Subledger Accounting (SLA) is far from being a new term. However, many companies are still not familiar with the power and benefits of SLA. To shed light on SLA, we invite you to join our webinar “Everything you didn’t know about Subledger Accounting” on August 20th. For now, to make the wait a little shorter, we are sharing 9 common doubts that our clients have expressed on SLA.
Does General Ledger have any report or concurrent program which can show detailed transactions per module of a GL account (drilldown)?
When the Create Accounting process is generated, a report that shows de details of each movement is created from each of the different modules. This report shows types of events, numbers of documents that are being transferred, how many are processed, how many end in error and the detail of the associated movements. Additionally, you can consult from each journal the original movement via drill down or from the transaction itself.
Does SLA have specific localizations?
There are no localizations for SLA since SLA is feature that can be found within each of the modules.
Are there changes in SLA R12.2.4?
No, the last change was made in 12.1.3: the new account control. The new control in the natural account segment was created in order to restrict manual journal, so that users can keep tabs on accounts that do not require manual accounting entries.
In my company we have developed a drilldown report containing details of the transactions in 11i to export data to an Excel file. Do we have that sort of report in R12?
In R12 the journal already shows a description according to the rules defined at SLA, however, there’s no report as such. But you can find the information in the SLA tables. If accounting for the subledger is defined as accounting to detail (that is, no grouping or accounting combination), you can consult the description associated to each accounting entry defined according to the rules through an account analysis report.
Are accounting combinations updated in the transactions once they are modified by SLA or are the transactions kept in one account and GL in a different one?
The onscreen transactions (i.e. a screen containing bills) are kept with a different account, but when you consult accounting entries (create accounting events) from the subledger you can see the movements travelling from the module to SLA and stored in XLA charts and later on in GL where the information stored in XLA is the same as the one in GL. For example, in a manufacturing supplier, this is used to route the supplier liabilities.
At the journal level, it will show the account for the supplier site (which is the one the system routes by default), account 01-000-2210-0000-000
However, once the Create Accounting process is executed, the associated accounting entries will show up with the routed account, and this is the information that stored in the XLA charts and goes to GL.
Are there Oracle APIs to migrate data from 11i to R12? Is consulting recommended?
There’s a R12 SLA (Subledger Accounting) Pre-Upgrade program which is used so that during the migration of existing accounting entries from the subledgers (AR, AP, etc.) they are updated to the Oracle SLA data model. By default, the update is done for the current fiscal year and the necessary periods from the previous year – this is in order to ensure there are 6 periods included in the update.
The R12 SLA (Subledger Accounting) Pre-Upgrade program can only be executed if and only if the Oracle GL and at least one of these subledgers are being executed: Assets, Cost Management, Payables, Receivables, Purchasing, or Project Accounting. This program provides the possibility to change the number of periods which are updated by default. If there’s no complete update of the accounting data, SLA allows for updating the original data by executing the SLA post-upgrade process. When certain data is required and found missing, such as a transaction annulment for example, it will fail.
Additionally, in my experience migrating from 11i to R12 via patches or reimplementation, it is indeed necessary to rely on expert consulting since taxes in R12 are handled in a different module called Oracle E-Business Tax. This means big changes, especially in the AP module, since it introduces new concepts such as payment profiles. If these are not analyzed and tested before the go-live, there can be major issues.
So, can SLA cover the internal control needs in my organization?
SLA is an R12 functionality which provides a centralized accounting entry to design rules to fit your accounting needs. Rules can be created to route values of a certain accounting segment or account by default, thus minimizing accounting errors and the need to reclassify movements that usually occurs with the manual entry of information in auxiliary modules.
Typically, after a go-live, many organizations experience stabilization of processes, and during this phase detect many common accounting errors stemming from manual entries. The next step is analyzing those errors and determining the way to solve them, checking in which cases SLA rules can be applied to minimize errors in the future.
Why is it that executing “Create Accounting” does not transfer all the transactions into GL, even though the concurrent result was complete? We usually resort to “Transfer Journal Entries to GL”.
We’ve seen this issue in several clients, and the alternate solution is indeed generating the Transfer Journal Entries to GL. One of the causes for failed transfer of data stored in XLA charts to GL is that the GL setup associated to the subledger is not set to transfer. To check the setup:
- Click the update button in Subledger Accounting Options for the ledger
- Update the Accounting Options Button for the subledger
- Turn on the Yes option for Transfer to GL Box and apply changes
- Execute the transfer process again
There’s a known bug where if the event date is prior or later tan the accounting date, the data will not be transfered to GL. If the transactions are stored in the GL_TRANSFER_STATUS_CODE of xla_ae_headers table, with a N value, the journals cannot be transferred to GL through the Transfer Journal Entries to G. If the transactions have a Y value, it will be necessary to open a SR with Oracle Support.
A journal is a grouping of accounting entries generated by each of the subledger transactions (such as invoices and payments in AP) which are yet to be accounted for. Each of the journals is associated with a category according to the subledger and the movement. Journals can contain one or more accounting entries; this depends on when the Create Accounting process is executed, and how many pending movements are there in the subledger or module.
For example, in the Accounts Payable module, if there are invoices and pending payments, these movements would generate two journals: one for invoices, another for payments in each currency, and will display the information in summary or detail. The detail will display each lines associated with the accounting movements, while the summary will show the total amount of movements (entries) per account.
When executing Create Accounting ends in error, does this mean that the error is in the XLA tables, or did it go over to GL?
Movements with this error are only at the XLA table level, only successful movements travel to GL.
If you want to address your questions about SLA, you have a chance to directly address them to our CTO, Gustavo Gonzalez on 08/20. Register to our free webinar and find out everything about SLA.