Oracle Fusion Subledger Accounting for Sell Side Integration

Subledger Accounting integration enables you to define and configure accounting rules and generate detailed accounting for business transactions in Channel Revenue Management.

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. It enables corporations to comply with corporate, local and managerial accounting and audit requirements via increased control, visibility and efficiency.

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 Sell Side 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 the sell side flows, the Subledger Accounting integration is centered on deriving accounting rules for two accounting event classes:

Event Class	Event Types
Customer Accrual	Customer Accrual Adjustment Customer Accrual Creation
Customer Claim Settlement	Customer Claim Settlement Reversal Claim Settlement by Payables Default Claim Settlement by Check Claim Settlement by Credit Memo
Customer Claim Settlement by Extensible Payables	Payables Extensible Settlement Reversal Claim Settlement by Extensible Payables
Customer Claim Settlement by Extensible Receivables	Receivables Extensible Settlement Reversal Claim Settlement by Extensible Receivables

Note: If a claim or deduction is nonpromotional it isn’t interfaced to Subledger Accounting or General Ledger.

Customer Accrual Event

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

• Debit Sales or Expense Account
• Credit Accrual Liability Account

For example:

Debit or Credit	Account	Amount
Dr.	Sales or Expense	USD 100
Cr.	Accrual Liability	USD 100

Predefined Accounting Rules for Customer Accruals

The following subledger accounting rules are used to generate accounting for customer 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
Customer Accrual	Customer Accrual Rule	Sales or Expense	Debit	Sales or Expense Account	Sales or Expense Account
Customer Accrual	Customer Accrual Rule	Accrual Liability	Credit	Accrual Liability Account	Accrual Liability Account

Customer Claim Settlement Event

When a claim or deduction is associated with promotional accruals or earnings, and the claim is being settled by credit memo, another accounting event is triggered. Channel Revenue Management passes the Receivables Clearing Account to Receivables and creates the following customer claim settlement entries:

• Debit Claim Accrual Liability Account
• Credit Receivables Clearing Account

For example:

Debit or Credit	Account	Amount
Dr.	Claim Accrual Liability Account	USD 100
Cr.	Receivables Clearing Account	USD 100

When a claim is associated with promotional accruals or earnings, and the claim is being settled by Payables Default Payment or check, then another accounting event is triggered. Channel Revenue Management passes the Payables Clearing Account to Payables and creates the following customer claim settlement entries:

• Debit Claim Accrual Liability Account
• Credit Payables Clearing Account

Debit or Credit	Account	Amount
Dr.	Claim Accrual Liability Account	USD 100
Cr.	Payables Clearing Account	USD 100

Predefined Accounting Rules for Customer Claim Settlements

The following subledger accounting rules are used to generate accounting for customer 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
Customer Claim Settlement	Customer Claim Settlement Rule	Claim Accrual Liability	Debit	Claim Accrual Liability Account	Claim Accrual Liability Account
Customer Claim Settlement	Customer Claim Settlement Rule	Receivables Clearing for Credit Memo Customer Claim	Credit	Receivables Clearing Account	Receivables Clearing Account
Customer Claim Settlement	Customer Claim Settlement Rule	Payables Clearing for Check and AP Default Customer Claim	Credit	Payables Clearing Account for Customer Claim	Payables Clearing Account for Customer Claim
Customer Claim Settlement	Customer Claim Settlement Rule	Exchange Gain or Loss for Customer Claim	Credit	Exchange Gain or Loss Account for Customer Claim	Exchange Gain Account for customer claim Exchange Loss Account for customer claim

Customer Claim Settlement by Extensible Payables Event

When a manual promotional claim is settled with Payables related custom settlement method, then an accounting event is triggered. Channel Revenue Management passes the Payables Clearing Account for Customer Claim to Payables and creates the following customer claim settlement entries:

• Debit Claim Accrual Liability Account
• Credit Payables Clearing Account for Customer Claim Account

Debit or Credit	Account	Amount
Dr.	Claim Accrual Liability	USD 100
Cr.	Payables Clearing Account for Customer Claim	USD 100

Predefined Accounting Rules for Customer Claim Settlement by Extensible Payables

The following subledger accounting rules are used to generate accounting for customer claim settlements by extensible Payables 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
Customer Claim Settlement by Extensible Payables	Payables Extensible Settlement Rule	Claim Accrual Liability for Payables Extensible Settlement	Debit	Claim Accrual Liability Account	Claim Accrual Liability Account
Customer Claim Settlement by Extensible Payables	Payables Extensible Settlement Rule	Payables Clearing for Extensible Customer Claim	Credit	Payables Clearing Account for Customer Claim	Payables Clearing Account for Customer Claim
Customer Claim Settlement by Extensible Payables	Payables Extensible Settlement Rule	Exchange Gain or Loss for Payables Extensible Customer Claim	Credit	Exchange Gain or Loss Account for Customer Claim	Exchange Gain Account for customer claim Exchange Loss Account for customer claim

Customer Claim Settlement by Extensible Receivables Event

When a manual promotional claim or deduction is settled with a Receivables related custom settlement method, then an accounting events is triggered. Channel Revenue Management passes the Receivables Clearing Account to Receivables and creates the following customer claim settlement entries:

• Debit Claim Accrual Liability Account
• Credit Receivables Clearing Account

Debit or Credit	Account	Amount
Dr.	Claim Accrual Liability Account	USD 100
Cr.	Receivables Clearing Account	USD 100

Predefined Accounting Rules for Customer Claim Settlement by Extensible Receivables

The following subledger accounting rules are used to generate accounting for customer claim settlements by extensible Receivables 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
Customer Claim Settlement by Extensible Receivables	Receivables Extensible Settlement Rule	Claim Accrual Liability for Receivables Extensible Settlement	Debit	Claim Accrual Liability Account	Claim Accrual Liability Account
Customer Claim Settlement by Extensible Receivables	Receivables Extensible Settlement Rule	Receivables Clearing for Extensible Customer Claim	Credit	Receivables Clearing Account	Receivables Clearing Account
Customer Claim Settlement by Extensible Receivables	Receivables Extensible Settlement Rule	Exchange Gain or Loss for Receivables Extensible Customer Claim	Credit	Exchange Gain or Loss Account for Customer Claim	Exchange Gain Account for customer claim Exchange Loss Account for customer claim

Reversal Event Type for Customer Claim Settlements

If Claim is reopened from Settlement Pending status because of any issues, Settle Customer Claims scheduled process verifies that the event was processed successfully or not.

• If the first event was processed successfully, then the application creates a reversal event.
• If the first event isn't processed, then the application deletes the existing event.

Manage Mapping Sets for Channel Revenue Management Sell Side

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

Mapping Set	Usage	Output Type	Input Sources
Accrual Liability Account	Mapping set for the accrual liability account.	Account combination	Customer Accrual Business Unit Customer Adjustment Type
Claim Accrual Liability Account	Mapping set for the claim accrual liability account.	Account combination	Customer Claim Business Unit Customer Claim Type
Exchange Gain Account for customer claim	Mapping set for the exchange gain account for customer claim.	Account combination	Customer Claim Business Unit
Exchange Loss Account for customer claim	Mapping set for the exchange loss account for customer claim.	Account combination	Customer Claim Business Unit
Receivables Clearing Account	Mapping set for the receivables clearing account.	Account combination	Customer Claim Business Unit Customer Claim Type
Payables Clearing Account for Customer Claim	Mapping set for the customer claims payables clearing account.	Account combination	Customer Claim Business Unit Customer Claim Type
Sales or Expense Account	Mapping set for the sales or expense account.	Account combination	Customer Accrual Business Unit Customer Adjustment 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 Chart of Accounts section of the Edit Mapping Set, 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.

Sweeping the Transactions

The Sweep Channel Transaction Accounting Events scheduled process is used to sweep unaccounted channel transactions to open or future enterable period.