Sub-Ledger Accounting

Sub-Ledger Accounting Terminology and Concepts

1.      Entities are called Table names example ap_invoices, ap_payments

2.      Event Classes are associated with Entity example credit_memo, debit_memo, expense_reports, invoices are associated with AP_INVOICES

3.      Even Type which is associated with Event Class example Credit Memo Adjusted, Cancelled or validated

Journal Line Definition

The journal Line definition which defines how the journal is built. The main component of building journal is to get code combination ID. SLA needs to know from where CCID is coming. Also CCID will be debit or credit.

Journal Line Type will define, whether entry is Debit or Credit.

You attach ADR Account Derivation to Journal Line Type to know which account is debiting and which account is crediting.

It is good to remember that the "Journal Line Definition=JED+JLT+ADR"

Application Accounting Definition  is attached to one or more Journal Line Definition.

SubLedger Accounting methods Application Accounting definitions that comply with a common set of accounting requirements can be grouped into a Subledger accounting method. The grouping allows a set of application accounting definitions to be collectively assigned to a primary or secondary ledger.

Inventory

Oracle Inventory which provides us functionality to create an item. Set of attributes are assigned to an item. The attributes  define the characteristics of the item. A group of values defines a template. A template can be assigned to an item to automatically define the set of attribute values.

To define an item

1.      Login to Inventory responsibility

2.      Select Item master organization

3.      Enter item code and description

4.      Select tool copy from to set attributes of an item, select template as finished goods or from an existing item

5.      Save the item.

6.      Once the item is defined you assign to an inventory organizations

7.      Assigning an item to categories which classify as an items with similar characteristics.

8.      You can create an item template that will set the default item attributes and when item is created, you can assign the same template to assign those pre-defined attributes.

9.      Subinventories are distinct separations of items within an inventory organization. Subinventories can be physical or logical. Items within an inventory organization must reside in subinventory.

10.  Transactions are performed from Subinventories. Subinventories which includes finished goods, van, stores

11.  Stock locator which defines the physical areas where items are stored. Stock locator is identified by Row, Rack and Bin

12.  Item can be tracked by lot number as well as serial number

13.  Item can have revision number

14.  Items are grouped into categories. Category can be further grouped into category sets.

15.  When item is created, it is automatically added to the default category set.

16.  Catalogs used to add descriptive information to items that share common characteristics.

Oracle R12 Payment Module

The Payments manager uses payment process request template to simplify a payment run. The template includes information such as invoice selection criteria, payment attributes, processing instructions and also defines how validation failures should be handled. It is useful to automatically selecting invoices to pay during a payment run.

1.      Payment Template

2.      Create a schedule payment

Oracle R12 General Ledger Setup

1.      Need to define the value sets for accounting segments validation. Define value sets

2.      Define the accounting structure including decide number of segments and length of each segments

3.      Setup the ledger

Which requires chart of accounts, accounting calendar, currency and Subledger accounting method

a.       Define legal entity

When you define legal entity it will generate legal entity identifier

b.      Define accounting representations that will allow you  to create a primary ledger name, chart of accounts associated with Ledger, accounting calendar and currency and Subledger accounting method.

In Define Accounting Representations, it allows to enter a name for primary ledger and will allow you to select chart of account, accounting calendar and currency and Subledger accounting method which are predefined.

c.       Once the primary ledger is define, you can set various other values for primary ledger including first open period, number of enterable future periods, retained earning account, suspense account, rounding differences account

d.      You can set the reporting currency for primary ledger by selecting add reporting currency for the primary ledger

e.       Assigning balancing segment value to the ledger. Which is operating unit as a company segment value in the accounting Flexfield structure

f.       Define operating units for primary ledger. You can have multiple operating units assigned within ledger

g.      Create GL responsibility. Create General Ledger Responsibility and assign application as General Ledger.

h.      Assign responsibility to user

i.        Assign ledger to the responsibility through profile option. Look for profile option “GL Ledger Name” for the GL Responsibility and assign Primary Ledger Name to the profile option “GL Ledger Name” to the GL Responsibility.

Oracle R12 Payment Module

Oracle Payment module which serves as a funds capture and fund disbursement engine for oracle applications. Oracle Payments module processes transaction, such as invoice payment from Oracle Payables, bank account transfer from Cash Management, and settlement against credit card and bank accounts from receivables. It also provides connectivity between third party payment systems.

Payment process can be centralized across multiple organizations, currencies and regions.

Payment process profiles is a payment attribute assigned to documents payable, which specifies the handling of the document payable, payments and payment instructions by oracle payments. Payment process profile includes specification for payment instruction formatting and transmission.

Payments are built from documents payable that have same payment process profile.

 

Order Management : Order Types

1.      PTO – Pick to Order, where items are picked up from the inventory as an assembly and sub-assembly where items are configured with Bill of Material process and items is manufactured and shipped to the customer

2.      Drop ship Order : where item is purchased from other supplier and ship directly to customer by outside supplier and invoice is raised by the supplier and to the customer

3.      Back-to-Back order : Close link between sales order and purchase order.