We are happy to provide a transcript of the Q&A section of “Make R12 sub-ledger accounting work for you” here:
If I am just a regular U.S.-based company, nothing fancy, with only one set of books today, why do I need a secondary ledger?
Secondary ledgers are not required. So if you’re very simplistic, you have one set of books, you may not need the second ledger. However, you may want to consider it for such purposes as your GAP or your IFRS reporting purposes. But it is not required.
Isn’t SLA the same as what was in release tables 11? It sure seems like that based on what you are saying with the create accounting and accounting events.
It is very similar. To an end-user the process looks the same. You’re going to still run create accounting with the same program. As we saw with AP you can run it through the actions button in the invoice workbench. So from an end-user perspective it looks the same. What is different is that it is no longer going into the GL interfaces table it is now going into an XLA table, a sub-ledger accounting table. Then it moves over to general ledger from there. As well, there is a lot more flexibility with creating your rules. With your account derivation rules, you’re able to put in complex values and formulas. If you have complexities you have the ability to create those rules easily through the AMB. So those are the differences, it is not going to really impact the end-user
The existing cross-validation rules, do they need to be re-setup in the accounting derivation rules screen?
The existing cross-validation rules, they don’t need to be re-setup. Again, that’s a tricky question. You have to take a look at the rule itself. Some of the rules will automatically be setup when sub-ledger accounting is implemented. Oracle has a lot of the seed rules. If you have complex validation rules that you have created, some of those will upgrade. That’s one of those things that you really need to take a close look at to ensure that: 1) Your rule upgrades and 2) That it is still valid for the transactions that you have. And you may need to do some adjustments on those derivation rules but not necessarily. So again that’s a tricky question without seeing the exact rules that you are talking about.
Is SLA required to implement R12?
It is not. It’s not a stand-alone module. However, it is going to be there in the background. What happens is you can either set it up so that you can take advantage of doing your inquiries and reporting through sub-ledger accounting, or you can set it up so that things just pass right through sub-ledger accounting over to general ledger and you can function without the use of sub-ledger accounting, so to speak, from an end-user perspective. So it is not required. It already comes preceded with everything it needs to run R12 without you needing to do anything else.
You explained how sub-ledger accounting works with APAR and Purchasing, but what about other applications such as fixed assets and inventory? Does the same process apply across all applications which generate financial transactions?
For the most part, any sub-ledger that has a financial impact will go through sub-ledger accounting, and, again, the rules that are set up will have an affect on how those transactions are created and moved to the general ledger. Basically, any sub-ledger that has a financial impact will come through sub-ledger accounting in much the same way.
Does the AP module validate general ledger account numbers prior to posting in accounts payable?
There are several different engines that could do validation for you. So the answer is, yes, it possibly could do that. You may do validation upon entry, you might do validation upon approval or you might do validation upon create accounting. So there are different levels at which you can do validation. So if you did it at entry or at approval, yes, the AP module does that validation for you.
Will we need to re-implement the financials if we need to use the SLA functionality?
I guess I have a question back, are you already on R12 and you didn’t implement sub-ledger accounting, or are you moving to R12? Let me just clarify that, because if you are already on R12 and you want to include sub-ledger accounting, you should be able to begin using sub-ledger accounting without re-implementing your financials. That being said, you want to look at the rules again to make sure that all the rules are set up to handle all the different transaction types that you will be using. I can’t think of anything that would be setup in financials that you will have to change to use sub-ledger accounting. If you are on 11i and you are doing an upgrade and you want to use sub-ledger accounting, you do not have to re-implement to use sub-ledger accounting you can still upgrade
How does the sub-ledger accounting engine handle inbound journal entries from third-party systems that will eventually book to the Oracle ledger?
You would need to create an interface if you wanted to bring them into sub-ledger accounting or you could take them directly to the general ledger. So that’s a decision that you would want to make internally on how you want to handle that. If you’ll be using sub-ledger accounting and doing some pre-reporting before you move things to the general ledger with your Oracle sub-ledgers, I would suggest you interface your third party journal entries into SLA. They would be handled the same as any other transactions that are in the SLA table once you decide to post. Depending on the journal entries that are created, you may need to have an interface that will move them over to general ledger for posting as well. So that’s something that you’ll need to take a look at. But they should be handled the same way as far as when it moves to general ledger.
Do accounting derivation rules that replace the workflow account generator? Can you customize as you would any workflow?
For the most part, yes. Now the account generator still does exist for assets. But for the most part, the rest of the sub-ledgers use the account derivation rules instead of the account generator. And about customizing the workflow, yes, you can, it’s like any other workflow within Oracle. You can do customizations to it, although I have not run into anyone that has had to do it.
What are your lessons learned about moving from 11i t 12 as it relates to sub-ledger and general ledger?
It’s a pretty clean process. I personally haven’t come across any difficulties. Now the one thing that I will caution you on is if you do create or update the rules in the AMB, test them thoroughly before going live. I would definitely do it in a test environment and test them before putting them into production, just like any other major change that you would do in an application. Reason being you may set up a rule thinking it is going to do one thing and the system actually interprets it in another way and does something different. So that’s the other major lesson I have learned. Sometimes we interpret the rule one way and the system interprets it another way. So just double check those if you are making any changes or adding any new rules. Otherwise, it’s pretty smooth, it’s a pretty good program.
Is sub-ledger accounting an extension of the already available global accounting engine provided by Oracle for European and regulatory standards?
It works in conjunction with the global accounting engine, I wouldn’t call it an extension of it. They do work together. The global accounting engine would take on rules from sub-ledger accounting and move into general ledger, I’m not sure which overrides which, but they do work together. I would have to take a closer look at that for you, so let me get back to you on that answer.
In the event you missed the presentation, you can download the Power Point by visiting our Oracle R12 Resources Page.
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