Subledger Accounting Options

Manage Subledger Accounting Options

This task is accessed from the Setup and Maintenance work area. The page is displayed in the context of a primary or secondary ledger. All registered subledger applications are displayed. If you created additional accounting event classes after initial ledger setup, run the Update Subledger Accounting Options process to incorporate these event classes.

The Manage Subledger Accounting Options task provides the ability to edit:

Accounting Options
System Options

Edit Accounting Options

This page displays the subledger accounting options for the ledger. You can review and update the options. The view for this page depends on the subledger application type and the ledger type (primary or secondary).

The views are as follows:

The Defaults and Ledger options view displays the accounting program defaults and the event class options for the following:
- A primary ledger for a subledger application.
- A secondary ledger for a subledger application.
The Ledger options view displays the event class options for a subledger application, and secondary ledger.

General Options

Subledger Accounting Enabled

This option is visible only for secondary ledgers in the ledger options view. Enable or disable the subledger application for the ledger. No entries are generated by subledger accounting for an application if subledger accounting is disabled for the secondary ledger.

General Ledger Journal Entry Summarization

This option determines whether subledger journal entries are summarized or grouped when they're transferred to General Ledger. Subledger journal line description isn't transferred to GL with Summarize by GL Period and Summarize by GL Date options. Note that subledger journal line descriptions are copied to General Ledger Journal Line only for the Group by general ledger period and Group by general ledger date options.

This table contains the General Ledger Journal Entry Summarization options and a description of those options.

Option	Description
Summarize by general ledger period	Default option. Indicates that all subledger entry lines are summarized into a single general ledger entry if they have the same: Accounting period General ledger journal category Account Entered currency Side Balance type Disabled if the ledger uses daily balancing. The general ledger effective date defaults to the last date of the accounting period.
Summarize by general ledger date	Indicates that all subledger entry lines are summarized into a general ledger entry if they have the same: Accounting date General ledger journal category Account Entered currency Side Balance type The general ledger effective date is equal to the subledger accounting date.
Group by general ledger period	Indicates that all subledger journal entries with the same accounting period are grouped together. Each subledger journal entry line is transferred into the general ledger with the same granularity as the original lines. This option is available only for Oracle subledgers.
Group by general ledger date	Indicates that all subledger journal entries with the same accounting date are grouped together. Each subledger journal entry line is transferred into the general ledger with the same granularity as the original lines. This option is available only for Oracle subledgers.

Reversal Method

Use the Reversal Method option to determine how the reversal subledger journal entries are generated in subledger accounting. The options are:
- Switch debit and credit (default): reverses a debit for a credit and a credit for a debit.
- Change Sign: The reversal entry keeps the same side as the original entry, but the sign is changed.

Enable Posting from Subledger

Use the Enable Posting from Subledger option to enable or disable posting of subledger journals to GL.

This option is selected by default and allows subledger users to:
- Create subledger adjustment journals from UI or spreadsheet and post them to GL.
- Create subledger journals from the import accounting transactions process and post them to GL.
- Create subledger journals from the create accounting process and post them to GL.
If you disable this option, subledger users can:
- Create subledger adjustment journals from UI or spreadsheet and transfer them to GL but not post to GL.
- Create subledger journals from the import accounting transactions process and transfer them to GL but not post to GL.
- Create subledger journals from the create accounting process and transfer them to GL but not post to GL.
Note: Users must have the Post to GL (GL_POST_JOURNAL_PRIV) privilege to effectively use the Enable Posting from Subledger option. If you already have two segregated roles for subledger users and GL users, the users can continue to perform their roles.

Rounding Rule

Use the Rounding Rule option to determine which option to use for rounding. Subledger accounting rounds to the minimum accountable unit or ledger currency precision.

Tip: For examples described in the Rounding Rule Options table, assume that the precision is 2 and the minimum account unit is 0.01.

This table contains the Rounding Rule options and a description of those options.

Option	Description
Up	Amount rounded up. For example, 5.983 (USD) is rounded to 5.99 (USD).
Down	Amount rounded down. For example, 5.988 (USD) is rounded to 5.98 (USD).
Nearest	Amount rounded to nearest number. However, if the difference between Up and Down options is equal, the amount is rounded up. For example, 5.985 (USD) is rounded to 5.99 (USD).

Journal Categories Options

The table describes the event class option that can be overridden. Note that only the Journal Category event class can be overridden.

This table contains the Journal Categories Options, and a description of those options.

Option	Description
Journal Category	Defined in the accounting rules for an event class. Any valid journal category defined in General Ledger can be used.

Edit System Options

The following three regions are available:

Create Accounting Processing Options
Event Class Options
Transfer to General Ledger Processing Options

Create Accounting Processing Options

Number of Create Accounting Workers

Processing Unit Size

This table contains the Create Accounting Processing options and a description of those options.

Column Name	Description
Processing Unit Size	Approximate batch size for high volume general ledger transfer flow, and is also the general ledger import batch size. If not specified, the corresponding accounting processing unit size is used.

You can define the processing unit size to process a large number of items in one commit cycle. A processing unit is the number of transactions processed by the Create Accounting process in one commit cycle. Create Accounting processes the default processing unit size at the application level.

Stop at Error Limit
- Maximum number of events allowed to fail before canceling account program.
Note: In actual cases, the Create Accounting process may continue to process transactions even after the Stop at Error Limit is reached and may result in more errors than the error limit. This happens because transactions are processed in batches. If the application starts processing a batch, it continues to process all the transactions in the batch even if the Stop at Error Limit is reached.

Event Class Options

Event Class
Processing Unit Size

On the Manage Subledger Accounting Options page, you can select the subledgers for each ledger or ledger set, and specify the Processing Unit Size for each event class.

Transfer to General Ledger Processing Options

Number of General Ledger Transfer Workers
Processing Unit Size

Importing information from subledgers is done using subledger accounting. Posting from the subledger application transfers data to the general ledger interface and journal entry tables.

As part of your configuration, you can specify whether the Create Accounting process is to split the creation process into multiple workers (processors). The benefit of splitting the creation process is that:

Accounting can be generated more efficiently with more resources allocated to complete the process.
You can have multiple processors running in parallel to create the entries in a shorter period of time.

One restriction is the capacity of the hardware that's being used by the application. The more available processors, the more you can allocate to the Create Accounting process.

The decision for how many processors to use is made based upon expected volumes and the processing window. In other words, how much time is allocated to creating accounting. Accounting is often done as a nightly batch process, to facilitate application availability during work hours.

Dependencies exist between the overall completion status of the Create Accounting process and the workers. In general, the parent doesn't update to the Completed status until all the workers successfully complete.

The process that allows transfer of subledger journal entries to general ledger uses separate processing workers that are specialized in general ledger transfer. A lightweight general ledger transfer parent process is used to distribute the workload to the workers. To transfer entries even faster, you can have a number of parallel processing workers used for high volume general ledger transfer flow. If not specified, the corresponding accounting processors are used.