Oracle R12 SLA Customization

Author: Sireesh Vishnubhatla

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Contents
Contents Introduction Definition of Sub-Ledger Accounting Sample Client Business Process: Process/System Flow Technology Program Logic (Code used to derive the Location (Segment2) from Bank Stmt Line)

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Introduction
This paper enumerates factors which should be taken into consideration while doing customization of Sub-Ledger Accounting(SLA) in R12 using a data base function. These factors can be categorized broadly into two: people and technology. Following recommendations given in this paper should lead to better understanding on how we can setup and customize the Sub-Ledger Accounting(SLA) which is a new feature in R12.

Audience
Project managers, Functional consultants, Technical consultants, Technical designers / developers.

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Definition of Sub-Ledger Accounting

Release 12 of Oracle Applications, Subledger Accounting (SLA) has been introduced, which is a Rulebased accounting engine, toolset & repository which is supporting most of Oracle business Suite modules. SLA has an option of allowing multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements. The Functionality is very similar to Global accounting engine SLA is an intermediate step between subledger products and the Oracle General Ledger. Journal entries are created in Subledger Accounting and then transferred to Oracle General Ledger Each subledger transaction that requires accounting is represented by a complete and balanced subledger journal entry stored in a common data model This is the typical flow within one product of SLA (e.g Purchasing, AP, Cash Management) that can be best shown in the below change diagram as discussed:

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Sample Client Business Process:

Business Requirement Client reconciles store sales on a daily basis. Daily BAI files will be loaded into Oracle Cash Management to be reconciled with summarized Point of Sale (POS) data. The POS data is loaded into Oracle, summarized storewise and daywise for tender type Cash and Check only. This amount should match up to the amount that was deposited by the store manager. When there is a variance between the deposited amount and the amount that is reported by POS or a debit/credit memo from the bank, this expense amount needs to be applied at the store level. Standard Oracle functionality Oracle Functionality allows for the variance/debit/credit amount to be applied at the Consolidated Account level. Proposed Solution In order to satisfy the requirement of tracking expenses at the store level, the proposed workaround is to store the location segment in a Flexfield on the bank statement line and using Oracles Custom SLA functionality to insert this location value into the location segment of the GL ValueString. There are 3 transaction types which need to be tracked at the store level: 1. Variance expenses between Bank Statements and POS. 2. Clearing POS/Certegy Transactions. 3. Debit Memos and Credit Memos on Bank Statement Lines.

Workaround using Custom SLA:

The first two transaction types will be allocated at the store level without using Oracles SLA functionality. The workaround is required for Transaction Type (3) Debit and Credit Memos on the Bank Statement Line which are created using the Bank Statement CashFlow Creation program in Oracle. By defining this custom source, it will remove any chance for error when applying expenses to the store level. In the previous design without SLA feature, a discover report would contain all of the journal entries to be uploaded into Oracle GL. The Cash Accounting analyst would have to copy and paste these adjusting entries into Oracle. Using the SLA functionality, there is no adjustment needed as the first expense journal entry will already be at the store level. Additionally this removes any chance of error during the copy/paste process. For any Debit Memo or Credit Memo Application and Reconciliation, the custom source will allow us the ability to apply any expense amount to the store location. In order to use Subledger Accounting to meet this requirement, we will need to define a custom source which will derive the Location Segment (DFF) stored at the bank statement line that can hold the store location for the Page 6

GL Accounting String.

Assumptions:
There is a DFF on every bank statement line which contains the GL location segment for that specific store. The DFF will be restricted to a list of values which only contains valid location segments.

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SLA: Developer> Sub ledger Accounting Setups>Accounting Methods Builder>Sources>Custom Sources

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Process/System Flow
Bank Statement Lines (Store Location value in Attribute1(DFF) column) Derive Location Segment Value from SLA: Custom Source (Custom Function) Bank Statement Cash flow Creation Program Transactions (Create Accounting using the Store Location and Accounting Combination from SLA Custom Source Create Accounting

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Technology
Following are the Setups required in the Sub-Ledger module (here it is Cash Management), to successfully implement SLA Customization

CE: SLA Developer Cash Management> SLA Developer>Subledger Accounting Setups>Accounting Methods Builder>Methods and Definitions>Subledger Accounting Methods
XX
Process: Business Area: Date:

Cash Management
Priority(H, M, L): Process Owner:

Control Number:

XYZ

Subledger Accounting Method

Method Code

XXGL_Custom_Accounting_Convention XXGL_Custom_Accounting_Convention XXGL_Corporate_Flexfield

Owner Enabled

User

Method Name

Yes

Transaction

Accounting

XX_GL_Corporate_Flexfield

Application Accounting Definition Assignments **This is a copy of the Standard Accrual Accounting Method. All Definitions will remain the same with the exception of Cash Management.**
Application Name Owner Start End

Cash Management

XX_Cash_Management_Standard

User

Application Accounting Definitions

Application

Cash Management XXCE_Standard_Accounting XXCE_Standard_Accounting XX_GL_Corporate_Flexfield

Owner Version

User

Definition Code

Definition Name

Description

Transaction

Accounting

XX_GL_Corporate_Flexfield

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Application Accounting Definition Assignments **This is a copy of the Cash Management Standard Accounting Definition. All Event Definitions will remain the same with the exception of Bank Statement Cash Flows.**
Event Class Event Type Validation Status Create Accounting Locked

Bank Statement Cash All Flows Journal Lines Definitions Assignments

Event Class Owner

Valid

Yes

Yes

Description

XXCE_Bank Statement Cashflow

User

Application Accounting Definitions

Application

Cash Management Bank Statement Cashflows XXCE_Standard_Accounting

Event Type

All

Event Class

Owner Enabled

User

Definition Code

Yes

Definition Name

Budgetary Control

No

Description

Transaction

XX_GL_Corporate_Flexfield

Accounting

XX_GL_Corporate_Flexfield

Line Assignments
Journal Line Type Owner Inherit Line Description Description Owner

Statement Line Cash CR Statement Line Cash DR

Oracle Oracle

Yes Yes

Statement Line Journal Entry Line Description Statement Line Journal Entry Line Page 12

Oracle Oracle

Description Statement Line Payment Offset DR Statement Line Payment Offset CR Oracle Oracle Yes Yes Statement Line Journal Entry Line Description Statement Line Journal Entry Line Description Oracle Oracle

Account Derivation Rules Statement Line Payment Offset DR

Segment Inherit Rule Name Description Side

All Segments Location

No No

Cashflow Offset Account XXCE_Location

Statement Line Payment Offset CR

Segment Inherit Rule Name Description Side

All Segments Location

No No

Cashflow Offset Account XXCE_Location

Account Derivation Rule

Application

Cash Management XXCE_Location XXCE_Location

Owner

User

Rule Code

Rule Name

Enabled

Yes

Description

Transaction

XX_GL_Corporate_Flexfield Segment - Location

Accounting

XX_GL_Corporate_Flexfield

Output Type

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Priorities
Priority Value Type Value Input Source Segment

10 Condition
Seq ( Source

Source

XXCE_LOCATION_GET_FNC

Segment

Operator

Value Type

Independent Value Value

Segment

An

10

XXCE_LOCATION_GET_FNC

IS NOT NULL

Custom Source
Application

Cash Management XXCE_LOCATION_GET_FNC XXCE_LOCATION_GET_FNC

Enabled Yes

Custom Source Code

Custom Source Name

Description

PL SQL Function

XXXXCE_LOCATION_GET_ C

Return Data Options

Data Type Segment Lookup Application Value Set Accounting Flexfield Lookup Type

10 Parameters
Seq Type

Management Segment

Yes

Name

Source Description

Source

Cashflow Number

Cashflow number that uniquely identifies the cashflow Page 14

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Program Logic (Code used to derive the Location (Segment2) from Bank Stmt Line)
CREATE OR REPLACE FUNCTION XXCE_LOCATION_GET_FNC (p_cashflow_id NUMBER) RETURN CHAR IS ======================================================================== ===== -- Function: XXCE_LOCATION_GET_FNC --- Desc: This function derives the Unique Location Segment (Segment2-Retail Store) from Stmt Line DFF --- Name Type Data type Description -- ---------------------- --------- ------------- ------------------------------ p_cashflow_id IN NUMBER Cashflow Number ------------------------------------------------------------------------------ Return Char(Location) ---- MODIFICATION HISTORY --- Date Chg Req # Author Comments -- ----------- --------- --------------------------------------------------- DD-MM-YY 1.0 Name Original -- ========================================================= l_location apps.gl_code_combinations.segment2%TYPE; l_cashflow_id NUMBER:=p_cashflow_id; BEGIN --Derive Location in A/c Flexfield from the Stmt Line DFF SELECT csl.attribute1 Location_Segment INTO l_location FROM ce_cashflows cc, ce_statement_lines csl WHERE cc.statement_line_id = csl.statement_line_id AND csl.attribute1 IS NOT NULL AND cc.cashflow_id = l_cashflow_id; RETURN l_location; EXCEPTION WHEN OTHERS THEN -- If no Location Segment is found then Return Null to default Std Acc. Combination RETURN NULL; END XXCE_LOCATION_GET_FNC;

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