R12 Subledger Accounting Part 1

Why SLA?
Oracle Sub ledger Accounting is accounting hub in Oracle Application Release R12. It is used to derive all attributes required to account a transaction in Oracle General Ledger. In R12, SLA is used to derive the very basic accounting attributes like entered amount, accounted amount, date, currency code etc and the complex attributes like ledger, Code Combination ID, Period etc.

SLA is a powerful accounting engine or program with centralized data model and repository, which generates accounting entries for the transactions entered in the sub ledger modules.

SLA is a service and not a separate module or application.

SLA forms and programs can be accessed through standard Oracle Application Responsibilities.

SLA allows multiple accounting respsentations for a single transaction thereby enabling compliance with multiple geographic, regulatory or business requirements.

SLA also facilitates multi period accounting. standardized accounting across the sub ledgers.Streamlines Reconciliation resulting faster period end process.Supports shared service centers.

An existing accounting definition in SLA can be copied and modified as per the requirement.Expensive customizations can be avoided with the flexbility in accounting system.Single step posting to all ledgers at a time. Real time/online accounting.Audit Trail.

The sub ledger accounting method builder can be setup in the following order:
Define Journal Line Type
Define Journal Entry Description.
Define Accounting Derivation Rules.
Define Journal Line Definitions.
Define Application Accounting Definition
Define Sub ledger Accounting Method.
Define Ledger.

Modules Covered Under Sub ledger Accounting
Payables Receivables, Cash Management, Payroll, Purchasing, Assets, Loans, Lease Management, Property Manager, Public Sector Federal, Cost Management, Manufacturing etc.
Types of Sub ledger Accounting Method

Five Sub ledger Accounting methods are seeded in the Application. However as per the accounting requirement , new method of accounting can be created.

The five methods are as follows:
Accrual With Encumbrance Accounting.
Cash With Encumbrance Accounting.
Standard Accrual.
Standard Cash.US Federal Accounting.

Security Controls in SLA.
The following Security Controls are build in SLA.
sub ledger accounting rules and definitions of one module can be accessed from any other module. Seeded sub ledger accounting methods can be modified. Any change made a sub ledger accounting setup must be validated in order to make sure that the changes are logical.