledger Accounting Options

  4. 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.

    Once an accrual reversal or multiperiod journal entry is completed, it is sequenced and appears on reports and inquiries.

    See: To Complete Multiperiod Journal Entries and Accounting Reversals

  5. View accrual reversals.

    See: Subledger Journal Entry Lines Inquiry and Subledger Accounting Events Inquiry Overview

Accrual Reversal Examples

The following examples describe how accrual reversals are scheduled and entered in journals.

Example 1

A company receives materials worth $100 on the 30th of the month but has not been invoiced. The following journal entry is created when the material is received to record the accrual.

Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)
Accrual Expense 100.00   100.00  
Accrual Liability   100.00   100.00

The accrual reversal GL date is First Day Next GL period and the following journal entry is created to reverse the accrual.

Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)
Accrual Liability 100.00   100.00  
Accrual Expense   100.00   100.00

Example 2

Futures trading requires a margin account that is market-to-market on a daily basis. This means that the investor or ledger's gains or losses on the position are reflected on a daily basis. If the margin account drops below a specified amount (the maintenance of the margin), a margin call is issued. This requires the holder of the account to replenish the account to the initial margin level or close out the position. In this scenario, the investor or ledger must mark the account to market each day and the entry booked from the day before may need to be reversed to reflect the new position.

The following journal entry is created on June 1, 2006.

GL Date: 01-Jun-2006
Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)
Loss 100.00   100.00  
Margin Liability   100.00   100.00

The Accrual Reversal GL Date is set to Next Day and the following journal entry is created to reverse the journal entry from June 1.

GL Date: 02-Jun-2006
Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)
Margin Liability 100.00   100.00  
Loss   100.00   100.00

On June 2, a new journal entry is created to reflect the new position, which will be reversed on June 3.

GL Date: 02-Jun-2006
Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)
Loss 105.00   105.00  
Margin Liability   105.00   105.00

On June 3, the following journal entry is created to reverse the accrual from June 2.

GL Date: 03-Jun-2006
Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)
Margin Liability 105.00   105.00  
Loss   105.00   105.00

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.

Enter parameters as described in the table below.

Parameter Description
Ledger Limits incomplete journal entries selected for processing to those of the selected ledger; required
Process Category Restricts events for accounting to the selected category
End GL Date End date for processing all incomplete journal entries; required
Errors Only Limits the completion of journal entries to those processed in error; required
Report Determines whether to print the report in summary or detail mode
Transfer to General Ledger Determines whether to transfer completed journal entries to General Ledger
Post in General Ledger Determines whether to post completed journal entries transferred to General Ledger
General Ledger Batch Name Batch name for General Ledger entries posted by the Multiperiod Accounting program

Application Accounting Definitions

Use application accounting definitions to assign journal lines definitions, supporting references, and header descriptions to event classes and event types.

Storing the accounting definitions validation status 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 the following:

You can assign multiple journal lines definitions to an event class or event type. Subledger Accounting generates a single journal entry per 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:

Sources are used by all of the above components.

The figure below shows the relationship of the components to an application accounting definition as described in the above text.

Application Accounting Definitions

the picture is described in the document text

Application accounting definitions enable you to meet the subledger accounting requirement of multiple accounting representations. While one application accounting definition can generate subledger journal entries that are compliant with one particular set of accounting requirements, another definition can be defined to meet a completely different set of accounting requirements.

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 can be used for the ledger French Operations. These two sets of 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 startup accounting definitions, users can copy and modify the seeded definitions and their assignments.

The Applications Accounting Definitions (AAD) Loader enables users 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.

Defining an Application Accounting Definition

Use the Application Accounting Definitions window to assign header descriptions and journal lines definitions to the event classes and event types for a particular application.

Assign a header description to the event class or event type in the Header Assignments window.

Journal Lines Definitions can be assigned to the application accounting definition in the Application Accounting Definition window.

Prerequisite

Define the following:

To Define an Application Accounting Definition

the picture is described in the document text

Selected Fields and Buttons in the Application Accounting Definitions Window
Field and Button Description
Application Defaults from the application associated with the responsibility
Owner Automatically populated. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User.
Enabled If selected, makes this application accounting definition available
Accounting If selected, the following rules apply:
  • The application accounting definition can be assigned only to a subledger accounting method with the same chart of accounts.

  • Only those components, such as journal entry descriptions, defined with the same or no charts of accounts are available for assignment in the Header Assignments window.

    See: Transaction and Accounting Charts of Accounts

Validation Status Displays the validation status of the event class and event type. Values include:
  • Not Validated: The journal lines definitions assigned to the event class and event type have not been validated.

  • Valid: All the journal lines definitions assigned to the event class and event type have been successfully validated, and the underlying database package has been successfully created.

  • Invalid: The validation of the journal lines definitions assigned to the event class and event type failed for at least one of them, or the underlying database package could not be created because of a technical problem.


An application accounting definition can only be used to create subledger journal entries for a valid event class and event type. The Subledger Accounting program creates errors in the following cases:
  • For the event being processed, the associated event class and event type has an invalid status.

  • For the event being processed, the associated event class or event type is not included in the application accounting definition.

Create Accounting Select to create subledger journal entries for the accounting events associated with the event class and event type.
If this check box is deselected, no journal lines definitions can be assigned to the event class and event type. If any journal lines definitions are assigned to the event class and event type, this check box cannot be deselected.
Locked Controls whether the application accounting definition can be modified
Header Assignments Opens the Header Assignments window to assign a journal entry description and supporting references to the event class and event type of the application accounting definition and to view the accounting attributes associated with the journal entry header.

Note: Supporting references maintaining balances or with line level sources assigned to the details may not be used on journal entry headers.

Journal Lines Definition Name Assign ALL - event type journal lines definition to an event class and event type with ALL association in the application accounting definition and journal lines definitions window. List of values includes all journal lines definitions that meet the following criteria:
  • The event class and event type for the journal lines definition matches the ones being assigned to the application accounting definition.


Users can assign one or more journal lines definitions to the event class or event type. Subledger Accounting generates a journal entry per event and ledger using the line assignments from all journal lines definitions assigned to the event class and event type.
Validates Validates the application accounting definition

Copying and Modifying Application Accounting Definitions

See: Copy and Modify Functionality

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.

To Copy, Modify, and Validate Application Accounting Definitions

the picture is described in the document text

Selected Fields in the Copy to Window
Field Description
Chart of Accounts region The transaction and accounting charts of accounts default from the original application accounting definition. Note that if values have defaulted for these fields, they cannot be updated. However, if the original application accounting definition does not have a transaction or accounting chart of accounts, then users can enter them in this window.
If the charts of accounts are entered, then the following rules apply:
  • The new application accounting definition can only be assigned to a subledger accounting method with the same or no charts of accounts.

  • Only those components defined with the same or no charts of accounts, such as account derivation rules and journal line types, are available for assignment in the new application accounting definition.

    See: Transaction and Accounting Charts of Accounts

Include region Select the appropriate check boxes to copy the assignments associated with the original application accounting definition to the new one.

After modifying a component of an application accounting definition, its validated status changes to Not Validated. Validate the modified definition in the Application Accounting Definitions window. Once validated, use it to generate subledger journal entries.

Import Application Accounting Definitions

Application accounting definitions are imported using the Import Application Accounting Definitions concurrent program. This program imports the application accounting definitions from a data file to the Accounting Methods Builder (AMB) context specified in the SLA: Accounting Methods Builder Context profile option and produces a report of the results.

See: SLA: Accounting Methods Builder Context

When running the Import Application Accounting Definitions concurrent program, users specify whether to run the merge analysis, merge, or overwrite processes.

The main purpose of the Import Application Accounting Definitions program is to validate AAD. Run this program after applying any patch changing the rules, as it leaves the AADs invalid.

Import Application Accounting Definitions Program Parameters Description

The table below describes the parameters for the Import Application Accounting Definitions program.

Import Application Accounting Definitions Program Parameters
Parameter  
Accounting Methods Builder Context AMB context for the application accounting definitions to be imported; defaulted from the SLA: Accounting Methods Builder Context profile option; required
Source Data File Full path name, including the .ldt file name, of the data file containing the application accounting definitions to be imported; required
Path name example: /home/jdoe/out/APAAD.ldt

Note: At least one of the three source path names must be entered.

Source File Pathname for Base Application Valid source file path name
Source File Pathname for Budgetary Control Valid source file path name
Merge Analysis Only Determines whether merge analysis is performed to the imported application accounting definitions. Default is Yes.
Batch Name User-entered merge analysis report name
Import Option Enabled and required only if the Merge Analysis Only parameter is set to No; indicates whether the application accounting definitions from the data file should be merged or overwritten to the database. Default is Merge.
Validate Enabled and required only if the Merge Analysis Only parameter is set to No; determines whether the Validate Application Accounting Definitions concurrent program should be submitted to validate all the imported application accounting definitions. Default is Yes.
Force Overwrite Enabled and required only if the Merge Analysis Only parameter is set to No and the Import Option is Overwrite; indicates whether Subledger Accounting should allow an application accounting definition to be overwritten from the data file to the database if the version in the data file is lower than the version in the database. Default is No.

Import Application Accounting Definitions Report

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.

Export Application Accounting Definitions

The Export Application Accounting Definitions program exports all application accounting definitions of an application from a database to the file system and produces a report of the results. All application accounting definitions and journal entry setups for an application are exported to the same data file. When the application accounting definitions are exported, a new version is stamped on the application accounting definitions, mapping sets, and account derivation rules referenced by exported application accounting definitions.

Export Application Accounting Definitions Program Parameters

The table below describes the parameters for the Export Application Accounting Definitions program.

Export Application Accounting Definitions Program Parameters
Parameter Description
Account Method Builder Context AMB context for the application accounting definitions to be imported; defaulted from the SLA Accounting Methods Builder Context profile option; required
Destination File Path Full path name, including the .ldt file name, of the file system where the application accounting definitions are to be exported; required
Path name example: /home/jdoe/out/APAAD.ldt

Note: At least one of the three destination file path names must be entered.

Destination File Pathname for Base Application Valid file path name for the base application
Destination File Pathname for Budgetary Control Valid path name for the federal budgetary control
Versioning Mode Indicates whether the exported application accounting definitions are a result of leapfrogging. Select Standard if the AAD to be exported is based on the latest version; select Leapfrog if the AAD to be exported is not based on the latest version; or select Supersede if the AAD to be exported is not based on the latest version and is not a leapfrog. Default is Standard.
User Version User-assigned version; optional
Export Comment User-entered export comments; optional

Export Application Accounting Definitions Report

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.

Subledger Accounting Methods

Application accounting definitions that comply with a common set of accounting requirements can be grouped into a subledger accounting method. The grouping allows a set of application accounting definitions to be assigned collectively to a ledger. This reduces setup time and helps ensure a consistent method of accounting for all subledgers feeding into a particular ledger.

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 users to create multiple accounting representations of transactions.

See: Multiple Representations

To Define a Subledger Accounting Method

the picture is described in the document text

Note: Oracle recommends that users do not modify a seeded method or any other seeded component as it could get overwritten in an upgrade. Instead, copy a seeded component and then modify it appropriately. The modified component has an Owner type of User.

Selected Fields in the Subledger Accounting Methods Window
Field Description
Owner Automatically populated. For components seeded by Oracle, the value is Owner. For components created on site by users, the value is User.
When selecting component names from a list of values in AMB windows, users are presented with the name as well as the Owner of the component. This enables users to distinguish between seeded and user-defined components.
Enabled If selected, makes this subledger accounting method available for use
Chart of Accounts region

Note: The transaction and accounting chart of accounts are optional. If they are entered, then the following rules apply:

  • Only an application accounting definition with the same or no charts of accounts is available for assignment.

  • The accounting chart of accounts must match the chart of accounts of the ledger that this subledger accounting method is assigned to.

    See: Transaction and Accounting Charts of Accounts

Application Application that owns the application accounting definition for this subledger accounting method

Copy and Modify a Subledger Accounting Method

See: Copy and Modify Functionality

When a subledger accounting method is copied, the new method is assigned all the application accounting definitions and associated header and line components of the original subledger accounting method. For example, if the subledger accounting method US GAAP is copied to a new subledger accounting method called US Management, then all the components of the AMB associated with US GAAP are now also associated with US Management.

To customize any of the components associated with the new subledger accounting method, copy the relevant component or create a new one and associate it with the new subledger accounting method.

To Copy a Subledger Accounting Method

the picture is described in the document text

The Transaction and Accounting charts of accounts defaults from the original subledger accounting method. Note that if a value has defaulted for these fields, they cannot be updated. However, if the original subledger accounting method does not have a transaction or accounting chart of accounts, enter them in this window.

These entries serve as the charts of accounts for the subledger accounting method created. If entered, only components defined with the same or no charts of accounts are available for assignment to the new subledger accounting method. The accounting chart of accounts, if entered, must match the chart of accounts of the ledger that this new subledger accounting method is to be assigned to.

See: Transaction and Accounting Charts of Accounts

Accounting Definitions Inquiry

Accounting definitions inquiry enables users to:

Use this inquiry to plan and assess the impact of modifications to the application accounting definitions. For example, you may want to add the customer name to the journal entry description for cash receipts, but they are unsure whether the same journal entry description is being used for miscellaneous receipts which do not have an associated customer. In another scenario, you can change an account derivation rule to take the cost center from a mapping set based upon Oracle Projects expenditure types but are unsure whether the same account derivation rule is used for other cases in which the mapping set might not apply.

Accounting Definitions Inquiry Windows

Find Accounting Definitions Window

In the Find Accounting Definitions window, navigate to the following windows:

Accounting Definition Headers Window

In this window, navigate to the following windows:

Accounting Definition Lines Window

In this window, view the following:

From this window, navigate to the following windows: