Oracle Fusion Subledger Accounting for Buy Side Integration

Subledger Accounting integration enables you to define and configure accounting rules and generate detailed accounting for business transactions in Channel Revenue Management. General Ledger integration enables the posting of accounting journals to the general ledger for financial reporting.

Predefined Subledger Accounting Setup

Channel Revenue Management has been registered as a subledger application. The setup tasks are available in the Channel Revenue Management functional area to help you set up your subledger.

Journal Source and Categories

Journal entries created for transactions from Channel Revenue Management are assigned the following journal source and categories. Channel Revenue Management assigns default journal categories to each event class. You can configure the assignment in the Subledger Accounting Options task.

This table gives the journal sources and journal categories for Channel Revenue Management.

Field	Values
Journal Sources	Channel Revenue
Journal Category	Channel Accrual Channel Claim

Channel Revenue Management Event Classes

An accounting event is a business event in Channel Revenue Management that has an accounting impact. Subledger Accounting categorizes accounting events as event types. Event types are grouped into event classes. The Channel Revenue Management accounting event model is predefined for you, and includes each event class and its life cycle. This accounting event model forms the basis for creating subledger accounting. An event class enables Subledger Accounting to handle the accounting for similar business events in a consistent manner.

For Channel Revenue Management, the Subledger Accounting integration is centered around deriving accounting rules for two accounting event classes:

Event Class	Event Types
Supplier Accrual	Supplier Accrual Creation Supplier Accrual Adjustment
Supplier Claim Settlement	Supplier Claim Settlement by Check/Wire/EFT/AP Default Supplier Claim Settlement by AP Debit

Supplier Accrual Event

For all accruals that are created, an accrual event triggers it's accounting to General Ledger. Accounting events are raised with the respective event types for all accruals created in Channel Revenue Management. Supplier accrual events:

• Debit the Accrual Asset account

• Credit the Income or Discount on COGS account

For example:

Dr/Cr	Account	Amount
Dr.	Accrual Asset	USD 100
Cr.	Income or Discount on COGS	USD 100

Predefined Accounting Rules for Supplier Accruals

The following subledger accounting rules are used to generate accounting for supplier accruals if predefined journal entry rule set is in use. The accounts to debit and credit are defined in the Subledger Accounting mapping sets.

Event Class Name	Journal Entry Rule Set	Journal Line Rule	Side	Account Rule	Mapping Set
Supplier Accrual	Supplier Accrual Rule	Accrual Asset	Debit	Accrual Asset Account	Accrual Asset Account
Supplier Accrual	Supplier Accrual Rule	Income or Discount on COGS	Credit	Income or Discount on COGS Account	Income or Discount on COGS Account

Supplier Claim Settlement Event

For all promotional claims that are settled after association to earnings, another accounting event is triggered. Accounting events are raised after the claim is initiated for settlement. Supplier claim settlement events:

• Credit the Claim Accrual account

• Debit the Payables Clearing account

• Credit the Primary Ledger Exchange Gain and Loss account (from conversion rate differences between when it's accrued vs paid)

For example:

Dr/Cr	Account	Amount
Cr.	Claim Accrual Asset account	USD 100
Dr.	Payables Clearing account	USD 100

Predefined Accounting Rules for Supplier Claim Settlements

The following subledger accounting rules are used to generate accounting for supplier claim settlements if predefined journal entry rule set is in use. The accounts to debit and credit are defined in the Subledger Accounting mapping sets.

Event Class Name	Journal Entry Rule Set	Journal Line Rule	Side	Account Rule	Mapping Set
Supplier Claim Settlement	Supplier Claim Settlement by Payables Rule	Payables Clearing	Debit	Payables Clearing Account	Payables Clearing Account
Supplier Claim Settlement	Supplier Claim Settlement by Payables Rule	Claim Accrual Asset	Credit	Claim Accrual Asset Account	Claim Accrual Asset Account
Supplier Claim Settlement	Supplier Claim Settlement by Payables Rule	Primary Ledger Exchange Gain or Loss	Credit	Claim Gain or Loss Account	Exchange Gain Account Exchange Loss Account

Manage Mapping Sets

The following predefined mapping sets are available for Channel Revenue Management. These map the predefined input sources with the Chart of Accounts for your ledger.

Mapping Set	Usage	Output Type	Input Sources
Accrual Asset Account	Map the accrual asset account to the accrual business unit and adjustment type.	Account combination	Accrual Business Unit Adjustment Type
Claim Accrual Asset Account	Map the claim accrual asset account to the claim business unit and claim type.	Account combination	Claim Business Unit Claim Type
Exchange Gain Account	Map the exchange gain account to the claim business unit.	Account combination	Claim Business Unit
Exchange Loss Account	Map the exchange loss account to the claim business unit.	Account combination	Claim Business Unit
Income or Discount on COGS Account	Map the income or discount on the cost of goods sold account to the accrual business unit and adjustment type.	Account combination	Accrual Business Unit Adjustment Type
Payables Clearing Account	Map the Payables clearing account to the claim business unit and claim type. The Payables clearing account is used for claims settled through Payables settlement methods.	Account combination	Claim Business Unit Claim Type

Assign Accounts to Predefined Mapping Sets

You must associate at least one output value for your ledger's chart of accounts for each of the above mapping sets if you're using the predefined journal entry rule sets.

1. With roles having the required access, navigate to the Setup and Maintenance work area.

   • Offering: Order Management/Procurement

   • Functional Area: Channel Revenue Management/Supplier Incentives

   • Task: Manage Mapping Sets

2. The Manage Mapping Sets: Channel Revenue Management page opens, where you can see the mapping sets for your subledger. Select a mapping set to edit it.

3. In the Edit Mapping Set > Chart of Accounts section, click the Add Row icon. Select the chart of accounts from the drop-down list.

4. In the Mappings section, add the Input source to Output type mappings for your account. If applicable, select the Default button to identify a default account to be used in case there is no mapping available for the input source value.

5. Click Save.

Note: Create a custom mapping set only if you must map the account to different input sources.