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 |
|
Claim Accrual Asset Account |
Map the claim accrual asset account to the claim business unit and claim type. |
Account combination |
|
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 |
|
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 |
|
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.
-
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
-
-
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.
-
In the Edit Mapping Set > Chart of Accounts section, click the Add Row icon. Select the chart of accounts from the drop-down list.
-
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.
-
Click Save.