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R12 Subledger Accounting Cookbook
Multi Period Accounting
NCOAUG Training Day
August 14, 2014
Prepared by:
Prithis Das
Dyn...
Presenter’s background
■ Oracle Applications experience goes back to 1997
■ Over 22 years of business process improvement ...
Agenda
■ Introduction to Multi Period Accounting
■ Typical Prepayment Process
■ Prepayment Scenario
■ Multiperiod Accounti...
Introduction to
Multi Period Accounting
Copyright Prithis Das
Dynamique Solutions LLC
■ What is Multiperiod Accounting?
▪ Multiperiod accounting enables users to create accounting for a
single accounting even...
Typical Prepayment Process
Copyright Prithis Das
Dynamique Solutions LLC
■ Typical Prepayment process without Multiperiod Accounting
▪ Setup/maintain Special Calendar
▪ Setup Distribution Set
▪ C...
■ Typical Prepayment process with Multiperiod Accounting
▪ Setup Multiperiod Accounting in Subledger Accounting
▪ Create S...
Prepayment Scenario
Copyright Prithis Das
Dynamique Solutions LLC
■ Prepayment for Software Support
▪ A company prepays annual software maintenance of $12,000 on
June 25th , 2014. The comp...
■ Expected journal entries in Jun-14
■ Expected journal entries Jul-14 to Jun-15
Scenario
Copyright Prithis Das
Dynamique ...
Multiperiod Accounting Setups
Copyright Prithis Das
Dynamique Solutions LLC
■ Optional Setups – likely to be different for each
implementation, based on design
▪ Value Set for Prepayment Type
— Crea...
■ Value Set for Prepayment Type
Multiperiod Accounting Setups
Copyright Prithis Das
Dynamique Solutions LLC
■ Enter Values in Value Set for Prepayment Type
■ You can enter values for:
▪ Specific types of Prepayments
▪ Specific Ven...
■ Descriptive Flexfield
▪ Invoice Lines DFF
Multiperiod Accounting Setups
You do not have to
make this DFF
context sensiti...
■ Descriptive Flexfield
▪ Invoice Lines DFF
▪ Assign the Value Set created in the earlier step
Multiperiod Accounting Setu...
■ Descriptive Flexfield
▪ Invoice Lines DFF
Multiperiod Accounting Setups
You must uncheck
Required checkbox as
not all in...
Subledger Accounting Setups
for MPA
Copyright Prithis Das
Dynamique Solutions LLC
Application Accounting Definition
Subledger Accounting Setups for MPA
Mapping Set
Account Derivation Rule
Journal Line Typ...
Subledger Accounting Setups for MPA
Copyright Prithis Das
Dynamique Solutions LLC
■ Navigation Paths from Payables Manager...
■ Mapping Set
Subledger Accounting Setups for MPA
Field Data
Mapping Set Code XXPD_MPA_EXP_CCID
Mapping Set Name XXPD MPA ...
■ Account Derivation Rule
Subledger Accounting Setups for MPA
Field Data
Rule Code XXPD_MPA_EXP_FLEX
Rule Name XXPD MPA Pr...
■ Journal Line Type - Accrual
Subledger Accounting Setups for MPA
Field Data
Line Type Code XXPD_AP_ITEM_EXP_INV_MPA_ACC
N...
■ Journal Line Type - Recognition
Subledger Accounting Setups for MPA
Field Data
Line Type Code XXSL_AP_ITEM_EXP_INV_MPA_R...
■ Journal Line Type – Accrual – Assign Sources
Subledger Accounting Setups for MPA
Assign sources to the following account...
■ Journal Line Definition
▪ Retrieve and Copy the seeded JLD “Accrual, Invoices All”.
Subledger Accounting Setups for MPA
...
■ Journal Line Definition (User owned)
▪ Copy the seeded Line Assignment “Item Expense” to a new
Assignment “XXPD Multi Pe...
■ Journal Line Definition (User owned)
▪ Inactivate the seeded line assignment “Item Expense”
▪ Assign new JLT “XXPD Multi...
■ Journal Line Definition (User owned)
▪ Assign the seeded Account Derivation Rule “Invoice Distribution
Account” to All S...
■ Journal Line Definition (User owned)
▪ The Multiperiod Accounting button will be enabled for this
Journal Line Type
▪ Cl...
■ Multiperiod Accounting Assignment
▪ Options
— Number of Journal Entries
— GL Dates
— Proration Type
Subledger Accounting...
■ Multiperiod Accounting Assignment Options
■ Source: Oracle Subledger Accounting Implementation Guide
Subledger Accountin...
■ Multiperiod Accounting Assignment Options
■ Source: Oracle Subledger Accounting Implementation Guide
Subledger Accountin...
■ Multiperiod Accounting Assignment Options
▪ See Document 1915795.1 on My Oracle Support for worked out
examples for each...
■ Multiperiod Accounting Assignment options
Click on the Line Assignments button
Subledger Accounting Setups for MPA
Copyr...
■ Line Assignments
▪ For the Accrual Journal Line Type
— All Segments will use the seeded ADR “Invoice Distribution Accoun...
■ Line Assignments
▪ For the Recognition Journal Line Type
— All Segments will use the custom ADR “XXPD MPA Prepaid to Exp...
■ Application Accounting Definition
▪ Copy the seeded AAD “Accrual Basis” to a custom AAD “XXPD
Accrual Basis”
▪ Replace t...
■ Subledger Accounting Methods
▪ Copy the seeded SLAM “Standard Accrual” to a custom SLAM
“XXPD Standard Accrual”
▪ Replac...
■ Subledger Accounting Methods
▪ Replace the SLAM “Standard Accrual” with the custom SLAM
“XXPD Standard Accrual” in your ...
Transaction Processing for MPA
Copyright Prithis Das
Dynamique Solutions LLC
■ Enter a Standard Invoice for Prepaid Software Maintenance
▪ Invoice Type is Standard and not Prepayment
▪ Say Invoice Da...
■ At the Line level
▪ Enter a Prepayment Distribution account
▪ Check the Deferred Option checkbox
▪ Enter the Deferred St...
■ Create Accounting
▪ Validate the Invoice, then run Create Accounting
Transaction Processing for MPA
Copyright Prithis Da...
■ Create Accounting will spawn:
▪ Accounting Program
▪ Journal Import
▪ Subledger Accounting Balances Update
▪ Subledger M...
■ If Create Accounting and Account Program completes with a
yellow Warning or red Error, STOP!
▪ Review the report to iden...
■ Create Accounting
▪ Will generate the Subledger Accounting Program Report
Transaction Processing for MPA
Copyright Prith...
■ Subledger Multiperiod Accounting and Accrual Reversal
Report
Transaction Processing for MPA
Copyright Prithis Das
Dynami...
■ Subledger Multiperiod Accounting and Accrual Reversal
Report
Transaction Processing for MPA
Copyright Prithis Das
Dynami...
■ Subledger Multiperiod Accounting and Accrual Reversal
Report
Transaction Processing for MPA
Copyright Prithis Das
Dynami...
■ Subledger Multiperiod Accounting and Accrual Reversal
Report
Transaction Processing for MPA
Copyright Prithis Das
Dynami...
■ GL Journal Entry
Transaction Processing for MPA
Copyright Prithis Das
Dynamique Solutions LLC
■ Expected journal entries in Jun-14
■ Expected journal entries Jul-14 to Jun-15
Transaction Processing for MPA
Copyright ...
■ “Complete Multiperiod Accounting” concurrent program
▪ Run in subsequent months from Jul-14 to Jun-15
▪ Schedule this pr...
■ Complete Multiperiod Accounting concurrent program
▪ Creates journal entries for Expense Recognition for the period it
i...
■ Complete Multiperiod Accounting concurrent program
Transaction Processing for MPA
Copyright Prithis Das
Dynamique Soluti...
■ Complete Multiperiod Accounting concurrent program
Transaction Processing for MPA
Copyright Prithis Das
Dynamique Soluti...
■ GL Journal Entry in each subsequent period through Jun-15
Transaction Processing for MPA
Copyright Prithis Das
Dynamique...
■ Expected journal entries in Jun-14
■ Expected journal entries Jul-14 to Jun-15
Transaction Processing for MPA
Copyright ...
Implementation Considerations
Copyright Prithis Das
Dynamique Solutions LLC
■ Enhancement possibilities
▪ Use a DFF for Prepayment Type and a Mapping Set to drive the
expense account (as shown in th...
■ Existing open Prepayments when MPA is implemented
▪ There is no way to “convert” Prepayment invoices to Standard
invoice...
■ Do we need two accrual journal line types to achieve single
period accounting and multiperiod accounting?
▪ No, two sepa...
References
Copyright Prithis Das
Dynamique Solutions LLC
References
■ Oracle Subledger Accounting Implementation Guide
(E13628-04)
■ Document 1399611.1 on My Oracle Support
▪ Out-...
Q & A
• Contact
Email
prithis.das@dynamique.us
Cell
+1.630.3649457
Website
www.dynamique.us
Additional questions?
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Multiperiod Accounting in Oracle EBS R12

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A deep dive into the Multiperiod Accounting functionality using Subledger Accounting configurations in Oracle EBS R12

Published in: Technology

Multiperiod Accounting in Oracle EBS R12

  1. 1. R12 Subledger Accounting Cookbook Multi Period Accounting NCOAUG Training Day August 14, 2014 Prepared by: Prithis Das Dynamique Solutions LLC
  2. 2. Presenter’s background ■ Oracle Applications experience goes back to 1997 ■ Over 22 years of business process improvement experience ■ Consulting experience with Big 5 and other major organizations ■ Oracle Certified Specialist in General Ledger ■ Chartered Accountant and Management Accountant from India ■ Authored and presented papers on SLA, WebADI, Reports Manager and other topics at several OAUG and local events ■ Just completed a major R12 upgrade and working on a Cash Basis Secondary Ledger implementation ■ Contact: ▪ Cell: +1.630.3649457 ▪ Email: prithis.das@dynamique.us ▪ Web: www.dynamique.us Copyright Prithis Das Dynamique Solutions LLC
  3. 3. Agenda ■ Introduction to Multi Period Accounting ■ Typical Prepayment Process ■ Prepayment Scenario ■ Multiperiod Accounting Setups – Optional Setups ■ SLA Setups for Multiperiod Accounting ■ Transaction Processing using MPA ■ Implementation Considerations ■ References ■ Q&A Copyright Prithis Das Dynamique Solutions LLC
  4. 4. Introduction to Multi Period Accounting Copyright Prithis Das Dynamique Solutions LLC
  5. 5. ■ What is Multiperiod Accounting? ▪ Multiperiod accounting enables users to create accounting for a single accounting event for more than one GL period. The functionality is primarily used to recognize revenue or a prepaid expense or revenue across multiple GL periods. ■ Uses of Multiperiod Accounting ▪ Automated recognition of Prepaid AP invoices ▪ AR Revenue recognition ▪ Can be used in Primary as well as Secondary Ledgers (for Management reporting) ■ This presentation focuses on recognizing prepaid expenses across multiple GL periods. Introduction Copyright Prithis Das Dynamique Solutions LLC
  6. 6. Typical Prepayment Process Copyright Prithis Das Dynamique Solutions LLC
  7. 7. ■ Typical Prepayment process without Multiperiod Accounting ▪ Setup/maintain Special Calendar ▪ Setup Distribution Set ▪ Create Prepayment invoice ▪ Pay Prepayment invoice ▪ Create Recurring invoice template for expense amortizations ▪ Generate Recurring invoices ▪ Apply to Prepayment Invoice each month – manual process ▪ Run Create Accounting/Transfer to GL ▪ Use Prepayment Status Report. Typical Prepayment Process Copyright Prithis Das Dynamique Solutions LLC
  8. 8. ■ Typical Prepayment process with Multiperiod Accounting ▪ Setup Multiperiod Accounting in Subledger Accounting ▪ Create Standard invoice — Complete Deferred fields during invoice entry ▪ Pay Standard invoice to pay the prepayment ▪ Run Create Accounting/Transfer to GL ▪ Use Multiperiod Accounting and Accrual Reversal Report ▪ Periodically run Complete Multiperiod Accounting program Typical Prepayment Process Copyright Prithis Das Dynamique Solutions LLC
  9. 9. Prepayment Scenario Copyright Prithis Das Dynamique Solutions LLC
  10. 10. ■ Prepayment for Software Support ▪ A company prepays annual software maintenance of $12,000 on June 25th , 2014. The company needs to expense $1,000 each month for 12 months according to the following schedule: Scenario Copyright Prithis Das Dynamique Solutions LLC Period Amount Period Amount Jul-14 $1,000 Jan-15 $1,000 Aug-14 $1,000 Feb-15 $1,000 Sep-14 $1,000 Mar-15 $1,000 Oct-14 $1,000 Apr-15 $1,000 Nov-14 $1,000 May-15 $1,000 Dec-14 $1,000 Jun-15 $1,000
  11. 11. ■ Expected journal entries in Jun-14 ■ Expected journal entries Jul-14 to Jun-15 Scenario Copyright Prithis Das Dynamique Solutions LLC Period Journal Period Amount Jul-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Jan-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Aug-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Feb-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Sep-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Mar-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Oct-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Apr-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Nov-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 May-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Dec-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Jun-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Period Journal Period Journal Jun-14 Dr Prepaid Expense $12,000 Cr AP Liability $12,000 Jun-14 Dr AP Liability $12,000 Cr Bank $12,000
  12. 12. Multiperiod Accounting Setups Copyright Prithis Das Dynamique Solutions LLC
  13. 13. ■ Optional Setups – likely to be different for each implementation, based on design ▪ Value Set for Prepayment Type — Create Values for the Value Set ▪ Descriptive Flexfield — Invoice Lines DFF ■ Subledger Accounting Setups – likely to be similar for all implementations ▪ Mapping Set ▪ Account Derivation Rule ▪ Journal Line Types ▪ Journal Line Definition ▪ Application Accounting Definition ▪ Subledger Accounting Method ▪ Ledger Multiperiod Accounting Setups Copyright Prithis Das Dynamique Solutions LLC
  14. 14. ■ Value Set for Prepayment Type Multiperiod Accounting Setups Copyright Prithis Das Dynamique Solutions LLC
  15. 15. ■ Enter Values in Value Set for Prepayment Type ■ You can enter values for: ▪ Specific types of Prepayments ▪ Specific Vendors Multiperiod Accounting Setups Copyright Prithis Das Dynamique Solutions LLC
  16. 16. ■ Descriptive Flexfield ▪ Invoice Lines DFF Multiperiod Accounting Setups You do not have to make this DFF context sensitive. You can make this Global. Copyright Prithis Das Dynamique Solutions LLC
  17. 17. ■ Descriptive Flexfield ▪ Invoice Lines DFF ▪ Assign the Value Set created in the earlier step Multiperiod Accounting Setups In this demo we have selected ATTRIBUTE15. Typically you would start at ATTRIBUTE1 if available. Copyright Prithis Das Dynamique Solutions LLC
  18. 18. ■ Descriptive Flexfield ▪ Invoice Lines DFF Multiperiod Accounting Setups You must uncheck Required checkbox as not all invoices are Prepayments. Copyright Prithis Das Dynamique Solutions LLC
  19. 19. Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC
  20. 20. Application Accounting Definition Subledger Accounting Setups for MPA Mapping Set Account Derivation Rule Journal Line Type Journal Line Definition Subledger Accounting Method Ledger Copyright Prithis Das Dynamique Solutions LLC
  21. 21. Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC ■ Navigation Paths from Payables Manager Responsibility ▪ Mapping Set ▪ Account Derivation Rule ▪ Journal Line Type ▪ Journal Line Definition ▪ Application Accounting Definition ▪ Subledger Accounting Method ▪ Ledger
  22. 22. ■ Mapping Set Subledger Accounting Setups for MPA Field Data Mapping Set Code XXPD_MPA_EXP_CCID Mapping Set Name XXPD MPA ACCRUAL EXPENSE CCID Mapping Set Description XXPD Multi-Period Accounting Invoices - Amortization Expense Account Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger Link the Mapping Set to the Value Set created earlier For each Input Value, enter the Output Value: Enter the target Expense account for amortization
  23. 23. ■ Account Derivation Rule Subledger Accounting Setups for MPA Field Data Rule Code XXPD_MPA_EXP_FLEX Rule Name XXPD MPA Prepaid to Expense Account Flexfield Description XXPD MPA Prepaid to Expense Account Flexfield Assign the Mapping Set = XXPD MPA ACCRUAL EXPENSE CCID created earlier. Input Source = Invoice Line Flexfield Segment 15 Will receive a Warning on save There is no need to assign a Condition Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  24. 24. ■ Journal Line Type - Accrual Subledger Accounting Setups for MPA Field Data Line Type Code XXPD_AP_ITEM_EXP_INV_MPA_ACC Name XXPD Multi Period Accounting and Regular Item Expense Accrual Description XXPD Multi Period Accounting and Regular Item Expense Accrual, replaces “Item Expense” JLT For the accrual journal line type, set the Multiperiod option to 'Accrual' Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  25. 25. ■ Journal Line Type - Recognition Subledger Accounting Setups for MPA Field Data Line Type Code XXSL_AP_ITEM_EXP_INV_MPA_RECOG Name XXPD Multi Period Accounting Item Expense Recognition Description XXPD Multi Period Accounting Item Expense Recognition For the recognition journal line type, set the Multiperiod option to 'Recognition'. Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  26. 26. ■ Journal Line Type – Accrual – Assign Sources Subledger Accounting Setups for MPA Assign sources to the following accounting attributes for the accrual journal line type Multiperiod Start Date Determines the accounting period and accounting date for the first recognition journal entry Multiperiod End Date Determines the accounting period and accounting date for the last recognition journal entry Multiperiod Option Determines whether multiperiod or single period accounting to be generated for an accounting event Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  27. 27. ■ Journal Line Definition ▪ Retrieve and Copy the seeded JLD “Accrual, Invoices All”. Subledger Accounting Setups for MPA Field Data Definition Code XXSL_AP_ITEM_EXP_INV_MPA_RECOG Definition Name XXPD Accrual, Invoices All Description XXPD Oracle Payables Accrual Accounting Definition (All) Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  28. 28. ■ Journal Line Definition (User owned) ▪ Copy the seeded Line Assignment “Item Expense” to a new Assignment “XXPD Multi Period Accounting and Regular Item Expense Accrual” Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  29. 29. ■ Journal Line Definition (User owned) ▪ Inactivate the seeded line assignment “Item Expense” ▪ Assign new JLT “XXPD Multi Period Accounting and Regular Item Expense Accrual” Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  30. 30. ■ Journal Line Definition (User owned) ▪ Assign the seeded Account Derivation Rule “Invoice Distribution Account” to All Segments ▪ Assign a Line Description (custom JLD in this example) Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  31. 31. ■ Journal Line Definition (User owned) ▪ The Multiperiod Accounting button will be enabled for this Journal Line Type ▪ Click on the Multiperiod Accounting button Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  32. 32. ■ Multiperiod Accounting Assignment ▪ Options — Number of Journal Entries — GL Dates — Proration Type Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  33. 33. ■ Multiperiod Accounting Assignment Options ■ Source: Oracle Subledger Accounting Implementation Guide Subledger Accounting Setups for MPA Number of Journal Entries: Number of multiperiod journal entries to be created One One multiperiod journal entry is created to recognize the entire accrual amount. Note: If this option is selected, it is not possible to select a proration type since only one journal entry is created for the entire accrual amount. One per GL Period One multiperiod journal entry is created per GL period between the dates defined by the multiperiod start and end date accounting attributes. Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  34. 34. ■ Multiperiod Accounting Assignment Options ■ Source: Oracle Subledger Accounting Implementation Guide Subledger Accounting Setups for MPA GL Dates: Specifies when the multiperiod journal entries are created in the GL period First Day GL Period Multiperiod journal entries have a GL date of the first day of the period Example: 1-Oct-2014 Last Day GL Period: Multiperiod journal entries have a GL date of the last day of the period. Example: 31-Oct-2014 Originating Day Multiperiod entries have the same GL date as the originating journal entry. Example: 22-Oct-2014 If Originating Day is 31-Oct, the next multiperiod JE will have a date of 30-Nov. Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  35. 35. ■ Multiperiod Accounting Assignment Options ▪ See Document 1915795.1 on My Oracle Support for worked out examples for each Proration Type ■ Source: Oracle Subledger Accounting Implementation Guide Subledger Accounting Setups for MPA Proration Type: Specifies how the recognition amount per period should be calculated 360 days Partial periods calculated by assuming 360 days in a year Days in Period Partial periods calculated by dividing the number of partial period days by the actual number of days in the period First Period Accrual amount divided by the number of periods and recognized evenly starting with the first period Total Days in Period Both the partial periods and the whole periods are based on the actual number of days in the period. The number of days within each period is then divided by the total number of days in the whole multi accounting period. The result is then multiplied by the total amount due to arrive at an amount for each respective period. Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  36. 36. ■ Multiperiod Accounting Assignment options Click on the Line Assignments button Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  37. 37. ■ Line Assignments ▪ For the Accrual Journal Line Type — All Segments will use the seeded ADR “Invoice Distribution Account” Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  38. 38. ■ Line Assignments ▪ For the Recognition Journal Line Type — All Segments will use the custom ADR “XXPD MPA Prepaid to Expense Account Flexfield” Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  39. 39. ■ Application Accounting Definition ▪ Copy the seeded AAD “Accrual Basis” to a custom AAD “XXPD Accrual Basis” ▪ Replace the seeded JLD Assignment XXPD Accrual, Invoices All to the custom JLD “XXPD Accrual, Invoices All” Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger Validate the Application Accounting Definition
  40. 40. ■ Subledger Accounting Methods ▪ Copy the seeded SLAM “Standard Accrual” to a custom SLAM “XXPD Standard Accrual” ▪ Replace the seeded AAD Assignment Accrual Basis to the custom AAD Assignment “XXPD Accrual Basis” Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  41. 41. ■ Subledger Accounting Methods ▪ Replace the SLAM “Standard Accrual” with the custom SLAM “XXPD Standard Accrual” in your Primary Ledger Subledger Accounting Setups for MPA Copyright Prithis Das Dynamique Solutions LLC Mapping Set ADR JLT JLD AAD SLAM Ledger
  42. 42. Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  43. 43. ■ Enter a Standard Invoice for Prepaid Software Maintenance ▪ Invoice Type is Standard and not Prepayment ▪ Say Invoice Date is 15th June, it was entered on 25th June Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  44. 44. ■ At the Line level ▪ Enter a Prepayment Distribution account ▪ Check the Deferred Option checkbox ▪ Enter the Deferred Start Date and Deferred End Date fields ▪ Enter the Prepayment Type (select from LOV) in the DFF Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  45. 45. ■ Create Accounting ▪ Validate the Invoice, then run Create Accounting Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  46. 46. ■ Create Accounting will spawn: ▪ Accounting Program ▪ Journal Import ▪ Subledger Accounting Balances Update ▪ Subledger Multiperiod Accounting and Accrual Reversal Report Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  47. 47. ■ If Create Accounting and Account Program completes with a yellow Warning or red Error, STOP! ▪ Review the report to identify and troubleshoot the problem ▪ Common causes for Create Accounting to Fail: — The Application Accounting Definition was not validated (in this case the Create Accounting program completes in a red error) — The DFF at the Line level was not used. In this example the Prepayment Type drives the Recognition accounting. So in the absence of this information on the DFF the Accounting will fail — The General Ledger period was not open — Cross-validation or Security Rules were violated — Account Combination was disabled Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  48. 48. ■ Create Accounting ▪ Will generate the Subledger Accounting Program Report Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  49. 49. ■ Subledger Multiperiod Accounting and Accrual Reversal Report Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  50. 50. ■ Subledger Multiperiod Accounting and Accrual Reversal Report Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  51. 51. ■ Subledger Multiperiod Accounting and Accrual Reversal Report Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  52. 52. ■ Subledger Multiperiod Accounting and Accrual Reversal Report Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  53. 53. ■ GL Journal Entry Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  54. 54. ■ Expected journal entries in Jun-14 ■ Expected journal entries Jul-14 to Jun-15 Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC Period Journal Period Amount Jul-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Jan-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Aug-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Feb-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Sep-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Mar-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Oct-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Apr-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Nov-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 May-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Dec-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Jun-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Period Journal Period Journal Jun-14 Dr Prepaid Expense $12,000 Cr AP Liability $12,000 Jun-14 Dr AP Liability $12,000 Cr Bank $12,000
  55. 55. ■ “Complete Multiperiod Accounting” concurrent program ▪ Run in subsequent months from Jul-14 to Jun-15 ▪ Schedule this program to run automatically Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  56. 56. ■ Complete Multiperiod Accounting concurrent program ▪ Creates journal entries for Expense Recognition for the period it is run ▪ Provides a report for the Multiperiod Journal Entries for that period Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  57. 57. ■ Complete Multiperiod Accounting concurrent program Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  58. 58. ■ Complete Multiperiod Accounting concurrent program Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  59. 59. ■ GL Journal Entry in each subsequent period through Jun-15 Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC
  60. 60. ■ Expected journal entries in Jun-14 ■ Expected journal entries Jul-14 to Jun-15 Transaction Processing for MPA Copyright Prithis Das Dynamique Solutions LLC Period Journal Period Amount Jul-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Jan-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Aug-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Feb-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Sep-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Mar-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Oct-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Apr-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Nov-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 May-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Dec-14 Dr Expense $1,000 Cr Prepaid Expenses $1000 Jun-15 Dr Expense $1,000 Cr Prepaid Expenses $1000 Period Journal Period Journal Jun-14 Dr Prepaid Expense $12,000 Cr AP Liability $12,000 Jun-14 Dr AP Liability $12,000 Cr Bank $12,000
  61. 61. Implementation Considerations Copyright Prithis Das Dynamique Solutions LLC
  62. 62. ■ Enhancement possibilities ▪ Use a DFF for Prepayment Type and a Mapping Set to drive the expense account (as shown in this example) ▪ Alternately, use the Prepayment Account on the invoice to drive the Expense account using a Mapping Set ■ Invoice having regular expense or Asset purchase in addition to Prepayment expense ▪ Use Deferred option fields only for those lines which are prepayment in nature ■ What if Prepaid Invoice is already paid outside Oracle ▪ Can enter Invoice in Oracle and set Deferred start and end dates. System will take care of the rest and account correctly Implementation Considerations Copyright Prithis Das Dynamique Solutions LLC
  63. 63. ■ Existing open Prepayments when MPA is implemented ▪ There is no way to “convert” Prepayment invoices to Standard invoices using MPA. Process Prepayment invoices as usual till they are closed. ■ If the journal effective date of a journal imported from the Subledger defaults to the last date of the period, you will have to adjust the “summarization” Subledger Accounting Options for the Ledger ■ Critical patches released for Multiperiod Accounting in SLA ▪ 7109881, 8505463, 8635648, 8664504, 9954676, 9162117, 10394715, 11654120, 13023651 and 13415216. ▪ Patch 13018752:R12.XLA.B is recommended for Proration Type “First Period” amounts fix Implementation Considerations Copyright Prithis Das Dynamique Solutions LLC
  64. 64. ■ Do we need two accrual journal line types to achieve single period accounting and multiperiod accounting? ▪ No, two separate accrual journal line types are not required. ▪ With the same accrual journal line type, single period and multiperiod accounting can be created. ▪ Whether multiperiod or single period accounting is to be created for a transaction is determined based on the value passed for the Multiperiod Option accounting attribute. ▪ If the value passed is 'Y' then multiperiod accounting is created. If the value passed is 'N' or null then single period accounting is created. ■ No changes in MPA functionality from 12.1.3 to 12.2 as of today Implementation Considerations Copyright Prithis Das Dynamique Solutions LLC
  65. 65. References Copyright Prithis Das Dynamique Solutions LLC
  66. 66. References ■ Oracle Subledger Accounting Implementation Guide (E13628-04) ■ Document 1399611.1 on My Oracle Support ▪ Out-dated information (12.1.2), but useful for basic setups ■ Document 1915795.1 for 12.1.3 on My Oracle Support ▪ Most current document (Aug-2014) ▪ Gives explanation of Proration Type options with examples Copyright Prithis Das Dynamique Solutions LLC
  67. 67. Q & A • Contact Email prithis.das@dynamique.us Cell +1.630.3649457 Website www.dynamique.us Additional questions?

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