SLA Concepts (contd.)
(7) Event Model and the Accounting Methods Builder >
Accounting events represent transactions that have a financial accounting impact.
Accounting Events are categorized into event types. Event types are grouped into Event Classes that in turn are grouped into Event Entities.
Journal Line Types are defined in the Accounting Methods Builder (AMB) for an Event Class, are assigned to Event Class and Event Types and help to determine whether a Subledger journal entry line is a debit or credit, whether it should be transferred to the GL in summary or detail mode, whether matching lines must be merged and its balance type (actual, encumbrance, or budget).
Journal Line Definition associate Journal Line Types and Account Definition Rules. This determines what Account Derivation Rules to use for Journal Line Types.
Application Accounting Definition ties all the these together - Events, Journal Line Types, Account Definition Rules, and Analytical Criteria collectively define Application Accounting Definition. Account Definition Rules and Analytical Criteria are assigned to Journal Line Types, which are then assigned to Events and these Events are assigned to Application Accounting Definition.
All the Application Accounting Definitions are grouped to form Subledger
Accounting Method. To complete the setup, the Subledger Accounting Method is assigned to a Ledger.
Review Existing Setup (contd.)
(4) Entity Name / Event Class / Event Type >
Resp: OPM Financials > Setup > Subledger Accounting Setups > Accounting Methods Builder Events > Event Model >
Entity Name – Inventory Transactions, Order Management, Process Execution, Purchase Transactions, Inventory Revaluation. Each Entity Name groups many Event Classes.
e.g, Entity Name = Process Execution, has the following Event Classes – Batch Close Variance, Batch Material Transactions, Batch Resource Transactions.
Event Class – A Event Class groups similar ‘Event Type Codes’.
e.g., Event Class = ‘Batch Material Transactions’ groups Event Types – Batch Completion and Batch Release.
(5) Journal Line Types (JLT) >
Resp: OPM Financials > Setup > Subledger Accounting Setups > Accounting Methods Builder Journal Entry Setups > Journal Line Types (JLT) >
The Journal Line Types are setup for a particular Event Class and determine the characteristics of the subledger journal entry lines.
- For example, query up ‘Event Class’ = ‘Batch Material Transactions’ - This has various Journal Line Type (JLT) Codes associated for different ‘Accounting Class’ assigned, e,g, ALC, INV, OVH, etc.
- Conditions can also be setup for the JLT.
(6) Account Derivation Rules (ADR) >
Resp: OPM Financials > Setup > Subledger Accounting Setups > Accounting Methods Builder > Journal Entry Setups > Account Derivation Rules (ADR) >
Account derivation rules determine the Accounting codes for subledger journal entries. One can also define conditions that determine when a particular rule is used.
Define a rule by Accounting Flexfield, segment, or value set. If the rule is by Accounting Flexfield, the rule determines the entire Accounting Flexfield combination.
Define segment rules to derive the Accounting Flexfield segment by segment. For example, a particular segment like the company segment can be determined from the Distribution Accounting Flexfield. Another segment can be determined with the use of a constant value. Creating the Accounting Flexfield one segment at a time offers greater flexibility but also requires more setup.
Define account derivation rules based on value sets in the absence of an accounting Chart of Accounts.
(7) Journal Line Definition (JLD) >
Resp: OPM Financials > Setup > Subledger Accounting Setups > Accounting Methods Builder > Methods and Definitions > Journal Line Definition (JLD) >
Journal Lines definitions are used 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.
Thus, an Event Class (with a specific Event Type) and an Account Derivation Rule are associated together on a Journal Line Definition.
(8) Application Accounting Definitions >
Resp: OPM Financials > Setup > Subledger Accounting Setups > Accounting Methods Builder > Methods and Definitions > Application Accounting Definition (AAD) >
Application Accounting Definitions assign JLDs and header descriptions to Event Classes and Event Types.
Storing the accounting definitions validation status at the event class and event level enables you to generate subledger journal entries for certain event classes or event types even if the accounting definitions for other event classes or event types are invalid.
A header assignment includes a journal entry description and journal lines definition.
AADs are specific to an application and contains all Event Classes and Event Types.
The [Validate] button validates the AAD.
(9) Subledger Accounting Methods (SLAM) >
Resp: OPM Financials > Setup > Subledger Accounting Setups > Accounting Methods Builder > Methods and Definitions >
Group application accounting definitions that comply with a common set of accounting requirements into a subledger accounting method. The grouping allows a set of application accounting definitions to be assigned collectively to a ledger via the SLAM.
SLAM contains AADs from all Applications.
? This SLAM is then assigned to a Ledger as in (1)
OPM Pre-Processor / Create Accounting After validating / approving / costing the transaction in the respective module, the sub ledger calls SLA API to create a reference of the validated transaction in SLA. This reference is known as EVENT. Events are created by calling the public API ?xla_events_pub_pkg.create_events? provided by SLA.
While calling xla_events_pub_pkg.create_events, oracle passes a unique id and event class. Unique ID can be an invoice id or a po_distribution id or an
expenditure_item_id etc. As soon as the sub ledger generates event in SLA, SLA returns unique event_id. This event_id will then act as a reference to all the accounting entries generated by the SLA. Once event is successfully created in SLA, means that the transaction is registered in SLA for accounting.
After registering the event in SLA, accounting entries are created by running executable XDODTEXE (a XML Publisher Data Template executable). This executable is provided by SLA and is used by all the sub ledgers with different concurrent program names. Around 160 concurrent programs are uses the same executable
This executable does the following:
a. Gather information from base tables in sub ledgers.
b. Derive the accounting attributes based on the data fetched from sub ledgers. c. Derive code combination id based on the business rules. d. Create journal lines based on the seeded Journal definition. e. Create lines in XLA_AE_HEADERS and XLA_AE_LINES.
The XML template XDODTEXE calls oracle's seeded XML template \programs.
This template futher calls SLA package XLA_CREATE_ACCT_RPT_PVT for accounting the transactions.