7Subledger Accounting

This chapter contains the following:

Overview of Manage Subledger Accounting

In the Manage Subledger Accounting activity, you can generate journal entries for source system transactions, create adjustment entries, and review accounting results.

You can:

  • Create accounting for a batch of transactions by submitting an offline process.

  • Create manual adjustment entries.

  • Review generated journal entries and projected balances on views and reports.

Upload Transaction Data

Upload Transaction Data for Accounting

Watch video

Watch: This video tutorial shows you how to import source system transaction data into Accounting Hub. This process imports transaction data, creates accounting events and subledger journal entries for events with accounting impact. The content of this video is also covered in text topics.

Procedure

In this procedure, you import transaction data for use in accounting for subledger journal entries.

Populate the Transaction Template

Navigate to the Manage Journal Entry Rule Set page.

  1. Click the Setup and Maintenance tile on the home page.

  2. Click the Implementation Projects button.

  3. Search for the FAH Implementation project.

  4. Expand the task list: Define Accounting Configuration for Rapid Implementation.

  5. Select the task: Manage Subledger Application.

  6. Click Go to Task.

Download the transaction template spreadsheet.

  1. Click Download Template button.

  2. Save File: Save the file on a local drive.

  3. Click OK.

  4. Click Save.

  5. Open Windows Explorer.

  6. Select the .zip file.

  7. Click Extract all files (or extract using the method provided on your local version.)

  8. Preview the metadata file. The metadata file contains details including creation date, application short name and required date format.

  9. Open and populate the header transaction file: XlaTrxH.xls.

    This figure illustrates the header transaction file.

    This figure illustrates the header transaction
file.
  10. Open and populate the line transaction file: XlaTrxL.csv

    This figure illustrates the line transaction file.

    This figure illustrates the line transaction file.
  11. Select and compress the three files.

    • The file names must remain the same as the downloaded files.

    • As a best practice, Oracle recommends that the .zip file has a unique name that includes a subledger source and date stamp.

    • The .zip file name must begin with XlaTransaction.

Upload the Transaction Template

Return to the Oracle Accounting Hub to upload the compressed transaction file.

  1. Click Navigator.

  2. Click Files Import and Export.

  3. Click Create icon.

  4. File: Browse for the compressed file.

  5. Account: Select the account fin/fusionAccountingHub/Import.

  6. Click Save and Close.

  7. View the file upload information to verify file uploaded.

Import the Transaction Data

The next step is to import the transaction data. This process creates accounting entries. Accounting rules definition is a prerequisite setup for successfully creating accounting entries

  1. Click Navigator.

  2. Click Scheduled Processes.

  3. Click Schedule New Process.

  4. Search and select Name: Import Accounting Transactions.

  5. Click OK.

  6. Select Data File = your uploaded file name beginning with XlaTransaction.

  7. Click Submit.

  8. Click OK.

  9. Click Refresh until the process completes.

View the Transactions

View the transaction that you imported in the subledger application.

  1. From the Home page select General Accounting > Journals.

    • You must select the appropriate Data Access Setto view your transactions.

  2. Open the Task Pane.

  3. Select Subledger Accounting > Review Subledger Journals task.

  4. Search Ledger.

  5. Search Journal Source.

  6. Search Accounting Date.

  7. Select Journal line.

  8. In the Journal Entry Details region, click the View Journal Entry button to view the details of the journal entry.

  9. Click the View Transactions button to drill down to view the transaction data.

View the transactions that you imported in the general ledger.

  1. From the Home page select General Accounting > Journals.

  2. Open the Task Pane.

  3. Select Manage Journals task.

  4. Search Source.

  5. Search Batch Status.

  6. Click Search.

  7. Click the Journal Batch link to view the details of the journal.

  8. Click the Debit account link to view the details for the debit side of the journal line.

  9. Click the View Journal Entry to view the transaction associated with the journal entry.

Upload Transaction Data for Accounting Hub

After completing the registration of the source system and the configuration of the accounting rules, you can perform a spreadsheet upload of transaction data. You can upload the transaction data with a manual or an automated process.

This figure illustrates the upload transaction data processes, whether they are to be executed manually or automated.

This figure illustrates the upload transaction
data processes, whether they are to be executed manually or automated.

Manually Upload Transaction Data

To upload the transaction data manually, follow these sequential steps:

  1. Download the transaction data template using the Manage Subledger Application task.

  2. Extract the three files contained in the downloaded template.

    1. Metadata.txt

      • The metadata file contains find key information about the source system. It also contains related information that you must know when populating the transaction spreadsheet for upload. For example, the required data format.

        This Metadata file includes:

        • Creation date

        • Application short name

        • Date format

        • Transaction header file name

        • Transaction line file name

    2. XlaTrxH.csv

      • This file contains the header-level columns for the transaction data that can be populated.

      • The column names match the short name of the sources that were included in the Transaction Information worksheet during the registration of your source system.

      • One column that is available in the header and line file is the Transaction Number. The Transaction Number links the header and its corresponding lines information.

    3. XlaTrxL.csv

      • This file contains the line-level columns for the transaction data that can be populated.

      • The column names match the short name of the sources that were included in the Line Information worksheet during the registration of your source system.

  3. Populate the header and line CSV files.

  4. Compress the three files using a Zip file format.

    • The name of the .zip file must begin with XlaTransaction.

    • To uniquely identify the file, we recommend you suffix the file with the subledger source name and date. For example: XlaTransactionRetailLoan050417.zip.

  5. Upload the .zip file into Universal Content Management.

    Caution: You must assign the Accounting Hub Integration Duty Role to a user-defined job role to perform this step. In addition, you must ensure that the user is also assigned the General Accounting Manager job role. Otherwise, you must add the Upload Data for Accounting Hub Import role to the job role.

    Alternatively, you can assign the Subledger Accounting Duty and Subledger Accounting Reporting Duty roles to any of the following general ledger job roles:

    • Chief Financial Officer

    • Controller

    • Financial Analyst

    • General Accountant

    • Navigate: Navigator > Tools > File Import and Export.

    • Click Create.

    • Browse for the compressed file.

    • Select account: fin/fusion/AccountingHub/Import.

    • Save and Close.

    • View the file upload results in the Search Results region.

  6. Submit the Import Accounting Transactions process.

    • Navigate: Navigator > Scheduled Processes.

    • This process imports accounting transactions from Universal Content Management, creates accounting entries and posts the journal entries to the general ledger.

    Optionally, you can choose to upload the transaction data to the interface tables, import transaction data from the interface tables, and create accounting as separate processes. To do this, you enable the Flexible Configuration of Accounting Hub Cloud Service feature. Refer to the Advanced Features for Importing Transaction Data to Accounting Hub: Explained topic for details.

If there are invalid entries, query journal entries with Invalid status from the Review Journal Entries task, view the transaction, and correct the errors directly. Refer to the Correcting Accounting Hub Transaction Data for Invalid Entries: Explained topic for details.

Note: Error correction is dependent on the dependent on the Update Subledger Transactions privilege. You can remove or add the privilege per your company's policy.

The uploaded transaction data is kept in the Accounting Hub Cloud for 90 days. Exceptions include:

  • Transactions that are used to create multiperiod accounting entries. This type of transaction is kept until the end date of the multiperiod duration.

  • Unaccounted transactions. These transactions are not purged, even if they are more than 90 days old.

Automated Processing Options

Automated processing options are available to bring the transaction data files from the registered source systems into Accounting Hub. This includes data from other external sources, such as other company-specific applications, transaction applications, or legacy applications. Optionally, data transformation processing may be required for data sourced from PaaS or other external files.

  • Transaction data in CSV format are imported into Accounting Hub using the Universal Content Management with one of three available integration options:

    • Oracle WebCenter Content Document Transfer Utility

    • Oracle UCM Web Services

    • ERP Integration Service, upload to UCM

  • Import the transaction data using the Import Accounting Transactions process.

  • The Create Accounting process is automatically called, resulting in the creation of journal entries.

For more information about automated processing options, see the following resources in the Oracle Help Center:

  • Oracle Fusion Middleware Developer's Guide for Content Server: Using Oracle UCM Web Services

  • Oracle Integration Cloud Service

  • Oracle Accounting Hub Best Practice guide

Upload Encrypted Data

You can use data encryption to secure data files sent to the Accounting Hub Cloud Service. In this case, the Import Accounting Transactions process decrypts the data files using the Cloud private key and then starts the load and import process.

Here are the steps to upload encrypted transaction data:

  1. On the Certificates tab of Security Console, generate a PGP public and private key pair. Then, export the Cloud public key.

  2. In an external encryption utility, you generate the customer side key pair by using the Cloud public key.

  3. Export the customer public key.

  4. On the Certificates tab of Security Console, import the customer public key.

  5. In an external encryption utility, encrypt the transaction data ZIP file using the Cloud public key.

  6. When uploading the encrypted .zip file into UCM, provide encryption details in the Comments field in the following format:

    FileEncryption=PGPUNSIGNED,FA_ALIAS=CLOUD_KEY,CUSTOMER_ALIAS=YOUR_KEY

    Where, CLOUD_KEY is the Cloud public key alias, YOUR_KEY is the customer public key alias.

    Note: You can provide the comments using the AppendFileComment operation of the ERP Integration Service or through WebCenter Content Server.

Testing

Once the setup is complete, testing should be comprehensive to ensure that all accounting is correctly generated.

At a minimum, this should include testing for the following:

  • Sources are available for creating subledger journal entries.

    • Review available sources from the Manage Sources user interface.

    • Confirm that when you configure accounting rules, sources are available for use.

  • Subledger journal entries accurately reflect the accounting rules.

We also suggest that you test the following:

  • Subledger journal entries contain the appropriate dates, amounts, descriptions, and accounts.

  • Conditions used to determine journal line rules, account rules, or descriptions are valid.

  • Subledger journal entries are successfully transferred and posted to general ledger and reflected in subledger accounting balances.

Note: To perform detailed diagnostics on the underlying transaction sources used to accounting journal entries, follow the Subledger Accounting diagnostic framework business process flow. See the Diagnose Subledger Accounting Event Data: Explained topic for details.

Gain Insight Using Journal Entries

Once you have the accounted subledger journal entries in Accounting Hub, you can use the posted journal entries to gain insightful information.

  • To streamline period close activities, perform a reconciliation of subledger journal entries with the posted journal entries in the GL or the source system, on a regular basis.

    • Review the supporting references report that tracks specific accounts in the subledger. Reconcile with the same account in the general ledger.

    • The Supporting References report is a user-defined analysis using OTBI subject areas; Subledger Accounting - Journals Real Time, and Subledger Accounting - Supporting References Real Time.

  • Review the accounting reports to gain insight on your current business performance with the configured analytical metrics, such as supporting references.

  • Perform queries on specific accounts in the general ledger and drill down to its corresponding subledger journal entries and transaction data.

Advanced Features for Importing Transaction Data to Accounting Hub

You have the flexibility to upload transaction from Universal Content Manager to the interface table, import accounting transactions from the interface table, and create accounting as three separate processes. For example, you can choose to split a large batch of accounting transactions into multiple data files and import them to interface table separately. After all the files are uploaded, you can submit the Import Accounting Transactions from Interface process to import all transactions into Accounting Hub and create accounting. Optionally, you can create accounting using the Create Accounting process at a later stage.

To have such a flexibility for importing transaction data, you have to do these tasks:

  • Enable the Flexible Configuration of Accounting Hub Cloud Service feature.

  • Download and use the updated transaction template.

  • Configure parameters for the Import Accounting Transactions process.

  • Configure parameters for the Import Accounting Transactions from Interface process.

Enable the Flexible Configuration of Accounting Hub Cloud Service Feature

Following are the steps to enable the Flexible Configuration of Accounting Hub Cloud Service feature:

  1. Go to the Setup and Maintenance work area.

  2. Select the option for Accounting Hub as the setup.

  3. Click the Change Feature Opt In link.

  4. Click the Features icon for Accounting Hub.

  5. Select the Enable icon for the Flexible Configuration of Accounting Hub Cloud Service End to End Flow feature.

Configure Parameters for the Import Accounting Transactions Process

The following table describes the parameters you can configure for the Import Accounting Transaction process:

Parameter Description

Import from Interface

Select whether to upload transaction data to the interface table and import transaction from interface to Accounting Hub in a single step.

Choose Yes if the transaction data for an import set is in a single data file.

Choose No if the transaction data for an import set is split into multiple data files. In this case, you can wait until all the transaction data is imported to the interface table and then submit the Import Accounting Transaction from Interface to import the transactions to Accounting Hub.

Import Set

The group of transactions that are processes together. If this information is not entered, each data file is considered a single import set.

Create Accounting

Select whether to submit create accounting process after transactions are imported from the interface table.

Report Style

Select the format in which the report output is generated.

Transfer to General Ledger

Select whether to transfer the subledger journal entries to General Ledger.

Post in General Ledger

Select whether to post subledger journal entries in General Ledger.

Update Subledger Balances

Select whether to submit update subledger account balances process to update supporting reference balance after create accounting process is complete.

Configure Parameters for the Import Accounting Transactions from Interface Process

You use the Import Accounting Transaction from Interface process to import transaction data from interface tables into Accounting Hub. For example, you may choose to load transactions to interface tables without triggering the import in the same run. Later, you can use the Import Accounting Transactions from Interface process to import these transactions.

The following table describes the parameters you can configure for the Import Accounting Transaction from Interface process:

Parameter Description

Subledger Application

Select the subledger application for which you want to import accounting transactions from interface table and create accounting.

Import Set

The group of transactions that are processes together. If this information is not entered, each data file is considered a single import set.

Create Accounting

Select whether to submit create accounting process after transactions are imported from the interface table.

Report Style

Select the format in which the report output is generated.

Transfer to General Ledger

Select whether to transfer the subledger journal entries to General Ledger.

Post in General Ledger

Select whether to post subledger journal entries in General Ledger.

Update Subledger Balances

Select whether to submit update subledger account balances process to update supporting reference balance after create accounting process is complete.

Validations for the Import Accounting Transactions Process

To ensure that the transaction data is uploaded correctly and without any errors, you need to review it before uploading. You should check for the following elements while reviewing the transaction data.

  • The .zip file

    • The name of the .zip file must begin with XlaTransaction.

    • There is exactly one metadata file in the .zip file.

    • The header and line transaction files exist in the .zip file.

  • Metadata

    • The header and line transaction files are specified in the metadata file.

    • The metadata file contains a valid application short name.

    • The metadata file specifies the date format.

  • Header transaction file

    • The header file contains the source header row.

    • All the sources or the column names in the header row are valid.

    • The source header row of the header transaction file contains Transaction_number, Transaction_type, and Ledger_name.

    • All headers have at least one line.

    • The number of transaction entries created is same as the number of headers.

    • The number of events created is same as the number of headers.

  • Line transaction file

    • The line transaction file contains the source header row.

    • The source header row of the line transaction file contains Transaction_number.

    • All lines have at least one header.

  • Ledger setup

    • The ledger is setup in subledger accounting.

    • The ledger is allowed to process events. Do not use reporting or secondary ledgers with the valuation method disabled.

    • The ledger and even type details are valid.

  • Data type

    • The date and number columns are in the correct format.

Create Accounting

Subledger accounting options define how certain accounting processing should be done for transactions of a given subledger at a ledger level. These options are set up for the primary and secondary ledgers only.

Manage Subledger Accounting Options

This task is accessed from the Setup and Maintenance work area. The page is displayed in the context of a primary or secondary ledger. All registered subledger applications are displayed. If you created additional accounting event classes after initial ledger setup, run the Update Subledger Accounting Options process to incorporate these event classes.

The Manage Subledger Accounting Options task provides the ability to edit:

  • Accounting Options

  • System Options

Edit Accounting Options

This page displays the subledger accounting options for the ledger. You can review and update the options. The view for this page depends on the subledger application type and the ledger type (primary or secondary).

The views are as follows:

  • The Defaults and Ledger options view displays the accounting program defaults and the event class options for the following:

    • A primary ledger for a subledger application.

    • A secondary ledger for a subledger application.

  • The Ledger options view displays the event class options for a subledger application, and secondary ledger.

General Options

  • Subledger Accounting Enabled

    This option is visible only for secondary ledgers in the ledger options view. Enable or disable the subledger application for the ledger. No entries are generated by subledger accounting for an application if subledger accounting is disabled for the secondary ledger.

  • General Ledger Journal Entry Summarization

    • This option determines whether subledger journal entries are summarized or grouped when they are transferred to General Ledger.

    This table contains the General Ledger Journal Entry Summarization options and a description of those options.

    Option Description

    Summarize by general ledger period

    Default option.

    Indicates that all subledger entry lines are summarized into a single general ledger entry if they have the same:

    • Accounting period

    • General ledger journal category

    • Account

    • Entered currency

    • Side

    • Balance type

    Disabled if the ledger uses daily balancing.

    The general ledger effective date defaults to the last date of the accounting period.

    Summarize by general ledger date

    Indicates that all subledger entry lines are summarized into a general ledger entry if they have the same:

    • Accounting date

    • General ledger journal category

    • Account

    • Entered currency

    • Side

    • Balance type

    The general ledger effective date is equal to the subledger accounting date.

    Group by general ledger period

    Indicates that all subledger journal entries with the same accounting period are grouped together.

    Each subledger journal entry line is transferred into the general ledger with the same granularity as the original lines.

    This option is available only for Oracle subledgers.

    Group by general ledger date

    Indicates that all subledger journal entries with the same accounting date are grouped together.

    Each subledger journal entry line is transferred into the general ledger with the same granularity as the original lines.

    This option is available only for Oracle subledgers.

  • Reversal Method

    Use the Reversal Method option to determine how the reversal subledger journal entries are generated in subledger accounting. The options are:

    • Switch debit and credit (default): reverses a debit for a credit and a credit for a debit.

    • Change Sign: The reversal entry keeps the same side as the original entry, but the sign is changed.

  • Enable Posting from Subledger

    Use the Enable Posting from Subledger option to enable or disable posting of subledger journals to GL.

    This option is selected by default and allows subledger users to:

    • Create subledger adjustment journals from UI or spreadsheet and post them to GL.

    • Create subledger journals from the import accounting transactions process and post them to GL.

    • Create subledger journals from the create accounting process and post them to GL.

    If you disable this option, subledger users can:

    • Create subledger adjustment journals from UI or spreadsheet and transfer them to GL but not post to GL.

    • Create subledger journals from the import accounting transactions process and transfer them to GL but not post to GL.

    • Create subledger journals from the create accounting process and transfer them to GL but not post to GL.

    Note: Users must have the Post to GL privilege to effectively use the Enable Posting from Subledger option. If you already have two segregated roles for subledger users and GL users, the users can continue to perform their roles.
  • Rounding Rule

    Use the Rounding Rule option to determine which option to use for rounding. Subledger accounting rounds to the minimum accountable unit or ledger currency precision.

    Tip: For examples described in the Rounding Rule Options table, assume that the precision is 2 and the minimum account unit is 0.01.

    This table contains the Rounding Rule options and a description of those options.

    Option Description

    Up

    Amount rounded up. For example, 5.983 (USD) is rounded to 5.99 (USD).

    Down

    Amount rounded down. For example, 5.988 (USD) is rounded to 5.98 (USD).

    Nearest

    Amount rounded to nearest number. However, if the difference between Up and Down options is equal, the amount is rounded up. For example, 5.985 (USD) is rounded to 5.99 (USD).

  • Third-Party Merge Accounting Options

    The reporting currency ledgers inherit the third-party merge accounting option from the primary ledger.

    This table contains the Third-Party Merge Accounting Options and a description of those options.

    Option Description

    Transfer of the third-party control account balances

    • Transfers the control account balance at the merge date, from the old third party to the new third party.

    • Reverses and rebooks the existing journal entries that occurred after the merge date.

    • In the case of a partial merge, transfers the balance that corresponds to the transactions that are part of the partial merge.

    Replace third party

    • Updates the existing journal entries by replacing the old third party and site with the new third party and site.

    None

    • No accounting effect.

Journal Categories Options

  • The table describes the event class option that can be overridden. Note that only the Journal Category event class can be overridden.

    This table contains the Journal Categories Options, and a description of those options.

    Option Description

    Journal Category

    Defined in the accounting rules for an event class. Any valid journal category defined in General Ledger can be used.

Edit System Options

The following three regions are available:

  • Create Accounting Processing Options

  • Event Class Options

  • Transfer to General Ledger Processing Options

Create Accounting Processing Options

  • Number of Create Accounting Workers

  • Processing Unit Size

    This table contains the Create Accounting Processing options and a description of those options.

    Column Name Description

    Processing Unit Size

    Approximate batch size for high volume general ledger transfer flow, and is also the general ledger import batch size. If not specified, the corresponding accounting processing unit size is used.

    • You can define the processing unit size to process a large number of items in one commit cycle. A processing unit is the number of transactions processed by the Create Accounting process in one commit cycle. Create Accounting processes the default processing unit size at the application level.

  • Stop at Error Limit

    • Maximum number of events allowed to fail before canceling account program.

    Note: In actual cases, the Create Accounting process may continue to process transactions even after the Stop at Error Limit is reached and may result in more errors than the error limit. This happens because transactions are processed in batches. If the application starts processing a batch, it continues to process all the transactions in the batch even if the Stop at Error Limit is reached.

Event Class Options

  • Event Class

  • Processing Unit Size

On the Manage Subledger Accounting Options page, you can select the subledgers for each ledger or ledger set, and specify the Processing Unit Size for each event class.

Transfer to General Ledger Processing Options

  • Number of General Ledger Transfer Workers

  • Processing Unit Size

Importing information from subledgers is done using subledger accounting. Posting from the subledger application transfers data to the general ledger interface and journal entry tables.

As part of your configuration, you can specify whether the Create Accounting process is to split the creation process into multiple workers (processors). The benefit of splitting the creation process is that:

  • Accounting can be generated more efficiently with more resources allocated to complete the process.

  • You can have multiple processors running in parallel to create the entries in a shorter period of time.

One restriction is the capacity of the hardware that is being used by the application. The more available processors, the more you can allocate to the Create Accounting process.

The decision for how many processors to use is made based upon expected volumes and the processing window. In other words, how much time is allocated to creating accounting. Accounting is often done as a nightly batch process, to facilitate application availability during work hours.

Dependencies exist between the overall completion status of the Create Accounting process and the workers. In general, the parent does not update to the Completed status until all the workers successfully complete.

The process that allows transfer of subledger journal entries to general ledger uses separate processing workers that are specialized in general ledger transfer. A lightweight general ledger transfer parent process is used to distribute the workload to the workers. To transfer entries even faster, you can have a number of parallel processing workers used for high volume general ledger transfer flow. If not specified, the corresponding accounting processors are used.

How You Submit Accounting Process

The Create Accounting process is an Oracle Enterprise Scheduler process. It can be submitted as a request from the Scheduled Processes Monitor window to create journal entries for a batch of events. It has input parameters that determine the execution mode and the selection criteria for events.

This figure illustrates the submission of the Create Accounting process.

This figure illustrates the Create Accounting submission
process submitted in the Scheduled Process Monitor and the Create
Accounting Document Mode API.

This table contains the parameters for the Create Accounting process as submitted in the Scheduled Processes Monitor window.

Prompt Description

Subledger Application

Source system for which the Create Accounting process is being executed.

Ledger

Ledger name for which the Create Accounting process is being executed.

Process Category

Selecting a process category indicates that all associated accounting event classes and their accounting event types are selected for processing.

End Date

End date puts a filter on the selection of events. Only events having an event date on or before the end date are selected for accounting.

Default value is current system date. If the process is scheduled to execute periodically, after the initial process, the End Date for each subsequent scheduled process is incremental.

Accounting Mode

Accounting mode; Draft or Final

Default value is Final.

Process Events

Adds other filter criteria for the Create Accounting process to select events:

All: Process all events.

Errors: Process only those events that have previously been processed in error.

Invalid Accounts: Process only those events that have previously been processed in error. Replace any invalid accounts with the suspense account.

Default value is All.

Report Style

Users can select the type of details to display on the execution report. The report can be printed in Summary, Detail, or No report.

Default value is Summary.

Transfer to General Ledger

Indicates whether the Create Accounting process should submit the Transfer to GL process; Yes, No.

Default value is Yes.

Post in General Ledger

Indicates if users, who have been granted the posting privilege, want to submit General Ledger posting; Yes or No.

Default value is Yes.

Journal Batch

Batch name used by Transfer to GL to decide on the batch name for the batch created in Oracle Fusion General Ledger.

When a value for the batch name is not provided, the journal import default is used.

Free text field.

Include User Transaction Identifiers

Default value is No.

Create Accounting Execution Report

When you submit the Create Accounting process, the Create Accounting Execution Report is submitted automatically if the Create Accounting process completes with a success or warning status. The Create Accounting process output contains a message with the Create Accounting Execution Report request identifier. Use this request identifier to retrieve the execution report output.

Create Accounting Execution Report

The Create Accounting Execution Report can be recreated.

This report can be recreated as needed using the following criteria:

  • Submit the Create Accounting process.

  • Use the same request identifier of the wanted Create Accounting process run previously by the same user, provided that no other Create Accounting process was run with the same criteria.

Diagnose Subledger Accounting Event Data

The diagnostic framework stores data that is used in the creation of a journal entry so that the data can be reported to analyze accounting issues. The purpose of the process is to provide the transaction data that is referenced during accounting through accounting rules and ledger setup.

The diagnostic framework provides a tool that can be used to determine why the accounting was created in a particular way or why there are errors. Errors may occur because either the source system information or the accounting rules are not as expected.

The following examples describe typical uses of the diagnostic framework features.

  • In the implementation phase, you can launch the Accounting Event Diagnostic report to review the source values available in the transaction objects.

  • On a daily basis, you can use the Accounting Event Diagnostic report to troubleshoot exceptions.

Diagnostic Framework Features

The diagnostic framework features are as follows:

  • SLA: Diagnostic Enabled: This option controls whether diagnostic information is gathered by the Create Accounting process. Use with caution. Selecting this option can cause slow performance.

  • Diagnostic Framework Execution: When the SLA: Diagnostic Enabled option is set to Yes, the diagnostic framework is executed simultaneously with the Create Accounting process. The diagnostic framework data is stored in the diagnostic tables.

  • Accounting Event Diagnostic Report: To view the diagnostic framework report, users submit the Accounting Event Diagnostic process with the appropriate report parameters.

  • Purge Accounting Event Diagnostic Data: Purging is useful when accounting is successfully created so that the volume of information in the report does not increase to a point where it becomes unusable.

    Diagnostic framework data purged:

    • When the data collected can be purged by running the process.

    • When the administrator launches the Purge Accounting Event Diagnostic Data process.

Diagnostic Framework Business Process Flow

The following steps describe the diagnostic framework business process flow:

  1. The administrator sets the SLA: Diagnostics Enabled option to Yes for the user or responsibility.

  2. Users submit the Create Accounting process that automatically executes the diagnostic framework to populate the diagnostic tables. The diagnostic framework gathers source values and other information from the transaction objects.

  3. Users submit the Accounting Event Diagnostic process to view the diagnostic report. Based on the information in the diagnostic report, users may determine if additional or resubmission of information from source systems is required. They may also determine if any updates to the accounting rules is required.

  4. Users run the Create Accounting process again to generate subledger journal entries for events that had an error.

  5. The administrator submits the Purge Accounting Event Diagnostic Data process to purge the results of the diagnostic framework.

Post Subledger Transactions to the General Ledger

Post subledger journals to the general ledger when you create accounting, or run the Post Subledger Journal Entries process to transfer and post at a later time.

To post to General Ledger:

  • Make sure that the Enable Posting from Subledger option is enabled so that you can automatically post subledger journals to GL.

    Note: If the Enable Posting from Subledger option is disabled, you cannot post the subledger journal to GL but you can transfer the subledger journal to GL.
  • Alternatively, you must have the privilege to execute this task.

With the required privileges and settings, you can select the Account and Post to Ledger option to create and post journal entries to the general ledger, during the online Create Accounting process.

  • If you do not have the privilege to post, select Account in Final to create journal entries and transfer to General Ledger.

  • You can view the output of the Post Subledger Journal Entries process for the summary of the transfer process.

You can manually run the Create Accounting process to create accounting for a batch of transactions. Set the following parameters to create journal entries and post to the general ledger.

  • Accounting Mode is set to Final.

  • Transfer to General Ledger is set to Yes.

  • Post in General Ledger is set to Yes.

    • If you do not have the privilege to post or posting from the Enable Posting from Subledger option is disabled, the Post in General Ledger parameter is not available.

Subledger Journal Adjustment

Subledger journal adjustments enable easier audit and reconciliation because you can store transaction information directly with journal adjustments. You can enter and complete subledger journal adjustment entries from the user interface or upload using a spreadsheet.

You can perform the following actions on your subledger journal adjustments, depending on their status:

  • Edit

  • Duplicate

  • Reverse

  • Delete

  • Complete

Editing a Subledger Journal Adjustment

When editing a subledger journal adjustment, you can perform the following tasks:

  • Edit the journal header information, if the status is not Final.

  • Edit and create journal lines, including accounts.

  • Enter the debit, and credit amounts.

  • Enter the accounting class.

  • View the impact on general ledger account balances should the adjustment be completed.

  • Post the journal.

    Note: If the Enable Posting from Subledger option is disabled or you do not have posting privilege, the adjustment journal is transferred to GL but not posted.

You can also edit incomplete subledger journal adjustments.

  • Examples of header information which can be updated:

    • Ledger

    • Accounting date

    • Accounting period

      Note: If the accounting date falls in both the non-adjusting and adjusting periods, the value of accounting period on the Create Subledger Journal Entry page defaults to the non-adjusting period. You can overwrite it with the adjusting period if required.
    • Category

    • Description

  • Examples of subledger journal adjustment line information which can be updated:

    • Account

    • Accounting class

    • Entered amount

    • Journal adjustment lines

    • Select supporting references and assign values to them.

  • Edit default currency options to be assigned to a subledger journal adjustment.

  • Edit or redefine the subledger journal adjustment description.

Duplicating Subledger Journal Adjustments

As a time saving feature, you may copy an existing adjustment.

The duplication feature is enabled for all existing subledger journal adjustments, regardless of status. It includes the ability to copy complete information required for a subledger journal adjustment header and line.

Note: All fields can be edited when an adjustment is duplicated.

Reversing Subledger Journal Adjustments

You can reverse subledger journal adjustments in Final status. Reversal options are populated from accounting options.

  • Switch debit and credit.

  • Change sign.

Deleting Subledger Journal Adjustments

Oracle Fusion Subledger Accounting provides the ability to delete a subledger journal adjustment that is not in Final status. The ability to delete subledger journal adjustments ensures that users have the flexibility to correct errors without technical support.

Completing Subledger Journal Adjustments

You can complete subledger journal adjustments in Final and Post to General Ledger status.

The application enables the user to create manual subledger journal entries online.

Creating a Manual Subledger Journal Entry

This includes the ability to:

  • Enter the complete information required for a manual subledger journal entry.

  • Enter subledger journal entry descriptions.

  • Select a supporting reference and supply the supporting reference value to a subledger journal entry line.

  • Assign a descriptive flexfield to a subledger journal entry header or subledger journal entry line.

  • Populate default values for an entered currency for a created subledger journal entry line.

  • Enter default conversion type, date, and rate information to establish a default currency for the journal that is different than its associated ledger currency.

  • View projected balances of entered and accounted journal line amounts.

  • Complete and post subledger journal entries.

    Note: The ability to post subledger journals to the General Ledger is dependent on your security profile. If you do not have the privilege to post, creating a manual subledger journal entry with a Final completion status includes the transfer to General Ledger.

You may want to analyze account balances and financial results by different transaction attributes. However, transaction information such as salesperson, customer, or supplier are typically not stored in the general ledger because of the volume of general ledger balances it would create. Therefore, you are not able to analyze general ledger data categorized by transaction attributes.

You can perform this type of reporting and analysis using supporting reference information from subledger transactions. This feature enables you to create balances based upon transaction attributes not typically stored as segments in the general ledger chart of accounts.

For example, you can report on receivables balances by salesperson, customer, credit risk category, item, or any other combination of transaction attributes.

Supporting references can be used to:

  • Provide additional information about a subledger journal entry line.

  • Establish a subledger balance for a particular supporting reference value.

  • Assist with reconciliation of account balances.

  • Provide additional detail information for financial managerial analysis.

You can assign supporting references at the subledger journal entry line level.

Assigning Supporting References at the Subledger Journal Entry Line

Assigning supporting references to subledger journal entry lines enables you to maintain detailed balances, by supporting reference value, for general ledger accounts.

If third-party control accounts are enabled, and the account entered is a third-party control account, you must enter third-party information in the journal entry.

Example

If an account is defined as a Supplier type third-party control account the subledger journal entry lines that use that account must include supplier information.

When a valid third-party control account is assigned to a journal line, you are required to provide third-party information, such as name and site.

Submit the Third-Party Balances Report to display subledger balances and account activity information for suppliers and customers.

The Customer or Supplier subledger third-party balances are updated when the journal is completed to a Final status.

Subledger Journal Entry

Overview of Subledger Journal Entry

You can create subledger journal entries by using one of two methods:

  • Use the Create Accounting process to process accounting events using accounting rules.

  • Create manual subledger journal entries.

Subledger journal entries are always created in a given subledger application context. When the subledger journal entry is complete, the appropriate sequence names and numbers are assigned. If applicable, corresponding secondary ledger and reporting currency journal entries are also created.

Manual journal entries can be entered for primary ledgers or for secondary ledgers. Manual journals for primary ledgers are automatically created only for associated reporting currencies, not secondary ledgers.

Subledger journal entries can be reviewed whether they were created from processing accounting events, or manually entered.

You can search subledger journal entries directly, or search for journal entries with a specific status, unprocessed accounting events, or subledger journal entry lines.

Advanced search functionality, including the ability to use multiple search criteria is available.

Review Subledger Journal Entries

Perform an inquiry on unprocessed accounting events, subledger journal entries and subledger journal entry lines based on multiple selection criteria.

  • Create, edit, duplicate, reverse or delete a manual subledger journal entry

  • View detailed information about the subledger journal entry

  • View a subledger journal entry in the T-Accounts format

  • View transactions underlying the accounting event or the subledger journal entry

  • View supporting references associated with the subledger journal entry and lines

  • View tagged subledger journal entries or create a tag on the subledger journal entry

  • Perform subledger journal corrections by editing the account directly on a completed journal entry. Review the original entry together with the correction for easier reconciliation.

    • To correct the account on a subledger journal you must have the Override Subledger Journal Entry privilege.

      Note: If the Enable Posting from Subledger option is enabled, the corrected entry is transferred and posted to GL. However if the option is disabled, the corrected entry is transferred to GL but not posted.

Use the projected balances feature to view the impact on account balances for selected subledger journal entry lines.

The projected balances flow has the following business benefits:

  • The creation and validation of unposted manual journal entries by providing immediate information about the account balances for the selected journal lines.

  • The validation and reconciliation of posted journal entries by providing immediate information about the account balances for the selected journal lines.

Projected Balances

Subledger Accounting manual journal entry and General Ledger manual journal entry, approval, and inquiry pages display projected or current balances including the current journal entry line amounts. Depending on whether the journal is posted or not, the current balance (for the period of the journal) is displayed or calculated.

The projected balance region displays the projected balances for the account that includes the amounts of the selected journal entry line. Additionally, if more than one journal line for same account of the selected journal line exists, then the projected balance amount includes the impact from each journal line. The Period To Date, Quarter To Date, and Year To Date balances are also available.

  • For unposted journals, the period balance is projected by summing the current balance with the subledger journal entry line amounts

  • For posted journals, the opening balance and the period activity are calculated using the current balance and journal line amount

Projected balances increases accuracy when booking entries to reconcile accounts.

Manage Accounting Reversals

To create an accounting reversal for a transaction or transaction distribution, the transaction objects should include the appropriate header or line level accounting reversal options.

Accounting reversals enables you to reverse the accounting impact of a previously accounted transaction distribution or all existing accounting for a transaction.

Accounting reversal terminology includes the following:

  • Reversed (original) Distribution

    • Refers to a transaction distribution that although successfully accounted, is either incorrect or canceled. The transaction distribution is therefore reversed.

  • Reversal Distribution

    • Refers to a transaction distribution which reverses the effect of the original distribution on transaction balances. Typically, reversal distributions are identical to the reversed distributions in all respects except for entered (ledger) amounts that reverse the sign of the original.

  • Replacement Distribution

    • Refers to a transaction distribution which replaces the reversed distribution with the correct value.

Distribution Examples

This table contains distribution examples.

Invoice Distribution Line Number Invoice Line Type Accounting Date Amount Description

1

Item

10-Jan-2013

1000

Reversed

2

Item

12-Jan-2013

-1000

Reversal (of line 1)

3

Item

12-Jan-2013

2000

Replacement (of line 1)

Transaction Total

 

 

2000

 

Note that the original accounting impact of the reversed distributions is undone, even if the subledger journal setups or accounting configurations have changed since the original subledger journal entry was generated.

Correct Accounting Hub Transaction Data for Invalid Entries

You can correct errors on uploaded transaction data using the Review Journal Entries page:

  • Search for subledger journal entries with an invalid status.

  • View the transaction.

  • Correct the transaction attributes as required.

    • The following predefined attributes cannot be updated.

      • Application Name

      • Event Type

      • Ledger Name

      • Transaction Date

      • Transaction Number

      • Line Number

  • Save the update.

  • Resubmit the Create Accounting process.

Subledger Balances

Import Supporting Reference Initial Balances

Use the Import Supporting Reference Initial Balances task to import initial supporting references balances. This task enables you to upload subledger journal entries to initialize supporting reference balances. The uploaded journal entries don't impact general ledger balances.

Note: When using the Manage Configuration Packages task to export or import setup data, initial balances that have been imported into one environment are not going to be migrated into another.

You must import balances separately into each environment you maintain.

Access the task from the Setup and Maintenance work area.

Third-Party Control Account Balances Report

This topic includes details about the Third-Party Balances Report.

Overview

The Third-Party Control Account Balances Report shows subledger accounting third-party control account balances and activity for suppliers and customers.

This figure illustrates the Third-Party Control Account Balances Report.

The figure illustrates the Third-Party Control
Account Balances Report.

Key Insights

The Third-Party Control Account Balances Report provides the following information:

  • Third-party balances for subledger accounting third-party control accounts.

  • Subledger journal entry lines that add up to the total period activity for each control account, third party, and third-party site.

  • Third party and third-party site information.

  • User transaction identifiers for the associated entries.

Report Parameters

This table contains parameters for the Third-Party Control Account Balances Report.

Name Description

Journal Source

Select from a list of enabled journal sources mapped to an accounting generating subledger application.

Ledger

Select a ledger.

You must have access to the ledger either directly through a GL Data Access Set or through a:

  • Business unit

  • Asset book

  • Payroll security assignment

From Accounting Period

Indicate the beginning period for the report data.

To Accounting Period

Indicate the ending period for the report data.

Third-Party Type

Select the type of third party defined for the subledger application for the journal source. Values are Customer, Supplier, and All.

Third-Party Name

Select a customer or supplier based on the third party type.

Third-Party Site

Select a third-party site for the supplier or customer identified by third-party name.

From Third-Party Number

Indicate the beginning of the range of customer or supplier numbers based on the third party type.

To Third-Party Number

Indicate the ending of the range of customer or supplier numbers greater than or equal to the From value.

Include User Transaction Identifier

Specify whether the user transaction identifiers are included in the report data.

Account Filter

Enter the filtering conditions on the account. You can select all segments for the selected ledger and define conditions including account value ranges.

Frequently Asked Questions

This table contains frequently asked questions about the Third-Party Control Account Balances Report.

FAQ Answer

How do I find this report?

Schedule and run this report from the Scheduled Processes work area on the Navigator menu.

Who uses this report?

  • Financial Accountant

  • Financial Manager

  • Financial Specialist

When do I use this report?

Use this report when you want to review subledger accounting third-party control account balances and activity for suppliers and customers.

What type of report is this?

Oracle Business Intelligence Publisher

Update Subledger Accounting Balances Process

Use the Update Subledger Accounting Balances process (XLABABUP) to update subledger supporting reference balances and third-party control account balances.

This process is run automatically following the Create Accounting process. It should be run manually if the auto run fails for any reason.

Run the report from the Scheduled Processes page and optionally schedule the process to run periodically.

Note: Draft entries do not update balances. To include accurate balances, transactions must be accounted in Final.

Parameters

Subledger Application

List of all user accessible accounting generating subledgers.

Ledger

The list of ledgers is based on the user accessible business units, asset books or legal entities. Only the list of ledgers associated with those business units, asset books or legal entities is shown.

Carry Forward Subledger Accounting Balances Process

The Carry Forward Subledger Accounting Balances process will carry forward supporting reference balances and third-party control account balances to the current period for a ledger. This process is automatically initiated when the accounting period is newly opened.

Note: The process can also be submitted manually if the initial process executed abnormally when the accounting period was opened.

Parameters

Ledger

The list of ledgers is based on the business units, asset books or legal entities that a subledger user has access to. Only the list of ledgers associated with those business units, asset books or legal entities is shown.

Accounting Period

All periods for the accounting calendar and period type associated with the selected ledger.

Advanced Features

Accounting class usages is a classification or grouping of accounting event classes to be used in a report or process based on subledger journal entries. A report or process referring to such a group would only process subledger journal entries tagged with the accounting event classes defined in the group.

Manage Accounting Class Usages Task

The Manage Accounting Class Usages task enables you to group accounting event classes. Use Accounting Class Usages assignments to determine which subledger journal entry lines to retrieve for a particular process. For example, for mass additions a subledger can define accounting class usages to identify the journal entry lines that must be processed to create records for another subledger.

Defining Accounting Class Usages

Use the Manage Accounting Class Usages task to create assignments that may be associated with a ledger. In the Accounting Class Assignments region, assign accounting classes to an assignment definition.

Predefined processes and assignment definitions cannot be deleted or updated. You can copy a predefined assignment definition and modify if necessary.

Accrual Reversals

To use accrual reversal, assign application or standard date sources to the Accrual Reversal Accounting Date Source accounting attribute. When this accounting attribute has a value, the Create Accounting process generates an entry that reverses the accrual entry.

You can define how and when accrual reversals are automatically performed by:

  • Indicating that an accounting event is eligible for accrual reversal.

  • Determining when the accrual is reversed.

  • Scheduling the Create Accrual Reversal Accounting process to generate the reversal entries of the accrual.

Accrual Reversal Process Steps

This figure illustrates the accrual reversal process.

This figure illustrates the accrual reversal process.
Note: End Date: The date up to which the Create Accounting process selects accounting events for processing.

Accrual Reversal Process Steps

  1. Assign a date source to the Accrual Reversal Accounting Date Source accounting attribute at the event class level.

    Use this attribute to schedule the automatic reversal of a journal entry. Assign any standard date source or one of the following application sources to the Accrual Reversal Accounting Date Source accounting attribute:

    • Next Day: The accounting date of the accrual reversal is the next day following the accounting date of the accrual entry.

    • First Day of Next Accounting Period: The accounting date of the accrual reversal entry is the first day of the following accounting period.

    • Last Day of Next Accounting Period: The accounting date of the accrual reversal entry is the last day of the following accounting period.

    Note: You can override the Accrual Reversal Accounting Date Source accounting attribute values on the journal entry rule set if multiple sources have been assigned to the accounting attribute.
  2. Import Accounting Transaction with accrual transactions.

  3. The Create Accounting process is submitted automatically by the Import Accounting Transaction process. It can also be submitted manually after any exception is resolved.

    The Create Accounting process creates the accrual journal entry as well as the accrual reversal journal entry. Use the Reversal Method option on the Manage Subledger Accounting Options page to determine whether the reversal is done by switching the debit and credit side on entries, or by using negative amounts.

    Accrual entries are reversed by the following processes:

    • The Import Accounting Transaction process if submitted on or before the reversal accounting date.

    • The Create Accounting process if the end date is on or after the accrual reversal date.

    • The Accrual Reversal Accounting process if the accrual reversal date is later than either:

      • The Import Accounting Transaction process submission date.

      • The end date of the Create Accounting process.

  4. Schedule the Create Accrual Reversal Accounting process to run automatically in each accounting period. As a best practice, run before closing the period.

  5. View accrual reversal accounting entries.

Examples of Accrual Reversal

The following examples describe how accrual reversals are scheduled and accounted.

Example 1

A company receives materials worth 100 (USD) 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.

This table contains a journal entry.

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 accounting date is set to First Day of Next Accounting Period. The following journal entry is created to reverse the accrual.

This table contains the reversal journal entry.

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

Future 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 is less than 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.

The investor or ledger must mark the account to market each day. The entry booked from the day before must be reversed to reflect the new position.

Journal Entry Creation

  • The following journal entry creation date is June 1, 2006.

  • Accounting date: 01-Jun-2006

This table contains the journal entry.

Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)

Loss

100.00

100.00

Margin Liability

100.00

100.00

Reverse the Journal Entry

  • The accrual reversal accounting date is set to Next Day. The following journal entry is created to reverse the journal entry from June 1.

  • Accounting Date: 02-Jun-2006

This table contains the journal entry.

Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)

Margin Liability

100.00

100.00

Loss

100.00

100.00

Reflect the New Position

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

  • Accounting Date: 02-Jun-2006

This table contains the journal entry.

Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)

Loss

105.00

105.00

Margin Liability

105.00

105.00

Reverse the Accrual

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

  • Accounting Date: 03-Jun-2006

This table contains the journal entry.

Account Entered DR Entered CR Accounted DR (USD) Accounted CR (USD)

Margin Liability

105.00

105.00

Loss

105.00

105.00

How You Submit the Create Accrual Reversal Accounting Process

The Create Accrual Reversal Accounting process processes incomplete accrual reversal journal entries with accounting dates that fall on or before the End Date parameter specified. If the incomplete accrual reversal accounting entries are validated successfully, they are set to Final status and then posted to the general ledger, dependent on the parameters.

Report Parameters

This table contains the parameters for the Create Accrual Reversal Accounting process.

Prompt Description

Subledger Application

Source system for which the Create Accrual Reversal Accounting process is being executed.

Ledger

Ledger name for which the Create Accrual Reversal Accounting process is being executed.

Process Category

The process category indicates that all associated accounting event classes and their accounting event types are selected for processing.

End Date

End date puts a filter on the selection of journal entries. Only incomplete journal entries having an accounting date on or before the end date are selected for accounting.

Default value is current system date.

Process Events

Adds other filter criteria for the Create Accounting process to specific events:

  • All: Process all incomplete journal entries and meets the End Date selection criteria

  • Errors: Process only those entries that have previously been processed in error.

  • Invalid Accounts: Process only those events that have previously been processed in error. Replace any invalid accounts with the suspense account.

Default value is All.

Report

Identify the type of details to display on the execution report. The report can be printed in Summary, Detail, or No report.

Default value is Summary.

Transfer to General Ledger

Indicates whether the Create Accrual Reversal Accounting process should submit the Transfer to GL process; Yes, No.

Default value is Yes.

Post in General Ledger

Indicates whether to submit General Ledger posting after Transfer to GL process is complete.

Default value is Yes.

Journal Batch

Batch name for General Ledger journal entries.

Multiperiod Accounting

Multiperiod accounting enables you to create accounting entries across more than one accounting period, for a single accounting event. The functionality is primarily used to defer the recognition of revenue or prepaid expense across multiple accounting periods.

You can:

  • Determine how to distribute the amount across accounting periods.

  • Specify a prepaid expense or deferral account.

  • Preview multiperiod journal entries before creating and posting final entries:

    • Submit the Create Multiperiod Accounting process in Draft mode.

    • Review the multiperiod journal entries in the Create Multiperiod Accounting Execution Report.

    Note: You can only preview multiperiod journal entries for a single accounting period.

Multiperiod Accounting Process Flow

This figure illustrates the multiperiod accounting process flow.

This figure illustrates the multiperiod accounting
process flow.
  1. Enter transaction with multiperiod accounting date range.

  2. Create accounting event. Populate multiperiod accounting Start and End dates in transaction objects.

  3. Submit the Create Accounting process.

    • Final entry created for initial entry? Yes

      • Submit Create Accounting process to generate multiperiod journal entries

    • Final entry created for initial entry? No

      • Draft entry created for initial entry? Yes

        • Resolve exception.

      • Draft entry created for initial entry? No

        • Submit the Create Multiperiod Accounting process to generate multiperiod journal entries.

Implementation Steps

Implementation Step Process Flow

This figure illustrates the implementation steps.

This figure illustrates the implementation steps.
  1. Define a user-defined formula determining how to distribute the entered amount across accounting periods. If required, you can use the new multiperiod predefined sources. For example:

    • Multiperiod Original Entered Amount

    • Multiperiod Recognized Entered Amount

    • Last Multiperiod Accounting Date

    • Number of Days in Current Accounting Period

  2. Define Multiperiod Classes using the Manage Subledger Accounting Lookups task.

    • Lookup Type: ORA_XLA_MULTIPERIOD_CLASS

  3. Define a non-multiperiod Journal Line Rule for the deferral entry specifying the Multiperiod Class. This rule is used to post the fee amount to the deferral account.

  4. Define a multiperiod Journal Line Rule for the recognition entry:

    • Enable the Multiperiod option and assign the same Multiperiod Class.

    • Assign the user-defined formula to the Entered Amount accounting attribute.

    • Assign relevant sources to the Multiperiod Start Date and Multiperiod End Date accounting attributes.

  5. Assign both journal line rules to the same journal entry rule set with:

    • A deferral account rule assigned to the non-multiperiod journal line rule.

    • A revenue or expense account rule assigned to the multiperiod journal line rule.

  6. Assign the journal entry rule set to the accounting method.

  7. Schedule the Create Multiperiod Accounting process to run after the Create Accounting process so that recognition journal entries are properly booked each period.

Example of Multiperiod Accounting

The subledger multiperiod accounting and user-defined formula features provide the ability to satisfy the FASB 91 accounting requirement. This requirement of deferred recognition of fee and direct loan cost is met by modifying the recognition of fee amounts with user-defined formulas.

Example

A personal loan was originated with the following information:

  • Origination date: 01-Jul-2016

  • Origination fee: USD 300.00

  • Loan duration: 6 months

  • Maturity date: 31-Dec-2016

Upon loan origination on 01-JUL-2016 the origination fee must be booked as unearned income:

Initial Journal Entry for Loan Fee

This table contains the journal that is created when the loan is originated.

Entered DR (USD) Entered CR (USD)

Receivable

300.00

Unearned Fee Income

300.00

The unearned fee income must be split over the life of the loan. Each portion must be recognized as income in the corresponding accounting periods, between Jul-2016 and Dec-2016. The amounts in each period would depend on the proration formula used. For example:

Monthly Journal Entry for Loan Fee

This table contains of the journal achieved using a user-defined formula.

Entered DR (USD) Entered CR (USD)

Unearned Fee Income

50.00

Loan Fee Income

50.00

Using Multiperiod Subledger Accounting Rules

Accounting Hub users can define subledger accounting rules to create the multiperiod accounting entries. For example:

This table contains the usage of journal lines rules, account rules and the usage associated with multiperiod accounting.

Journal Line Rules Account Rules Usage

Unearned Fee Income

  • Side = Credit

  • Multiperiod Option = No

  • Multiperiod Class = Loan Fee

The Entered Amount accounting attribute is mapped to a source that provides the fee amount.

Unearned Fee Income Account

Journal line rule for the deferral entry.

Used to generate a credit line to the unearned fee income account.

Loan Fee Income

  • Side = Credit

  • Multiperiod Option = Yes

  • Multiperiod Class = Loan fee

  • Accounting attributes:

    • Multiperiod Start Date = Origination date

    • Multiperiod End Date = Maturity date

The Entered Amount accounting attribute is mapped to a formula to prorate the fee amount.

Loan Fee Income Account

Journal line rule for the recognition entry.

Used by the Create Multiperiod Accounting process to generate future entries with prorate amounts, such as the CR 50.00 (USD) in the example.

  • Define a user-defined formula to calculate the total entered amount to be recognized from the multiperiod start date until the end of current accounting period.

  • Assign the user-defined formula to the Entered Amount accounting attribute.

  • The Create Multiperiod Accounting process calculates entered amount for the multiperiod entries as:

    Entered Amount = Amount Returned by User-Defined formula - Multiperiod Recognized Entered Amount

    • Where the:

      • Multiperiod Recognized Entered Amount is calculated and stored in the Accounting Hub data model as the total amount recognized for the transaction in prior periods.

    • The approach handles any rounding differences in prorated entered currency amounts.

Sample User-Defined Formulas

These sample user-defined formula definitions can be used to prorate the loan fee amount.

Prorate by Number of Periods

  • To prorate the entered amount evenly across each period:

    " Multiperiod Original Entered Amount" * NumberofGLPeriod ("Origination Date", "Last Day of Current Accounting Period") / NumberofGLPeriod ("Origination Date", "Maturity Date")

    • Where the:

      • Multiperiod Original Entered Amount, Origination Date and Maturity Date are standard application sources (Application: Loans).

      • Last Day of Current Accounting Period is a system source (Application: Subledger Accounting).

      • NumberofGLPeriod is a predefined numeric function.

  • The entered amount for the multiperiod journal would be calculated as follows:

This table contains the calculation that occurs in the Create Multiperiod Accounting process.

Accounting Date Number of Periods Since Multiperiod Start Date Multiperiod Recognized Entered Amount (A) Amount Returned from User-Defined Formula (B) Multiperiod Journal Entered Amount (B-A)

31-Jul-16

1

0.00

300.00*1/6=50.00

50.00

31-Aug-16

2

0.00+50.00=50.00

300.00*2/6=100.00

100.00-50.00=50.00

30-Sep-16

3

50.00+50.00=100.00

300.00*3/6=150.00

150.00-100.00=50.00

31-Oct-16

4

100.00+50.00=150.00

300.00*4/6=200.00

200.00-150.00=50.00

30-Nov-16

5

150.00+50.00=200.00

300.00*5/6=250.00

250.00-200.00=50.00

31-Dec-16

6

200.00+50.00=250.00

300.00*6/6=300.00

300.00-250.00=50.00

Note: These columns are calculated by the Create Multiperiod Accounting process:
  • Amount Returned from User-Defined Formula (B)

  • Multiperiod Journal Entered Amount (B-A)

Prorate by Number of Days

  • To prorate entered amount by the actual number of days in each period:

    " Multiperiod Original Entered Amount" * ("Last Day of Current Accounting Period" - "Origination Date" + 1) / ("Maturity Date" - "Origination Date" +1)

  • The entered amount for the multiperiod journal is calculated as follows:

This table contains the calculation that occurs in the Create Multiperiod Accounting process.

Accounting Date Number of Days Since Multiperiod Start Date Multiperiod Recognized Entered Amount (A) Amount Returned from User-Defined Formula (B) Multiperiod Journal Entered Amount (B-A)

31-Jul-16

31

0.00

300.00*31/184.00=50.54

50.54

31-Aug-16

62

0.00+50.54=50.54

300.00*62/184.00=100.09

100.09-50.54=50.55

30-Sep-16

92

50.54+50.55=100.09

300.00*92/184.00=150

150.00-100.09=48.91

31-Oct-16

123

100.09+48.91=150.00

300.00*123/184.00=200.54

200.54-150.00=50.54

30-Nov-16

153

150.00+50.54=200.54

300.00*153/184.00=249.46

249.46-200.54=48.92

31-Dec-16

184

200.54+48.92=249.46

300.00*184/184.00=300.00

300.00-249.46=50.54

  • Note that rounding differences, if any, are included in the resulting entered amount for the multiperiod journals.

Prerequisites

  • Provide date format sources to store the multiperiod start and end dates in transaction objects.

  • For the event class that supports multiperiod accounting, assign these sources to the accounting attributes:

    • Multiperiod Start Date

    • Multiperiod End Date

  • Define the multiperiod class in the subledger accounting lookup. The multiperiod class is used to identify the journal line for which the amount is prorated across multiple accounting periods.

Tip: Accounted amounts for multiperiod journals are calculated by the Create Multiperiod Accounting process prorating proportionally to the entered amount. Rounding error differences are included in the prorated amount.

Multiperiod transaction data must be available in transaction objects until the last multiperiod entry has been accounted in final status.

Considerations for Multiperiod Accounting

To achieve a successful implementation of multiperiod accounting, the following points must be taken into consideration.

Determine when to raise a new accounting event

Determine when a new accounting event must be raised throughout the life cycle of a multiperiod transaction.

  • If only the multiperiod start and end dates are changed, a new accounting event is not required. As the transaction object is maintained to provide the new multiperiod start date, the impact of the change is reflected in the next multiperiod journal.

  • Raise a new accounting event if the amount is changed, or a transaction is canceled after the transaction is accounted in a Final status.

If the multiperiod start date is changed after the transaction is accounted, it's not necessary to raise a new accounting event. The assumption is that all other transaction attributes remain the same. If the transaction object is maintained to provide the new multiperiod start date, the impact of the change is reflected in the next multiperiod journal. This depends on the prorate method and is also true for future journal entries.

However, if the transaction amount is changed after the transaction is accounted; the new accounting event is needed, which affects the total deferral amount.

Tip: We suggest a detailed analysis be performed to determine whether to raise a new accounting event when transaction attributes are updated.

Raise a transaction reversal event

Consider the multiperiod journal accounting date when raising the transaction reversal event.

Set the reversal accounting date to a date after the last multiperiod journal with Final status. A reversal entry reverses all existing final entries, including the multiperiod journals, with the reversal accounting date.

For example, the transaction accounting date is on 01-Feb and multiperiod journals have been created for February and March with a Final status. If the transaction is canceled, the cancellation event should be set to 01-Apr or the first day of the next open period, whichever is later.

Provide the multiperiod start and end dates

The multiperiod start date and multiperiod end date must be provided in transaction objects for event classes that support multiperiod accounting. These date sources are mapped to the accounting attributes Multiperiod Start Date and Multiperiod End Date for the event class. They must both be blank or both be populated in the transaction objects.

Once a multiperiod journal is created in Final status, the multiperiod end date should not be modified to any day prior to the accounting date of the last multiperiod journal in the primary and secondary ledgers.

Provide the multiperiod transaction data

Multiperiod transaction data must be available in subledger transaction objects until the last multiperiod entry is accounted in Final status.

At least one line level transaction object is required for the event class to use multiperiod feature. Ensure transaction objects are populated with current data for the multiperiod transaction throughout the life cycle of multiperiod, even if the transaction is accounted.

For example, if the multiperiod start date is changed after the transaction is accounted but not all future entries have been accounted. The new multiperiod start date should be populated in the transaction object. This enables the Create Multiperiod Accounting process to calculate the prorate amount according to the modified multiperiod date range.

Process the multiperiod accounting

Multiperiod recognition entries are created based on transaction objects data and accounting rule definition at the time the Create Multiperiod Accounting process is executed.

  • The entered amount value for the multiperiod journal is calculated by a formula. This formula is assigned to the Entered Amount accounting attribute on the multiperiod journal line rule.

  • The accounted amount value for multiperiod journals is calculated by the Create Multiperiod Accounting process, prorating proportionally to the entered amount, including rounding differences.

Multiperiod accounting entries aren't created:

  • If any subledger level reporting currency or secondary ledger is disabled, although the multiperiod transaction may not be fully recognized yet.

  • If subledger level reporting currency is added after the journal is created in Final status, the multiperiod journal isn't created for the new reporting currency.

  • If the transaction accounting date is prior to the first open period of a reporting currency or secondary ledger, the journal isn't created for the reporting currency or secondary ledger.

Multiperiod transactions are processed by the Create Multiperiod Accounting process only once for each accounting period and transaction.

  • Don't modify the multiperiod start date for a transaction to a date in a prior accounting period of the last multiperiod journal in primary and secondary ledgers.

  • If the multiperiod start date for a transaction is modified to a date in a prior accounting period, accounting periods that were previously processed for the transaction by the Create Multiperiod Accounting process are not processed, regardless of the period status. Any adjustment in the prorated amount due to change of start date will be accounted in the next accounting period.

Overview of Sequencing of Accounting Entries

The following sequences are attached to subledger journal entries or general ledger journal entries. These two sequences are not mutually exclusive and can coexist in the same journal entry.

Accounting Sequence

The accounting sequence is assigned to subledger journal entries at the time that the journal entry is completed. The sequence is assigned in the completion date order using the accounting date as the date criterion for determining the sequence to be used.

Reporting Sequence

The reporting sequence is assigned to both subledger journal entries and general ledger journal entries when the accounting period is closed. This sequence is used by most of the legal reports required in some countries as the main sorting criterion to display the journal entries.

Note: In some related documents, this sequence is referred to as the chronological sequence.

Set values for each profile option to specify how Oracle Fusion Subledger Accounting controls access to and processes data.

Profile Options

The table contains the profile options that are available for subledger accounting.

Profile Option Profile Display Name Profile Description

XLA_DIAGNOSTIC_MODE

Diagnostics Enabled

Control whether transaction data used in accounting generation should be gathered for diagnostics.

XLA_DISABLE_GLLEZL

Journal Import Disabled

Control whether subledger journal entries are imported to the general ledger.

XLA_ENABLE_TRANSFER_TO_EBS_GL

Enable Transfer to Oracle EBS GL

Specify whether the target for transfer and post subledger journal entries is Oracle E-Business Suite General Ledger.

XLA_ENABLE_TRANSFER_TO_PSFT_GL

Enable Transfer to Oracle PeopleSoft GL

Specify whether the target for transfer and post subledger journal entries is Oracle PeopleSoft General Ledger.

XLA_OTE_OLA_POLLING_INTERVAL

Online Accounting Request Polling Interval

Set the interval in seconds for online accounting engine to check for incoming accounting requests.

XLA_OTE_OLA_PROCS

Number of Online Accounting Processes

Set the number of processes for online accounting.

XLA_OTE_OLA_TIMEOUT_LIMIT

Online Accounting Processing Timeout Limit

Set the number of seconds online accounting engine attempts to process a transaction before timing out.

XLA_SHOW_ZERO_AMT_JRNL

Zero Amount Journal Lines Displayed

Show zero amount journal lines.

Transaction Reversal

You can import a new transaction record to Accounting Hub to reverse the accounting of a transaction in the same batch or an existing transaction.

Make sure that the new transaction record includes these values:

  • The same transaction number as the transaction you want to reverse.

  • The value of the reversal indicator as Y.

Here's what happens when you import the new transaction record. Accounting Hub generates a reversal accounting that offsets the accounting of the original transaction.

Example of Transaction Reversal

Let's say that an accounting transaction with transaction number 1001 is imported and accounted in Accounting Hub successfully. Later, this transaction is canceled in the source system.

To reverse the accounting transaction created in Accounting Hub, you import a new accounting transaction with the same transaction number 1001 and set the reversal indicator as 'Y'. After the new accounting transaction record is imported, Accounting Hub creates new journal entries to offset the accounting effect from the original transaction.

Before You Start

Here are some of the things you need to do before you can start using transaction reversals:

  • Enable the Flexible Configuration of the Accounting Flow feature.

  • Opt in to enable this feature.

  • Enable transaction reversal for subledgers that use this feature.

  • Download and use the latest transaction template for the subledger.

Other Implementation Considerations

You might be wondering how to reverse a multiperiod accounting transaction. In such a case, make sure that the transaction date for the reversal record is on or after the accounting date of the last multiperiod accounting entry of the transaction being reversed.

Subledger Accounting Reporting

Oracle Fusion Subledger Accounting Predefined Reports

Oracle Subledger Accounting provides accounting reports for fiscal and internal control purposes.

The reports are comprehensive from a financial standpoint and include the best source of information for each type of journal entry. These reports can be used in lieu of the General Ledger-based journals and account analysis reports to see detailed subledger journal entries as well as supporting transaction information.

Scheduled Processes work area

Reports can be scheduled and run from the Scheduled Processes work area found in Tools on the Navigator.

Reports and Analytics work area

In some cases, reports are also:

  • These reports are available from the Reports and Analytics work area, found in Tools on the Navigator, or from other work areas.

  • Opened using links that deploy the business intelligence (BI) catalog.

The following table contains the primary predefined reports by type:

Account Analysis Reports

This table contains a listing of Subledger Accounting account analysis reports.

Display Name Description

Account Analysis Report

Provides drill down information about the movement on a particular account for a period or range of periods. It only includes journal entries posted to general ledger.

Account Analysis by Legal Entity Report

Prints account balances by account combination and selected segments with subledger journal details, including third-party information and sequences. Flexible grouping and sorting options are provided at submission.

Journal Reports

This table contains a listing of Subledger Accounting journal reports.

Display Name Description

Daily Journals Report

Lists subledger journal activity for a given period or date range, journal source, entered currency, and journal batch. Report prints detailed subledger journal lines prior to general ledger summarization. Third party and transaction details are also listed for the journal lines.

Journal Entries Report

Displays detailed information for subledger and general ledger journal entries. Groups report by ledger, journal source, journal category, and event class at submission.

Journal Ledger Report

Lists the accounting entries with subledger details like transaction number, transaction date, and line description, using flexible sorting options that are provided at report submission. This report provides a real audit trail between general ledger and subledgers to satisfy legal and business requirements.

Journals and Third Party Report

Prints all journals posted in Oracle Fusion General Ledger for the accounting period. The report provides accounting and reporting sequence details, detailed subledger accounting entry lines reporting level regardless of the ledger journals summarization. Assists in verifying that all journals are accurately recorded in chronological order with no gaps. It uses legal sequencing rules for both accounting entries and source documents.

Subledger Detail Journal Report

Displays information about the posted general ledger journal batches that originate from Oracle Fusion Receivables and Oracle Fusion Payables subledgers. The report prints subledger details like transaction number, transaction date, transaction amount in entered and ledger currency.

Third Party Reports

This table contains a listing of Subledger Accounting third party reports.

Display Name Description

Third-Party Balances Report

Displays subledger balance and account activity information for suppliers and customers.

Third-Party Account Balance Report

Prints account and original third-party transactions impacting the account during a particular period of time. The report is run to ensure that subledger and general ledger balances reconcile, and to identify possible reasons for any discrepancies.

Third-Party Balances Summary Report

Displays information for each account of the third party and third-party site, and account identification. This report can be used as a tool for auditing third-party accounts.

Third-Party Detail and Balances Report

Provides third party account balances and accounting activity details for the requested accounting period range. You can review the accounting process details by third party and audit third-party accounts in detail.

Other Subledger Accounting Reports

This table contains a listing of other Subledger Accounting reports.

Display Name Description

Accounting Event Diagnostic Report

Shows the transaction data used in accounting. The data is collected when the profile option SLA: Enable Diagnostics is set and the Create Accounting process is run.

Subledger Accounting Method Setups Report

Displays the accounting setups for a subledger application and accounting method.

Subledger Period Close Exceptions Report

Lists all accounting events and journal entries that fail period close validation. Groups report by ledger, period, journal source, journal category, and event class at submission.

To run predefined reports, navigate to the Scheduled Processes work area and follow these steps:

  1. Click the Schedule New Process button

  2. Search on the process name.

  3. Enter your parameters.

  4. Enter your process options and schedule.

  5. Click Submit.

Subledger Accounting Subject Areas, Folders, and Attributes

To create real-time analyses for Oracle Fusion Subledger Accounting you should be familiar with subject areas, folders, and attributes.

Subject Areas

To create an analysis, you begin by selecting a subject area from which you select columns of information to include in the analysis. For example, to create an analysis of journal information, you begin by selecting a Subledger Accounting- Journals Real Time subject area. Subject areas are based around a business object or fact. In this example, the subject area is based on the column in the subledger entries tables.

Subledger Accounting has 2 specific subject areas:

  • Subledger Accounting- Journals Real Time

  • Subledger Accounting - Supporting References Real Time

Folders

Each subject area has one fact folder and a number of dimension folders. Fact folders contain attributes that can be measured, meaning that they are numeric values like journal debit and credit amounts. Fact folders are in the list of folders and are usually named after the subject area. Dimension folders contain attribute and hierarchical columns like journal name and accounting period.

Some folders appear in more than one subject area, such as Time. These are referred to as common folders or common dimensions.

Each folder within a subject area may have a different level of granularity. For example:

  • Accounting Class has accounting class attributes.

  • Bill-to Customer has subfolders and attributes within the subfolders.

Attributes

Finally, each dimension folder contains attributes (columns), such as balance type and posting date. This figure illustrates the structure of subject areas, folders, and attributes.

This figure illustrates the subject area listing that includes the Subledger Accounting - Journals Real Time subject area, folders, and attributes.

This figure illustrates the subject area listing
that includes the Subledger Accounting - Journals Real Time subject
area, folders, and attributes.

The figure illustrates these components:

  • Subject area: Subledger Accounting - Journals Real Time

  • Dimension - Presentation Folder: Accounting Class

  • Dimension - Attributes: Accounting Class Code, Accounting Class Description and Accounting Class Meaning.

  • Fact - Presentation Folder: Journals

  • Fact - Measures: Journal Line Accounted Amount CR, Journal Line Accounted Amount DR, Journal Line Entered Amount CR, Journal Line Entered Amount DR, Journal Line Statistical Amount, Unrounded Accounted Amount CR, Unrounded Accounted Amount DR, Unrounded Entered Amount CR, and Unrounded Entered Amount DR.

Access the Create Multiperiod Accounting Execution Report

When you submit the Create Multiperiod Accounting process, the Create Multiperiod Accounting Execution Report is submitted automatically if the Create Multiperiod Accounting process completes with a success or warning status. The report displays entries created by the Create Multiperiod Accounting process.

Create Multiperiod Accounting Report

The Create Multiperiod Accounting Execution Report can be recreated.

This report can be recreated as needed using the following criteria:

  • Submit the Create Multiperiod Accounting process.

  • Use the same request identifier of the wanted Create Multiperiod Accounting process run previously by the same user, provided that no other Create Multiperiod Accounting process was run with the same criteria.

Use the Supporting References Report

Watch video

Watch: This video tutorial shows you how to use the Supporting References report. The content of this video is also covered in text topics.

Procedure

In this procedure, you create and view the supporting references report in OTBI (Oracle Transactional Business Intelligence).

Create a Supporting References Report

Create a supporting reference report.

Note: Supporting references must be assigned to journal lines in the journal entry rule set, and then accounting created, to view in supporting references.

Navigate to the Reports and Analytics work area.

  1. From the Home page, click Navigator > Reports and Analytics.

  2. Open Create drop down.

  3. Select Analysis.

  4. Select Subject Area: Subledger Accounting - Supporting Reference Real Time.

    1. On the Select Columns page In the Create Analysis region, expand the Subject Area.

    2. Expand the folders and select the desired columns.

      • Click the Addicon to move columns to the Selected Columns region.

      • To rename columns, select the column row and click the Edit icon.

      • Resequence columns by using the arrows.

      This table contains column names used in the supporting references report.

      Folder Column

      Journal Source

      Journal User Source Name

      Ledger

      Ledger Name

      Supporting Reference Balance Details

      Select the appropriate supporting references

      Rename as wanted.

      GL Account

      Concatenated Segments

      Ledger

      Ledger Currency

      Time

      Accounting Period Name

      Supporting Reference Balances

      Period Balance Dr

      Period Balance Cr

    3. Click Next button.

  5. On the Select Views page:

    1. Enter the report Title.

    2. Select Table option.

    3. Click Next button.

    4. Click Next button again to skip the Edit Table page.

  6. On the Sort and Filter page:

    1. Click Add Filter.

    2. Select Ledger Name.

    3. Select Operator 'is equal to'.

    4. Enter wanted ledger name.

    5. Add another filter. Click Add Filter.

    6. Select Journal User Source Name.

    7. Select Operator 'is equal to'.

    8. Enter wanted journal user source name.

    9. Click Submit.

  7. On the Create Analysis page:

    1. Enter Analysis Name.

    2. In the Save In region, select My Folders.

    3. Click Submit.

    4. Click OK.

View the Supporting References Report

View the supporting reference report from the navigation pane.

  1. Expand the navigation pane.

  2. Expand My Folders.

  3. Click your report name.

  4. Click View action.

  5. The supporting reference balances report is displayed.

Note: If you do not see any data, the balances may not yet be updated. In that case, you must run the Update Subledger Accounting Balances process and then view again.