Accounting Using Oracle Subledger Accounting
Overview
Oracle U.S. Federal Financials enables you to complete your accounting process using Oracle Subledger Accounting. Subledger Accounting is an intermediate step between each of the subledger applications and Oracle General Ledger. Subledger Accounting creates the final accounting for subledger journal entries and transfers the accounting data to General Ledger. It stores a complete and balanced subledger journal entry in a common data model for each business event that requires accounting.
Subledger Accounting provides a uniform approach to accounting and a common set of tools that enable you to configure accounting rules for applications that require accounting. It includes a common user interface and a set of programs that can generate accounting for Oracle and non-Oracle applications. When you set up rules in Subledger Accounting, you can define the types of lines, descriptions, and accounts to store on journal entries. Subledger Accounting partitions data by subledger application, while storing the information in a common model.
U.S. Federal Financials generates accounting events and the Create Accounting process of Subledger Accounting creates the subledger accounting entries for the accounting events.
See: Accounting Event Model Overview.
U.S. Federal Financials predefines setup for Subledger Accounting so that the create accounting process accepts the default accounting information from U.S. Federal Financials without change. Subledger Accounting transfers the final accounting to General Ledger. You can optionally define your own detailed subledger accounting rules to enable Subledger Accounting to create accounting entries.
Related Topics
Setting up Subledger Accounting,Oracle U.S. Federal Financials Implementation Guide
Predefined Data for Oracle Subledger Accounting,Oracle U.S. Federal Financials Implementation Guide
Oracle Subledger Accounting Implementation Guide
Accounting Event Model Overview
Accounting events represent transactions that have a financial accounting impact. Oracle U.S. Federal Financials generates accounting events for the business events that it processes. The create accounting process creates subledger accounting entries for the accounting events. The Transfer to General Ledger process transfers the accounting entries to General Ledger.
For example, a business event takes place when you create a Treasury Confirmation in U.S. Federal Financials. The Account Generator process then automatically creates accounting entries for the Treasury Confirmation. Next, the Subledger Accounting Create Accounting process creates accounting entries for these accounting events in Oracle Subledger Accounting. The Transfer Journal Entries to GL process then transfers the accounting data to Oracle General Ledger.
As the foundation of the event model, U.S. Federal Financials predefines the following event entities:
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Budget Execution
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Reprogram Budget Execution
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Treasury Confirmation
An event entity enables Oracle Subledger Accounting to handle the accounting for similar business events in a consistent manner. Each event entity is associated with one or more event classes. An event class represents a category of business events for a particular transaction type or document. For example, Oracle U.S. Federal Financials predefines the Treasury Confirmation Transactions event class for the Treasury Confirmation event entity.
Event classes group similar event types and enable sharing of accounting definitions. An event type represent a business operation that you can perform for an event class. An accounting event has both an event class and an event type that affect how the create accounting process determines the subledger accounting for it. Event types provide the lowest level of detail for storing accounting definitions. For example, the Treasury Confirmation Transaction event class is subject to three types of business operations that are represented by the following event types:
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Treasury Backout
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Treasury Confirm
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Treasury Void
Oracle U.S. Federal Financials provides a predefined set of event classes and event types for each accounting event entity. Oracle U.S. Federal Financials also predefines accounting event class options for each event class to specify the detailed information about the event class. For example, the accounting event class options specify the general ledger journal category and the balance type (actual, encumbrance, or budget) for each event class. In addition, accounting event class options specify a process category for each event class. Process categories are collections of one or more logically related event classes.
The create accounting process uses these accounting events to create accounting entries in Oracle Subledger Accounting.
Oracle U.S. Federal Financials also predefines Subledger Accounting Application Accounting Definitions which includes Account Derivation Rules in Payables, Purchasing, Costing, and Receivables subledgers. The subledgers use these account derivation rules to create additional accounting entries during activities recorded in those subledgers. These extra accounting entries are often budgetary in nature, but they can also be used with proprietary accounts.
For detailed information on the accounting entities, event classes, event types, process categories, accounting event class options, , Application Account Definitions and Account Derivation Rules that Oracle U.S. Federal Financials predefines.
Understanding the Treasury Confirmation Accounting Event Entity
Oracle U.S. Federal Financials predefines a set of event classes and event types for the Treasury Confirmation accounting event entity. The following figure illustrates the event classes and event types for the Treasury Confirmation accounting event entity.
As illustrated in the figure Event Entity: Treasury Accomplishment, the Treasury Backout, Treasury Confirm, and Treasury Void event types are associated with the Treasury Confirmation event class.
Oracle U.S. Federal Financials generates accounting events for the Treasury Accomplishment event class when you enter and confirm the payment. The application reverses the treasury payment accounting when you backout the payment due to data entry error. Additionally, Oracle U.S. Federal Financials creates accounting for voided payments.
Treasury Confirmation Process Flow
The treasury confirmation process includes the following steps:
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Enter the payment process request in Oracle Public Sector Payables and create a payment instruction in Oracle Payments.
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Send the payment file to Treasury for payment.
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Treasury sends back the Agency Confirmation report.
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Enter and confirm the Department of Treasury payment information in the Treasury Confirmation and Reconciliation window. If an offset occurs, you can enter Offset information from Treasury before confirming the payment in this window.
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When you confirm, Oracle U.S. Federal Financials submits the Disbursement in Transit Transactions Confirmation process to create the needed accounting. Oracle Subledger Accounting creates the accounting using the predefined subledger accounting rules.
Oracle U.S. Federal Financials enables you to reverse the journal entries created by the confirmation in case of data corrections. You click Backout in the Treasury Confirmation and Reconciliation window, which submits the Disbursement in Transit Transactions Backout process to reverse the accounting created by the confirmation. Oracle Subledger Accounting reverses the accounting using the predefined subledger accounting rules. You can enter the corrected data and confirm the payments again. Your confirmation again initiates the Disbursement in Transit Transactions Confirmation process to create the needed accounting.
If a payment is voided after the payment has been confirmed, you must submit the Disbursement in Transit Voided Checks process to create accounting for the voided payments. Oracle Subledger Accounting reverses all journal entries for payments that have been voided.
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To transfer the subledger journal entries to General Ledger, you must submit the Transfer Journal Entries to GL process.
Related Topics
Predefined Data for Oracle Subledger Accounting,Oracle U.S. Federal Financials Implementation Guide