R12 Oracle Subledger Accounting Fundamentals. Student Guide

Transcription

1 R12 Oracle Subledger Accounting Fundamentals Student Guide

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3 Table of Contents Overview of Subledger Accounting Overview of Subledger Accounting Objectives What is Subledger Accounting? Subledger Balances Summary Practice 1: Create a New User Practice - Create a New User Solution - Create a New User Practice 2: Create a Supplier Practice - Create a Supplier With Two Sites Solution - Create a Supplier With Two Sites Create Accounting and Transfer Journal Entries to General Ledger Create Accounting and Transfer Journal Entries to General Ledger Objectives Create Accounting Program Overview Draft Accounting Online Accounting Straight-Through Accounting Create Accounting Program Parameters Transfer Journal Entries to GL Program Overview Transfer Journal Entries to General Ledger Program Oracle Subledger Accounting Program Report Transfer Journal Entries to GL Report Setting Profile Options Summary Practice 1: Entering an Invoice Practice - Enter an Invoice with Two Lines that are Distributed to Different Departments Solution - Enter an Invoice with Two Lines that are Distributed to Different Departments Practice - Create an Invoice Solution - Create an Invoice Guided Demonstration: Run the Create Accounting Program Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in Payables Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in Receivables Inquiries Inquiries Objectives Objectives continued Accounting Events Inquiry Process Viewing Subledger Journal Entry Lines Subledger Journal Entry Lines Inquiry Process Drilldown from GL Summary Summary continued Practice 1: Inquiring on Subledger Journal Entries Guided Demonstration - Inquiring on Subledger Journal Entries in Payables or Receivables Practice - Inquiring on Subledger Journal Entries for Payables and Receivables Solution Inquiring on Subledger Journal Entries for Payables and Receivables Accounting Methods Builder (AMB) R12 Oracle Subledger Accounting Fundamentals Table of Contents i

4 Accounting Methods Builder (AMB) Objectives Accounting Methods Builder (AMB) Overview AMB Process Accounting Methods Builder (AMB) Copy and Modify Functionality Transaction Chart of Accounts Accounting Chart of Accounts Event Model Event Classes Event Types Subledger Accounting Methods Setting Up Subledger Accounting Methods Subledger Accounting Methods Application Accounting Definition Application Accounting Definitions Importing Application Accounting Definitions Exporting Application Accounting Definitions Journal Line Types Account Derivation Rules Account Derivation Rule Defining Account Derivation Rules Account Derivation Rule Account Combination Rules Segment Rules Oracle-Owned vs. User-Owned AMB Components Value Set Rules Mapping Sets Journal Entry Descriptions Journal Entry Description Journal Lines Definition Journal Lines Definitions Summary Practice 1: Running the Create Accounting Program in Draft Mode Practice - Running the Create Accounting Program for Payables Solution Running the Create Accounting Program for Payables Practice - Running the Create Accounting Program for Receivables Solution Running the Create Accounting Program for Receivables Practice 2: Defining Subledger Accounting Methods Guided Demonstration - Defining Subledger Accounting Methods in Payables Practice - Defining Subledger Accounting Methods for Payables Solution Defining Subledger Accounting Methods for Payables Guided Demonstration - Defining Subledger Accounting Methods in Receivables Practice - Defining Subledger Accounting Methods for Receivables Solution Defining Subledger Accounting Methods for Receivables Practice 3: Defining Application Accounting Definitions Guided Demonstration - Defining an Application Accounting Definition in Payables Practice - Defining an Application Accounting Definition for Payables Solution Defining an Application Accounting Definition for Payables Guided Demonstration - Defining an Application Accounting Definition in Receivables Practice - Defining an Application Accounting Definition for Receivables Solution Defining an Application Accounting Definition for Receivables Practice 4: Defining Journal Line Types Guided Demonstration - Defining Journal Line Types in Payables Practice - Defining Journal Line Types for Payables Solution Defining Journal Line Types for Payables Guided Demonstration - Defining Journal Line Types in Receivables R12 Oracle Subledger Accounting Fundamentals Table of Contents ii

5 Practice - Defining Journal Line Types for Receivables Solution Defining Journal Line Types for Receivables Practice 5: Defining Account Derivation Rules Guided Demonstration - Defining Account Derivation Rules for Payables Practice - Defining Account Derivation Rules for Payables Solution Defining Account Derivation Rules for Payables Guided Demonstration - Defining Account Derivation Rules in Receivables Practice - Defining Account Derivation Rules for Receivables Solution Defining Account Derivation Rules for Receivables Practice 6: Defining Journal Lines Definitions Guided Demonstration - Defining Journal Lines Definitions for Payables Practice - Defining Journal Lines Definitions for Payables Solution Defining Journal Lines Definitions for Payables Guided Demonstration - Defining Journal Lines Definitions for Receivables Practice - Defining Journal Lines Definitions for Receivables Solution Defining Journal Lines Definitions for Receivables Reports Reports Objectives Subledger Accounting Reports Overview Custom Parameters Journal Entries Report Journal Entries Report Parameters Account Analysis Report Account Analysis Report Parameters Third Party Balances Report Third Party Balances Report Parameters Subledger Period Close Exceptions Report Subledger Period Close Exceptions Report Parameters Open Account Balances Listing Overview Creating and Updating Open Account Balances Listing Definitions Open Account Balances Listing Open Account Balances Listing Parameters Summary Practice 1: Generating the Journal Entries report Practice - Generating the Journal Entries Report for Payables Solution Generating the Journal Entries Reports for Payables Practice - Generating the Journal Entries Report for Receivables Solution Generating the Journal Entries Reports for Receivables Creating Manual Subledger Journal Entries Creating Manual Subledger Journal Entries Objectives Subledger Journal Entries Overview Manual Journal Entries Creating Subledger Journal Entries Creating Subledger Journal Lines Summary Practice 1: Creating Manual Subledger Journal Entries Guided Demonstration - Creating Manual Subledger Journal Entries in Payables Practice - Creating Manual Subledger Journal Entries in Payables Solution Creating Manual Subledger Journal Entries in Payables Guided Demonstration - Creating Manual Subledger Journal Entries in Receivables Practice - Creating Manual Subledger Journal Entries in Receivables Solution Creating Manual Subledger Journal Entries in Receivables Advanced Options R12 Oracle Subledger Accounting Fundamentals Table of Contents iii

6 Advanced Options Objectives Custom Sources Defining Custom Sources Custom Source Definition Example: Custom Source in a Description Business Flows Business Flow Methods Multiperiod Accounting Accrual Reversals Third Party Control Accounts Alternative Accounts Diagnostic Framework Overview Diagnostic Framework Business Process Error Handling Journal Entry Sequencing Summary R12 Oracle Subledger Accounting Fundamentals Table of Contents iv

7 Overview of Subledger Accounting Chapter 1 Overview of Subledger Accounting Chapter 1 - Page 1

8 Overview of Subledger Accounting Overview of Subledger Accounting Chapter 1 - Page 2

9 Objectives Overview of Subledger Accounting Chapter 1 - Page 3

10 What is Subledger Accounting? What is Subledger Accounting? Subledger Accounting is a set of services for R12 that significantly enhances accounting support across the E-Business Suite. Subledger Accounting is a data store in the same way as General Ledger but Subledger Accounting provides the detailed data whereas General Ledger provides a summarized version. Subledger Accounting is therefore a true subledger. Introduction to Subledger Accounting Subledger Accounting is mainly a rule-based accounting engine that centralizes accounting for Oracle E-Business Suite products in R12. Subledger Accounting is not a separate product in itself, but is Oracle s engine catering to the accounting needs of Oracle applications. Overview of Subledger Accounting Chapter 1 - Page 4

11 Together with the new ledger support, Subledger Accounting enables support of multiple accounting requirements concurrently in a single instance. Different accounting regulations can be satisfied by maintaining and applying different sets of rules to different sets of transactions; or accounting for the same transaction with multiple methods. By maintaining a full link between the transaction and accounting data, Subledger Accounting allows powerful reconciliation and auditing capabilities. Since Subledger Accounting provides the setup and inquiry user interface and data model for accounting across modules, Subledger Accounting enables consistency in reporting, analysis, and user experience. Introduction to Subledger Accounting Let us assume a US based corporation with operations in the UK and France. The French operation is subject to French accounting regulations, and therefore must report its activities to the local authorities in Euros, according to the French business calendar, French chart of accounts, and the French interpretation of IFRS (International Financial Reporting Standards). The UK operation, similarly, is subject to the UK regulations, which for this example s sake are not as restrictive as the French ones. Thus, the UK operation does its local reporting in the local currency, the British Pound, but according to the US business calendar, US chart of accounts (COA), and US GAAP. The US operation reports in the USD according to the US business calendar, US COA, and GAAP. In the R12 ledger setup, each of these operations would be defined as three separate ledgers to satisfy local reporting requirements. The US headquarters/parent company would need to have a consolidated global visibility of the worldwide operations, however, it would not be very meaningful to consolidate or compare each of these entities with each other. Firstly, because the reporting currencies are different. Secondly, the COA and the method of accounting for the French activities may be considerably different than those in the UK and US. For example, in France, purchases or inventory will be reported as expenses, whereas in the UK and the US they will be reported as inventory items. Therefore, a simple currency conversion will not suffice. With the R12 ledger architecture and Subledger Accounting, the following model can be implemented to solve this business need: For the UK operation, activities can be converted to the US equivalent simply by converting the currency since the calendar, COA, and accounting methods are the same. You can set this up by adding a reporting currency to the UK ledger. For the French operation, a currency conversion alone will not work. You will need to define a secondary ledger for the French ledger, which will share the same currency, COA, calendar, and accounting method as those at HQ. Overview of Subledger Accounting Chapter 1 - Page 5

12 By defining the reporting currency and secondary ledgers, the three operations can satisfy local regulations, and also allow comparison and consolidation. In the definition above, Subledger Accounting allows: multiple accounting methods to be defined separate accounting methods to be used on different ledgers Journal entries to be created on multiple ledgers for a single business event (French activities accounted for on the primary ledger according to the IFRS method, and on the secondary ledger according to the US GAAP method). Introduction to Subledger Accounting You can see at a glance exactly where the accounting comes from. This is a journal entry created upon the validation of an accounts payable invoice. Notice the description on the journal entry as well as information from the invoice itself which will help in associating the entry with the transaction. Introduction to Subledger Accounting Subledger Accounting tracks how the journal entry is built from a transaction. On the left-hand side of the screen, you can see an invoice for two items, freight, and tax. On the right, you can see two entries have been created: one on the US corporate ledger and the other on the FR statutory ledger. The expense entry is created for the two line items of the invoice. The next two lines (2 and 3) are for freight and tax respectively. The rules have been set up to summarize all of this information and create a single liability entry. You could also configure the rule so that 3 or 4 separate liability lines are created. Subledger Accounting stores and enables you to track how each line of the invoice contributed to the journal entry. Introduction to Subledger Accounting Let us go back to the previous example and look at a payment that pays off the invoice. The SLA data model not only allows keeping the transaction-to-accounting link, but the inherent features also allow the transaction flows to be reflected on the accounting side. You can see here that a particular payment is applied to a particular invoice liability. Overview of Subledger Accounting Chapter 1 - Page 6

13 Using the SLA Business Flows functionality, we are able to go back to the journal created for the invoice and view the exact liability account, at the exact rate that the invoice was converted at, if it was a foreign currency one, at the time of accounting for the payment. What is a subledger? Example: The Receivables subledger stores receivables by customer, but this detail is not needed in a general ledger. Overview of Subledger Accounting Chapter 1 - Page 7

14 Subledger Balances Subledger Balances Control Account: An asset or liability account (receivable or payable) to which only entries for subledger transactions with trading partners (suppliers or customers) can be booked. No manual GL adjustments are allowed. Subledger balances are tracked at an account and trading partner level. Overview of Subledger Accounting Chapter 1 - Page 8

15 Summary Overview of Subledger Accounting Chapter 1 - Page 9

16 Practice 1: Create a New User Overview of Subledger Accounting Chapter 1 - Page 10

17 Practice - Create a New User Overview In this practice, you will create a new user. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. 1. Switch to the System Administrator responsibility. (I) Black Hat (on toolbar) Responsibility = System Adminstrator 2. Create a New User User Name = XXUSER Password = welcome1 Person = The employee you created in the first practice Note: You have to tab and enter the Password again. 3. Enter the responsibilities for this user. Responsibility General Ledger, Vision Operations (USA) Payables, Vision Operations (USA) Purchasing, Vision Operations (USA) Cash Management, Vision Operations (USA) US HRMS Manager Human Resources, Vision Enterprises iexpenses System Administrator Oracle Payments Payment Administrator Security Group Standard Standard Standard Standard Standard Standard Standard Standard Standard 4. Sign on as your new user. Overview of Subledger Accounting Chapter 1 - Page 11

18 Solution - Create a New User Tasks Sign on 1. Switch to the System Administrator responsibility. (I) Black Hat (on toolbar) Responsibility = System Adminstrator Create a New User 2. Navigate to the Define User form (N) Security : User > Define User Name = XXUSER, where XX is your terminal ID. Password = welcome (tab, re-enter to verify) Person = The employee you created in the first practice Add Responsibilities 3. Add the following responsibilities to your new username Responsibility General Ledger, Vision Operations (USA) Payables, Vision Operations (USA) Purchasing, Vision Operations (USA) Cash Management, Vision Operations (USA) US HRMS Manager Human Resources, Vision Enterprises iexpenses System Administrator Oracle Payments Payment Administrator Security Group Standard Standard Standard Standard Standard Standard Standard Standard Standard Overview of Subledger Accounting Chapter 1 - Page 12

19 4. Save and Close Form. Login as New User 5. Exit Oracle Applications (M) File > Exit Oracle Applications (B) OK 6. From the Oracle e-business Suite home page: (L) Logout 7. Log back into the system with your newly created User ID and password. Old Password = welcome1 New Password = XXuser (Tab, re-enter to verify) 8. (B) Submit. Overview of Subledger Accounting Chapter 1 - Page 13

20 Practice - Create a New User (Required) Overview In this practice you will create a new user. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Create a New User 1. (M) File > Switch Responsibilities Responsibility = System Administrator 2. (B) OK 3. Navigate to the Define Users window (N) Security > User > Define User Name = XXUSER (where XX is your terminal ID) Password = welcome (tab, re-enter password to verify) Person Name = Your employee name from the previous practice 4. (I) Save 5. Add the following responsibilities to your new username: Responsibility System Administrator Workflow General Ledger, Vision Operations (USA) Order Management Super User, Vision Operations (USA) Receivables, Vision Operations (USA) Cash Management, Vision Operations (USA) ireceivables Internal, Vision Operations (USA) Security Group Standard Standard Standard Standard Standard Standard Standard 6. (I) Save Overview of Subledger Accounting Chapter 1 - Page 14

21 7. (M) File > Exit Oracle Applications 8. (B) OK 9. Make the Personal Home Page the active page 10. (L) Logout Login as New User 11. Enter your Username and Password Username = XXUSER Password = welcome 12. (B) Connect Old Password = welcome New Password = Oracle (Tab, re-enter to verify) 13. (B) Save Responsibility = Receivables, Vision Operations (USA) Overview of Subledger Accounting Chapter 1 - Page 15

22 Practice 2: Create a Supplier Overview of Subledger Accounting Chapter 1 - Page 16

23 Practice - Create a Supplier With Two Sites Overview Your supervisor has notified you that the company will be purchasing materials and services from new suppliers. In this practice, you will create a pay group and a supplier with two sites. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility = Purchasing, Vision Operations 1. Create a new pay group. (N) Setup : Purchasing > Lookup Codes Code Meaning Description XXPAY GROUP XXPay Group XXPay Group 2. Switch to the Payables, Vision Operations (USA) responsibility 3. Create a supplier. (N) Suppliers > Entry (B) Create Supplier Type = Standard supplier Organization Name = XXIBM Corporation Type = Manufacturing Party Risk Profile = No Risk Allow Tax Applicability = Checked Create Debit Memo from RTS Transaction = Checked Receipt Routing = Standard Receipt Allow Substitute Receipts = Checked Match Approval Level = 3-Way Invoice Match Option = Purchase Order Terms = Immediate Pay Group = XXPay Group Overview of Subledger Accounting Chapter 1 - Page 17

24 Always Take Discount = Checked Payment Method : Electronic = Checked 4. Create a pay site. Address Line 1 = 1 Main St. City = San Francisco County = San Francisco State = CA Postal Code = Address Name = San Francisco Addressee = San Francisco Phone Area Code = 415 Phone Number = Address = sanfrancisco@xxibm.com Address Purpose, Payment option = Checked 5. Assign the San Francisco address to the Vision Operations operating unit. 6. Create a purchasing site. Address Line 1 = 520 Madison Ave. City = New York County = New York State = NY Postal Code = Address Name = New York Addressee = New York Phone Area Code = 212 Phone Number = Address = newyork@xxibm.com Address Purpose, Purchasing option = Checked 7. Assign the New York address to the Vision Operations operating unit. 8. Create a contact for the pay site. Navigate to (L) Contact Directory (B) Create First Name = John Last Name = Doe Address = johndoe@xxibm.com Phone Area Code = 415 Phone Number = Phone Extension = 1234 Create User Account for this Contact = Checked isupplier Portal Full Access = Checked 9. Create a contact for the purchasing site. Overview of Subledger Accounting Chapter 1 - Page 18

25 (B) Create First Name = Jane Last Name = Doe Address = janedoe@xxibm.com Phone Area Code = 212 Phone Number = Create User Account for this Contact = Checked isupplier Portal Full Access = Checked 10. Set the Tolerance level for the San Francisco and New York supplier sites to Vision Operations Tolerance. Overview of Subledger Accounting Chapter 1 - Page 19

26 Solution - Create a Supplier With Two Sites Tasks Responsibility = Purchasing, Vision Operations (USA) Create a New Pay Group We will create a new pay group and assign it to your suppliers. The Pay Group will default to new supplier sites you enter and from your supplier sites to all invoices you enter. When we select invoices for payment during this course, you will use your pay group so you select only YOUR invoices for payment! 1. Navigate to the Oracle Purchasing lookups (N) Setup : Purchasing > Lookup Codes 2. Query the PAY GROUP lookup code (F11) Enter search criteria P%G% in the Type field (Ctrl)+(F11) 3. Create a new pay group by inserting your cursor in the bottom of the grid, then clicking (I) Add New Row. Use the information below to create the new pay group: Code Meaning Description XXPAY GROUP XXPay Group XXPay Group Overview of Subledger Accounting Chapter 1 - Page 20

27 4. Save. Close the form to return to the Navigator. Create a Supplier 5. Switch to the Payables, Vision Operations (USA) responsibility. (I) Black Hat (on toolbar) Responsibility = Payables, Vision Operations (USA) 6. Navigate to the Suppliers page. (N) Suppliers > Entry 7. (B) Create Supplier. Supplier Type = Standard supplier Organization Name = XXIBM Corporation Overview of Subledger Accounting Chapter 1 - Page 21

28 8. (B) Apply. 9. Navigate to (L) Organization. Type = Manufacturing Party Risk Profile = No Risk 10. (B) Save. Overview of Subledger Accounting Chapter 1 - Page 22

29 11. Navigate to (L) Tax and Reporting. Allow Tax Applicability = Checked 12. (B) Save. 13. Navigate to (L) Purchasing. Create Debit Memo from RTS Transaction = Checked Overview of Subledger Accounting Chapter 1 - Page 23

30 Note: Enable the Create Debit Memo From RTS Transaction option if you want the system to automatically create a Debit Memo in Payables when you enter a Return to Supplier (RTS) in Purchasing. The value for supplier site defaults from the Purchasing Options window. 14. (B) Save. 15. Navigate to (L) Receiving. Receipt Routing = Standard Receipt Note: To find Standard Receipt: (I) Search Change the search criteria to Routing Name, not Routing Description. Receipt Routing = Standard Receipt Match Approval Level = 3-Way Allow Substitute Receipts = Checked Overview of Subledger Accounting Chapter 1 - Page 24

31 16. (B) Save. 17. Navigate to (L) Invoice Management. Invoice Match Option = Purchase Order Terms = Immediate Pay Group = XXPay Group Always Take Discount = Checked Overview of Subledger Accounting Chapter 1 - Page 25

32 18. (B) Save. 19. Navigate to (L) Payment Details. Payment Method : Electronic = Checked 20. (B) Save. Create a Pay Site 21. Navigate to (L) Address Book. 22. (B) Create. Overview of Subledger Accounting Chapter 1 - Page 26

33 23. Enter the supplier site address information as follows: Country = United States Address Line 1 = 1 Main St. City = San Francisco County = San Francisco State = CA Postal Code = Address Name = San Francisco Addressee = San Francisco Phone Area Code = 415 Phone Number = Address = sanfrancisco@xxibm.com Address Purpose, Payment = Checked Note: This address should be complete as this is the address that will appear on any checks cut to this site! 24. (B) Continue. Note: If you get a message about the postal code, click (B) Continue to accept the Zip code. 25. Assign the address to the Vision Operations operating unit, enable the Select check box. Overview of Subledger Accounting Chapter 1 - Page 27

34 26. (B) Apply. This creates the basic supplier site. 27. To update the supplier site attributes, click Manage Sites. 28. (T) Uses. Pay = Checked Primary Pay = Checked Overview of Subledger Accounting Chapter 1 - Page 28

35 29. (T) Communication. Supplier Notification Method = Print 30. Apply. Create a Purchasing Site 31. In the Address Book page, click (B) Create. 32. Enter the supplier site address information as follows: Country = United States Address Line 1 = 520 Madison Ave. City = New York Overview of Subledger Accounting Chapter 1 - Page 29

36 County = New York State = NY Postal Code = Address Name = New York Addressee = New York Phone Area Code = 212 Phone Number = Address = newyork@xxibm.com Address Purpose, Purchasing option = Checked Note: This address should be complete as this is the address that will appear on any checks cut to this site! 33. (B) Continue. 34. Assign the address to the Vision Operations operating unit, by enabling the Select check box. 35. (B) Apply. This creates the basic supplier site. 36. To update the New York supplier site attributes, click Manage Sites. Overview of Subledger Accounting Chapter 1 - Page 30

37 37. (T) Communication. Supplier Notification Method = Print Note: When you enter and approve purchase orders for this supplier, the Supplier Notification Method will default. We ve chosen printed document here. However, if we chose and specified an address, that information would default during purchase order approval so we could send the purchase order using the supplier s preferred method. Valid options are , Fax and Printed Document. Overview of Subledger Accounting Chapter 1 - Page 31

38 38. Apply. Create a Contact for the Pay Site 39. Navigate to (L) Contact Directory. 40. (B) Create. First Name = John Last Name = Doe Address = johndoe@xxibm.com Phone Area Code = 415 Phone Number = Phone Extension = 1234 Create User Account for this Contact = Checked isupplier Portal Full Access = Checked 41. In the Addresses for the Contact Region, click (B) Add Another Row. 42. Type 'San Francisco' in the Address Name Field. Overview of Subledger Accounting Chapter 1 - Page 32

39 43. (B) Apply. Create a Contact for the Purchasing Site 44. Navigate to (L) Contact Directory. 45. (B) Create. First Name = Jane Last Name = Doe Address = janedoe@xxibm.com Phone Area Code = 212 Phone Number = Create User Account for this Contact = Checked isupplier Portal Full Access = Checked 46. In the Addresses for the Contact Region, click (B) Add Another Row. Overview of Subledger Accounting Chapter 1 - Page 33

40 47. Type 'New York' in the Address Name Field. 48. (B) Apply. Set the Supplier Site Tolerance 49. (L) Invoice Management 50. Scroll to the Supplier Sites region. 51. (ST) Invoicing 52. For the New York and San Francisco sites, select Vision Operations Tolerance from the list of values. (L) More... Search = Vision Operations Tolerance (B) Go (B) Select 53. (B) Save. 54. Close the form back to the Navigation menu. Overview of Subledger Accounting Chapter 1 - Page 34

41 Practice - Create a Customer (Required) Overview Before creating a customer, use the Customer Search page to determine if the customer already exists and minimize the possibility of creating a duplicate. The Create Customer page displays differently, depending upon your customer type selection, Organization or Person, on the Customer Search page. In this practice, you will create an Organization customer. Assumptions Tasks You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. You have the Receivables, Vision Operations (USA) or Order Management Super User, Vision Operations (USA) responsibility. Replace XX in the Practice with a unique identifier such as your initials or terminal number. (For Instructor Led Training classes, this number will be assigned to you). This is necessary in order to create unique records within the database when performing the Practice. Create an Organization Customer 1. Navigate to the Customer Search page. (N) Customers > Customers > Customer Search 2. Search for the customer XXMegamart. 3. If the customer does not exist, click (B) Create Customer. 4. Enter the following data: Enter the following customer information to create the new Organization customer: Field Name Organization Name XXMegamart Value Alias Platinum Enter the following account information to create the new Organization customer: Field Name Value Overview of Subledger Accounting Chapter 1 - Page 35

42 Account Description Account Number Profile Class Account Type XX- XXMegamart Account1 XX-7556 XXGOOD CREDIT External Note: The Account Number must be unique. You need not enter a customer account number if the Automatic Customer Numbering System Option is enabled on the (T) Trans and Customers of the System Options window. Enter the following account site information to create the new Organization customer: Country Field Name United States Value Address Line 1 City County State 200 E Randolph Street Chicago Cook IL Postal Code Operating Unit Address Description Business Purposes Vision Operations Western United States Bill To 5. Click (B) Save And Add Details to go to the Account Overview page. Alternatively, click (B) Apply to go to the Customer Overview page. 6. Click Apply on the Account Overview page (or on the Customer Overview page if you clicked (B) Apply in Step 5) to save the customer and return to the Customer Search page. 7. Repeat these steps to create a second customer named XXGiant Distributors. Overview of Subledger Accounting Chapter 1 - Page 36

43 Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 1

44 Create Accounting and Transfer Journal Entries to General Ledger Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 2

45 Objectives Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 3

46 Create Accounting Program Overview Create Accounting Program Overview Eligible accounting events are defined as follows: Event needs to be for a completed transaction Rules must be defined to process the transaction type/event type Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 4

47 Create Accounting Program Overview Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 5

48 Draft Accounting Draft Accounting When you select draft accounting, Subledger Accounting creates the relevant journal entries in draft mode. Draft entries are not posted to General Ledger. You can review the resulting entries, update the transactions, or update the accounting rules. Any changes will be reflected when the transaction is processed again for accounting. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 6

49 Online Accounting Online Accounting Final entries are ready to be transferred to General Ledger and cannot be modified. The transactions are considered as processed for accounting. Any changes to the rules will not impact final entries. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 7

50 Straight-Through Accounting Straight-Through Accounting If you select Final Post, Subledger Accounting posts the journal entries all the way through to General Ledger. This means that you can update GL balances straight from the invoice entry (or any other transaction entry) window. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 8

51 Create Accounting Program Parameters Create Accounting Program The Create Accounting program creates subledger journal entries. In general, the parameters described in the table above determine which accounting events are processed. Navigation Paths Payables: Other > Requests > Run Receivables: View > Requests (B) Submit a New Request Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 9

52 Create Accounting Program Parameters Create Accounting Program The Create Accounting program generates one or more accounting programs depending on the volume to be processed. The Subledger Accounting Program report is generated by the Create Accounting program and documents the results of the Create Accounting program. It lists the following: Successful events and the subledger journal entries created for those events Errors for failed events You can run the report in summary, detail, or no report mode which are described as follows: Summary mode provides a summary of events processed and detailed information about their errors. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 10

53 Detail mode provides details of subledger journal entries generated from the processing of completed events and a detailed error report. No report mode will show an error count without actually generating the report. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 11

54 Transfer Journal Entries to GL Program Overview Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 12

55 Transfer Journal Entries to General Ledger Program Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 13

56 Oracle Subledger Accounting Program Report Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 14

57 Oracle Subledger Accounting Program Report Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 15

58 Transfer Journal Entries to GL Report Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 16

59 Setting Profile Options Setting Profile Options The profile options listed above relate to data access and security and impact how accounting is generated through SLA in R12. SLA: Enable Subledger Transaction Security in GL Use this profile option to combine subledger transactions security with data access security for General Ledger responsibilities when drilling down to multi-organization enabled subledger application. Transaction security in the respective subledger application is always applied when drilling down from subledger transactions to subledger journal entries. SLA: Enable Data Access Security in Subledger This profile option determines whether the General Ledger Access Set security mechanism is applied for a subledger application responsibility when viewing, reporting, or creating subledger journal entries associated with a given ledger. The Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 17

60 General Ledger Access Set security mechanism is always applied for responsibilities associated with the General Ledger application. The profile option enables you to combine data access security with subledger transaction security and therefore control access to subledger journal entries depending on the ledger to which they belong. For example, you can implement a Multi-Org Security Profile that allows you to create Oracle Receivables Invoices for two different operating units each associated with different ledgers but restrict drill-down from the subledger transaction to the associated subledger journal entry based upon the destination ledger contained in the Access Set. SLA: Additional Data Access Set The SLA: Additional Data Access Set profile option, in conjunction with the GL: Data Access Set profile option, controls which ledgers and balancing or management segment values you can access when logging onto a responsibility. If SLA: Enable Data Access Security in Subledgers is enabled for the responsibility, you have access only to the ledgers and balancing or management segment values included in the data access sets assigned to the SLA: Additional Data Access Set and GL: Data Access Set profile options. SLA: Allow Reports Journal Source Override This profile option applies only to the following reports: Open Account Balances Listing Third Party Balances Report Enable this option to change the Journal Source parameter during report submission. If the option is set to No, then you cannot change the value defaulted during report submission. For example: Should the general ledger data access set security be enforced when generating accounting? For example, should journal entries be created if the user does not have ledger clearance even if they may have multiorg access to the operating unit? Should the transaction security model be applied when drilling down from GL? For example, should the user be allowed to inquire on journal entries of certain operating units if they do not have MO access, but have ledger clearance? If there are secondary ledgers and data access set security is enforced in the subledger module, then an additional data access set needs to be assigned to the user to enable access to the secondary ledger. Should the user be able to run certain reports across data from multiple subledger applications? Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 18

61 Summary Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 19

62 Practice 1: Entering an Invoice Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 20

63 Practice - Enter an Invoice with Two Lines that are Distributed to Different Departments Overview You have received invoice XX1000 from XXIBM Corporation, which you will be entering into the Oracle Payables system. The invoice is to be distributed to two departments in your company. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility: Payables, Vision Operations (USA) 1. Navigate to the Invoices window. 2. Enter the following invoice: Trading Invoice Num Partner XXIBM Corporation Invoice Amount Description XX Promotional Giveaway 3. Enter the invoice lines based on the following table: Num Type Amount Distribution Account 1 Item Item Payment terms Immediate Payment Method Electronic 4. Save your work. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 21

64 Solution - Enter an Invoice with Two Lines that are Distributed to Different Departments Tasks Enter Invoice 1. Navigate to the Invoices window. (N) Invoices > Entry > Invoices 2. Enter an invoice using the following information: Trading Partner Invoice Num Invoice Amount Description Payment terms Payment Method XXIBM Corporation XX Promotional Giveaway Immediate Electronic Enter Two Invoice Lines and Distribute Each Line to a Different Department 3. (T) Lines 4. Enter the invoice lines according to the following table: Num Type Amount Distribution Account 1 Item Item Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 22

65 5. Save. 6. (B) All Distributions. Note that because you entered the Distribution account for each Item line, the distributions are automatically created for these lines. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 23

66 7. Close the form back to the Navigation menu. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 24

67 Practice - Create an Invoice Overview In this practice you will create a receivables invoice. Assumptions Tasks If you are not attending training at an Oracle University or Authorized Partner Education Center, you must have access to an Oracle Application Vision database or comparable training test instance on which to complete this Practice. Replace XX in the Practice with a unique identifier such as your initials or a number. (For Instructor Led Training classes, this number will be assigned to you). This is necessary in order to create unique records within the database when performing the Practice. Create an Invoice Responsibility = Receivables Manager 1. Navigate to the Transactions window (N) Transactions > Transactions Source: Manual Class: Invoice Type: Invoice 2. Create an invoice for XX-Big City using the following information: Line Number Item Number Quantity Unit Price Tax 1 CS Location 2 CS Location 3. Complete the invoice 4. Note Transaction Number: Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 25

68 Solution - Create an Invoice Create an Invoice Responsibility = Receivables Manager 1. Navigate to the Transactions window (N) Transactions > Transactions Source: Manual Class: Invoice Type: Invoice 2. (T) Main Ship To Name: XX-Big City 3. (B) Line Items Line Number Item Number Quantity Unit Price Tax 1 CS Location 2 CS Location 4. (I) Save 5. Close Lines Window 6. (B) Complete 7. Note Transaction Number: Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 26

69 Guided Demonstration: Run the Create Accounting Program Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 27

70 Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in Payables Responsibility: Payables, Vision Operations (USA) Run the Create Accounting Program 1. (N) Other > Requests > Run 2. (B) OK 3. In the Name field, select Create Accounting. 4. Enter the following information in the Parameters window: Field Name Value Ledger Vision Operations (USA) Process Category End Date Mode Errors Only Report Transfer to General Ledger Post in General Ledger Include User Transaction Identifier Invoices <today s date> Final No Detail Yes No No 5. (B) OK 6. (B) Submit 7. View - Requests. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 28

71 Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in Receivables Responsibility: Receivables, Vision Operations (USA) Run the Create Accounting Program 1. (M) View > Requests 2. (B) Submit a New Request 3. (B) OK 4. In the Name field, select Create Accounting. 5. Enter the following information in the Parameters window: Field Name Value Ledger Vision Operations (USA) Process Category End Date Mode Errors Only Report Transfer to General Ledger Post in General Ledger Include User Transaction Identifier Transactions <today s date> Final No Detail Yes No No 6. (B) OK 7. (B) Submit 8. (B) No 9. (B) Find to view requests. Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 29

72 Create Accounting and Transfer Journal Entries to General Ledger Chapter 2 - Page 30

73 Inquiries Chapter 3 Inquiries Chapter 3 - Page 1

74 Inquiries Inquiries Chapter 3 - Page 2

75 Objectives Inquiries Chapter 3 - Page 3

76 Objectives continued Inquiries Chapter 3 - Page 4

77 Accounting Events Inquiry Process Accounting Events Inquiry Process Navigate to the Accounting Events Inquiry page. Payables: Accounting > Subledger Accounting > Journal Entries (T) Accounting Events Receivables: Inquiry > Subledger Accounting > Journal Entries (T) Accounting Events Execute a search for specific accounting events. View accounting events. View subledger journal entry information by clicking View Journal Entries. View detailed entry information about the subledger journal entry by clicking the ledger link. View the T-account by clicking View T-Account. Inquiries Chapter 3 - Page 5

78 View reversing entry. Note that this button is only available if you are viewing an accrual entry that has been reversed. View multiperiod accounting associated with the accrual journal entry by clicking the Multiperiod icon in the Lines region. Note that the Multiperiod icon is only available if you are viewing a multiperiod journal entry. Compare two journals by clicking Compare. Click View Transaction to view the underlying transaction. The View Subledger Journal Entry page is displayed only if there is more than one subledger journal entry created for an accounting event. If there is only one subledger journal entry for an accounting event, the View Subledger Journal Entry page is displayed. The following conditions apply: If the balance type is Actual, the reference date is displayed. If the balance type is Budget, the Budget Version field is displayed. If the balance type is Encumbrance, the Encumbrance Type field is displayed. If the entry is for public sector and funds approval is required, the Funds Status field is displayed. If viewing an accrual reversal journal entry in the View Subledger Journal Entry page, the View Accrual Entry button is displayed to view the accrual journal entry details. If viewing an accrual journal entry, the View Reversing Entry button is displayed to view the accrual reversal journal entry details. The View Transaction button appears only if drilldown is enabled. The Multiperiod icon on the lines is displayed only if the entry is a multiperiod journal entry. Inquiries Chapter 3 - Page 6

79 Viewing Subledger Journal Entry Lines Viewing Subledger Journal Entry Lines Navigate to the Subledger Journal Entries page from a subledger application. Payables: Accounting > Subledger Accounting > Journal Entries Receivables: Inquiry > Subledger Accounting > Journal Entries You can use the subledger application responsibility for any application using Subledger Accounting. Execute a search. View subledger journal entries. Delete, update, duplicate, reverse, and complete entries. View detailed journal entry information by selecting the ledger link. View journal entry information in a T-account format by clicking View T-Account. Inquiries Chapter 3 - Page 7

80 View reversing entry. If viewing an accrual reversal journal entry in the View Subledger Journal Entry page, the View Accrual Entry button is displayed to view the accrual journal entry. If viewing an accrual journal entry, the View Reversing Entry button is displayed to view the accrual reversal journal entry. View multiperiod accounting. View multiperiod lines associated with the accrual journal entry by clicking the Multiperiod icon in the Lines region. Create journal entry. Create journal entries page by clicking Create Journal Entry in the Subledger Journal Entries page. Compare entries. Compare subledger journal entries by clicking Compare in the Subledger Journal Entries page. Inquiries Chapter 3 - Page 8

81 Subledger Journal Entry Lines Inquiry Process Subledger Journal Entry Lines Inquiry Process Payables: Accounting > Subledger Accounting > Journal Entries (Lines) Receivables: Accounting > Subledger Accounting > Journal Entries (Lines) 1. Navigate to the Subledger Journal Entry Lines page from a subledger application. 2. Execute a search. 3. View subledger journal entry lines in the results region. 4. View subledger journal entries for a selected journal entry line by clicking View Journal Entry. 5. View journal line information in T-account format by clicking View T-account in the View Subledger Journal Entry page. Inquiries Chapter 3 - Page 9

82 6. View reversing entry. If viewing an accrual reversal journal entry in the View Subledger Journal Entry page, the View Accrual Entry button is displayed to view the accrual journal entry details. If viewing an accrual journal entry, the View Reversing Entry button is displayed to view the accrual reversal journal entry details. 7. View multiperiod accounting. View multiperiod lines associated with the accrual journal entry line by clicking the Multiperiod icon in the Lines region. 8. View the transaction associated with the subledger journal entry by clicking View Transaction in the Subledger Journal Entry Lines page. This button appears only if drilldown is enabled. Inquiries Chapter 3 - Page 10

83 Drilldown from GL Drilldown from GL The figure above shows the drilldown from GL journal lines inquiry to subledger journal entry lines in Subledger Accounting. From here, users can navigate to the subledger journal entries or drill down to the subledger transaction. Inquiries Chapter 3 - Page 11

84 Summary Inquiries Chapter 3 - Page 12

85 Summary continued Inquiries Chapter 3 - Page 13

86 Practice 1: Inquiring on Subledger Journal Entries Inquiries Chapter 3 - Page 14

87 Guided Demonstration - Inquiring on Subledger Journal Entries in Payables or Receivables Responsibility = Payables, Vision Operations (USA) or Receivables, Vision Operations (USA) 1. Navigate to the Subledger Journal Entries window. In Payables: (N) Accounting > Subledger Accounting > Journal Entries In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries 2. (T) Headers 3. In the Advanced Search window, enter the following search information: Ledger: Vision Operation (USA) From GL Date: <today s date> To GL Date: <today s date> 4. (B) Go 5. To view the details of an entry, click on the appropriate ledger link to display the Subledger Journal Entry window. 6. To view detailed line information, click the appropriate Show link. Inquiries Chapter 3 - Page 15

88 Practice - Inquiring on Subledger Journal Entries for Payables and Receivables Overview In this practice, you will do the following: Inquire on subledger journal entries for the Vision Operations (USA) ledger. Note: This practice applies to both Oracle Payables and Oracle Receivables. Assumptions Tasks You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Payables, Vision Operations (USA) or Receivables, Vision Operations (USA). Log on to the system Responsibility = Payables, Vision Operations (USA) or Receivables, Vision Operations (USA) Inquire on Subledger Journal Entries Inquire on subledger journal entries for the Vision Operations (USA) ledger for today s date. Inquiries Chapter 3 - Page 16

89 Solution Inquiring on Subledger Journal Entries for Payables and Receivables Responsibility = Payables, Vision Operations (USA) or Receivables, Vision Operations (USA) 1. Navigate to the Subledger Journal Entries window. In Payables: (N) Accounting > Subledger Accounting > Journal Entries In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries 2. Ensure that the Headers tab is selected. 3. In the Advanced Search window, enter the following search information: Ledger: Vision Operation (USA) From GL Date: <today s date> To GL Date: <today s date> 4. (B) Go The subledger journal entries are displayed in the Results region. Inquiries Chapter 3 - Page 17

90 5. To view the details of an entry, click on the appropriate ledger link to display the Subledger Journal Entry window. 6. To view detailed line information, click the appropriate Show link. For example, the screenshot below shows detailed information for the Item Expense line. Inquiries Chapter 3 - Page 18

91 Inquiries Chapter 3 - Page 19

92 Inquiries Chapter 3 - Page 20

93 Accounting Methods Builder (AMB) Chapter 4 Accounting Methods Builder (AMB) Chapter 4 - Page 1

94 Accounting Methods Builder (AMB) Accounting Methods Builder (AMB) Chapter 4 - Page 2

95 Objectives Accounting Methods Builder (AMB) Chapter 4 - Page 3

96 Accounting Methods Builder (AMB) Overview Accounting Methods Builder (AMB) Chapter 4 - Page 4

97 Accounting Methods Builder (AMB) Overview Accounting Methods Builder (AMB) Overview This diagram shows a hierarchy of the AMB, indicating how the components fit together. The transaction objects and the sources carry transaction information into the rules defined for each component of an entry. These components, i.e. journal line type, account derivation rule, and journal entry descriptions are grouped together as a journal line definition (JLD) for a particular event. For example, you can set up a JLD for an invoice validation event, another for payment creation, and another for payment clearing. The set of rules for a particular subledger application is called the application accounting definition (AAD). The set of AADs for multiple applications is called the subledger accounting method. You can maintain multiple accounting methods. You can set up as many components as you like and use them for different accounting methods. You can set up an accounting method that creates entries in compliance with US GAAP, and another one that complies with IFRS. These two Accounting Methods Builder (AMB) Chapter 4 - Page 5

98 methods could share components, such as entry descriptions, because the journal entry components are modular. The accounting methods are then assigned to each ledger, which determines the rules that are applied when accounting is being generated for a particular ledger. If your setup has a primary and a secondary ledger, you could have different accounting methods attached to and used for each ledger. Accounting Methods Builder (AMB) Chapter 4 - Page 6

99 AMB Process AMB Process The components listed above are used by the Subledger Accounting program to create subledger journal entries. Before creating or modifying any components or definitions, check whether the seeded application accounting definitions meet your requirements. You can modify existing definitions or create new definitions. Group application accounting definitions that comply with a common set of accounting requirements into a subledger accounting method. Each subledger accounting method can be assigned to one or more ledgers. Use application accounting definitions to group journal lines definitions and header assignments for event classes and event types. Also, indicate whether to create accounting for a particular event class or event type. For example, when using cash basis accounting, you would not create a journal entry to record the accrual of an invoice. Accounting Methods Builder (AMB) Chapter 4 - Page 7

100 Use journal lines definitions to group and assign journal line types, account derivation rules, and journal entry descriptions into a complete set of journal entries within an event class or event type. Share these sets across application accounting definitions for the same application. Account derivation rules determine the account combinations for subledger journal entries. You can also define conditions that determine when a particular rule is used. Use mapping sets in the account derivation rules setup. By mapping input values to different outputs, mapping sets provide flexibility in the creation of account derivation rules. The use of mapping sets is optional. Define the journal entry description for the subledger journal entry. Descriptions are assigned to the journal header and lines. Set up journal line types for a particular event class and determine the characteristics of the subledger journal entry lines. Also, set up conditions for the use of the journal line type. Accounting Methods Builder (AMB) Chapter 4 - Page 8

101 Accounting Methods Builder (AMB) Accounting Methods Builder (AMB) In order to make rule setup as flexible as possible, the journal entry has been split into components, as follows: Description of the entry or its individual lines; you can set up as many descriptions as you want by using data from the transaction and constant values. The screenshot above shows a description for an invoice, indicating the event (invoice validation), the invoice number, type, date, and description. Line Type; defines whether this is a debit or a credit, the accounting class, and where the amount should come from. You can set up as many line types as you need for a particular entry. You can have a single invoice line or distribution create as many debits or credits as needed. Account Derivation Rule; determines to which GL account a line is booked. There is a lot of flexibility around the account derivation rules. You can simply set up a rule for each account combination to be used, or you can provide more detail and build each Accounting Methods Builder (AMB) Chapter 4 - Page 9

102 account combination segment by segment by combining multiple rules. These rules can be set up to derive the accounts or segment values from transactional data, including conditions of when to use specific rules. Accounting Methods Builder (AMB) Chapter 4 - Page 10

103 Copy and Modify Functionality Copy and Modify Functionality The copy and modify functionality is provided for the following components of the AMB: Subledger accounting methods Application accounting definitions Journal lines definitions Journal line types Account derivation rules Journal entry descriptions The copy functionality reduces the need to repeat data entry functions when there are substantial similarities between two definitions. Definitions created by users are not overwritten by upgrades Accounting Methods Builder (AMB) Chapter 4 - Page 11

104 to Subledger Accounting. However, upgrades can still affect definitions if those definitions use seeded components. Use the merge analysis feature to assess whether any upgrades to the AMB impact any user-defined application accounting definitions. Assign custom components only to custom definitions. For example, assign a custom account derivation rule (one that has been copied from an existing account derivation rule and modified) only to a custom journal lines definition. Assign a journal lines definition only to custom application accounting definitions and custom subledger accounting methods. You can optionally mix and match custom and seeded lower-level components with custom higher-level components. Accounting Methods Builder (AMB) Chapter 4 - Page 12

105 Transaction Chart of Accounts Transaction Chart of Accounts The transaction chart of accounts represents the INPUTs to Subledger Accounting rules, for example, if you have an SLA rule that does something based on whether the incoming account uses the cost center 410. For example, a Receivables invoice is entered. The item, tax, freight, and other account combinations for the invoice contain the structure and values from the transaction chart of accounts. Similarly, recording the receipt of goods and invoices, as well as issuing payments, are all done in the context of a transaction chart of accounts structure. Values for account combination sources stored in the transaction objects are taken from the transaction chart of accounts. Use these source values in the AMB account derivation rules and conditions. Accounting Methods Builder (AMB) Chapter 4 - Page 13

106 Accounting Chart of Accounts Accounting Chart of Accounts The accounting chart of accounts is for the OUTPUT of Subledger Accounting rules. This is the chart of accounts of the resulting journal entries that Subledger Accounting produces. The transaction and accounting charts of accounts are always the same for the primary ledger. They can be different in cases where users create secondary multiple representations. Accounting Methods Builder (AMB) Chapter 4 - Page 14

107 Event Model Event Model The event model defined in SLA for each subledger represents the transaction/document types and the lifecycle of each transaction: The event class classifies transaction types. An invoice, for example, is an event class. The event type defines possible actions on each event class with potential accounting significance, for example, validation of an invoice. The journal creation rules are defined for each event class and event type. Accounting events represent transactions that have a financial accounting impact. Examples of accounting events are issuing an invoice and disposing of an asset. Financial accounting information can be recorded for these events. Accounting events cannot be compared to system events and programs that update transaction tables; instead they should be analyzed from a business perspective. Events are captured when transactions are committed in the subledgers. Accounting Methods Builder (AMB) Chapter 4 - Page 15

108 As an example, a Payables invoice is created, then approved, possibly adjusted, and then paid or cancelled. The accounting events representing these transactions can create one or more subledger journal entries and subsequently link the originating transaction to its corresponding journal entries. Accounting Methods Builder (AMB) Chapter 4 - Page 16

109 Event Classes Event Classes Examples of event classes for Payables are: invoices, debit memos, and payments. Notice how these correspond to the document types. Similarly, for Receivables, event class examples are invoices, deposits, and receipts; and for Assets, additions and adjustments. Accounting Methods Builder (AMB) Chapter 4 - Page 17

110 Event Types Event Types An accounting event for a Payables invoice, for example, would be the validation, adjustment, or cancellation of the invoice. Similarly, for a Receivables receipt, accounting events would be the creation, application, or reversal of the receipt. Therefore, every time one of these actions is taken on a receipt transaction, an accounting event will be created. Based on the rule setup, there may or may not be a resulting journal entry. You may set up rules to generate journal entries for some events, but not for others. Accounting Methods Builder (AMB) Chapter 4 - Page 18

111 Subledger Accounting Method Subledger Accounting Method Navigation Paths Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods Receivables: Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods Accounting Methods Builder (AMB) Chapter 4 - Page 19

112 Subledger Accounting Methods Subledger Accounting Methods Grouping AADs ensures that a consistent method of accounting for all subledgers feeding into a particular ledger is maintained. For example, a subledger accounting method entitled French GAAP can be defined to group application accounting definitions that are accounted for using French GAAP criteria. As another example, a Cash Basis Accounting Method can be defined to group application accounting definitions that are used to account for transactions on a cash basis. By assigning different subledger accounting methods to ledgers, the AMB enables you to create multiple accounting representations of transactions. Accounting Methods Builder (AMB) Chapter 4 - Page 20

113 Setting Up Subledger Accounting Methods Setting Up Subledger Accounting Methods The subledger accounting method (SLAM) is a collection of accounting definitions for all the applications that you will be generating accounting for. Each primary and subledger level or adjustment secondary ledger is associated with a SLAM, which determines the accounting rules and standards that will be applied when generating entries for that ledger. Oracle seeds a number of accounting methods to support standard accrual, cash basis accounting, as well as accrual and cash basis encumbrance accounting and US Federal accounting. If the accounting standards change over time, existing rules can be end-dated, and new ones activated. Notice that all of the components can be defined specifically for a given chart of accounts, or can be generic across several chart of accounts. This is especially important if you define rules using chart of accounts (COA) specific account combinations or segment values, which would not be meaningful when generating entries for ledgers with a different COA structure. Accounting Methods Builder (AMB) Chapter 4 - Page 21

114 In the hierarchy of the Subledger Accounting AMB, each component under a subledger accounting method must share the same chart of accounts as the subledger accounting method or be generic to COAs. If there is a subledger level secondary ledger defined, as the transaction is being processed for accounting, there will be a separate journal entry generated for the primary and secondary ledgers, both according to the accounting method on each ledger. Note: Generic rules can be shared but you may find you are limited as to how you can apply them. By their very nature generic rules can be shared but because they can be shared they are also limited to the lowest common denominator. For example, this will preclude you from using mapping sets as you need to be able to set segments or account combinations to specific values which is inherently chart of accounts specific. You should also be aware that generic lower level components can be assigned to specific higher level components, for example, a generic Account Derivation Rule can be assigned to a specific Journal Line Definition, but this will not work in reverse. Accounting Methods Builder (AMB) Chapter 4 - Page 22

115 Subledger Accounting Methods Accounting Methods Builder (AMB) Chapter 4 - Page 23

116 Application Accounting Definition Application Accounting Definition Navigation Paths Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions Receivables: Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions Accounting Methods Builder (AMB) Chapter 4 - Page 24

117 Application Accounting Definitions Application Accounting Definitions Each event class and event type assignment consists of a header assignment and one or more journal lines definition assignments. You can assign multiple journal lines definitions to an event class or event type. Subledger Accounting generates a single journal entry for each accounting event and ledger using the line assignments from all the journal lines definitions assigned to the event class or event type. Accounting Methods Builder (AMB) Chapter 4 - Page 25

118 Application Accounting Definitions Application Accounting Definitions For example, use a complete set of US GAAP accounting definitions for Payables as an application accounting definition for the ledger US Applications. Use a complete set of French GAAP accounting definitions for Payables as an application accounting definition for the ledger French Operations. These definitions have differences based on the setup of the various components that make up their application accounting definitions. Seeded application accounting definitions are provided for all Oracle subledgers. If specific requirements are not met by start-up accounting definitions, you can copy and modify the seeded definitions and their assignments. The Applications Accounting Definitions (AAD) Loader enables you to import and export application accounting definitions and journal entry setups between different database instances. The AAD Loader also supports concurrent development and version control of the application accounting definitions. Accounting Methods Builder (AMB) Chapter 4 - Page 26

119 Application Accounting Definitions Accounting Methods Builder (AMB) Chapter 4 - Page 27

120 Importing Application Accounting Definitions Importing Application Accounting Definitions The Import Application Accounting Definitions concurrent program imports the application accounting definitions from a data file to the Accounting Methods Builder (AMB) context specified in the SLA: Accounting Methods Builder Context profile option and produces a report of the results. When running the Import Application Accounting Definitions concurrent program, users specify whether to run the merge analysis, merge, or overwrite processes. The Merge Analysis Only parameter determines whether merge analysis is performed to the imported application accounting definitions. The default is Yes. The Import Option is only enabled and required if the Merge Analysis Option parameter is set to No. This parameter indicates whether the application accounting definitions from the data file should be merged or overwritten to the database. The default is Merge. Accounting Methods Builder (AMB) Chapter 4 - Page 28

121 The Force Overwrite parameter is only enabled and required if the Merge Analysis Only parameter is set to No and the Import Option parameter is set to Overwrite. This parameter indicates whether Subledger Accounting should allow an application accounting definition to be overwritten from the data file to the database if the version in the data file is lower than the version in the database. The default is No. When the Import Application Accounting Definitions program is completed successfully, a report highlighting all the imported application accounting definitions and their versions as well as all the errors that occurred during the import process is produced. Accounting Methods Builder (AMB) Chapter 4 - Page 29

122 Exporting Application Accounting Definitions Exporting Application Accounting Definitions When completed successfully, the Export Application Accounting Definitions program produces a report highlighting all the exported application accounting definitions as well as any errors that may have occurred. Accounting Methods Builder (AMB) Chapter 4 - Page 30

123 Journal Line Types Journal Line Types Navigation Paths Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Journal Line Types Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Line Types Accounting Methods Builder (AMB) Chapter 4 - Page 31

124 Journal Line Types Journal Line Types The definition of a journal line type includes the following features: Subledger Accounting uses rounding class along with the transaction rounding reference to group journal lines tighter and calculate transaction rounding. Subledger transaction rounding differences can occur when a transaction has multiple distributions. The journal entry line can have an actual, budget, or encumbrance balance type. For products like Oracle public sector applications that use encumbrance accounting, separate journal line types can be created for encumbrance lines. Journal line types specify if the journal line is to be a debit, credit, or gain/loss line. For example, when a Payables invoice is generated, the liability account should normally be credited. The journal line type must therefore specify the Side option as Credit. On the other hand, the payment of the Payables invoice must be accounted with Accounting Methods Builder (AMB) Chapter 4 - Page 32

125 a debit to the liability account. A separate journal line type must be defined to create this debit line. The gain/loss amount is the difference in the ledger currency due to foreign currency fluctuations. Gain or loss amounts occur when two related transactions, such as an invoice and its payment, are entered in a currency other than the ledger currency, and the conversion rate fluctuates between the time that the two are accounted. You can specify whether the gain or loss has been calculated in the primary ledger so that the gain or loss amount is not converted to the reporting currency or non-valuation method secondary ledgers. You can specify whether to derive journal entry components from a related journal entry. The business flow method determines if and how a journal line should inherit journal entry values. You can specify whether to apply multiperiod accounting to a journal line type. Journal entry lines are transferred to General Ledger in summary or detail mode. You can define conditions to restrict the use of a journal line type by controlling when a particular journal line type is used by the Subledger Accounting program. You can assign accounting attributes. If an accounting attribute is relevant to the accounting event's underlying transaction, then its value is required to generate subledger journal entries for the transaction. By assigning standard sources to accounting attributes in the Accounting Attributes window, you can use standard source values as the values for accounting attributes. Accounting Methods Builder (AMB) Chapter 4 - Page 33

126 Journal Line Types Accounting Methods Builder (AMB) Chapter 4 - Page 34

127 Journal Line Types Journal Line Types The journal line type determines the type of entry to generate. Accounting Methods Builder (AMB) Chapter 4 - Page 35

128 Journal Line Types Journal Line Types This is a sample journal entry for an invoice validation. There are two line types defined in the example above, a credit line type (Line 1) and debit line type (Lines 2 to 4). You can see 4 lines on this entry, one for the liability (Line 1) and 3 for the item expense (Lines 2 to 4). The reason why there are only 2 journal line types and there are 4 journal entry lines is because the transaction included 3 lines for 3 separate expense items; one for 5000, one for 4500, and another for 500. The 2 journal line types were applied to all 3 transaction lines generating 6 journal entry lines: 3 expense lines and 3 liability lines. The 3 liability lines were identical so they were merged, resulting in 4 journal entry lines. Accounting Methods Builder (AMB) Chapter 4 - Page 36

129 Account Derivation Rules Account Derivation Rules Navigation Paths Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Account Derivation Rules Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Account Derivation Rules Accounting Methods Builder (AMB) Chapter 4 - Page 37

130 Account Derivation Rule Account Derivation Rule You can set up a separate rule for each account combination to be used, or if you require more detail you can build each account combination segment by segment by combining multiple rules. These rules can be set up to derive the accounts or segment values from transactional data, including conditions determining when specific rules are used. Accounting Methods Builder (AMB) Chapter 4 - Page 38

131 Account Derivation Rule Accounting Methods Builder (AMB) Chapter 4 - Page 39

132 Defining Account Derivation Rules Accounting Methods Builder (AMB) Chapter 4 - Page 40

133 Account Derivation Rule Account Derivation Rule Deriving the value from another account derivation rule is mainly used between products. For example, Oracle Projects has an account derivation rule for expense. A Payables user is defining an expense account derivation rule but if the invoice is project-related then the account should be derived using the same methodology as Oracle Projects. In this case, the Payables user adds one priority to the account derivation rule referencing the Projects account derivation rule. The Payables user could use the Project sources but referencing the account derivation rule is a shortcut. Accounting Methods Builder (AMB) Chapter 4 - Page 41

134 Account Derivation Rule Accounting Methods Builder (AMB) Chapter 4 - Page 42

135 Account Combination Rules Account Combination Rules Source value type For account combination rules, accounts entered on transactions have been defined as sources and are available to be used as accounts on journal entries. Derive the account combination by specifying a source such as the Distribution Account in the rule. The Subledger Accounting program then obtains the account by referencing the distribution account combination on the transaction. The transaction or accounting chart of accounts does not need to be known when this type of rule is defined. Constant value type Establish the account as a constant value. For example, the constant could be the account combination from the accounting chart of accounts specified. This is the simplest way to derive an account. Mapping Set value type Accounting Methods Builder (AMB) Chapter 4 - Page 43

136 Derive the account combination by referencing a mapping set. Set up a mapping set rule to determine the complete account combination from the accounting chart of accounts specified. Note: An accounting chart of accounts must be specified for rules using either constants or mapping sets. Account Derivation Rule value type Derive the account by referencing another account derivation rule. If the account derivation rule has an accounting chart of accounts, then all account derivation rules that are assigned must have the same or no chart of accounts. Accounting Methods Builder (AMB) Chapter 4 - Page 44

137 Segment Rules Accounting Methods Builder (AMB) Chapter 4 - Page 45

138 Segment Rules Segment Rules Source value type For Segment rules, all sources marked as account combination segment qualifiers or account combinations are available. If the source is an account combination, take the value of the corresponding qualified segment of the account on the transaction. For example, derive a segment value from the cost center segment of the liability account combination. In addition, use sources that are not account combinations. Note: When creating rules for an account combination qualifier, only sources that are marked as account combination sources or the same account combination qualifier segment as the qualifier specified for the rule can be selected. Constant value type Establish the segment value as a constant. For example, the company segment can be set to 01. Accounting Methods Builder (AMB) Chapter 4 - Page 46

139 Mapping Set value type Use a mapping set to determine the value of the segment. For example, using a mapping set that maps supplier types to departments, the supplier type can determine the department segment value. Note: An accounting chart of accounts must be specified for rules using either constants or mapping sets. Account Derivation Rule value type Derive the account by referencing another account derivation rule. The transaction or accounting chart of accounts does not need to be specified when defining this type of rule. If the account derivation rule has an accounting chart of accounts, then all account derivation rules that are assigned must have the same or no chart of accounts. Accounting Methods Builder (AMB) Chapter 4 - Page 47

140 Oracle-Owned vs. User-Owned AMB Components Accounting Methods Builder (AMB) Chapter 4 - Page 48

141 Value Set Rules Value Set Rules Source value type For value set based rules, all sources that are data type Alphanumeric and are not marked as account combinations or account combination qualifiers are available. Constant value type Establish the segment value as a constant. This list of values is based on the value set defined for the rule. Mapping Set value type Use a mapping set to determine the value of the value set based rule. In this case, the mapping set must be created for the same output value set as the value set for the account derivation rule. Accounting Methods Builder (AMB) Chapter 4 - Page 49

142 Account Derivation Rule value type Derive the account by referencing another account derivation rule. The transaction or accounting chart of accounts does not need to be specified when defining this type of rule. If the account derivation rule has an accounting chart of accounts, then all account derivation rules that are assigned must have the same or no chart of accounts. When the value type is Account Derivation Rule, select only account derivation rules with matching output types. Accounting Methods Builder (AMB) Chapter 4 - Page 50

143 Mapping Sets Mapping Sets Navigation paths: Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Mapping Sets Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Mapping Sets To define a mapping set, pairs of values are specified. For each input value, specify a corresponding account segment or account combination output value. One or more related pairs of these input values and segment or account combination output values form a mapping set. Use value sets or lookup types to validate the input values of the mapping set. For example, it is possible to create a mapping set based on two input values, Yes and No. Apply these input values to determine the balancing segment value of an account: 01 if the input value is Yes and 02 if it is No. Use this mapping set in one of the rules that builds the segment values Accounting Methods Builder (AMB) Chapter 4 - Page 51

144 of an account. The rule compares the value of a source to see if it is Yes or No and determines the segment value accordingly. Prerequisite for defining mapping sets: Using value sets and lookup types prevents data entry errors when entering input values. If planning to use either value sets or lookup types to validate the input values, they must be defined before setting up mapping sets. If neither a value set nor a lookup type is selected, you can enter any value in the Input Value field. Accounting Methods Builder (AMB) Chapter 4 - Page 52

145 Journal Entry Descriptions Journal Entry Descriptions Navigation Paths Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Journal Entry Descriptions Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Entry Descriptions Accounting Methods Builder (AMB) Chapter 4 - Page 53

146 Journal Entry Description Journal Entry Description A description can be assigned to the journal entry header, or different descriptions can be assigned to each of the lines of the entry. For example, you could add a description on the entry for a payables invoice containing general information about the particular invoice, or add a description on the item expense line containing information about the item or expense itself. Build descriptions using any of the available sources for the application. For example, a transaction number can be included in the description. Use literal strings or a combination of both sources and literals. Some of the sources can only be used for descriptions applied at the line level. For example, a source associated with an invoice line number can only be applied to a line description. Assign descriptions to journal entry lines in the Journal Lines Definitions window and to journal entry headers in the Application Accounting Definition window. Accounting Methods Builder (AMB) Chapter 4 - Page 54

147 Journal Entry Description Journal Entry Description The final component that makes up a journal entry is the description. Accounting Methods Builder (AMB) Chapter 4 - Page 55

148 Journal Entry Description Accounting Methods Builder (AMB) Chapter 4 - Page 56

149 Journal Lines Definition Journal Lines Definition Navigation Paths Payables: Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Journal Lines Definitions Receivables: Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Journal Lines Definitions Accounting Methods Builder (AMB) Chapter 4 - Page 57

150 Journal Lines Definitions Journal Lines Definitions The journal line type, description, and account derivation rules are grouped together as a journal line definition to create the rule for a particular event type. Accounting Methods Builder (AMB) Chapter 4 - Page 58

151 Journal Lines Definitions Accounting Methods Builder (AMB) Chapter 4 - Page 59

152 Summary Accounting Methods Builder (AMB) Chapter 4 - Page 60

153 Practice 1: Running the Create Accounting Program in Draft Mode Accounting Methods Builder (AMB) Chapter 4 - Page 61

154 Practice - Running the Create Accounting Program for Payables Overview In this practice, you will do the following: Enter an invoice Run the Create Accounting program in draft mode from the Invoices Workbench or alternatively from the Requests window Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Payables, Vision Operations (USA). Log on to the system User Name = operations Password = welcome Responsibility = Payables, Vision Operations (USA) Enter an invoice In the Invoices window, create an invoice based on the following information: Trading Partner: IBM Corporation Invoice number: XX5000 Invoice amount: Description: Promotional Giveaway Payment method: Electronic Enter 2 lines, one for 10,000 and another for 5,000. Accounting Methods Builder (AMB) Chapter 4 - Page 62

155 Use distribution account: for the first line and for the second line. Run the Create Accounting program: - for invoices up to and including today s date - in draft mode - don t include events with an Error status - generate a detailed report - don t display user identifiers Accounting Methods Builder (AMB) Chapter 4 - Page 63

156 Solution Running the Create Accounting Program for Payables Log on to the system User Name = operations Password = welcome Responsibility = Payables, Vision Operations (USA) Entering an invoice 1. Navigate to the Invoice Workbench: (N) Invoices > Entry > Invoices 2. In the Trading Partner field, select IBM Corporation. 3. In the Invoice Number field, enter XX In the Invoice Amount field, enter 15, In the Description field, enter Promotional Giveaway. 6. In the Payment Method field, select Electronic. 7. Select the Lines tab. 8. In the Amount field, enter In the Product Type field, select Goods. 10. In the Distribution Account field, enter Enter a second line, where the amount is 5000 for Goods and use the distribution account Accounting Methods Builder (AMB) Chapter 4 - Page 64

157 12. To validate the invoice, (B) Actions. 13. Select the Validate check box and (B) OK. Accounting Methods Builder (AMB) Chapter 4 - Page 65

158 You can now generate draft accounting from the Invoice Workbench (proceed to step 14) or you can submit the Create Accounting program (proceed to step 16) from the Requests window. If you generate the draft accounting from the Invoice Workbench then you are just generating accounting for that particular transaction. If you generate accounting from the Requests window then you will generate accounting for any outstanding transactions, including the transaction you just entered. Note: If you have recently made changes to the Subledger Accounting setup you may find that you are unable to generate accounting from the Invoice Workbench. If you receive a message indicating that accounting cannot be generated then you should submit a request via the Requests window. Generating Draft Accounting from the Invoice Workbench 14. (B) Actions Accounting Methods Builder (AMB) Chapter 4 - Page 66

159 15. Select the Create Accounting check box. 16. Select the Draft radio button. 17. (B) OK. Generating Draft Accounting from the Requests window 18. Navigate to the Submit a New Request window. (N) Other > Requests > Run 19. (B) Single Request 20. (B) OK Accounting Methods Builder (AMB) Chapter 4 - Page 67

160 21. In the Name field, select Create Accounting. The Parameters dialog box appears. 22. In the Ledger field, select Vision Operations (USA). This is a required field and limits accounting events selected for processing to those of a particular ledger. 23. In the Process Category field, select Invoices. This is an optional field and restricts the events selected for accounting to a particular process category. 24. In the End Date field, enter today s date. This is a required field and processes only those events with event dates on or before the end date. 25. In the Mode field, select Draft. This is a required field and determines whether the subledger journal entries are created in draft or final mode. 26. In the Errors Only field, select No. This is a required field and limits the creation of accounting to those events for which accounting has previously failed. If you selected Yes, then the Create Accounting processes all events with a status of Error. 27. In the Report field, select Detail. This is a required field and determines whether to generate a report showing the results of the Subledger Accounting program in summary or detail format. 28. Leave the General Ledger Batch Name field blank. This is an optional field and is the userentered batch name that appears on the transferred General Ledger subledger journal entries. The Transfer to GL option must be set to Yes. 29. In the Include User Transaction Identifiers field, select No. This is a required field and controls whether the report displays user identifiers names and values. Accounting Methods Builder (AMB) Chapter 4 - Page 68

161 30. (B) OK 31. (B) Submit 32. (M) View Requests, to check the request status. Inquire on the journal entry 33. Navigate to the Subledger Journal Entries window. (N) Accounting > Subledger Accounting > Journal Entries 34. Ensure that the Headers tab is selected. 35. In the Advanced Search window, enter the following search information: Ledger: Vision Operations (USA) From GL Date: <today s date> To GL Date: <today s date> 36. (B) Go The subledger journal entries are displayed in the Results region. Accounting Methods Builder (AMB) Chapter 4 - Page 69

162 37. To view the details of the entry you just created, click on the appropriate ledger link to display the Subledger Journal Entry window. Accounting Methods Builder (AMB) Chapter 4 - Page 70

163 Practice - Running the Create Accounting Program for Receivables Overview In this practice, you will do the following: Enter an invoice Run the Create Accounting program in draft mode from the Requests window Inquire on the journal entry you create Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Receivables, Vision Operations (USA). Log on to the system User Name = operations Password = welcome Responsibility = Receivables, Vision Operations (USA) Enter an invoice 1. Navigate to the Transactions window: (N) Transactions > Transactions 2. In the Transactions window, enter an invoice based on the following information: Source: Manual Class: Invoice Type: Invoice Accounting Methods Builder (AMB) Chapter 4 - Page 71

164 Reference: XXConsulting Services Ship-To Name: XX_Customer 3. Enter 3 lines as follows: Num Item Description UOM Quantity Unit Price 1 Principal Consultant Hrs AS54888 Sentinal Standard Desktop 3 Network Tech. Each Hrs Run the Create Accounting program: - for transactions up to and including today s date - in draft mode - don t include events with an Error status - generate a detailed report - don t display user identifiers Accounting Methods Builder (AMB) Chapter 4 - Page 72

165 Solution Running the Create Accounting Program for Receivables Log on to the system User Name = operations Password = welcome Responsibility = Receivables, Vision Operations (USA) Entering an invoice 1. Navigate to the Transactions window: (N) Transactions > Transactions 2. In the Source field, select Manual. 3. In the Class field, select Invoice. 4. In the Type field, select Invoice. 5. In the Reference field, select XXConsulting Services. 6. In the GL Date field, enter today s date. 7. Select the Main tab. 8. In the Ship To Name field, select XX_Customer. Accounting Methods Builder (AMB) Chapter 4 - Page 73

166 9. (B) Line Items 10. Enter 3 lines based on the following information: Num Item Description UOM Quantity Unit Price 1 Principal Consultant 2 Sentinal Standard Desktop 3 Network Tech. Hrs Each Hrs Accounting Methods Builder (AMB) Chapter 4 - Page 74

167 11. Save your work. 12. Close the Lines window. 13. (B) Complete Note: You can now generate accounting from the Tools menu by selecting Create Accounting or from the Requests window. Generating Draft Accounting from the Requests window 14. Navigate to the Submit Request window: (M) View > Requests 15. (B) Submit a New Request 16. (B) OK. 17. In the Name field, select Create Accounting. The Parameters dialog box appears. 18. In the Ledger field, select Vision Operations (USA). This is a required field and limits accounting events selected for processing to those of a particular ledger. 19. In the Process Category field, select Transactions. This is an optional field and restricts the events selected for accounting to a particular process category. Accounting Methods Builder (AMB) Chapter 4 - Page 75

168 20. In the End Date field, enter today s date. This is a required field and processes only those events with event dates on or before the end date. 21. In the Mode field, select Draft. This is a required field and determines whether the subledger journal entries are created in draft or final mode. 22. In the Errors Only field, select No. This is a required field and limits the creation of accounting to those events for which accounting has previously failed. If you selected Yes, then the Create Accounting processes all events with a status of Error. 23. In the Report field, select Detail. This is a required field and determines whether to generate a report showing the results of the Subledger Accounting program in summary or detail format. 24. Leave the General Ledger Batch Name field blank. This is an optional field and is the userentered batch name that appears on the transferred General Ledger subledger journal entries. The Transfer to GL option must be set to Yes. 25. In the Include User Transaction Identifiers field, select No. This is a required field and controls whether the report displays user identifiers names and values. 26. (B) OK. 27. (B) Submit. 28. (M) View Requests, to check the request status. Accounting Methods Builder (AMB) Chapter 4 - Page 76

169 Inquire on the journal entry 29. Navigate to the Subledger Journal Entries window. (N) Inquiry > Subledger Accounting > Journal Entries 30. Ensure that the Headers tab is selected. 31. In the Advanced Search window, enter the following search information: Ledger: Vision Operations (USA) From GL Date: <today s date> To GL Date: <today s date> 32. (B) Go The subledger journal entries are displayed in the Results region. 33. To view the details of the entry you just created, click on the appropriate ledger link to display the Subledger Journal Entry window. Accounting Methods Builder (AMB) Chapter 4 - Page 77

170 Accounting Methods Builder (AMB) Chapter 4 - Page 78

171 Practice 2: Defining Subledger Accounting Methods Accounting Methods Builder (AMB) Chapter 4 - Page 79

172 Guided Demonstration - Defining Subledger Accounting Methods in Payables Responsibility: Payables, Vision Operations (USA) Copying and modifying an existing Subledger Accounting Method 1. Navigate to the Subledger Accounting Methods window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods 2. In the Method Name field, enter Standard Accrual. 3. (B) Find 4. (B) Copy 5. In the Method Code field, enter XX_STANDARD_ACCRUAL. 6. In the Name field, enter XX Standard Accrual. 7. In the Description field, enter XX Standard Accrual. 8. In the Accounting field, select Operations Accounting Flex. 9. (B) OK 10. (B) Done End-date an existing Application Accounting Definition and add a new one 11. Place the cursor in the Payables line and enter an end-date of 31-Dec Add a new line. 13. In the Applications field, select Payables. 14. In the Name field, select XX Accrual Basis for Payables. 15. (B) OK 16. In the Start Date field, enter 01-Jan (M) File Save Accounting Methods Builder (AMB) Chapter 4 - Page 80

173 Assigning the Subledger Accounting Method to the Vision Operations (USA) ledger 18. (N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups 19. Search for the Vision Operations (USA) ledger. 20. Click Update Accounting Options next to the ledger. 21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger. 22. In the Subledger Accounting Method field, update the subledger accounting method to XX Standard Accrual. 23. (B) Select 24. (B) Finish Run the Create Accounting program To view the changes you have made to the setup, run the Create Accounting program in draft mode for a second time. 25. Navigate to the Submit a New Request window. (N) Other > Requests > Run 26. Select Single Request. 27. (B) OK 28. In the Name field, select Create Accounting. 29. In the Ledger field, select Vision Operations (USA). 30. In the Process Category field, select Invoices. 31. In the End Date field, enter today s date. 32. In the Mode field, select Draft. 33. In the Errors Only field, select No. 34. In the Report field, select Detail. 35. (B) OK 36. (B) Submit 37. (M) View Requests, check the request status. Accounting Methods Builder (AMB) Chapter 4 - Page 81

174 Inquire on the journal entry 38. Navigate to the Subledger Journal Entries window. (N) Accounting > Subledger Accounting > Journal Entries 39. Ensure that the Headers tab is selected. 40. In the Advanced Search window, enter the following search information: Ledger: Vision Operations (USA) From GL Date: <today s date> To GL Date: <today s date> 41. (B) Go The subledger journal entries are displayed in the Results region. 42. To view the details of the entry you just created, click on the appropriate ledger link to display the Subledger Journal Entry window. (Optional) Update Merge Matching Lines setting and rerun the Create Accounting program You previously set the Merge Matching Lines setting for the journal line types to No and then generated draft accounting. Now that you have completed setting up Subledger Accounting, you could set the option to All, generate draft accounting again and view the difference in the results. In the first instance you saw multiple lines displayed for similar journal entry lines even though all of the information is identical with the exception of the amount. In the second instance the same journal entry lines would be combined. To view the difference when lines are merged, follow these instructions: 43. Navigate to the Journal Lines Types window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Journal Line Type 44. Search for the XX Liability journal line type you previously created. 45. In the Merge Matching Lines field, select All. 46. (M) File Save 47. Navigate to the Application Accounting Definitions window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions 48. Search for the XX Accrual Basis for Payables application accounting definition you previously created. Accounting Methods Builder (AMB) Chapter 4 - Page 82

175 49. (B) Validate (Optional) Run the Create Accounting program To view the changes you have made to the setup, run the Create Accounting program in draft mode for a second time. 50. Navigate to the Submit a New Request window. (N) Other > Requests > Run 51. Select Single Request. 52. (B) OK 53. In the Name field, select Create Accounting. 54. In the Ledger field, select Vision Operations (USA). 55. In the Process Category field, select Invoices. 56. In the End Date field, enter today s date. 57. In the Mode field, select Draft. 58. In the Errors Only field, select No. 59. In the Report field, select Detail. 60. (B) OK 61. (B) Submit 62. (M) View Requests, check the request status. View the Create Accounting report 63. (M) View > Requests 64. Ensure the All My Requests radio button is selected and (B) Find. 65. Select the Create Accounting report you have just generated and (B) View Output. Accounting Methods Builder (AMB) Chapter 4 - Page 83

176 Practice - Defining Subledger Accounting Methods for Payables In this practice, you will do the following: Copy an existing subledger accounting method. End-date an existing application accounting definition and add a new one. Assign the subledger accounting method to the Vision Operations (USA) ledger. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Payables, Vision Operations (USA). Log on to the system Responsibility = Payables, Vision Operations (USA) Copy an existing subledger accounting method Navigate to the Subledger Accounting Methods window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods Copy the Standard Accrual subledger accounting method and save it as XX_STANDARD_ACCRUAL. Assign the subledger accounting method to the Operations Accounting Flex Accounting chart of accounts. End-date an existing Application Accounting Definition and add a new one Enter an end-date of 31-Dec-2006 for the Payables application accounting definition. Add a new line and enter a new Payables application accounting definition, called XX Payables Accrual. Enter a start date of 01-Jan Accounting Methods Builder (AMB) Chapter 4 - Page 84

177 Assign the Subledger Accounting Method to the Vision Operations (USA) ledger Navigate to the Accounting Setups window: (N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups Drill-down to the Vision Operations (USA) ledger. Change the subledger accounting method to XX Standard Accrual. Accounting Methods Builder (AMB) Chapter 4 - Page 85

178 Solution Defining Subledger Accounting Methods for Payables Responsibility: Payables, Vision Operations (USA) Copying and modifying an existing Subledger Accounting Method 1. Navigate to the Subledger Accounting Methods window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods The Find Subledger Accounting Methods window appears. 2. In the Method Name field, enter Standard Accrual. 3. (B) Find The Subledger Accounting Methods window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 86

179 4. (B) Copy 5. In the Method Code field, enter XX_STANDARD_ACCRUAL. 6. In the Name field, enter XX Standard Accrual. 7. In the Description field, enter XX Standard Accrual. 8. In the Accounting field, select Operations Accounting Flex. 9. (B) OK Accounting Methods Builder (AMB) Chapter 4 - Page 87

180 10. (B) Done The Subledger Accounting Methods window appears. End-dating an existing Application Accounting Definition and adding a new one 11. Place the cursor in the Payables line and enter an end-date of 31-Dec Add a new line. 13. In the Application field, select Payables. 14. In the Name field, select XX Payables Accrual. 15. (B) OK 16. In the Start Date field, enter 01-Jan Accounting Methods Builder (AMB) Chapter 4 - Page 88

181 17. (M) File Save Assigning the Subledger Accounting Method to the Vision Operations (USA) ledger 18. Navigate to the Accounting Setups window: (N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups 19. Search for the Vision Operations (USA) ledger. 20. Click Update Accounting Options next to the ledger. Accounting Methods Builder (AMB) Chapter 4 - Page 89

182 21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger. 22. In the Subledger Accounting Method field, change the subledger accounting method to XX Standard Accrual. 23. (B) Select 24. (B) Finish Accounting Methods Builder (AMB) Chapter 4 - Page 90

183 Guided Demonstration - Defining Subledger Accounting Methods in Receivables Responsibility: Receivables, Vision Operations (USA) Copying and modifying an existing Subledger Accounting Method 1. Navigate to the Subledger Accounting Methods window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods 2. In the Method Name field, select Standard Accrual. 3. (B) Find 4. (B) Copy 5. In the Method Code field, enter XX_ STANDARD_ACCRUAL. 6. In the Name field, enter XX Standard Accrual. 7. In the Description field, enter XX Standard Accrual. 8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 9. (B) OK 10. (B) Done End-dating an existing Application Accounting Definition and adding a new one 11. Place the cursor in the Receivables Default Accrual line and enter an end-date of 31-Dec Add a new line. 13. In the Application field, select Receivables. 14. In the Name field, select XX Receivables Accrual Basis. 15. (B) OK 16. In the Start Date field, enter 01-Jan (M) File Save Accounting Methods Builder (AMB) Chapter 4 - Page 91

184 Assigning the Subledger Accounting Method to the Vision Operations (USA) ledger 18. Navigate to the Accounting Setups window: (N) Setup > Financials > Accounting > Ledger > Accounting Setups 19. Search for the Vision Operations (USA) ledger. 20. Click Update Accounting Options next to the ledger. 21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger. 22. In the Subledger Accounting Method field, update the subledger accounting method to XX Standard Accrual. 23. (B) Select 24. (B) Finish Running the Create Accounting program 25. Navigate to the Submit a New Request window. (M) View > Requests and click Submit a New Request 26. Select Single Request. 27. (B) OK 28. In the Name field, select Create Accounting. 29. In the Ledger field, select Vision Operations (USA). 30. In the Process Category field, select Transactions. 31. In the End Date field, enter today s date. 32. In the Mode field, select Draft. 33. In the Errors Only field, select No. 34. In the Report field, select Detail. 35. (B) OK 36. (B) Submit 37. (M) View Requests, check the request status. Accounting Methods Builder (AMB) Chapter 4 - Page 92

185 Inquiring on the journal entry 38. Navigate to the Subledger Journal Entries window. (N) Inquiry > Subledger Accounting > Journal Entries 39. (T) Headers 40. In the Advanced Search window, enter the following search information: Ledger: Vision Operations (USA) From GL Date: <today s date> To GL Date: <today s date> 41. (B) Go 42. To view the details of the entry you just created, click on the appropriate ledger link to display the Subledger Journal Entry window. (Optional) Updating the Merge Matching Lines setting 43. Navigate to the Journal Line Types window. (N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Line Types 44. Search for the XX Invoice Receivable journal line type. 45. In the Merge Matching Lines field, select All. 46. (M) File Save 47. Navigate to the Application Accounting Definitions window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions 48. Search for the XX Receivables Accrual Basis application accounting definition. 49. (B) Validate (Optional) Running the Create Accounting program 50. Navigate to the Submit a New Request window. (M) View > Requests and click Submit a New Request 51. Select Single Request. 52. (B) OK Accounting Methods Builder (AMB) Chapter 4 - Page 93

186 53. In the Name field, select Create Accounting. 54. In the Ledger field, select Vision Operations (USA). 55. In the Process Category field, select Transactions. 56. In the End Date field, enter today s date. 57. In the Mode field, select Draft. 58. In the Errors Only field, select No. 59. In the Report field, select Detail. 60. (B) OK 61. (B) Submit 62. (M) View Requests, check the request status. View the Create Accounting report 63. (M) View > Requests 64. Ensure the All My Requests radio button is selected and (B) Find. 65. Select the Create Accounting report you have just generated and (B) View Output. Accounting Methods Builder (AMB) Chapter 4 - Page 94

187 Practice - Defining Subledger Accounting Methods for Receivables In this practice, you will do the following: Copy an existing subledger accounting method. End-date an existing application accounting definition and add a new one. Assign the subledger accounting method to the Vision Operations (USA) ledger. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Receivables, Vision Operations (USA). Log on to the system Responsibility = Receivables, Vision Operations (USA) Copy an existing subledger accounting method Navigate to the Subledger Accounting Methods window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods Copy the Standard Accrual subledger accounting method and save the code as XX_STANDARD_ACCRUAL and the name as XX Standard Accrual. Assign the subledger accounting method to the Operations Accounting Flex Accounting chart of accounts. End-date an existing Application Accounting Definition and add a new one Enter an end-date of 31-Dec-2006 for the Receivables application accounting definition. Add a new line and enter a new Receivables application accounting definition, called XX Receivables Accrual Basis. Accounting Methods Builder (AMB) Chapter 4 - Page 95

188 Enter a start date of 01-Jan Assign the Subledger Accounting Method to the Vision Operations (USA) ledger Navigate to the Accounting Setups window: (N) Setup > Financials > Accounting > Ledger > Accounting Setups Drill-down to the Vision Operations (USA) ledger. Change the subledger accounting method to XX Standard Accrual. Accounting Methods Builder (AMB) Chapter 4 - Page 96

189 Solution Defining Subledger Accounting Methods for Receivables Responsibility: Receivables, Vision Operations (USA) Copying and modifying an existing Subledger Accounting Method 1. Navigate to the Subledger Accounting Methods window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods The Find Subledger Accounting Methods window appears. 2. In the Method Name field, select Standard Accrual. 3. (B) Find The Subledger Accounting Methods window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 97

190 4. (B) Copy The Copy Subledger Accounting Method window appears. 5. In the Method Code field, enter XX_ STANDARD_ACCRUAL. 6. In the Name field, enter XX Standard Accrual. 7. In the Description field, enter XX Standard Accrual. 8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 9. (B) OK Accounting Methods Builder (AMB) Chapter 4 - Page 98

191 10. (B) Done The Subledger Accounting Methods window appears. End-dating an existing Application Accounting Definition and adding a new one 11. Place the cursor in the Receivables Default Accrual line and enter an end-date of 31-Dec Add a new line by pressing the down arrow key. 13. In the Application field, select Receivables. 14. In the Name field, select XX Receivables Accrual Basis. 15. (B) OK 16. In the Start Date field, enter 01-Jan Accounting Methods Builder (AMB) Chapter 4 - Page 99

192 17. Save the accounting method: (M) File Save Assigning the Subledger Accounting Method to the Vision Operations (USA) ledger 18. Navigate to the Accounting Setups window: (N) Setup > Financials > Accounting > Ledger > Accounting Setups 19. Search for the Vision Operations (USA) ledger. 20. Click Update Accounting Options next to the ledger. Accounting Methods Builder (AMB) Chapter 4 - Page 100

193 21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger. 22. In the Subledger Accounting Method field, change the subledger accounting method to XX Standard Accrual. 23. (B) Select 24. (B) Finish Accounting Methods Builder (AMB) Chapter 4 - Page 101

194 Practice 3: Defining Application Accounting Definitions Accounting Methods Builder (AMB) Chapter 4 - Page 102

195 Guided Demonstration - Defining an Application Accounting Definition in Payables Responsibility: Payables, Vision Operations (USA) 1. Navigate to the Application Accounting Definitions window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions 2. In the Definition Name field, enter Accrual Basis. 3. (B) Find 4. (B) Copy 5. In the Definition Code field, enter XX_ACC_BASIS. 6. In the Definition Name field, enter XX Accrual Basis for Payables. 7. Optionally, enter a description, for example XX AP Accrual Basis. 8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 9. (B) Done 10. In the Event Class and Event Type Assignments region, select the Invoices event class. 11. In the Journal Lines Definition Name field, delete the Accrual, Invoices All journal lines definition. 12. In the Journal Lines Definition Name field, assign the XX AP Accrual Invoices journal lines definition to the Invoices event class. 13. (B) Validate Accounting Methods Builder (AMB) Chapter 4 - Page 103

196 Practice - Defining an Application Accounting Definition for Payables Overview In this practice, you will do the following: Copy an existing application accounting definition and then modify it to use the rules you created in earlier practices. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Payables, Vision Operations (USA). Log on to the system Responsibility = Payables, Vision Operations (USA) Copy and modify an accrual basis application accounting definition 1. Navigate to the Application Accounting Definitions window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions 2. Search for the Accrual Basis application accounting definition and make a copy of it. 3. Save the new definition code as XX_ACC_BASIS and the definition name as XX Accrual Basis for Payables. 4. Assign this application accounting definition to the Operations Accounting Flex Accounting chart of accounts. 5. Select the Invoices event class, delete the existing journal lines definition, and assign the XX Accrual Invoices journal lines definition. 6. Validate the definition. Accounting Methods Builder (AMB) Chapter 4 - Page 104

197 Solution Defining an Application Accounting Definition for Payables Copying and modifying an existing Application Accounting Definition Responsibility = Payables, Vision Operations (USA) 1. Navigate to the Application Accounting Definitions window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions The Find Application Accounting Definitions window appears. 2. In the Definition Name field, select Accrual Basis. 3. (B) Find. The Application Accounting Definitions window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 105

198 4. (B) Copy. The Copy Application Accounting Definitions window appears. 5. In the Definition Code field, enter XX_ACC_BASIS. 6. In the Definition Name field, enter XX Accrual Basis for Payables. 7. Optionally, enter a description, for example XX AP Accrual Basis. 8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. If a chart of accounts is selected the application accounting definition can only be assigned to a subledger accounting method with the same chart of accounts. Accounting Methods Builder (AMB) Chapter 4 - Page 106

199 9. (B) Done The Application Accounting Definitions window is displayed. Accounting Methods Builder (AMB) Chapter 4 - Page 107

200 The application name defaults from the application associated with the responsibility, in this example, Payables. The Owner field is automatically populated. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User. The Enabled check box should remain selected so that the application accounting definition is available. 10. In the Event Class and Event Type Assignments region, select the Invoices event class. 11. In the Journal Lines Definition Name field, delete the Accrual, Invoices All journal lines definition, (M) Edit > Delete. 12. In the Journal Lines Definition Name field, assign the XX Accrual Invoices journal lines definition previously defined. Accounting Methods Builder (AMB) Chapter 4 - Page 108

201 13. (B) Validate to validate the application accounting definition. Accounting Methods Builder (AMB) Chapter 4 - Page 109

202 Guided Demonstration - Defining an Application Accounting Definition in Receivables Responsibility: Receivables, Vision Operations (USA) 1. Navigate to the Application Accounting Definitions window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions 2. In the Definition Name field, select Receivables Default Accrual. 3. (B) Find. 4. (B) Copy 5. In the Definition Code field, enter XX_AR_ACCRUAL_BASIS. 6. In the Definition Name field, enter XX Receivables Accrual Basis. 7. In the Description field, enter Accrual Basis Accounting Definition. 8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 9. (B) Done 10. In the Event Class and Event Type Assignments region, select the Invoice event class. 11. In the Journal Lines Definition Name field, delete the Invoices Default Accrual journal lines definition. 12. In the Journal Lines Definition Name field, assign the XX Accrual Invoices journal lines definition to the Invoice event class. 13. (B) Validate Accounting Methods Builder (AMB) Chapter 4 - Page 110

203 Practice - Defining an Application Accounting Definition for Receivables Overview In this practice, you will do the following: Copy an existing application accounting definition and then modify it to use the rules you created in earlier practices. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Receivables, Vision Operations (USA). Log on to the system Responsibility = Receivables, Vision Operations (USA) Copy and modify an accrual basis application accounting definition 1. Navigate to the Application Accounting Definitions window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions 2. Search for the Receivables Accrual Basis application accounting definition and make a copy of it. 3. Save the new definition code as XX_AR_ACCRUAL_BASIS and the definition name as XX Accrual Basis Accounting Definition. 4. Assign this application accounting definition to the Operations Accounting Flex Accounting chart of accounts. 5. Select the Invoice event class and delete the Invoices Default Accrual journal lines definition. 6. Assign the XX Accrual Invoices journal lines definition you previously defined to the Invoice event class. Accounting Methods Builder (AMB) Chapter 4 - Page 111

204 7. Validate the definition. Accounting Methods Builder (AMB) Chapter 4 - Page 112

205 Solution Defining an Application Accounting Definition for Receivables Copying and modifying an existing Application Accounting Definition Responsibility = Receivables, Vision Operations (USA) 1. Navigate to the Application Accounting Definitions window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Application Accounting Definitions The Find Application Accounting Definitions window appears. 2. In the Definition Name field, select Receivables Default Accrual. 3. (B) Find. The Application Accounting Definitions window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 113

206 4. (B) Copy. The Copy Application Accounting Definition window appears. 5. In the Definition Code field, enter XX_AR_ACCRUAL_BASIS. 6. In the Definition Name field, enter XX Receivables Accrual Basis. 7. Optionally, enter a description, for example Accrual Basis Accounting Definition. 8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. If a chart of accounts is selected the application accounting definition can only be assigned to a subledger accounting method with the same chart of accounts. Accounting Methods Builder (AMB) Chapter 4 - Page 114

207 9. (B) Done The Application Accounting Definitions window is displayed. Accounting Methods Builder (AMB) Chapter 4 - Page 115

208 The application name defaults from the application associated with the responsibility, in this example, Receivables. The Owner field is automatically populated. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User. The Enabled check box should remain selected so that the application accounting definition is available. 10. In the Event Class and Event Type Assignments region, select the Invoice event class. 11. In the Journal Lines Definition Name field, delete the Invoices Default Accrual journal lines definition. 12. In the Journal Lines Definition Name field, assign the XX Accrual Invoices journal lines definition to the Invoice event class. Accounting Methods Builder (AMB) Chapter 4 - Page 116

209 13. (B) Validate to validate the application accounting definition. Accounting Methods Builder (AMB) Chapter 4 - Page 117

210 Practice 4: Defining Journal Line Types Accounting Methods Builder (AMB) Chapter 4 - Page 118

211 Guided Demonstration - Defining Journal Line Types in Payables Responsibility = Payables, Vision Operations (USA) 1. Navigate to the Journal Line Types window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Journal Line Types 2. (B) New. 3. In the Event Class field, select Invoices. 4. In the Line Type Code field, enter XX_MISC_EXPENSE. 5. In the Name field, enter XX Miscellaneous Expense. 6. In the Description field, enter XX Miscellaneous Expense. 7. In the Accounting Class field, select Miscellaneous Expense. 8. In the Balance Type region, select Actual. 9. In the Side region, select Debit. 10. Select Yes from the Switch Debit/Credit dropdown list. 11. In the Merge Matching Lines field, select No. 12. In the Transfer to GL region, select Summary. 13. (B) Conditions. 14. In the Seq field, enter In the Source field, select Invoice Distribution Type. 16. In the Operator field, select =. 17. In the Value Type field, select Constant. 18. In the Value field, select Item. 19. (M) File Save 20. (M) File Close Form Accounting Methods Builder (AMB) Chapter 4 - Page 119

212 21. Save the Expense journal line type. 22. Create a Liability journal line type based on the following information: Field Name Liability Journal Line Type Event Class Invoices Line Type Code XX_AP_LIAB_INV Name XX Liability Description Accounting Class Balance Type Side Switch Debit/Credit Merge Matching Lines Transfer to GL XX Liability when invoice validated Liability Actual Credit Yes No Summary Note: No conditions are required for the Liability journal line type. 23. (I) Save 24. (M) File Close Form Accounting Methods Builder (AMB) Chapter 4 - Page 120

213 Practice - Defining Journal Line Types for Payables Overview In this practice, you will do the following: Define two journal line types, as follows: Expense Liability Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Payables, Vision Operations (USA). Log on to the system Responsibility = Payables, Vision Operations (USA) Defining Journal Line Types 1. Navigate to the Journal Line Types window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Journal Line Types 2. Create two journal line types using the following information: Field Name Expense Journal Line Type Event Class Invoices Invoices Liability Journal Line Type Line Type Code XX_MISC_EXPENSE XX_AP_LIAB_INV Name Miscellaneous Expense Liability Description Miscellaneous Expense Liability when invoice validated Accounting Class Miscellaneous Expense Liability Balance Type Actual Actual Accounting Methods Builder (AMB) Chapter 4 - Page 121

214 Side Debit Credit Switch Debit/Credit Yes Yes Merge Matching Lines No Transfer to GL Summary Summary 3. Save the journal line types. No Accounting Methods Builder (AMB) Chapter 4 - Page 122

215 Solution Defining Journal Line Types for Payables Defining Journal Line Types Responsibility = Payables, Vision Operations (USA) 1. Navigate to the Journal Line Types window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Journal Line Types The Find Journal Line Types window appears. 2. (B) New. The Journal Line Types window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 123

216 The Application field is automatically populated with the application name associated with the user s responsibility, in this example, Payables. The Owner field is automatically populated. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User. The Enabled field is automatically enabled, and makes this journal line type available for use. 3. In the Event Class field, select the event class from the list of values, for example, Invoices. 4. In the Line Type Code field, enter a code, for example, XX_MISC_EXPENSE. Note: You cannot modify a seeded journal line type or any other seeded component as it could get overwritten in an upgrade. Instead you can copy the seeded type and then modify it appropriately. The copied journal line type has an Owner type of User. The list of values displays the component name and the owner to distinguish between seeded and user-defined components. 5. In the Name field, enter XX Miscellaneous Expense. 6. In the Description field, optionally enter a description, for example, XX Miscellaneous Expense. Accounting Methods Builder (AMB) Chapter 4 - Page 124

217 7. In the Accounting Class field, select Miscellaneous Expense. The accounting class is shared across applications and enables you to classify journal entry lines. The list of values for this field contains all accounting classes that are seeded but you can add new accounting classes. The Rounding Class defaults to the accounting class, in this example, Miscellaneous Expense. The rounding class, along with the transaction rounding reference accounting attribute, groups lines together in order to determine whether rounding is necessary. 8. In the Balance Type region, select Actual. 9. In the Side region, select Debit. 10. Select Yes from the Switch Debit/Credit dropdown list. This option determines whether negative amounts will result in negative amounts on the same side or positive amounts on the opposite side. 11. In the Merge Matching Lines field, select No. This option summarizes subledger journal lines within each subledger entry. Journal entry lines with matching criteria are merged. 12. In the Transfer to GL region, select Summary to summarize subledger journal entry lines by account combination. 13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous expense when an invoice is validated. 14. In the Seq field, enter In the Source field, select Invoice Distribution Type. 16. In the Operator field, select =. 17. In the Value Type field, select Constant. 18. In the Value field, select Item. Accounting Methods Builder (AMB) Chapter 4 - Page 125

218 19. (M) File Save 20. (M) File Close Form The Journal Line Types window should now look like this: Accounting Methods Builder (AMB) Chapter 4 - Page 126

219 21. Save the Expense journal line type. 22. Create a Liability journal line type based on the following information: Field Name Liability Journal Line Type Event Class Invoices Line Type Code XX_AP_LIAB_INV Name Description Accounting Class Balance Type Side Switch Debit/Credit Merge Matching Lines Transfer to GL XX Liability XX Liability when invoice validated Liability Actual Credit Yes No Summary Note: No conditions are required for the Liability journal line type. Accounting Methods Builder (AMB) Chapter 4 - Page 127

220 23. (I) Save Accounting Methods Builder (AMB) Chapter 4 - Page 128

221 Guided Demonstration - Defining Journal Line Types in Receivables Responsibility: Receivables, Vision Operations (USA) 1. Navigate to the Journal Line Types window. (N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Line Types 2. (B) New. 3. In the Event Class field, select Invoice. 4. In the Line Type Code field, enter XX_INV_REV. 5. In the Name field, enter Invoice Revenue. 6. In the Description field, optionally enter a description, for example, Revenue for Invoices. 7. In the Accounting Class field, select Revenue. 8. In the Balance Type region, select Actual. 9. In the Side region, select Credit. 10. Select Yes from the Switch Debit/Credit dropdown list. 11. In the Merge Matching Lines field, select No. 12. In the Transfer to GL region, select Summary. 13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous expense when a credit memo is validated. 14. In the Seq field, enter In the Source field, select Transaction Distribution Account Class. 16. In the Operator field, select =. 17. In the Value Type field, select Constant. 18. In the Value field, type REV. 19. Save the condition. 20. Close the window. Accounting Methods Builder (AMB) Chapter 4 - Page 129

222 Practice - Defining Journal Line Types for Receivables Overview In this practice, you will create two journal line types as follows: Revenue Receivables Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Receivables, Vision Operations (USA). Log on to the system Responsibility = Receivables, Vision Operations (USA) Defining Journal Line Types 1. Navigate to the Journal Line Types window. (N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Line Types 2. Create journal line types using the following information: Field Name Revenue Journal Line Type Receivable Journal Line Type Event Class Invoice Invoice Line Type Code XX_INV_REV XX_AR_REC Name XX Invoice Revenue XX Invoice Receivable Description Accounting Class XX Revenue for Invoices Revenue XX Receivable for Invoices Receivable Accounting Methods Builder (AMB) Chapter 4 - Page 130

223 Balance Type Actual Actual Side Credit Debit Switch Debit/Credit Merge Matching Lines Yes No Yes No Transfer to GL Summary Summary 3. Save the journal line types. Accounting Methods Builder (AMB) Chapter 4 - Page 131

224 Solution Defining Journal Line Types for Receivables Defining a Revenue Journal Line Type Responsibility = Receivables, Vision Operations (USA) 1. Navigate to the Journal Line Types window. (N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Line Types The Find Journal Line Types window appears. 2. (B) New. The Journal Line Types window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 132

225 The Application field is automatically populated with the application name associated with the user s responsibility, in this example, Receivables. The Owner field is automatically populated. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User. The Enabled field is automatically enabled, and makes this journal line type available for use. 3. In the Event Class field, select the Invoice event class from the list of values. 4. In the Line Type Code field, enter a code, for example, XX_INV_REV. Note: You cannot modify a seeded journal line type or any other seeded component as it could get overwritten in an upgrade. Instead you can copy the seeded type and then modify it appropriately. The copied journal line type has an Owner type of User. The list of values displays the component name and the owner to distinguish between seeded and user-defined components. 5. In the Name field, enter XX Invoice Revenue. 6. In the Description field, optionally enter a description, for example, Revenue for Invoices. 7. In the Accounting Class field, select Revenue. Accounting Methods Builder (AMB) Chapter 4 - Page 133

226 The accounting class is shared across applications and enables you to classify journal entry lines. The list of values for this field contains all accounting classes that are seeded but you can add new accounting classes. The Rounding Class defaults to the accounting class, in this example, Revenue. The rounding class, along with the transaction rounding reference accounting attribute, groups lines together in order to determine whether rounding is necessary. 8. In the Balance Type region, select Actual. 9. In the Side region, select Credit. 10. Select Yes from the Switch Debit/Credit dropdown list. This option determines whether negative amounts will result in negative amounts on the same side or positive amounts on the opposite side. 11. In the Merge Matching Lines field, select No. This option summarizes subledger journal lines within each subledger entry. Journal entry lines with matching criteria are merged. 12. In the Transfer to GL region, select Summary to summarize subledger journal entry lines by account combination. 13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous expense when a credit memo is validated. 14. In the Seq field, enter In the Source field, select Transaction Distribution Account Class. 16. In the Operator field, select =. 17. In the Value Type field, select Constant. 18. In the Value field, enter REV. Accounting Methods Builder (AMB) Chapter 4 - Page 134

227 19. Save the condition. 20. Close the Journal Line Type Conditions window. The Journal Line Types window should now look like this: Accounting Methods Builder (AMB) Chapter 4 - Page 135

228 21. Save the Revenue journal line type. 22. Create a Receivable journal line type based on the following information: Field Name Receivable Journal Line Type Event Class Invoice Line Type Code Name Description Accounting Class Balance Type Side Switch Debit/Credit Merge Matching Lines Transfer to GL XX_AR_REC XX Invoice Receivable Receivable for Invoices Receivable Actual Debit Yes No Summary Accounting Methods Builder (AMB) Chapter 4 - Page 136

229 23. (B) Conditions to add a condition for the Invoice Receivable journal line type. 24. In the Seq field, enter In the Source field, select Transaction Distribution Account Class. 26. In the Operator field, select =. 27. In the Value Type field, select Constant. 28. In the Value field, select REC. 29. Save the condition. 30. Close the Journal Line Type Conditions window. 31. Save the Receivable journal line type. The Journal Line Types window should now look like this: Accounting Methods Builder (AMB) Chapter 4 - Page 137

230 Accounting Methods Builder (AMB) Chapter 4 - Page 138

231 Practice 5: Defining Account Derivation Rules Accounting Methods Builder (AMB) Chapter 4 - Page 139

232 Guided Demonstration - Defining Account Derivation Rules for Payables Responsibility: Payables, Vision Operations (USA) Creating an Account Derivation Rule for the Liability Journal Line Type 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definition > Journal Lines Definitions 2. In the Definition Name field, select XX AP Accrual Invoices. 3. (B) Find 4. Select the XX Liability journal line type. 5. (B) Account Derivation Rule 6. (B) New 7. In the Rule Code field, enter XX_LIAB_ACC. 8. In the Rule Name field, enter XX Liability Account. 9. In the Description field, enter XX Liability Account. 10. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 11. Select the Flexfield radio button. 12. In the Priority field, enter In the Value Type field, select Constant. 14. In the Value field, enter (M) File Save 16. (M) File Close Form 17. In the Journal Lines Definitions window, select the XX Liability journal line type. 18. In the Segment field, select All Segments. 19. In the Rule Name field, select XX Liability Account. Accounting Methods Builder (AMB) Chapter 4 - Page 140

233 20. (M) File - Save Creating an Account Derivation Rule for the Expense Journal Line Type 21. Select the XX Miscellaneous Expense journal line type. Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to select the next journal line type if pressing the down arrow key doesn t work. 22. (B) Account Derivation Rule 23. (B) New 24. In the Rule Code field, enter XX_EXPENSE_ACCOUNT. 25. In the Rule Name field, enter XX AP Expense Account. 26. In the Description field, enter XX Expense Account. 27. In the Priority field, enter In the Value Type field, select Source. 29. In the Value field, select Invoice Distribution Account. 30. (M) File Save 31. (M) File Close Form 32. In the Journal Lines Definitions window, place the cursor in the XX Miscellaneous Expense line. 33. In the Segment field, select All Segments. 34. In the Rule Name field, select XX Expense Account. 35. (M) File Save Accounting Methods Builder (AMB) Chapter 4 - Page 141

234 Practice - Defining Account Derivation Rules for Payables Overview In this practice, you will do the following: Define two account derivation rules; one for the Liability journal line type and another for the Expense journal line type. Assign the account derivation rules to the relevant journal line types in the Journal Lines Definitions window. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Payables, Vision Operations (USA). Log on to the system Responsibility = Payables, Vision Operations (USA) Create an account derivation rule for the Liability journal line type 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definition > Journal Lines Definitions 2. Search for the XX Accrual Invoices journal line definition. 3. Select the XX Liability journal line type. 4. Go to the Account Derivation Rule window. 5. Create a new account derivation rule code called XX_LIAB_ACC with a rule name of XX Liability Account. 6. Associate this rule with the Operations Accounting Flex chart of accounts. 7. Enter a flexfield rule for the constant Save the liability rule. Accounting Methods Builder (AMB) Chapter 4 - Page 142

235 Assign the Liability account derivation rule to the Liability journal line type 9. In the Journal Lines Definitions window, select the XX Liability journal line type. 10. In the Account Derivation Rules region, apply the XX Liability Account rule to all segments. 11. Save your work. Create an account derivation rule for the Expense journal type 12. Select the XX Miscellaneous Expense journal line type in the Journal Lines Definitions window. 13. Go to the Account Derivation Rule window. 14. Create a new account derivation rule code called XX_EXPENSE_ACC with a rule name of XX Expense Account. 15. Associate this rule with the Operations Accounting Flex chart of accounts. 16. Enter a flexfield rule for the Invoice Distribution Account source. 17. Save the expense rule. Assign the Liability account derivation rule to the Expense journal line type 18. In the Journal Lines Definitions window, select the XX Miscellaneous Expense journal line type. 19. In the Account Derivation Rules region, apply the XX Expense Account rule to all segments. 20. Save your work. Accounting Methods Builder (AMB) Chapter 4 - Page 143

236 Solution Defining Account Derivation Rules for Payables Responsibility: Payables, Vision Operations (USA) Creating an Account Derivation Rule for the Liability Journal Line Type 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definition > Journal Lines Definitions The Find Journal Lines Definitions window appears. 2. In the Definition Name field, select XX Accrual Invoices. 3. (B) Find The Journal Lines Definitions window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 144

237 4. Select the XX Liability journal line type. Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to select the next journal line type if pressing the down arrow key doesn t work. 5. (B) Account Derivation Rule The Find Account Derivation Rules window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 145

238 6. (B) New The Account Derivation Rules window appears. The application name defaults from the application associated with the responsibility, in this example, Payables. The Owner field is automatically populated by Subledger Accounting. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User. Retain the default for the Enabled check box which is selected to make the account derivation rule available for use. 7. In the Rule Code field, enter XX_LIAB_ACC. 8. In the Rule Name field, enter XX Liability Account. 9. In the Description field, enter XX Liability Account. 10. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 11. Select the Flexfield radio button. 12. In the Priority field, enter 1. Rules are evaluated in ascending order, where the highest priority has the lowest number, until a condition is met. It is advantageous to list the most commonly met rules and conditions first. The order in which rules and conditions are evaluated can be changed by Accounting Methods Builder (AMB) Chapter 4 - Page 146

239 updating the priority number instead of by deleting and rewriting detail lines. Once the conditions associated with a detail line are satisfied, the value from that line is used and other lines are ignored. 13. In the Value Type field, select Constant to specify the method of deriving the account combination or segment value. 14. In the Value field, enter Save your work: (M) File Save 16. Close the Account Derivation Rules window: (M) File Close Form 17. In the Journal Lines Definitions window, select the XX Liability journal line type. 18. In the Segment field, select All Segments. 19. In the Rule Name field, select XX Liability Account. Accounting Methods Builder (AMB) Chapter 4 - Page 147

240 20. Save your work: (M) File - Save Creating an Account Derivation Rule for the Expense Journal Line Type 21. In the Journal Lines Definitions window, select the XX Miscellaneous Expense journal line type. Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to select the next journal line type if pressing the down arrow key doesn t work. 22. (B) Account Derivation Rule The Find Account Derivation Rule window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 148

241 23. (B) New The Account Derivation Rules window appears. 24. In the Rule Code field, enter XX_EXPENSE_ACCOUNT. 25. In the Rule Name field, enter XX AP Expense Account. 26. In the Description field, enter XX Expense Account. 27. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 28. In the Output Type region, select the Flexfield radio button. 29. In the Priority field, enter In the Value Type field, select Source. 31. In the Value field, select Invoice Distribution Account. Accounting Methods Builder (AMB) Chapter 4 - Page 149

242 32. Save your work: (M) File Save 33. Close the Account Derivation Rules window: (M) File Close Form 34. In the Journal Lines Definitions window, place the cursor in the XX Miscellaneous Expense line. 35. In the Segment field, select All Segments. 36. In the Rule Name field, select XX AP Expense Account. Accounting Methods Builder (AMB) Chapter 4 - Page 150

243 37. Save your work: (M) File Save Accounting Methods Builder (AMB) Chapter 4 - Page 151

244 Guided Demonstration - Defining Account Derivation Rules in Receivables Responsibility: Receivables, Vision Operations (USA) Create a new Receivables Account Derivation Rule 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Journal Lines Definitions 2. In the Definition Name field, select XX Accrual Invoices. 3. (B) Find. 4. In the Journal Line Type field, select XX Invoice Receivable. 5. (B) Account Derivation Rule. 6. (B) New. 7. In the Rule Code field, enter XX_REC_ACC. 8. In the Rule Name field, enter XX Receivables Account. 9. In the Description field, enter Receivables Account. 10. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 11. In the Output Type region, select Flexfield. 12. In the Priority field, enter In the Value Type field, select Constant. 14. In the Value field, enter (M) File - Save 16. (M) File Close Form Assign the XX Receivables Account rule to the XX Invoice Receivable journal line type 17. In the Journal Lines Definitions window, place the cursor in the XX Invoice Receivable line. 18. In the Segment field, select All Segments. Accounting Methods Builder (AMB) Chapter 4 - Page 152

245 19. In the Rule Name field, select XX Receivables Account. 20. (M) File Save Create a new Revenue Account Derivation Rule 21. In the Journal Lines Definition window, select the XX Invoice Revenue journal line type. Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to select the next journal line type if pressing the down arrow key doesn t work. 22. (B) Account Derivation Rule. 23. (B) New. 24. In the Rule Code field, enter XX_TRX_DIST_GL. 25. In the Rule Name field, enter XX Transaction Distribution GL Account. 26. In the Description field, enter Transaction Distribution GL Account. 27. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 28. In the Output Type region, select Flexfield. 29. In the Priority field, enter In the Value Type field, select Source. 31. In the Value field, select Transaction Distribution GL Account. 32. (M) File- Save 33. (M) File Close Form Assign the XX Transaction Distribution GL Account rule to the XX Invoice Revenue journal line type 34. In the Journal Lines Definitions window, place the cursor in the XX Invoice Revenue line. 35. In the Segment field, select All Segments. 36. In the Rule Name field, select XX Transaction Distribution GL Account. 37. (M) File Save Accounting Methods Builder (AMB) Chapter 4 - Page 153

246 Practice - Defining Account Derivation Rules for Receivables Overview In this practice, you will do the following: Define two account derivation rules; one for the Receivable journal line type and another for the Revenue journal line type. Assign the account derivation rules to the relevant journal line types in the Journal Lines Definitions window. Assumptions Tasks You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Receivables, Vision Operations (USA). Log on to the system Responsibility = Receivables, Vision Operations (USA) Create a new Receivables account combination account derivation rule 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definition > Journal Lines Definitions 2. Search for the XX Accrual Invoices journal line definition. 3. Select the XX Invoice Receivable journal line type. 4. Go to the Account Derivation Rule window. 5. Create a new Account Derivation Rule rule code called XX_REC_ACC with a rule name of XX Receivables Account. 6. Associate this rule with the Operations Accounting Flex accounting chart of accounts. 7. Enter a flexfield rule for the constant Save the Receivable rule. Accounting Methods Builder (AMB) Chapter 4 - Page 154

247 Assign the XX Receivables Account account derivation rule to the Invoice Receivable journal line type 9. In the Journal Lines Definitions window, select the XX Invoice Receivable journal line type. 10. In the Account Derivation Rules region, apply the XX Receivables Account rule to all segments. 11. Save the definition. Create a new Revenue account derivation rule 12. In the Journal Lines Definitions window. 13. Select the XX Invoice Revenue journal line type. 14. Go to the Account Derivation Rule window. 15. Create a new account derivation rule code called XX_TRX_DIST_GL with a rule name of XX Transaction Distribution GL Account. 16. Associate this rule with the Operations Accounting Flex chart of accounts. 17. Save the Revenue rule. Assign the Revenue account derivation rule to the XX Invoice Revenue journal line type 18. In the Journal Lines Definitions window, select the XX Invoice Revenue journal line type. 19. In the Account Derivation Rules region, apply the XX Transaction Distribution GL Account rule to all segments. 20. Save the definition. Accounting Methods Builder (AMB) Chapter 4 - Page 155

248 Solution Defining Account Derivation Rules for Receivables Responsibility = Receivables, Vision Operations (USA) Create a new Receivables Account Derivation Rule 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Journal Lines Definitions The Find Journal Lines Definitions window appears. 2. In the Definition Name field, select XX Accrual Invoices. 3. (B) Find. The Journal Lines Definitions window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 156

249 4. In the Journal Line Type field, select XX Invoice Receivable. 5. (B) Account Derivation Rule. The Find Account Derivation Rules window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 157

250 6. (B) New. The Account Derivation Rules window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 158

251 The application name defaults from the application associated with the responsibility, in this example, Receivables. The Owner field is automatically populated by Subledger Accounting. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User. Retain the default for the Enabled check box which is selected to make the account derivation rule available for use. 7. In the Rule Code field, enter the code name, for example, XX_REC_ACC. 8. In the Name field, enter the rule name, for example, XX Receivables Account. 9. In the Description field, optionally enter a description, for example, Receivables Account. 10. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 11. In the Output Type region, select Flexfield. 12. In the Priority field, enter 1. Accounting Methods Builder (AMB) Chapter 4 - Page 159

252 Rules are evaluated in ascending order, where the highest priority has the lowest number, until a condition is met. It is advantageous to list the most commonly met rules and conditions first. The order in which rules and conditions are evaluated can be changed by updating the priority number instead of by deleting and rewriting detail lines. Once the conditions associated with a detail line are satisfied, the value from that line is used and other lines are ignored. 13. In the Value Type field, select Constant to specify the method of deriving the account combination or segment value. 14. In the Value field, enter The Account Derivation Rules window should now look like this: 15. Save the rule: (M) File > Save 16. Close the Account Derivation Rules window: (M) File Close Form Accounting Methods Builder (AMB) Chapter 4 - Page 160

253 Assign the XX Receivables Account rule to the XX Invoice Receivable journal line type 17. In the Journal Lines Definitions window, place the cursor in the XX Invoice Receivable line. 18. In the Segment field, select All Segments. 19. In the Rule Name field, select XX Receivables Account. 20. Save the definition: (M) File Save Create a new Revenue Account Derivation Rule 21. In the Journal Lines Definition window, select the XX Invoice Revenue journal line type. Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to select the next journal line type if pressing the down arrow key doesn t work. Accounting Methods Builder (AMB) Chapter 4 - Page 161

254 22. (B) Account Derivation Rule. The Find Account Derivation Rules window appears. 23. (B) New. The Account Derivation Rules window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 162

255 The application name defaults from the application associated with the responsibility, in this example, Receivables. The Owner field is automatically populated by Subledger Accounting. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User. Retain the default for the Enabled check box which is selected to make the account derivation rule available for use. 24. In the Rule Code field, enter XX_TRX_DIST_GL. 25. In the Rule Name field, enter XX Transaction Distribution GL Account. 26. In the Description field, enter Transaction Distribution GL Account. 27. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 28. In the Output Type region, select Flexfield. 29. In the Priority field, enter 1. Accounting Methods Builder (AMB) Chapter 4 - Page 163

256 30. In the Value Type field, select Source. 31. In the Value field, select Transaction Distribution GL Account. 32. Save the rule: File- Save 33. Close the Account Derivation Rules window: (M) File Close Form Assign the XX Transaction Distribution GL Account rule to the XX Invoice Revenue journal line type 34. In the Journal Lines Definitions window, place the cursor in the XX Invoice Revenue line. 35. In the Segment field, select All Segments. 36. In the Rule Name field, select XX Transaction Distribution GL Account. Accounting Methods Builder (AMB) Chapter 4 - Page 164

257 37. Save the definition: (M) File Save Accounting Methods Builder (AMB) Chapter 4 - Page 165

258 Practice 6: Defining Journal Lines Definitions Accounting Methods Builder (AMB) Chapter 4 - Page 166

259 Guided Demonstration - Defining Journal Lines Definitions for Payables Responsibility: Payables, Vision Operations (USA) 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definition > Journal Lines Definitions Or (B) Journal Lines Definitions from the Application Accounting Definitions window 2. (B) New 3. In the Event Class field, select Invoices. 4. In the Definition Code field, enter XX_ACCRUAL_INVOICES. 5. In the Definition Name field, enter XX AP Accrual Invoices. 6. Optionally, enter a description, for example, XX Payables Accrual. 7. In the Event Type field, select All. 8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. 9. In the Line Assignments region, enter the following information based on the journal line types you previously defined: Journal Line Type Line Description XX Miscellaneous Expense Invoice Distribution Description XX Liability Invoice Distribution Description 10. (M) File - Save. Accounting Methods Builder (AMB) Chapter 4 - Page 167

260 Practice - Defining Journal Lines Definitions for Payables Overview In this practice, you will do the following: Define a journal line definition for accrual invoices. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Payables, Vision Operations (USA). Log on to the system Responsibility = Payables, Vision Operations (USA) Define a journal lines definition 1. Navigate to the Journal Lines Definitions window: (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definition > Journal Lines Definitions 2. Create a new journal lines definition. 3. Save the definition code as XX_ACCRUAL_INVOICES. 4. Save the definition name as XX AP Accrual Invoices. 5. Set the event type to All. 6. Select the Operations Accounting Flex accounting chart of accounts. 7. Apply the journal line types previously created, XX Miscellaneous Expense and XX Liability. 8. Save your work. Accounting Methods Builder (AMB) Chapter 4 - Page 168

261 Solution Defining Journal Lines Definitions for Payables Defining Journal Lines Definitions Responsibility = Payables, Vision Operations (USA) 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definition > Journal Lines Definitions The Find Journal Lines Definitions window appears. 2. (B) New. The Journal Lines Definitions window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 169

262 The application name defaults from the application associated with the responsibility. The Owner field is automatically populated. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User. The Enabled check box is enabled by default and makes the journal lines definition available for use for this application and the selected chart of accounts (if applicable). 3. In the Event Class field, select Invoices from the dropdown list. 4. In the Event Type field, select All. 5. In the Definition Code field, enter XX_ACCRUAL_INVOICES. 6. In the Definition Name field, enter XX AP Accrual Invoices. 7. Optionally, enter a description, for example, XX Accrual Invoices. 8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. Accounting Methods Builder (AMB) Chapter 4 - Page 170

263 9. In the Journal Line Type field, assign the Expense journal line type you previously created to the event type by selecting XX Miscellaneous Expense. The Owner field is automatically populated based on the journal line type selected. 10. In the Line Description field, select Invoice Distribution Description. This is the journal entry description to be used to populate the subledger journal entry lines. 11. Ensure the Active check box is selected to use this line assignment to generate subledger journal entries. 12. In the Journal Line Type field, assign the Liability journal line type you previously created to the event type by selecting XX Liability. 13. In the Line Description field, select Invoice Distribution Description. 14. Ensure the Active check box is selected. The Journal Lines Definitions window should now look like this: Accounting Methods Builder (AMB) Chapter 4 - Page 171

264 15. Save the journal line definition: (M) File - Save Accounting Methods Builder (AMB) Chapter 4 - Page 172

265 Guided Demonstration - Defining Journal Lines Definitions for Receivables Responsibility: Receivables, Vision Operations (USA) 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions > Journal Lines Definitions 2. (B) New 3. In the Event Class field, select Invoice. 4. In the Event Type field, select All. 5. In the Definition Code field, enter XX_ACCRUAL_INVOICES. 6. In the Definition Name field, enter XX Accrual Invoices. 7. Optionally, enter a description, for example, XX Receivables Accrual Invoices. 8. In the Chart of Accounts Accounting field, select Operations Accounting Flex. 9. In the Line Assignments region, enter the following information based on the journal line types you previously defined: Journal Line Type Line Description XX Invoice Revenue Invoice Header Description XX Invoice Receivable Invoice Header Description 10. (I) Save. 11. (M) File Close Form Accounting Methods Builder (AMB) Chapter 4 - Page 173

266 Practice - Defining Journal Lines Definitions for Receivables Overview In this practice, you will do the following: Define a journal line definition for accrual invoices. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Receivables, Vision Operations (USA). Log on to the system Responsibility = Receivables, Vision Operations (USA) Define a journal lines definition 1. Navigate to the Journal Lines Definitions window: (N) Setup > Accounting > Accounting Methods Builder > Methods and Definition > Journal Lines Definitions 2. Create a new journal lines definition. 3. Save the definition code as XX_ACCRUAL_INVOICES. 4. Apply the journal line types previously created, XX Invoice Receivable and XX Invoice Revenue. 5. Save the definition name as XX Accrual Invoices. 6. Set the event type to All. 7. Select the Operations Accounting Flex accounting chart of accounts. 8. Apply the Invoice Header Description line descriptions to both of the journal line types. 9. Save the journal lines definition. Accounting Methods Builder (AMB) Chapter 4 - Page 174

267 Solution Defining Journal Lines Definitions for Receivables Defining Journal Lines Definitions Responsibility = Receivables, Vision Operations (USA) 1. Navigate to the Journal Lines Definitions window. (N) Setup > Accounting > Accounting Methods Builder > Methods and Definition > Journal Lines Definitions The Find Journal Lines Definitions window appears. 2. (B) New. The Journal Lines Definitions window appears. Accounting Methods Builder (AMB) Chapter 4 - Page 175

268 The application name defaults from the application associated with the responsibility. The Owner field is automatically populated. For components seeded by Oracle, the value is Oracle. For components created on site by users, the value is User. The Enabled check box is enabled by default and makes the journal lines definition available for use for this application and the selected chart of accounts (if applicable). 3. In the Event Class field, select Invoice. 4. In the Definition Code field, enter XX_ACCRUAL_INVOICES. 5. In the Definition Name field, enter XX Accrual Invoices. 6. Optionally, enter a description, for example, XX Receivables Accrual Invoices. 7. In the Event Type field, select All. 8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. Accounting Methods Builder (AMB) Chapter 4 - Page 176

269 9. In the Journal Line Type field, assign the Receivable journal line type you previously created to the event type by selecting XX Invoice Receivable. The Owner field is automatically populated based on the journal line type selected. 10. In the Line Description field, select Invoice Header Description. This is the journal entry description to be used to populate the subledger journal entry lines. 11. Ensure the Active check box is selected to use this line assignment to generate subledger journal entries. 12. In the Journal Line Type field, assign the Revenue journal line type you previously created to the event type by selecting XX Invoice Revenue. 13. Ensure the Active check box is selected. The Journal Lines Definitions window should now look like this: Accounting Methods Builder (AMB) Chapter 4 - Page 177

270 14. Save the journal line definition: (M) File - Save Accounting Methods Builder (AMB) Chapter 4 - Page 178

271 Reports Chapter 5 Reports Chapter 5 - Page 1

272 Reports Reports Chapter 5 - Page 2

273 Objectives Reports Chapter 5 - Page 3

274 Subledger Accounting Reports Overview Subledger Accounting Reports Overview Subledger Accounting provides the following reports: Journal Entries Report Account Analysis Report Third Party Balances Report Period Close Exceptions Report Open Account Balances Listing BI Publisher (formerly known as XML Publisher) is a template-based publishing tool that is delivered with the Oracle E-Business suite that enables users to rapidly develop and maintain custom report formats. You can design and control how the reports are presented by using report templates. When generating a report, BI Publisher merges report template files with report data Reports Chapter 5 - Page 4

275 to create documents that support numerous formatting options, including colors, images, font styles, and headers and footers. System administrators can define new concurrent programs using any subset of the parameters. Users can create new BI Publisher templates using any subset of the data elements. The parameters in some of the following reports are categorized as follows: Selection parameters: filter the information retrieved by the report Custom parameters: used to pass information to the template, such as boilerplate text or formatting options. Reports Chapter 5 - Page 5

276 Subledger Accounting Reports Overview Reports Chapter 5 - Page 6

277 Custom Parameters Custom Parameters Each report has five custom parameters which can be enabled via the Concurrent Program window using the Application Developer responsibility. Navigation Path Concurrent > Program These parameters enable you to pass custom information to be included in the report. The information can be entered by the user if you make the parameter enterable or via SQL statement if you keep the parameter hidden and define an appropriate statement. Reports Chapter 5 - Page 7

278 Journal Entries Report Journal Entries Report Navigation paths for generating reports: Payables: Other > Requests > Run Receivables: (M) View > Requests (B) Submit a New Request Reports Chapter 5 - Page 8

279 Journal Entries Report Parameters Journal Entries Report Parameters Important: Only selected report parameters are shown for each of the reports in this lesson. The report parameters may differ according to the product you are using. Please refer to the Subledger Accounting Implementation Guide and product user guides for a complete description. Reports Chapter 5 - Page 9

280 Journal Entries Report Parameters Reports Chapter 5 - Page 10

281 Journal Entries Report Parameters Reports Chapter 5 - Page 11

282 Account Analysis Report Reports Chapter 5 - Page 12

283 Account Analysis Report Parameters Reports Chapter 5 - Page 13

284 Account Analysis Report Parameters Reports Chapter 5 - Page 14

285 Third Party Balances Report Third Party Balances Report This report retrieves the following information: Third party balances for third party control accounts Subledger journal entry lines that add up to the total period activity for each control account, third party, and third party site Third party and third party site information User transaction identifiers for the associated event Reports Chapter 5 - Page 15

286 Third Party Balances Report Parameters Reports Chapter 5 - Page 16

287 Third Party Balances Report Parameters Reports Chapter 5 - Page 17

288 Third Party Balances Report Parameters Reports Chapter 5 - Page 18

289 Subledger Period Close Exceptions Report Subledger Period Close Exceptions Report This report is automatically submitted by General Ledger when closing a GL period if there are unprocessed accounting events or untransferred journal entries. You can also generate the Subledger Period Close Exceptions Report through a concurrent request as follows: For the application associated with the responsibility For all applications that use Subledger Accounting if the report is run from a General Ledger responsibility Reports Chapter 5 - Page 19

290 Subledger Period Close Exceptions Report Parameters Reports Chapter 5 - Page 20

291 Subledger Period Close Exceptions Report Parameters Reports Chapter 5 - Page 21

292 Open Account Balances Listing Overview Open Account Balances Listing Overview You can create your own layout and publish your reports using Oracle BI Publisher. Create open account balance definitions in the Create Open Account Balances Listing Definition page. Optionally, to update Open Account Balances Listing processing options, navigate to the Update Open Account Balances Listing Processing Options page by clicking Processing Options in the Open Account Balances Listing Definition Search page. Create subledger journal entries and transfer them to General Ledger. Submit the Open Account Balances Listing. Subledger Accounting seeds the following templates for the display options of the report: Group by Account, Applied Transaction Detail Reports Chapter 5 - Page 22

293 This template groups the output by General Ledger account. For each account, the report shows the General Ledger balance and the transactions (grouped by third party) that contribute to the balance of that account. Group by Account, Summarized This template groups and summarizes the output by General Ledger account. Group by Third Party, Applied Transaction Detail This template groups output by third party. For each third party, the report displays the General Ledger accounts and transactions with outstanding balances. Group by Third Party, Summarized This template groups the output by third party with one row summarizing each account. No transactions are displayed. For each third party, one row is displayed for every General Ledger account having an outstanding balance. Reports Chapter 5 - Page 23

294 Open Account Balances Listing Overview Open Account Balances Listing Overview The business flow feature is used to link transactions which is why the Open Account Balances Listing Data Manager is required to build these linkages in advance of running the report. Reports Chapter 5 - Page 24

295 Creating and Updating Open Account Balances Listing Definitions Creating and Updating Open Account Balances Listing Definitions You can define as many definitions as necessary. Prerequisites Define a ledger. Create journal entries and transfer to General Ledger using the Create Accounting program. 1. Define the accounts to be tracked in the Open Account Balances Listing in the Create Open Account Balances Listing Definition page. 2. Define the report definitions either by account combination or by account segments. Reports Chapter 5 - Page 25

296 3. Associate each definition with a single ledger, which indicates the chart of accounts. The chart of accounts sets the context for the following information in the definition details region: General Ledger accounts General Ledger account segments 4. Define as many definitions as necessary. If defining a report definition by segment, indicate a single segment value, a range of segment values, or a combination of individual values and ranges for different account segments. If defining a report by account combination, include one or more entire General Ledger accounts. Reports Chapter 5 - Page 26

297 Open Account Balances Listing Open Account Balances Listing This report displays the actual accounted balance and does not include encumbrance or budgetary accounts in General Ledger. You can view the report in detail or summary mode. This report displays information that originates from subledger journal entries only. Journal entries created manually in General Ledger or anywhere outside of Subledger Accounting are not included. Only transactions with nonzero outstanding balances are displayed. Reports Chapter 5 - Page 27

298 Open Account Balances Listing Parameters Reports Chapter 5 - Page 28

299 Open Account Balances Listing Parameters Reports Chapter 5 - Page 29

300 Summary Reports Chapter 5 - Page 30

301 Practice 1: Generating the Journal Entries report Reports Chapter 5 - Page 31

302 Practice - Generating the Journal Entries Report for Payables Overview In this practice, you will do the following: Generate the Journal Entries report. View the Journal Entries report. Assumptions Tasks You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Payables, Vision Operations (USA). Log on to the system Responsibility = Payables, Vision Operations (USA) Generating the Journal Entries Report Generate the Journal Entries report for the Vision Operations (USA) ledger for the current month and view the output. Reports Chapter 5 - Page 32

303 Solution Generating the Journal Entries Reports for Payables Generate the Journal Entries report for the Vision Operations (USA) ledger for the current month and view the output. Responsibility = Payables, Vision Operations (USA) 1. Navigate to the Submit Request window. (N) Other > Requests > Run The Submit a New Request pop-up window appears. 2. Select the Single Request radio button and (B) OK. The Submit Request window appears. 3. In the Name field, select Journal Entries Report from the dropdown list. The Parameters window appears. 4. In the Ledger/Ledger Set field, select Vision Operations (USA) from the dropdown list. 5. In the Period From field, select XXX-07, where XXX is the current month. The Period To field automatically defaults to the same month. 6. In the Journal Entry Status field, select Final. 7. (B) OK to accept the rest of the defaults. Reports Chapter 5 - Page 33

304 8. (B) Submit to generate the report. Viewing the Journal Entries Report 9. (M) View > Requests 10. Ensure the All My Requests radio button is selected and (B) Find. 11. Select the Journal Entries report you have just generated and (B) View Output. Reports Chapter 5 - Page 34

305 Sample of the Journal Entries Report Note: A number of journal entries are missing from this report so that the header and footer information could be displayed on the same page. Reports Chapter 5 - Page 35

306 Practice - Generating the Journal Entries Report for Receivables Overview In this practice, you will do the following: Generate the Journal Entries report. View the Journal Entries report. Assumptions Tasks You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Receivables, Vision Operations (USA). Log on to the system Responsibility = Receivables, Vision Operations (USA) Generating the Journal Entries Report Generate the Journal Entries report for the Vision Operations (USA) ledger for the current month and view the output. Reports Chapter 5 - Page 36

307 Solution Generating the Journal Entries Reports for Receivables Generate the Journal Entries report for the Vision Operations (USA) ledger for the current month and view the output. Responsibility = Receivables, Vision Operations (USA) 1. Navigate to the Submit Request window. (M) View> Requests 2. (B) Submit a New Request. The Submit a New Request pop-up window appears. 3. Select the Single Request radio button and (B) OK. The Submit Request window appears. 4. In the Name field, select Journal Entries Report from the dropdown list. The Parameters window appears. 5. In the Ledger/Ledger Set field, select Vision Operations (USA) from the dropdown list. 6. In the Period From field, select XXX-07, where XXX is the current month. The Period To field automatically defaults to the same month. 7. In the Journal Entry Status field, select Final. Reports Chapter 5 - Page 37

308 8. (B) OK to accept the rest of the defaults. 9. (B) Submit to generate the report. Viewing the Journal Entries Report 10. (M) View > Requests 11. Ensure the All My Requests radio button is selected and (B) Find. 12. Select the Journal Entries report you have just generated and (B) View Output. Reports Chapter 5 - Page 38

309 Sample of the Journal Entries Report Note: A number of journal entries are missing from this report so that the header and footer information could be displayed on the same page. Reports Chapter 5 - Page 39

310 Reports Chapter 5 - Page 40

311 Creating Manual Subledger Journal Entries Chapter 6 Creating Manual Subledger Journal Entries Chapter 6 - Page 1

312 Creating Manual Subledger Journal Entries Creating Manual Subledger Journal Entries Chapter 6 - Page 2

313 Objectives Creating Manual Subledger Journal Entries Chapter 6 - Page 3

314 Subledger Journal Entries Overview Subledger Journal Entries Overview A manual subledger journal entry is not associated with a subledger transaction. When the manual subledger journal entry is complete, Subledger Accounting assigns the appropriate sequence names, sequence numbers, and creates the reporting currency journal entries if appropriate. Enter manual subledger journal entries only against a primary or secondary ledger. Manual journal entries created for the primary ledgers are automatically posted to the reporting currency and not to the secondary ledger. Creating Manual Subledger Journal Entries Chapter 6 - Page 4

315 Manual Journal Entries Creating Manual Subledger Journal Entries Chapter 6 - Page 5

316 Creating Subledger Journal Entries Creating Subledger Journal Entries Navigation Paths: Payables: Accounting > Subledger Accounting > Journal Entries Receivables: Inquiry > Subledger Accounting > Journal Entries Ledger - The primary and secondary ledgers displayed in the ledger list of values are determined by the system profile option SLA: Enable Data Access Security in Subledgers. If this profile option is set to Yes, the list of values displays only the primary and secondary ledgers defined in the GL: Data Access Set and the SLA: Additional Data Access Set profile options. If the profile option is set to No, the list of values displays all primary and secondary ledgers. If Encumbrance is selected in the Balance Type field, the list of values only displays ledgers that are enabled for budgetary control. Creating Manual Subledger Journal Entries Chapter 6 - Page 6

317 Creating Subledger Journal Lines Creating Subledger Journal Lines Why would I create a manual subledger journal? Manual entries are adjustments, and if the adjustments are due to specific subledger activity, such as Payables, then you may want to enter an SLA manual entry instead of a GL entry. Entries recorded in SLA are tied to the subledger source and therefore provide more accurate subledger accounting reporting. Enter account, debit and credit amounts, and accounting class. Optionally enter third party information, description, and currency details for each line of the subledger journal entry. If third party control accounts are enabled for the application and the account entered is a third party control account, third party information must be entered. For example, if Payables is set up to support only Supplier, you cannot select third party control accounts that have been set up to support only Customer. Creating Manual Subledger Journal Entries Chapter 6 - Page 7

318 View the total accounted amounts of all subledger journal entry lines in the ledger currency. Default Currency Options - Opens the Default Currency Options page to default an entered currency, conversion type, conversion date, and conversion rate information for each new subledger journal entry line. Use the currency controls available in the Details region of each journal entry line to override the default set. Third Party Type - Defaults from the application associated with the responsibility used to access the manual subledger journal entry pages. The values for name, site, number, and taxpayer ID must match the third party type. These values are required if the account on the line is a third party control account. If the account is not a third party control account, but party type is selected, party information should be provided. Conversion Rate - If the conversion type is User, you must enter a conversion rate. Continue - Select to review the manual subledger journal entry and complete it. Reviewing and Completing Subledger Journal Entries The Complete button is enabled if the journal entry is a manual journal entry with a status of Draft, Error, or Incomplete. Reviewing and Completing Subledger Journal Entries Note: If the subledger journal entry is for a ledger with reporting currencies, Subledger Accounting creates subledger journal entries for these representations. Duplicating Subledger Journal Entries Note: If changing the ledger in a duplicated journal entry and the new ledger has a different chart of accounts, all lines are cleared because the account combination structure is dependent on the new ledger. Creating Manual Subledger Journal Entries Chapter 6 - Page 8

319 Summary Creating Manual Subledger Journal Entries Chapter 6 - Page 9

320 Practice 1: Creating Manual Subledger Journal Entries Creating Manual Subledger Journal Entries Chapter 6 - Page 10

321 Guided Demonstration - Creating Manual Subledger Journal Entries in Payables Responsibility: Payables, Vision Operations (USA) 1. Navigate to the Subledger Journal Entries window. (N) Accounting > Subledger Accounting > Journal Entries 2. (B) Create Journal Entry. 3. In the Ledger field, select Vision Operations (USA). 4. In the GL Date field, enter today s date. 5. In the Category field, select Purchase Invoices. 6. In the Description field, enter Project Meeting. 7. If the lines are not displayed, (B) Add 5 Lines. 8. Enter the following lines: Operations Accounting Flex Accounting Class Entered DR Entered CR Item Expense Item Expense Item Expense Liability (B) Calculate Totals 10. (B) Continue 11. In the Complete field, select Draft. 12. (B) Finish Creating Manual Subledger Journal Entries Chapter 6 - Page 11

322 Practice - Creating Manual Subledger Journal Entries in Payables Overview In this practice, you will do the following: Create manual subledger journal entries in Payables. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Payables, Vision Operations (USA). Log on to the system Responsibility = Payables, Vision Operations (USA) Creating a manual subledger journal entry in Payables 1. Navigate to the Subledger Journal Entries window. (N) Accounting > Subledger Accounting > Journal Entries 2. (B) Create Journal Entry. 3. Use the following setup information: Vision Operations (USA) ledger Use today s date as the GL date Purchase Invoices journal category Enter a description of XX Project Meeting 4. Enter the following lines: Operations Accounting Flex Accounting Class Entered DR Entered CR Item Expense Item Expense Item Expense 455 Creating Manual Subledger Journal Entries Chapter 6 - Page 12

323 Liability Calculate the totals. 6. Continue to the Review Subledger Journal Entry window and complete the journal entry in Draft mode. Creating Manual Subledger Journal Entries Chapter 6 - Page 13

324 Solution Creating Manual Subledger Journal Entries in Payables Responsibility = Payables, Vision Operations (USA) 1. Navigate to the Subledger Journal Entries window. (N) Accounting > Subledger Accounting > Journal Entries 2. (B) Create Journal Entry. 3. In the Ledger field, select Vision Operations (USA). The primary and secondary ledgers displayed in the ledger list of values are determined by the system profile option SLA: Enable Data Access Security in Subledgers. If this profile option is set to Yes, the list of values displays only the primary and secondary ledgers defined in the GL: Data Access Set and the SLA: Additional Data Access Set profile options. If the profile option is set to NO, the list of values displays all primary and secondary ledgers. 4. In the GL Date field, enter today s date. This is the GL date for posting the subledger journal entry. 5. In the Category field, select the Purchase Invoices journal category. 6. In the Description field, enter XX Project Meeting. 7. If the lines are not displayed, (B) Add 5 Lines. 8. Enter the following lines: Operations Accounting Flex Accounting Class Entered DR Entered CR Item Expense Item Expense Item Expense Liability 2907 Creating Manual Subledger Journal Entries Chapter 6 - Page 14

325 9. (B) Calculate Totals 10. (B) Continue to review all subledger journal entry header and line information. The Review Subledger Journal Entry window is displayed. 11. In the Complete field, select Draft. Creating Manual Subledger Journal Entries Chapter 6 - Page 15

326 Note: Draft status indicates that the results cannot be transferred or posted to General Ledger. Entries can be updated and deleted. Funds reservation cannot be performed. 12. (B) Finish Creating Manual Subledger Journal Entries Chapter 6 - Page 16

327 Guided Demonstration - Creating Manual Subledger Journal Entries in Receivables Responsibility: Receivables, Vision Operations (USA) 1. Navigate to the Subledger Journal Entries window. (N) Inquiry > Subledger Accounting > Journal Entries 2. (B) Create Journal Entry. 3. In the Ledger field, select Vision Operations (USA). 4. In the GL Date field, enter today s date. 5. In the Category field, select Sales Invoices. 6. In the Description field, enter Sentinal Standard Desktop. 7. If the lines are not displayed, (B) Add 5 Lines. 8. Enter the following lines: Operations Accounting Flex Accounting Class Entered DR Entered CR Receivable Tax Revenue (B) Calculate Totals 10. (B) Continue 11. In the Complete field, select Draft. 12. (B) Finish Creating Manual Subledger Journal Entries Chapter 6 - Page 17

328 Practice - Creating Manual Subledger Journal Entries in Receivables Overview In this practice, you will do the following: Create manual subledger journal entries in Receivables. Assumptions Tasks Replace XX with your terminal number or initials. You must have access to an Oracle Application Vision database or comparable training or test instance at your site on which to complete this practice. Responsibility selected to complete this practice is Receivables, Vision Operations (USA). Log on to the system Responsibility = Receivables, Vision Operations (USA) Creating a manual subledger journal entry in Receivables 1. Navigate to the Subledger Journal Entries window. (N) Inquiry > Subledger Accounting > Journal Entries 2. (B) Create Journal Entry. 3. Use the following setup information: Vision Operations (USA) ledger Use today s date as the GL date Sales Invoices journal category Enter a description of XX Sentinal Standard Desktop 4. Enter the following lines: Operations Accounting Flex Accounting Class Entered DR Entered CR Receivable Creating Manual Subledger Journal Entries Chapter 6 - Page 18

329 Tax Revenue Calculate the totals. 6. Continue to the Review Subledger Journal Entry window and complete the journal entry in Draft mode. Creating Manual Subledger Journal Entries Chapter 6 - Page 19

330 Solution Creating Manual Subledger Journal Entries in Receivables Responsibility = Receivables, Vision Operations (USA) 1. Navigate to the Subledger Journal Entries window. (N) Inquiry > Subledger Accounting > Journal Entries 2. (B) Create Journal Entry. 3. In the Ledger field, select Vision Operations (USA). The primary and secondary ledgers displayed in the ledger list of values are determined by the system profile option SLA: Enable Data Access Security in Subledgers. If this profile option is set to Yes, the list of values displays only the primary and secondary ledgers defined in the GL: Data Access Set and the SLA: Additional Data Access Set profile options. If the profile option is set to No, the list of values displays all primary and secondary ledgers. 4. In the GL Date field, enter today s date. This is the GL date for posting the subledger journal entry. 5. In the Category field, select the Sales Invoices journal category. 6. In the Description field, enter XX Sentinal Standard Desktop. 7. If the lines are not displayed, (B) Add 5 Lines. 8. Enter the following lines: Operations Accounting Flex Accounting Class Entered DR Entered CR Receivable Tax Revenue Creating Manual Subledger Journal Entries Chapter 6 - Page 20

331 9. (B) Calculate Totals Creating Manual Subledger Journal Entries Chapter 6 - Page 21

332 10. (B) Continue to review all subledger journal entry header and line information. The Review Subledger Journal Entry window is displayed. 11. In the Complete field, select Draft. Creating Manual Subledger Journal Entries Chapter 6 - Page 22

333 Note: Draft status indicates that the results cannot be transferred or posted to General Ledger. Entries can be updated and deleted. Funds reservation cannot be performed. 12. (B) Finish Creating Manual Subledger Journal Entries Chapter 6 - Page 23

334 Creating Manual Subledger Journal Entries Chapter 6 - Page 24

335 Advanced Options Chapter 7 Advanced Options Chapter 7 - Page 1

336 Advanced Options Advanced Options Chapter 7 - Page 2

337 Objectives Advanced Options Chapter 7 - Page 3

338 Custom Sources Custom Sources Use standard and system source values as parameters to write PL/SQL functions that create custom sources. Mapped to specific Subledger Accounting accounting attributes such as account, amount, GL Date, and conversion rate type. Custom sources are defined in the Custom Sources window. Advanced Options Chapter 7 - Page 4

339 Defining Custom Sources Advanced Options Chapter 7 - Page 5

340 Custom Source Definition Defining Custom Sources Navigation Paths: Payables: Setup > Accounting Setups> Subledger Accounting Setup > Accounting Methods Builder > Sources > Custom Sources Receivables: Setup > Accounting > Accounting Methods Builder > Sources > Custom Sources To define a custom source: Write the corresponding PL/SQL code. This will be a function that returns the value of the custom source. Create the package in the database. Define the custom source. In the definition of the customer source you will assign the PL/SQL function previously defined and you will list the sources that are used as input parameters to the function. Advanced Options Chapter 7 - Page 6

341 Use the custom source in any component of the Application Accounting Definition. The source is available in all the lists of values that show sources and the source type is Custom. Advanced Options Chapter 7 - Page 7

342 Example: Custom Source in a Description Example: Custom Source in a Description PL/SQL function used for the custom source: CREATE OR REPLACE FUNCTION calculated_amount (AID_AMOUNT IN NUMBER, AID_AMT_WITHHELD IN NUMBER) RETURN NUMBER IS -- Calculates the invoice amount minus the withheld amount l_amount NUMBER; BEGIN l_amount := AID_AMOUNT - AID_AMT_WITHHELD; RETURN l_amount; END; Advanced Options Chapter 7 - Page 8

343 Business Flows Business Flows The purpose of business flows is to: Preserve General Ledger accounts or segment values across journal entries of related transactions within a business flow. Ensure proper General Ledger balances. Related Transactions Example When goods are received, an invoice is entered and the invoice is paid. The business flow at the transaction level is: The receiving transaction is entered to acknowledge the arrival of the goods. The invoice is entered to acknowledge that the supplier is owed for the goods and therefore references the receipt transaction. Advanced Options Chapter 7 - Page 9

344 The payment is created to satisfy the amount owed on the invoice and therefore references the invoice. The business flow at the accounting level is: The receipt generates an entry to the purchase order charge account. This entry is offset by an accrual entry representing a future invoice liability. The invoice reverses this accrual entry and creates the invoice liability, and the accounting for the payment reverses the invoice liability and generates the entry reducing the company s cash account. Advanced Options Chapter 7 - Page 10

345 Business Flows Business Flows Enabling business flows requires that the linking sources from the original transaction are available to the new one. Advanced Options Chapter 7 - Page 11

346 Business Flow Methods Business Flow Methods Business flows are set up in the following windows: Journal Line Types Navigation path in Payables: Setup > Accounting Setups> Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Journal Line Types Navigation path in Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Line Types Journal Lines Accounting Attribute Assignments Navigation path in Payables: Setup > Accounting Setups> Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Journal Line Types (B) Accounting Attribute Assignments Navigation path in Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Line Types (B) Accounting Attribute Assignments Journal Lines Definitions Advanced Options Chapter 7 - Page 12

347 Navigation path in Payables: Setup > Accounting Setups> Subledger Accounting Setup > Methods and Definitions > Journal Lines Definitions Navigation path in Receivables: Setup > Accounting > Methods and Definitions > Journal Lines Definitions In the Journal Lines Types window, set up the following: Assign a business flow class to a journal line type Select a business flows method The Journal Lines Accounting Attribute Assignments window displays all accounting attributes assigned to an event class. If the Inherit check box is enabled, the values for the selected attributes are inherited and are not available for update or entry. In the Journal Lines Definitions window, set up the following: Assign a journal line type to a journal lines definition. For Same Entry and Prior Entry, indicate that the journal lines definition inherits the journal entry description for the journal line type. For the Same Entry and None business flows method, assign account derivation rules. For the Same Entry and None business flows method, optionally inherit accounting segment values. Business Flow Class The business flow class is a user-defined lookup that can be assigned to a journal line type and used by more than one application. The Subledger Accounting program uses the business flow class to identify the journal entry line in the initial stage of the business flow from which current journal entries copy certain journal entry values. Advanced Options Chapter 7 - Page 13

348 Multiperiod Accounting Multiperiod Accounting Multiperiod accounting is set up in the Journal Line Accounting Attributes Assignment window. Navigation paths: Payables: Setup > Accounting Setups> Subledger Accounting Setup > Accounting Methods Builder > Journal Entry Setups > Journal Line Types (B) Accounting Attribute Assignments Receivables: Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal Line Types (B) Accounting Attribute Assignments Advanced Options Chapter 7 - Page 14

349 Accrual Reversals Accrual Reversals Accrual reversals are done automatically by running the complete Multiperiod Accounting program. Advanced Options Chapter 7 - Page 15

350 Third Party Control Accounts Advanced Options Chapter 7 - Page 16

351 Third Party Control Accounts Advanced Options Chapter 7 - Page 17

352 Alternative Accounts Advanced Options Chapter 7 - Page 18

353 Alternative Accounts Advanced Options Chapter 7 - Page 19

354 Diagnostic Framework Overview Diagnostic Framework Overview The diagnostic framework provides the input data used for each transaction, such as the following: Transaction objects Ledger information System sources Source values The following examples describe typical uses of the diagnostic framework features: In the implementation phase, users can launch the Transaction Objects Diagnostic report to review the source values available in the transaction objects. Advanced Options Chapter 7 - Page 20

355 On a daily basis, users can use the Transaction Objects Diagnostic report to analyze issues related to the generation of subledger journal entries. Advanced Options Chapter 7 - Page 21

356 Diagnostic Framework Business Process Diagnostic Framework Business Process The administrator sets the SLA: Enable Diagnostics profile option to Yes for the user or responsibility. Users submit the Create Accounting program which automatically executes the diagnostic framework to populate the diagnostic tables. The diagnostic framework gathers source values and other information from the transaction objects. Users submit the Transaction Objects Diagnostics concurrent request to view the diagnostic report. The administrator submits the Purge Transaction Objects Diagnostics concurrent request to purge the results of the diagnostic framework. Advanced Options Chapter 7 - Page 22

357 Error Handling Advanced Options Chapter 7 - Page 23

358 Journal Entry Sequencing Journal Entry Sequencing Accounting sequence The accounting sequence is assigned to Subledger Accounting journal entries at the time that the journal entry is completed. The sequence is assigned in the completion date order using the GL date as the date criterion for determining the sequence to be used. Accounting sequence is optional. Reporting sequence The reporting sequence is assigned to both Subledger Accounting journal entries and General Ledger journal entries when the General Ledger period is closed. This sequence is used by most of the legal reports required in some countries as the main sorting criterion to display the journal entries. Advanced Options Chapter 7 - Page 24

359 Note: In some related documents, this sequence is referred to as the chronological sequence. These two sequences are not mutually exclusive and can coexist in the same journal entry. In some cases, the completed journal entries can be functionally correct but the sequence numbers assigned to them are wrong. For example, the user realizes that the sequencing setup is not correct and wants to resequence all the journal entries that are sequenced based on the wrong setup. Subledger Accounting provides an undo and redo accounting feature to correct the original accounting. A key component of this feature is the re-sequencing of journal entries. Reporting sequence is optional. Advanced Options Chapter 7 - Page 25

360 Journal Entry Sequencing Advanced Options Chapter 7 - Page 26