SUBLEDGER ACCOUNTING

Supporting References Release 12

Author: Last Updated: Last Updated: Document Ref: Version: Status: Subledger Accounting October 2, 2009 October 11, 2011 [Link] 1.3 PUBLISHED

Supporting References
Supporting references may be used as follows: To provide additional business information about a subledger journal entry at the header or line level To establish a subledger balance for a particular source value or combination of source values for a particular account To assist with reconciliation of account balances, and For financial and managerial analysis The use of supporting references is optional. See: Defining Supporting References, page 2-76 of the SLA Implementation Guide. Note: The page numbers may vary depending of the version of the documentation you are reviewing. This document explains how a supporting reference is created and used, and how supporting references balances are maintained. Note: The column names for the supporting references are prefixed with analytical_criteria. See the diagrams in Appendix A and B of this document. DISCLAIMER: The Oracle seeded Applications Accounting Definitions (AAD) cannot be modified; however, customers can create a custom AAD to make changes.

Creating a Supporting Reference: Step 1: Define a Supporting Reference 1. Navigation Setup: Accounting Setups: Subledger Accounting Setup: Accounting Methods Builder: Journal Entry Setups: Supporting References 2. From this page, you can create a supporting reference.

3. To define a new supporting reference, click CREATE.

4. Assign a name, code, and description for your supporting reference. This is called the analytical criterion code in the table. 5. In our Scenario, we created a code called BATCH_DETAILS. 6. The Maintain Balances checkbox indicates whether you want to maintain balances for this Supporting Reference or not.

NEVERif you do not want to track balances BASED ON ACCOUNTto maintain balances for this Supporting Reference ALWAYSindicates that the balances will be carried forward to the next year.

7. For our example, we will use ALWAYS. 8. Click ADD DETAIL. Here you will specify a detail code and description. You can attach up to five detail codes to a Supporting ReferenceAC1 to AC5 9. Let us say, we create a detail code called BATCH_CODE. This would be AC1. Make sure the Supporting Reference and Detail codes are all in CAPS.

10. You must attach the source to each detail code. You can attach one source per event class or application combination. 11. Clicking ASSIGN SOURCES takes you to the following page.

12. Select the application, event class, and source name. Then click GO. You need to ensure that you pick a valid source whose value can be passed from the extract during the accounting of a transaction belonging to the event class that has been selected for the application. 13. Let us say we defined our AC1 on Invoice Description Column from Event Class Invoices. 14. Check the source name and click APPLY. 15. Add as many sources and detail codes (max of 5). Once this is done, click APPLY to save the Supporting Reference.

Step 2: Attach the Supporting Reference to the Journal Line Type (JLT) 1. Once you get the confirmation, go to the Journal Line Description (JLD) of the event class you have selectedINVOICES in this case. 2. From the assignment section, click on the JLT and attach the Supporting reference that was created in the previous step.

For example, if you want Supporting Reference BATCH_DETAILS to be displayed for the JLT Liability, Basic then go to the JLT assignments and click on the Supporting References tab and attach it to the JLT as shown on the previous screenshot Step 3: Validate the Applications Accounting Definitions Since we have modified the JLT setup, we need to validate the Applications Accounting Definitions (AAD). Once that is done, the Supporting Reference is ready and can be used. Now, whenever you create an invoice, if the description column is populated, balances will be maintained for these invoices.

Understanding how definitions are stored Lets say we have created an invoice of $100 USD in the period JUL-08. Lets say we populated the description column with a value Batch1. When we validate and account for this entry, let the CCID for the liability line be 1254 and the ledger here is ledger_id 1.

Along with the regular transaction tables, the table xla_ae_line_acs is populated with the following entry for ledger_id 1 and ccid 1254 Ae_hdr_id 1234 Ae_line_num 2 AC_code BATCH_DETAILS AC1 Batch1

If the accounting is run in FINAL mode, then the Subledger Accounting Balances Update concurrent program is spawned. In online accounting, the program does not get spawned, but the balances are calculated. This program picks up the data from xla_ae_line_acs accounted in the current run (based upon the batch id of create accounting) and it stamps the column analytical_balance_flag in xla_ae_lines with a P for pending. Then it populates the xla_ac_Balances table with the balances and updates the analytical_balance_flag to Y. If this program is submitted standalone, it only takes the ledger name as parameter and all the data in xla_ae_lines with analytical_balance_flag as P is picked up. In our case, xla_ac_balances is populated with the following entries. Lets say the latest open period for the ledger is Nov-08.

Period Jul-08 Aug-08 Sep-08 Oct-08 Nov-08

AC_code BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS

Ac1 Batch1 Batch1 Batch1 Batch1 Batch1

Bal_dr

Bal_cr 100 100 100 100

Act_dr

Act_cr 100

The primary key in xla_ac_balances consists of all the columns ledger_id, ccid, period, ac_code and all the detail codes. Since our supporting reference code is BATCH_DETAILS and AC1 is the Description, all lines with the same value for AC1 and generated using the Liability JLT are grouped together. For each description that is entered, we would have rows in this table for all the periods that are open for that ledger (with the start period as the date of the first transaction using the AC code). That is since the first transaction that we created was in JUL-08, and the latest open period is Nov-08, this table would have 5 rows - Jul to Nov. Now lets create another transaction with the same description (BATCH1) on the same ledger for the period Jun-08, for an amount of $50 USD. A row already exists for this combination in the table but not for this period. So, we will have one new row added for the Jun-08 period. All the rows from Jun-08 to Nov-08 are updated with the new period activity and balances. Lets say that now, weve created a third invoice for Rs.40 in a period of Aug-08, with a new description, say BATCH2. This is a new description, so, the table would have rows inserted for each description and period from Aug-08 to Nov-08. So, this table would now have 10 rows 6 for BATCH1 from Jun-09 to Nov-08, and 4 for BATCH2 from Aug-08 to Nov-08. So, our table would now look like this: Period Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Aug-08 Sep-08 Oct-08 Nov-08 AC_code BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS BATCH_DETAILS Ac1 Batch1 Batch1 Batch1 Batch1 Batch1 Batch1 Batch2 Batch2 Batch2 Batch2 Bal_dr Bal_cr 50 150 150 150 150 40 40 40 Act_dr Act_cr 50 100

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So depending on the number of distinct values for the detail code (AC1 in this case) and open periods, we would have the rows inserted into this table. If we take an example of a case where we have AC2 also (lets say AC2 is on Invoice Amount). Then each value of AC2, that is each distinct Amount is taken as a different criterion. So for all the permutations of Invoice description and Invoice Amount multiplied by number of open periods for each combination, we would have that many rows in xla_ac_balances. Lets say the user has opened a new GL period. Then, the next time subledger accounting balances update is spawned it will insert one row for this new period into all the permutations of ac_code and ac1, ac2 values available.

Viewing the Supporting Reference Balances There is no report to check the balances. However, we have a UI, Supporting Reference Balances, which can be used to query the balances for each Supporting Reference code and detail code (optional). This page is similar to the Accounting Events/ Journal entries page, and it would fetch the period name and activity on each AC code.

Appendix A: Supporting References What Tables are Impacted

Disclaimer: The information in this appendix may not be current. It is provided here as a reference only.
XLA_ANALYTICAL_HDRS_B # Analytical_Criteria_Code # Analytical_Criteria_Type_Code XLA_ANALYTICAL_ASSGNS # Analytical_Assignment_Id XLA_PROD_ACCT_HEADERS # Application_Id # Product_Rule_Type_Code # Product_Rule_Code # Entity_Code # Event_Class_Code # Event_Type_Code

XLA_ANALYTICAL_DTL_VALS # Analytical_Criteria_Detail_Vaue_Id

XLA_ANALYTICAL_DTLS_B Analytical_Criteria_Code # Analytical_Criteria_Type_Code # Analytical_Detail_Code

XLA_PROD_ACCT_LINES # Application_Id # Product_Rule_Type_Code # Product_Rule_Code # Entity_Code # Event_Class_Code # Event_Type_Code # Accounting_Line_Type_Code # Accounting_Line_Code

XLA_PRODUCT_RULES_B # Application_Id # Product_Rule_Type_Code # Product_Rule_Code

XLA_ANALYTICAL_BALANCES # Application_Id # Ledger_Id # Code_Combination_Id # Period_Name

XLA_ANALYTICAL_SOURCES # Analytical_Criteria_Code # Analytical_Criteria_Type_Code # Analytical_Detail_Code # Entity_Code # Event_Class_Code # Application_Id # Source_Code # Source_Type_Code # Source_Application_Id

XLA_EVENT_SOURCES # Application_Id # Legal_Entity_Id

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Appendix B: Supporting References How the Data Flows

Disclaimer: The information in this appendix may not be current. It is provided here as a reference only.

Accounting Periods

Ledgers

Accounts Balances
Control

Application

Initial Balances

Balances

Third Parties
Legal Entity

Sources

Accounting Entry Line Analytical Details

Analytical Detail Values

Analytical Criteria

Analytical Criteria Details

Analytical Criteria Sources

Accounting Entry Lines

Application Accounting Definition Event Line Types

Event Classes
With Balances

Analytical Criteria Assignments

Accounting Entry Headers

Application Accounting Definition Event Types

Without Balances

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