From AutoAccounting/Account

Generator to Subledger Accounting

in Oracle Projects
Edward Charity, Jr.
Project Management Systems Consultants
(PMSC), LLC

Agenda

Background of the Speaker and Company

Objectives of the Presentation
Background of the Projects Suite
Evolution of Projects-based Accounting Engines
Subledger Accounting Concepts
Implementation Options
Suggested Resources, Papers, and Presentations
Questions and Answers/Wrap-up
Contact Information

Background of The Speaker

Edward Charity, Jr
Project Management Systems Consultants
(PMSC), LLC 2001 - Present
CapGemini (formerly Ernst & Young) Oracle
Service Line Senior Manager 1996-2001
Oracle Corporation, Consulting Services
Managing Principal Consultant 1993-1996
Oracle Projects (Project Accounting)
Implementation Consultant - 1993-Present
Speaker at 1997 and 2007 OAUG and OpenWorld
Conferences

Background of PMSC, LLC

Project Management Systems Consultants (PMSC),
LLC
Formed in 2001
Focused Exclusively on Enterprise Project Management
Resource and Technology Solutions
Commercial, Government, and Government Contracting
Clients
Services Include: Implementation Strategy and Planning;
Implementation Management and Execution; Implementation
Team and End-User Training; Implementation Rework/Rescue, and Special Projects; and Post Production
Support

Objectives of the Presentation

Brief Background of the Projects Suite
Highlight the Evolution of Projects-based Accounting
Engines
Explain Subledger Accounting (SLA) Concepts,
Highlighting Projects-specific application
Identify Common Concepts and Major Differences
Highlight Options for Upgrading Existing Installations
Planning New Implementations
Identify Additional Resources, Papers, and
Presentations

Background of the Projects Suite

Originally Project Accounting (Circa 1993)

Project Costing and Billing *
Enterprise Project Management Suite
Project Foundation/Fundamentals
Project Costing *
Project Billing *
Project Management
Project Collaboration
Project Resource Management
Project Portfolio Analysis
Project Contracts
Not Really a part of the Projects Suite
Actually a component of the Contracts Suite
Release 12 February/March 2007
Subledger Accounting (SLA)*
Main Focus of this presentation

Evolution of Projects-based
Accounting Engines
AutoAccounting Cost Transactions
originating from within Project Accounting

Labor Cost
Expense Report Cost (originating from PA)
Usage Cost
Miscellaneous Cost

AutoAccounting Revenue and Billing

Transactions

Evolution of Projects-based
Accounting Engines (Contd)
Flexbuilder
Cost Transactions originating outside of Project Accounting

Project-related Purchase Requisitions

Project-related Purchase Orders
Project-related Expense Reports
Project-related Vendor/Supplier Invoices

Oracle Forms-based

Account Generator
Replaced Flexbuilder in Release 11
Oracle Workflow-based using Workflow Builder

Evolution of Projects-based
Accounting Engines (Contd)

Subledger Accounting (SLA) Engine

Standard Accounting Engine for all Oracle
Subledger Applications
New in Release 12 (un-officially in 11.5.10)
Co-exists with AutoAccounting and
Account Generator for Projects-related
Transactions (for now)

Evolution of Projects-based
Accounting Engines (Contd)

The Common Concepts They Share

Project-related Information is Entered (aka
P.O.E.T)
Project; Task; Expenditure Type; Expenditure
Organization

Accounting Combination (aka Accounting

Flexfield) is Generated
Company; Cost Center/Department; GL Account

Implementation-defined Rules derive Accounting

Combination

Evolution of Projects-based
Accounting Engines (Contd)
Major Differences With SLA
All Subledger Applications Post Journal Entries to
SLA instead of directly to General Ledger
SLA Posts All Subledger Entries to General
Ledger
SLA Can Fill In Individual Segments or Entire AFF
SLA Can Create Multiple Representations of Each
Subledger Transactions

What Is Subledger Accounting ?

Standard Accounting Engine for all Subledger
Applications
Intermediate Step Between Subledger Applications
and Oracle General Ledger (GL)
Creates the final accounting for Subledger Journal
Entries (JEs) and transfers the accounting to GL
Stores a complete and balanced Subledger JE in a
common model for each business event that
requires accounting.
Can create more than one accounting representation
for each transaction

Accounting Methods Builder (AMB) Menu Path

SLA Concepts and Definitions

Accounting Events
Transactions that have an accounting impact
Projects generates accounting events for the
business events it processes

Event Entities
Allow SLA to handle the accounting for similar
business events in a consistent manner
Projects uses three Event Entities: Expenditures;
Revenue; and Budgets

(Event) Entities Form

SLA Concepts and Definitions

Event Type
Represents a business operation that you can
perform for an Event Class

Event Class
Represents a category of business event for a
particular transaction type or document
Group Similar Event Types
Enable the sharing of Accounting Definitions
Provide the lowest level of detail for storing
Accounting Definitions

Process Categories Form

Accounting Event Class Options Form Supplier Cost

Accounting Event Class Options Form Labor Cost

SLA Concepts and Definitions

Event Types and Classes (Contd)
Predefined Event Classes for the Event
Entity Expenditure include: Labor Cost;
Usage Cost; and Supplier Cost
The Event Class Supplier Cost is
represented by Event Types of Expense
Report Cost Distribution and Supplier
Cost Distribution

Event Classes and Types Form Supplier Cost

Event Classes and Types Form Labor Cost

SLA Concepts and Definitions

Sources and Source Assignments
Pieces of information SLA uses to determine how
to create accounting for an Accounting Event
Assigned to either an Event Entity or an Event
Class to make them available for creation of
Subledger Journal Entries
Custom Sources replace SQL Select Functionality
in AutoAccounting

Sources Form Part 1 of 3

Sources Form Part 2 of 3

Sources Form Part 3 of 3

Custom Sources Form

Source Assignment Form

SLA Concepts and Definitions

Accounting Attributes
Values that the Create Accounting process needs to create
Subledger Journal Entries
Sources, above, are assigned to Accounting Attributes.

Example: Event Class = Labor Cost; Source = Raw

Cost; Attribute = Entered Amount
Result: The Raw Cost Amount from the transaction is
assigned to the Entered Amount field in the SLA
Journal Entry

Accounting Attributes Assignment Form

SLA Concepts and Definitions

Journal Line Types
Determine the characteristics of Subledger
Journal Entries (JE) for an Event Class
The characteristics are:

Actual; Budget; or Encumbrance JE

Debit or Credit JE
Matching Lines Merged
Transfer to GL in Summary or Detail form

Journal Line Types Form

SLA Concepts and Definitions

Account Derivation Rules
Determine the Accounting Flexfield (AFF)
values for Subledger Journal Entries
Defined in SLA To Override Pre-Seeded
Projects Rule
Generate either a value for a single AFF
segment or the entire AFF
Optionally use Mapping Sets

Account Derivation Rules Form

Mapping Sets Form

SLA Concepts and Definitions

Journal Entry Descriptions (JEDs)
Determine both the content and sequence in
which elements of the description appear
Assigned to headers and lines in Application
Accounting Definition
Assigned to Journal Headers and Lines by SLA
when it creates the draft or final accounting
There are no predefined JEDs for Projects

Journal Entry Descriptions Form

SLA Concepts and Definitions

Journal Line Definitions
Group Journal Line Types, Account
Derivation Rules, and Journal Entry
Descriptions into a complete set of Journal
Line Types within an Event Class or Event
Type

Journal Lines Definitions Form

SLA Concepts and Definitions

Application Accounting Definitions (AADs)
Collections of setup components for a Subledger
application, i.e. Projects, that determine how the
SLA program processes Accounting Events to
create Subledger and General Ledger Entries
Assign Journal Line Definitions to Event Class and
Event Type combinations
Projects predefines the Project Standard
Accounting Application Accounting Definition

Application Accounting Definitions Form

SLA Concepts and Definitions

Subledger Accounting Method
A group of common Application Accounting
Definitions (AADs) that determines how
SLA processes Accounting Events
Groups AADs from Subledger Applications
such as Projects
AADs are assigned to Ledgers (formerly
Sets of Books (SOBs)

Subledger Accounting Methods Form

Putting It All Together

AutoAccounting
1. Define Lookup Sets
2. Define AutoAccounting Rules
Constant; Parameter; SQL Select

3. Assign Rules to Functions

Putting It All Together

Accounting Methods Builder (AMB)

1.
2.
3.
4.
5.
6.

Define Journal Lines Types **

Define Journal Entry Descriptions **
Define Mapping Sets *
Define Accounting Derivation Rules **
Define Journal Line Definitions **
Define Application Accounting Definitions**

Putting It All Together

Accounting Methods Builder (AMB)

7. Define Subledger Accounting Methods **
8. Assign Subledger Accounting Methods to
Ledger(s)

Putting It All Together

Subledger Accounting Methods
Assigned to Oracle Ledgers (Formerly Sets
of Books)
Sets of Books (Obsolete in R12)
Currency; Chart of Accounts; and Calendar

Ledger
Currency; Chart of Accounts; Calendar; and
Subledger Accounting Method

Putting It All Together

Subledger Accounting Methods
The Combination of Subledger Accounting Method
and Ledger is called an Accounting
Representation
Subledger Accounting Method + New/Different
Ledger = Additional Accounting Representation
Transaction and Accounting Charts of Accounts
used in Accounting Methods Builder (AMB)

Accounting Setups Form Subledger Applications

Accounting Setups Form Update Accounting Options:Projs.

Accounting Setups Form Event Class Options

Ledger
=
C.O.A

Currency

Calendar

+
Subledger Accounting Method
Application Accounting Definition

Standard Accrual
JE Header and Lines

Journal Line Definitions

Journal Entry
Descriptions

Journal Line
Types

Account
Derivation Rules

Mapping
Sets

Functionality Equivalents
FlexBuilder/Account
Generator

AutoAccounting

Subledger Accounting

Value Sets/Lookup Sets

Lookup Sets

Mapping Sets

Input Value

Intermediate Value

Input Value

User Defined Parameters

AutoAccounting Rules

Account Derivation Rules

Predefined
Parameters/Attribute

Parameter

Source

Assignments to Functions

AutoAccounting
Function Transactions

Conditions on
Account Derivation Rules

Functions/Item Type

AutoAccounting
Functions

Journal Line Types

Parameter
Assignments/Process

AutoAccounting
Rule Assignment

Journal Lines Definitions:

Assign Account Derivation
Rules to Journal Line Types

Processing Changes
Cost Distribution Processes Remain Unchanged
New: PRC: Generate Cost Accounting Events
New: PRC: Create Accounting
Creates Subledger Journal Entries for All Eligible Events
Optionally Post in GL (Only in Final Mode)

PRC: Transfer JEs to GL (Optional)

Journal Import (Oracle GL)

Processing Changes
Revenue Distribution Processes Remain Unchanged
New: PRC: Generate Revenue Accounting Events
New: PRC: Create Accounting
Creates Subledger Journal Entries for All Eligible Events
Optionally Post in GL (Only in Final Mode)

PRC: Transfer JEs to GL (Optional)

Journal Import (Oracle GL)

Processing Changes
Invoice Processing Still Uses AutoAccounting
Generation Process Remains the Same
Transfer Process Remains the Same
Tie-Back from Receivables Remains the Same
Receivables
Creates Accounting for Invoices in Oracle
Subledger Accounting
SLA Transfers the final Accounting to Oracle
General Ledger

Processing Changes
Post Accounting Process
Used to obtain final accounting information from
SLA because the accounting that Projects creates
using AA may not be the same as the final
accounting that SLA transfers to GL
Audit Reports
Reversing Entries from AP; PO; and INV
Adjustments from within Projects for splits,
transfers, and other changes.

Processing Changes
Period End Exception Reports Identifies
transactions that are not fully processed
EXC: Transaction Exception Details/Summary By PA Period
EXC: Transaction Exception Details/Summary By GL Period

PRC: Sweep Transaction Accounting Events

Changes the date on unaccounted transaction accounting
events to first day of next open period
Accommodates the Month-End Closing Process

Upgrading Existing Installations

Options
Continue To Use Existing AutoAccounting/ Account
Generator (AA/AG) As Is
SLA uses default AFF values generated by AA/AG

Define Alternate Accounting Rules in SLA

Minimal AA/AG still required (use defaults for all AFF
Segments) to provide default values
SLA overwrites default AFF values provided by AA/AG

Hybrid Approach
Use existing AA/AG at point of upgrade
Evaluate benefits of SLA features
Migrate to SLA when and if beneficial

Planning New Implementations

Significant Portion of Implementation

Approximately 25-30% of total (based on past experience)

Analysis 15%
Design 35%
Development 35%
Testing 15%

Implementation Resource Experience is Critical

Design in Parallel with Remaining Tasks

Understand Inputs, Business Rules, and Required Results
Understand All Accounting Transactions
Test All Possible Scenarios (automate if possible)
Document For Current and Future Users

Business Requirements and Associated Rules

Custom Sources including PL/SQL Logic
Maintenance Requirements

Suggested Resources

Oracle Projects Implementation Guide - MetaLink Document

Number (R 12.04)
Section G AutoAccounting, the Account Generator, and
Subledger Accounting
Pages 3 40-47 Subledger Accounting for Costs
Pages 4 55-58 Subledger Accounting for Revenue and
Billing
Oracle Projects Fundamentals MetaLink Document Number
B25617-02 (R12.04)
Pages 12 9-33 Integrating With Subledger
Accounting/Oracle GL
Appendix A Pre-Defined Setup for Oracle Subledger
Accounting

Suggested Resources (Contd)

Subledger Accounting Implementation Guide
MetaLink Document Number B13984-02 (R12.04)
Oracle Subledger Accounting Documentation
Resources - MetaLink Document Number 396829.1
XLA Common Accounting Drilldown for Project
Accounting Transaction Categories Troubleshooting
Guide MetaLink Document Number 406204.1

Suggested Papers and

Presentations

Understanding Oracle Projects (Project

Accountings) AutoAccounting and Flexbuilder
Functions Edward Charity, Jr - Spring 1997 OAUG
Understanding AutoAccounting for Projects: A Step
by Step Approach Mark Biven Spring 2002
OAUG
How Does AutoAccounting Work/AutoAccounting
Setup and Prerequisites Suzana Ferrari 2003/2004 OAUG
How to Use Account Generator for Project-Related
Transactions Marian Crkon 2007 OAUG

Suggested Open World 2007 SLA

Presentations

Bean Counting Gets an Overhaul: Oracle

EBS Accounting Architecture in R12
S291195
Oracle EBS R12: Accounting Around the
World in 80 Ways S291287
Using SLA to Address Global Accounting
Requirements S291198
Making Rules Not War: Making Nice with the
Bean Counters S290980

Suggested Collaborate08 SLA

Presentations
Goodbye T-Codes: An Intro to R12 SLA for Federal
Financials Federal SIG Meeting 4/13
Introduction to the Subledger Accounting Engine in Oracle
R12 4/15 9:45 Rm 205
Oracle EBS R12 Subledger Accounting Engine: What Is It,
What Does It Do, and How to Use It 4/17 9:45 Rm 207
R12 SLA and Multiple-Org. Access: A Review for MultiNational Implementations 4/14 9:15 Rm 404

Conclusion
Subledger Accounting Concepts very similar to
AutoAccounting/Account Generator
Concepts Applicable to All Subledger Applications
Minimal Requirements for Straight Forward Upgrade
Careful Planning and Resource Dedication Essential
for Successful New Implementation
AutoAccounting/Account Generator Will Eventually
Be Phased Out
SLA will be embedded in Fusion

Questions?

Contact Information
Project Management Systems Consultants
(PMSC), LLC
[email protected]
703-532-1259 Voice/Fax
703-244-9407 Cell
www.pmsc-llc.com