1. Implementing Accounting Hub
  2. Automatically Prepare Large Volume Transactions for Accounting

Automatically Prepare Large Volume Transactions for Accounting

Automatically partition a single Accounting Hub transaction with hundreds of thousands of lines into smaller transactions during import. The Create Accounting process then processes these smaller transactions in parallel for faster completion.

How It Works

When this feature is enabled, Accounting Hub transactions that exceed 100,000 lines are automatically split into smaller transactions, each containing 300 lines or fewer, based on a configurable grouping criterion. These small transactions are then independently processed using the suspense account assigned to the ledger to generate balanced accounting entries.

If suspense is not enabled or another account is required, users can configure an alternative clearing account. If the original large transaction results in a balanced entry, the suspense or clearing account nets to zero after all small transactions are successfully accounted.

By default, transaction lines with different values in the Default Currency column aren't grouped together in the same small transaction. You can configure additional line-level sources as grouping attributes so that lines with different values for these sources are also processed separately.

Example:

If a transaction has 200,000 lines, all with the same currency and balancing segment value, and suspense is enabled, this feature creates 667 smaller transactions (each with 300 lines or fewer). The accounting entry for each small transaction is balanced using the suspense account. The total suspense amount across all transactions will net to zero if the original transaction is balanced. If suspense is not enabled or a different account is needed, you can configure a custom account rule to derive the clearing account.

Steps to Enable

Here are the steps to enable this feature.

Add a Promotional Option Code

To display the Group Source Data option for the event class, complete these steps:

  1. Navigate to Setup and Maintenance.
  2. Search for and navigate to the Manage Standard Lookups setup task.
  3. Search for the lookup type ORA_ERP_CONTROLLED_CONFIG and select these:
    • Lookup Code: XLA_36121027
    • Enabled: Selected
    • Meaning: Display Group Source Data Option in UI
  4. Save your changes.

Enable Group Source Data on Import

To enable group source data on import in the Manage Subledger Applications task, complete these steps:

  1. Navigate to Setup and Maintenance.
  2. Select the Fusion Accounting Hub setup offering.
  3. Click the Accounting Transformation functional area.
  4. Click the Manage Subledger Applications setup task and set the scope for your accounting hub subledger.
  5. Select the event class in the Event Model Hierarchy.
  6. In the General Information tab, select Group Source Data on Import.
  7. Save your changes.

Configure Additional Sources as Grouping Attributes

Assign additional sources as grouping attributes, if applicable. You can assign any line-level source as a grouping attribute to prevent transaction lines with different default currency and grouping attribute values from being grouped into the same event.

  1. Navigate to Setup and Maintenance.
  2. Select the Fusion Accounting Hub setup offering.
  3. Click the Accounting Transformation functional area.
  4. Click the Manage Sources setup task and set the scope for your accounting hub subledger.
  5. Select the Group By attribute for the source.
  6. Save your changes.

Configure a Clearing Account Instead of the Default Suspense Account

If suspense is not enabled or you want to use a different clearing account, complete these steps:

  1. Define an account rule to derive the clearing account used to balance individual subledger accounting entries for a large transaction.
  2. Assign the predefined journal line rule Balancing Line for Source Data Grouping to your journal entry rule set.
  3. Navigate to Setup and Maintenance.
  4. Select the Fusion Accounting Hub setup offering.
  5. Click the Accounting Transformation functional area.
  6. Click the Manage Journal Entry Rule Set setup task and set the scope for your accounting hub subledger.
  7. Edit the journal entry rule set associated with the large transaction's event type.
  8. In the Journal Line region, add a row.
  9. Search for and assign the predefined journal line rule Balancing Line for Source Data Grouping to the rule set.
  10. Assign account rules to the Balancing Line for Source Data Grouping.
  11. Save your changes.
  12. Activate the subledger journal entry rule set assignments.

Tips And Considerations

Keep these key points in mind when using this feature.

Unsupported Configurations

This feature does not work if:

  • The Flexible Configuration of Accounting Hub Cloud Service End-to-End Flow feature is not enabled.
  • Transfer to EBS General Ledger is enabled.
  • Transfer to PeopleSoft General Ledger is enabled.

Grouping Transaction Lines

Transaction lines in a large transaction with the same Default Currency value and designated grouping attributes are grouped into the same accounting entry. If the large transaction results in multiple balancing segment values, assign any sources used to derive the balancing segment as grouping attributes. This reduces the number of balancing lines created.

For example, if the Category source determines the GL account balancing segment, set it as a grouping attribute. If you need a supporting reference on the clearing line, assign the supporting reference source as a grouping attribute. However, using too many grouping attributes can slow performance and increase the number of accounting entries.

If a source other than Default Currency determines the entered currency, set that source as a grouping attribute to minimize clearing lines.

Handling Balancing and Clearing Accounts

  • If the large transaction is not balanced by balancing segments, intercompany balancing amounts are posted to the suspense or clearing account.
  • If the large transaction includes multiple currencies and is not balanced by currency, currency balancing amounts are posted to the suspense or clearing account.
  • If exchange gain or loss occurs in a subledger-level reporting currency or secondary ledger, the amount may be posted to the clearing account.

Fixing Invalid Accounting Entries

If any small transaction within a large transaction creates an invalid accounting entry, the valid entries will still be processed and posted to the General Ledger. To correct the invalid entry, follow these steps based on whether transaction reversal is enabled.

If transaction reversal is enabled:

  1. Reverse the transaction to cancel the accounting impact of the posted journal.
  2. Run the Accounting Hub Maintenance process in Purge Invalid Transaction mode to remove the invalid small transaction and its reversal.
  3. Re-import the transaction with new transaction numbers after fixing the data or configuration issue.

If transaction reversal is not enabled:

  1. Re-import the large transaction with negative amounts to offset the original posted journal.
  2. Run the Accounting Hub Maintenance process in Purge Invalid Transaction mode to remove the invalid small transactions.
  3. Re-import the transaction with new transaction numbers after correcting the data or configuration issue.