Subledger Accounting (SLA) Configuration for OPM in R12

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Subledger Accounting (SLA) Configuration for OPM
in R12

• Shailendra Naithani, Principal Product
  Manager(OPM)
• Venkat Chukkapalli, Group Manager(OPM Development)

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Agenda

• Subledger Accounting(SLA) - Introduction
• Architecture overview
• Manufacturing Accounting Controller(MAC) vs. SLA
• Setting up SLA for OPM
• SLA Use Case Misc Receipt Accounting
• OPM Period End Closing using OPM Financials
• SLA Advanced Configuration
• Custom Sources
• QA

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Subledger Accounting IntroductionWhat is SLA?
Payables
Payables
General Ledger
Receivables
Receivables
OPM
Accounting representation strongly tied to
subledger transactions
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Subledger Accounting Replaces MAC
OPM Costing with SLA
Completed material and resource transactions
OPM Costing engine generates cost
Preprocessor creates accounting events
SLA processes these events to create journal
entries
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Key Changes Summary

• Process Manufacturing Financials is the Subledger
  for all OPM transactions
• MAC Obsoletes and replaced by SLA
• No need for separate accounting units and
  accounts
• No need for Ledger mappings
• Account derivation based on flexible condition
  based rules
• Test Subledger update replaced by Create
  accounting-Draft
• Subledger Update replaced by Create accounting-
  Final mode
• Inventory Close for Process Organizations
• Handled by OPM Costing
• Preliminary Close is still supported for Process
  Organizations
• Period Ending Balances saved in an OPM Costing
  Table (GMF_PERIOD_BALANCES)
• Inventory Valuation report available in OPM
  Costing reports

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Subledger Accounting Replaces MAC OPM example
with Order Management
Shipping
Shipping (OMSO)
Internal Order Shipments
Order Management
Customer Returns(RMA)
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Event Model - Example
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Subledger Accounting Replaces MAC Equivalent
functionality in SLA
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Event Model- SLA vs MAC
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JLTs vs. Account Titles
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SLA ADR vs. MAC Account Mapping
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Subledger Accounting Method StructureExample-
Vision Environment
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Subledger Journal Entry
Description
Account Derivation Rule
Line Type
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Agenda

• Subledger Accounting(SLA) - Introduction
• Architecture overview
• MAC vs. SLA
• Setting up SLA for OPM
• SLA Use Case Misc Receipt Accounting
• OPM Period End Closing using OPM
  Financials(Costing and SLA)
• SLA Advanced Configuration
• Custom Sources
• QA

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SLA Setup
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Setup Account Derivation Rules

• Corresponds to Account Mapping and Priority setup
  of 11i OPM MAC
• Query a seeded rule and creates custom ADR with
  owner as User
• Output type can be an entire accounting
  flexfield or a specific segment in the accounting
  code combination
• Multiple conditions can be separated by AND/OR
  logic

• Key Takeaways
• Do not modify seeded ADRs. Create custom ADRs
• Define custom ADRs for rules such as AAC, AAP,
  DCOGS depending on your business needs

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Setup Journal Lines Definition

• JLD created with owner User
• JLDs are created for an Event class and Event
  type combination
• Multiple journal line types (JLTs) are associated
  to a JLD. These JLTs correspond to Account Titles
  of MAC
• ADRs are associated to the JLTs

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Setup Applications Accounting Definition

• AAD created with owner User
• Specific to a particular application
• Contains all event classes and event types

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Setup Subledger Accounting Method(SLAM)

• SLAM created with owner User
• Specific to a ledger
• Contains AADs from all applications

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Assign SLAM to Primary Ledger
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Agenda

• Subledger Accounting(SLA) - Introduction
• Architecture overview
• MAC vs. SLA
• Setting up SLA for OPM
• SLA Use Case Misc Receipt Accounting
• OPM Period End Closing using OPM
  Financials(Costing and SLA)
• SLA Advanced Configuration
• Custom Sources
• QA

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Perform a Miscellaneous Transaction
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Run OPM accounting preprocessor
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Run Create Accounting
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Output of create accounting- INV and IVA accounts
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Agenda

• Subledger Accounting(SLA) - Introduction
• Architecture overview
• MAC vs. SLA
• Setting up SLA for OPM
• SLA Use Case Misc Receipt Accounting
• OPM Period End Closing using OPM
  Financials(Costing and SLA)
• SLA Advanced Configuration
• Custom Sources
• QA

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OPM with SLA - The Process
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Run the preliminary inventory close
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Run Preliminary cost update process
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Run OPM Accounting Pre-processor
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Run Detailed Subledger Report
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Review the accounting entries
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Inventory Close- Final
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Final Cost Update
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Create accounting final mode

• On Submitting program, the following requests
  will be invoked
• Create Accounting
• Accounting Program
• Journal Import and
• Subledger Accounting Balances Update

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Agenda

• Subledger Accounting(SLA) - Introduction
• Architecture overview
• MAC vs. SLA
• Setting up SLA for OPM
• SLA Use Case Misc Receipt Accounting
• OPM Period End Closing using OPM
  Financials(Costing and SLA)
• SLA Advanced Configuration
• Custom Sources
• QA

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Custom SourcesExample1

• Extend the list of sources available to
  application accounting definitions
• Used to derive accounts based on non-standard
  sources
• PL/SQL function used to derive the source
• Return value can be a string, an accounting
  flexfield or a value set

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Custom SourcesExample2

• Business Case
• Customer  needs to capture purchasing details(PO
  Number, Line Number, Supplier Name, Item Number,
  Item Description) on the journal entry
  descriptions for Receive to Inspection accounting
  events.

• Solution Approach using custom sources

1. Create PL/SQL Functions for Item Number,
Item Description etc
create or replace FUNCTION GET_ITEM_NAME(p_invento
ry_item_id IN NUMBER , p_organization_id IN
NUMBER) return varchar2 IS  CURSOR c_item_name
IS select concatenated_segments from
mtl_system_items_kfv where inventory_item_id
p_inventory_item_id and organization_id
p_organization_id   l_item_name VARCHAR2(100)
' ' BEGIN   OPEN c_item_name FETCH
c_item_name INTO l_item_name CLOSE
c_item_name   RETURN l_item_name END
GET_ITEM_NAME
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Custom SourcesExample2.continued

• 2. Create Custom Sources for PO Number, Line
  Number, Supplier Name, Item Number, Item
  Description

3. Create Journal Entry Description using custom
sources
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Custom SourcesExample2.continued

• 4. Assign Journal Entry Description to the
  Receive to inspection Event type

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Custom SourcesExample2.continued

• 5. Run the Create Accounting Procedure

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Inventory valuation accounts using Subinventory
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Changes Summing up

• NO LOSS of functionality by moving to SLA model
• A new sub-menu created under Cost Management for
  SLA forms.
• Fiscal Policy and Event Fiscal Policy screens
  retained with minor modifications. Most of the
  fields will be read-only.
• OPM Event model mapped to SLA event model.
• Account Titles replaced by Journal Line Types
  (JLT) in SLA.
• Account Mapping functionality replaced by
  Accounting Definition Rules (ADRs) in SLA.
• Test Account Mapping replaced with TAB Test
  Accounting Builder.
• Test Sub Ledger process replaced with Draft Sub
  Ledger Accounting in SLA
• Subledger Detail Report modified to go against
  SLA repository.

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Q

A
Shailendra.naithani_at_oracle.com Venkat.chukkapalli_at_
oracle.com
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