1Subledger Application and Sources

This chapter contains the following:

The Create Accounting process uses the values of sources assigned to accounting attributes and accounting rules to create subledger journal entries.

The Create Accounting process uses the sources assigned to accounting attributes to copy values from transaction data to subledger journal entries. For example, you may map the invoice entered currency to the subledger journal entry entered currency.

Each accounting attribute is associated with a level:

  1. Header: Used when creating subledger journal entry headers.

  2. Line: Used when creating subledger journal entry lines.

Minimum Required Accounting Attribute Assignments

To create a valid journal entry the following accounting attribute assignments are required. Accounting Hub predefines the values:

This table contains the required accounting attributes.

Accounting Attribute Predefined Source Assignment

Accounting Date

Transaction Date

Distribution Type

Accounting Event Type Code

Entered Amount

Default Amount

Entered Currency Code

Default Currency

First Distribution Identifier

Line Number

The details and descriptions of these attributes are included in the Accounting Attributes section.

Accounting Attributes

Accounting attribute groups are represented in these tables.

Accounting Date

  • Accounting Hub predefines Transaction Date as the Accounting Date. The Create Accounting process uses it to derive the accounting date of journal entries.

  • The Accrual Reversal Accounting Date Source attribute is relevant to applications that must perform automatic reversal on accrued journal entries at a specified date or period. You can assign application and standard date sources to the Accrual Reversal Accounting Date in the Accounting Attribute Assignments page. When the Accrual Reversal Accounting Date Source attribute returns a value, the Create Accounting process generates an entry that reverses the accrual entry.

    Caution: If the application requires automatic reversal on accrued journal entries at a specified date or period, you must configure the Accrual Reversal Accounting Date Source attribute before configuring the journal entry rules for an event class.
  • Accounting Hub doesn't predefine any source assignment to the Accrual Reversal Accounting Date Source accounting attribute.

This table contains the valid accounting attributes for the Accounting Date group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Accounting Date

Date

Header

Event Class

Journal Entry Rule Set

Yes

Should be in open general ledger period.

Accrual Reversal Accounting Date Source

Date

Header

Event Class

Journal Entry Rule Set

No

Should be later than the accounting date.

Distribution Identifier

  • The distribution identifier information links subledger transaction distributions to their corresponding journal entry lines.

  • The Accounting Event Type Code and First Distribution Identifier accounting attributes are predefined to the Distribution Type and Line Number sources.

This table contains the valid accounting attributes for the Distribution Identifier group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Accounting Event Type Code

Alphanumeric

Line

Event Class

Yes

 

First Distribution Identifier

Alphanumeric

Line

Event Class

Yes

 

Entered Currency

  • Entered currency accounting attributes are required for all applications. The Create Accounting process uses them to populate the journal entry line entered currency and amounts.

  • The entered currency accounting attributes must always be assigned to sources. The sources assigned to the entered currency accounting attributes must always contain a value.

  • Accounting Hub predefines source assignment to these accounting attributes. Additional sources can be manually assigned to support cross-currency transactions.

The table contains the valid accounting attributes for the Entered Currency group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Entered Currency Code

Alphanumeric

Line

Event Class

Journal Line Rule

Yes

A valid currency.

Entered Amount

Number

Line

Event Class

Journal Line Rule

Yes

 

Ledger Currency

  • The Create Accounting process uses the ledger currency accounting attributes to calculate journal entry accounted amounts.

  • Accounting Hub calculates the accounted amount as entered amount multiplied by the conversion rate. If the entered currency is the same as the ledger currency, the Create Accounting process ignores the conversion type and conversion rate.

  • For event classes that support foreign currency transactions, and therefore more than one conversion rate and reporting currency amount, multiple event class accounting attribute assignments are created.

    • If a single line of transaction data is provided and the entered currency for debit and credit lines are different, then more than one Entered Currency accounting attribute assignment is required.

This table contains the valid accounting attributes for the Ledger Currency group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Accounted Amount

Number

Line

Event Class

Journal Line Rule

No

 

Conversion Date

Date

Line

Event Class

Journal Line Rule

No

 

Conversion Rate

Number

Line

Event Class

Journal Line Rule

No

 

Conversion Rate Type

Alphanumeric

Line

Event Class

Journal Line Rule

No

A valid general ledger conversion rate type or user.

Exchange Gain Account, Exchange Loss Account

Note: If implementing the exchange gain and loss feature, you can assign predefined account sources as the exchange gain or loss account.
  • The Create Accounting process determines whether there is an exchange gain or loss. The process derives the account based on the account rule assigned to the journal line rule with the Gain or Loss side in the journal entry rule set.

  • If Gain or Loss journal line rules aren't defined, then the value from the source mapped to the accounting attribute, Exchange Gain Account and Exchange Loss Account, are used as the exchange gain or loss account.

  • The Create Accounting process raises an exception if unable to create exchange gain or loss line for the transaction in these cases:

    • If Gain or Loss journal line rules aren't defined and sources haven't been mapped to these accounting attributes

    • If the mapped source doesn't contain any value.

  • Predefined assignments aren't provided for these accounting attributes.

  • If the subledger supports foreign currency or cross-currency transactions that may result in exchange gain or loss, Oracle recommends that you perform one of the following:

    1. Define accounting rules to generate exchange gain or loss lines whenever applicable for the transaction.

      • Define two journal line rules if you would like to use separate account and accounting class for exchange gain and loss. Journal line rules with side Gain are used for the exchange gain. Journal line rules with the side Loss are used for the exchange loss. Optionally, you can define just one journal line rule with side the Gain or Loss if only one accounting class is used.

      • Define two account rules to return the exchange gain account and the exchange loss account. Optionally, define just one account rule if the same account is used for both the exchange gain and loss.

      • Assign the exchange gain or loss journal line rules and appropriate account rule to the journal entry rule set.

    2. Assign sources to the Exchange Gain Account and Exchange Loss Account. Populate the sources with the account combination ID of the exchange gain or loss account already defined in Oracle General Ledger.

This table contains the valid accounting attributes for the Exchange Gain Account, Exchange Loss Account group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Exchange Gain Account

Number

Header

Event Class

No

 

Exchange Loss Account

Number

Header

Event Class

No

 

Gain or Loss Reference

  • The Create Accounting process groups lines with the same Gain or Loss Reference together when calculating exchange gain or loss. The total of the accounted debit amount and the accounted credit amount are calculated for lines with the same Gain or Loss Reference within a journal entry. Then, the difference between the total of the accounted debit amount and the accounted credit amount is considered the exchange gain or loss amount and the exchange gain or loss line is created if applicable.

  • Predefined assignments aren't provided for this accounting attribute.

  • Oracle recommends that you assign a header level source to this accounting attribute so that only one exchange gain or loss line is created for a subledger journal entry, should there be any exchange gain or loss.

This table contains the valid accounting attributes for the Gain or Loss Reference group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Gain or Loss Reference

Alphanumeric

Line

Event Class

No

 

Multiperiod Accounting

  • The multiperiod accounting attributes are relevant to applications that require the multiperiod accounting feature to generate accounting in more than one accounting period, for a single transaction.

  • Either no multiperiod accounting attributes should be assigned to sources or all multiperiod accounting attributes should be assigned to sources.

This table contains the valid accounting attributes for the Multiperiod Accounting group.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Multiperiod Start Date

Date

Line

Event Class

Journal Line Rule

Yes, if another accounting attribute in the same group has an assignment.

Required if the Multiperiod End Date has a value.

Multiperiod End Date

Date

Line

Event Class

Journal Line Rule

Yes, if another accounting attribute in the same group has an assignment.

Required if the Multiperiod Start Date has a value.

Must be later than Multiperiod Start Date.

Reconciliation Reference

  • The Reconciliation Reference accounting attribute is relevant to all subledger applications to enable clearing account reconciliation from subledgers.

  • The reconciliation reference is stored on subledger journal entry lines and subsequently passed to general ledger for use in the clearing account reconciliation feature.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Reconciliation Reference

Alphanumeric

Line

Event Class

Journal Line Rule

No

 

Transfer to GL indicator

  • This accounting attribute is used to indicate whether the journal entry created by the Create Accounting process will be transferred to General Ledger. Valid values are

    • Y or NULL - Subledger journal will be transferred to GL.

    • N - Subledger journals won't be transferred to GL. The untransferred journal won't appear in the subledger period close exception report, and it won't prevent the GL period close.

  • When source isn't assigned to this accounting attribute, the subledger journal entry will be transferred to General Ledger.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Transfer to GL Indicator

Alphanumeric

Header

Event Class

No

Control Reference

  • Create Accounting uses control reference accounting attributes to check control totals for a transaction by summing up the line-level source values and comparing to the header-level source value.

  • In case of a difference, the process reports an error to indicate a potential data issue such as a missing transaction line.

  • Sources with no values populated are treated as zeroes by the calculation.

This table contains the valid control reference accounting attributes.

Accounting Attributes Data Type Journal Entry Level Assignment to Rules Assignment Required? Validation Rules

Control Header Reference

Number

Header

Event Class

No

Must be equal to the sum of Control Line Reference values for the transaction.

Control Line Reference

Number

Line

Event Class

No

 

Here are some examples of using control reference:

  • Check control totals for a transaction: Assign a header level Total Line Amount source to control header reference and a line level Default Amount source to control line reference. For a transaction of three lines with Default Amount 100, 200 and 150 respectively populate Total Line Amount in the header file with 450.

  • Check missing transaction lines: Assign a header level Total Line Count source to control header reference and a line level Line Count source to control line reference. Populate Line Count with 1 for each line and Total Line Count in the header file with the total number of lines.