My article in the OAUG Insight Magazine - Summer 2012 Edition (Cover Page)

Meet your SLA with SLA -

Service Level Agreement with Subledger Accounting

My White paper on “Meet your SLA with SLA”  is published in the OAUG Insight Magazine, a quarterly magazine published by the Oracle Applications Users Group.  

Here are some of the highlights of my article:

The article aims to provide a comprehensive knowledge and  understanding of the Subledger Accounting (SLA) architecture in Oracle E-Business Suite (EBS) R12. It also uncovers some of the unpublished implementation tips and tricks and show how users can meet their financial and reporting needs on time using SLA. In addition, the article highlights how we used the SLA functionality to automate and control various accounting entries using specific business rules.

SLA is a new functionality introduced in EBS R12.SLA is a powerful and flexible rules-based accounting engine with a centralized data model and repository that generates accounting entries based on source transactions for all Oracle Applications transactions. With the introduction of SLA, customers now have a unified view of all the Oracle Application Subledgers across all modules with accounting entries. SLA helps to do a single-step posting to all ledgers and also provides realtime/online accounting information as well as an audit trail for all transactions

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Subledger Accounting comprises five components: Ledger, Subledger Accounting Method, Application Accounting Definition, Journal Line Definitions and Sources 

Using SLA - Case Study: Prior to the EBS R12 upgrade, in our Order to Cash system, when an AR receipt was created, the existing process was mapping the receipt to the default cost center as per the system setup. There was a lot of manual effort involved to reclassify them to the correct customer cost center.

As a part of the EBS R12 Upgrade, using Subledger Accounting rules, we wanted to automate this and make the system automatically apply the receipts to the correct cost center for the customer. Basically, our requirement was to ensure that the create accounting process derives the correct accounting Flexfield segments based on the receipts applied to the customer based on the sales channel to Accounting Flexfield mapping. We wanted this to work for any cash application – receipt applied, receipt unapplied, receipt reversed, etc. The event type for this case study is receipt, and event class is applied, unapplied, reversed, etc.

Solution Steps we used to configure SLA rules:

1.      Create a PL/SQL code – to derive the correct AFF Segments based on receipt and other input parameters.

2.      Define Custom Sources – Associate the PL/SQL code to Custom Source.

3.      Define Account Derivation Rules (ADR).

4.     Define Journal Line Types (JLT).

5.      Define Journal Entry Descriptions (JED).

6.     Define Journal Line Definitions (JLD) – Associate the ADR, JLT and JED together.

7.      Define/Validate Application Accounting Definition (AAD).

8.     Define Subledger Accounting Method (SLAM).

9.     Assign Subledger Accounting Method to Ledger.
10.     Run the Create Accounting Process

After the accounting process completes, you should be able to view the accounting entries from the Receipts window