R12 SLA: From Product Accounting to Subledger Accounting

Posted on November 16th, 2007 by Sanjit Anand | Print This Post | Email This Post

Most of us are well aware that in Release 12 of Oracle Applications, Subledger Accounting (SLA) has been introduced, which is a Rule-based accounting engine, toolset & repository which is supporting most of Oracle business Suite modules. As we know driver for introduction this is to have an option of allowing multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements. The Functionality is somehow very similar to Global accounting engine, which oracle does offer for European reporting Need.

So What is Subledger Accounting?

• SLA is an intermediate step between subledger products and the Oracle General Ledger
• Journal entries are created in Subledger Accounting and then transferred to Oracle General Ledger
• Each subledger transaction that requires accounting is represented by a complete and balanced subledger journal entry stored in a common data model

Is this Module or what?

It is good to know ,sub ledger Accounting is a Service, not an Application .

The high points of SLA would be:

• There are no SLA responsibilities
• Users do not login to SLA
• SLA is a service provided to Oracle Applications
• SLA forms and programs are embedded within standard Oracle Application responsibilities
• SLA provides the following services to Oracle Applications
• Generation and storage of detailed accounting entries
• Storage of subledger balances (e.g. third party control account balances)
• Subledger accounting entries
• Subledger reporting (e.g. Subledger journal reports, open account balances listing)

What oracle application Module taking services for SLA?
Most of modules which need accounting entry with finance uses service of SLA Modules.

This new Product has these many new functionality such as:

• Journal Entry Setup and sequencing
• Date Effective Application accounting Definitions
• Multiple Accounting Representation
• Multi-period Accounting
• Summarization Options
• Draft and online accounting
• Replacement for disabled accounts
• Process category Accounting
• Transaction account Builder
• Accrual Reversal Accounting
• Accounted and Gain/Loss Amount calculations
• Application Accounting Definition Loader
• Enhanced Reporting Currency Functionality

The overall advantage of SLA can be summarized by oracle as below:

GL Flow with Subledger-Level Secondary Ledger

Lets take a case , with a scenario with basic Finance module, you can find how tightly accounting model is separated with transaction model in release 12.

This is the typical flow within one product with SLA can be best described as:

1. Understanding Global Accounting Engine ( Product AX)
2. Understanding Global Accounting Engine – Dual posting, Tables, Reports
3. Understanding Shared Product & Data
4. Year End Closing
5. Understanding Accounting from Techies Mind