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Subledger Accounting

Subledger Accounting (SLA) is the accounting hub in Oracle R12 that derives accounting attributes and interfaces transactions to the General Ledger. It provides a single point to manage accounting rules. Transactions are registered in SLA by subledgers through APIs. SLA uses event classes and types to understand different transaction types like invoices or purchase orders. SLA then creates accounting entries by running executables that gather subledger data, derive attributes, code combinations, and create journal lines in SLA tables to interface to the General Ledger.

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448 views4 pages

Subledger Accounting

Subledger Accounting (SLA) is the accounting hub in Oracle R12 that derives accounting attributes and interfaces transactions to the General Ledger. It provides a single point to manage accounting rules. Transactions are registered in SLA by subledgers through APIs. SLA uses event classes and types to understand different transaction types like invoices or purchase orders. SLA then creates accounting entries by running executables that gather subledger data, derive attributes, code combinations, and create journal lines in SLA tables to interface to the General Ledger.

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gaurimohite
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Subledger Accounting.

Why SLA and what does it do?


Oracle Sub Ledger accounting (SLA) is accounting hub in Oracle Application Release 12 (R12). It is used to derive all
attributes required to account a transaction in Oracle General Ledger. In R12, SLA is used to derive the very basic
accounting attributes like entered amount, accounted amount, Date, Currency code etc and the complex attributes
like Ledger, Code Combination ID, Periods etc. After deriving these accounting attributes the transactions are then
interfaced to GL from SLA. Thus in R12 no sub ledgers (AP, PO, PA etc) interfaces the transactions directly to GL,
but all the transactions are interfaced to GL in following 2 steps:
1. Sub ledgers interface the data to SLA.
2. SLA derives the accounting information and interfaces the data to GL.

SLA gives the flexibility to manage the entire accounting rule at one place, which acts as a single source of truth for
GL.

Note: There is no separate responsibility to access SLA setup or the view the transactions generated by SLA. Rather
we can access SLA setup and review accounted transactions with extended menus attached to each sub ledger
module.

Menu to access the SLA accounted transactions.


Menu to access the SLA Setup.

How does SLA works?


1. Register sub ledger transactions in SLA.
After validating / approving / costing the transaction in the respective module, the sub ledger calls SLA API to create
a reference of the validated transaction in SLA. This reference is known as EVENT. Events are created by calling the
public API “xla_events_pub_pkg.create_events” provided by SLA. It is up to the sub ledgers on how to call the API.
For example Oracle Projects call this API from concurrent program “PRC: Generate Cost Accounting Events” and
Oracle Payables calls this API while user creates accounting for the Invoice.

While calling xla_events_pub_pkg.create_events, oracle passes a unique id and event class (Will discuss in next
step). Unique ID can be an invoice id or a po_distribution id or an expenditure_item_id etc. As soon as the sub ledger
generates event in SLA, SLA returns unique event_id. This event_id will then act as a reference to all the accounting
entries generated by the SLA. Once event is successfully created in SLA, means that the transaction is registered in
SLA for accounting.

Taking the example of Oracle Projects in 11i where after costing the transaction user need to run the ‘PRC: Interface
Cost to General Ledger’ followed by ‘Journal Import’ followed by ‘PRC: Tieback process’. But in R12 user only need
to run “PRC: Generate Cost Accounting Events” which will register events in SLA and thereafter SLA will take care of
accounting the transaction and interfacing it to GL. There is no tieback process in R12, as there is one to one
reference of event id between SLA and sub ledger tables.

2. How does SLA understand whether unique id is invoice id or a po_distribution id or an


expenditure_item_id as SLA uses same table to store all the identifier?
In step 1 we discussed that while creating the event we also need to pass event class. This event class is used to
distinguish between the types of transaction passed for processing. To understand this better we will go thru the
seeded oracle information.

Navigation:
Responsibility: Projects, Vision Services (USA)
Menu: Setup > Subledger Accounting > Accounting Methods Builder > Events > Event Modal

This screen shows the hierarchical structure of different transactions that can be interfaced to SLA. Because the
above screen shot is from Oracle Projects responsibility thus it shows only the projects related transactions. In the
entity screen we see only those transactions that can be interfaced to the GL, that’s why we do not see Invoice as
one of the entity as Invoices are not directly interfaced to GL from PA but they are routed thru AR.

Identifiers are the unique ID that is passed to SLA from sub ledgers. Per the screenshot Oracle is passing
expenditure_Item_id for entity ‘EXPENDITURE’. “Identifier Column” field under Identifier window tells what column in
SLA table should store expenditure_item_id. The identifier columns that can be used are SOURCE_ID_INT_1 to 4,
SOURCE_ID_DATE_1 to 4, SOURCE_ID_CHAR_1 to 4 these values and columns are present in table
XLA_TRANSACTION_ENTITIES.

Event Class window displays the different kind of expenditure transactions that can be interfaced to GL. This level of
hierarchy is known as Event class, which is further classified into Event Types. In PA we have different event types
like Labor Cost, Misc Cost, Usage Cost, Supplier Cost etc. Further we could classify Supplier Cost as Expense
Report and Invoices as Oracle Projects can interfaces only these 2 transactions from AP.
3. Based on the identifiers and event class, how SLA creates accounting lines?
After registering the event in SLA, we can create accounting entries by running executable XDODTEXE. This
executable is provided by SLA and is used by all the sub ledgers with different concurrent program names. Around
160 concurrent programs are uses the same executable for example in Projects it is used with name “PRC: Create
Accounting”. This executable does the following:
a. Gather information from base tables in sub ledgers.
b. Derive the accounting attributes based on the data fetched from sub ledgers.
c. Derive code combination id based on the business rules.
d. Create journal lines based on the seeded Journal definition.
e. Create lines in XLA_AE_HEADERS and XLA_AE_LINES.

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