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Understanding the use and configuration of Subledger Accounting for

Project Related Transactions


Phil Miller
Signet Enterprises, LLC
Introduction
This paper will educate the audience on how project related transactions are affected by subledger
accounting in release 12 as well as highlight differences between subledger accounting and
AutoAccounting/Account Generator. The paper will also cover the configuration of subledger accounting.
In addition, the paper will provide an overview of the subledger accounting upgrade process as well as
provide some upgrade considerations.

Subledger Accounting Overview


Oracle Projects, along with other financial applications, will begin to utilize Subledger Accounting (SLA)
in release 12 (r12) to create accounting entries to be posted to the General Ledger. Prior releases (e.g.,
Release 11) of Oracle Projects utilized AutoAccounting (AA) to build the accounting code combination
(CCID) for accounting transactions that originated in Oracle Projects. Prior to r12 project related
transactions that originated in Payables utilized the Account Generator (AG) to build the CCID on the
applicable invoice distribution. In addition, AG was used to build the CCID on the distribution line of
Purchase Requisitions/Orders.
The seeded SLA setup provided with Oracle Projects still utilizes the accounting transactions created by the
applicable AutoAccounting function. However, users can optionally choose to override these accounts
utilizing the SLA Accounting Methods Builder (AMB).
The SLA is considered an event driven model. The SLA processes, details provided later in the paper,
create accounting events. Accounting events are accounting entries actually created in the Subledger
accounting application, which ultimately get posted to the General Ledger. The accounting events in turn
are tied to a business event (e.g., An employee charging labor to projects). The events are grouped into
event entities. Oracle Projects has three different sets of event entities:
-

Expenditures
Revenue
Budgets

Each event entity is tied to one or more event classes, which are business event categories (e.g., Labor Cost,
Usage Cost,..). An event class is tied to an event type (e.g., The Labor Cost Event Class ties to the Labor
Cost Distribution event class). The event type is the lowest level for storing the corresponding accounting
rules. To minimize the scope of SLA while achieving the authors objectives, the presentation will focus
on the expenditures event entity. The material referenced at the end of the document can be utilized to
obtain additional information on the other event entities or for additional information on the expenditures
event entity not covered in this material.

AutoAccounting/Account Generator/Subledger Accounting Comparison


Terminology - For prior users of Oracle Projects to understand SLA, it is helpful to learn the SLA
terminology as it relates to AA/AG. The table below provides a summary of the terminology.
Terminology Comparison
AutoAccounting (AA)

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Account Generator (AG)

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Subledger Accounting (SLA)

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Lookup Sets
Intermediate Value
AA Rules
Parameter
AA Function Transactions

Value Sets or Lookup Sets


Segment Value
Process
Attribute
Compare Functions

AA Functions
AA Rule Assignment
Table 1

Separate AG
Function Assignment

Mapping Sets
Input Value
Account Derivation Rules
Source
Conditions on Account
Derivation Rules
Journal Line Types
Journal Line Definitions

Processes - The processes required to create the applicable CCIDs via SLA has changed slightly from
previous releases of Oracle Projects. The following table provides a list of processes that are required to
create CCIDs for cost transactions along with notes and the comparable process, if applicable, from
previous releases.
SLA r12 Cost Processes
Process

CCID Notes

PRC: Distribute XX
(XX can be labor,
miscellaneous
transaction,..)

Utilizes the applicable AutoAccounting function (e.g., Labor


Cost Account AA function would be used by the PRC:
Distribute Labor Cost process) to create the Debit CCID for the
cost transaction. This is required even if the SLA is later used to
override the CCID.
Utilizes the applicable AutoAccounting function to create the
Credit CCID for the cost transaction (e.g., Labor Cost Clearing
Account AA function would be used to build the credit account
for a labor transaction). This is required even if the SLA is later
used to override the CCID. Note: In prior releases (pre r12), the
credit CCID would be built by the applicable interface to GL
process (e.g., For labor costs, PRC: Interface Labor Costs to the
GL).
Utilizing the SLA configuration for Oracle Projects, this process
will create the Dr/Cr CCIDs that are loaded into the Subledger
accounting tables to be interfaced to the General Ledger. Note:
The seeded SLA setup is to accept the CCIDs already provided
with each transaction. This means that the CCIDs created by the
AutoAccounting functions will be used if the seeded SLA has
not been modified.
This process will populate the GL Interface table with eligible
journal entries in SLA. This process is optional as there is a
parameter within the PRC: Create Accounting process that
allows journal entries to be transferred to the GL Interface table
(i.e., Making a separate submission of this process to be
unnecessary).

PRC: Generate Cost


Accounting Events

PRC: Create
Accounting

PRC: Transfer Journal


Entries to GL

Exist in
previous
release
Yes

No

No

No

Table 2
The SLA r12 Cost Processes table is helpful in comparing AA functionality to SLA functionality as forms
previously called AG and therefore processes were not required to create the CCID for payables/purchasing
transactions.
Other Differences The following list is intended to highlight other significant differences between
AA/AG and SLA functionality.

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SLA allows effective dates within its Mapping Sets (e.g., An expenditure type could map to
account 1234 in 2008 and 5678 in 2009)
SLA allows adjustments to have their own set of accounting rules. Examples of adjustments
are transactions resulting from transfers or reversals whereas changes to a transaction at the
distribution line (recalculating cost or marking the transaction billable or nonbillable) are not
considered adjustments.
SLA does not have the concept of function transactions. AA provided function transactions
to allow for different set of accounting rules based upon transaction characteristics without
building the logic into the rule itself (e.g., The Capital, All set of transactions would allow
users to have a set of rules applicable to all capital transactions without building the
condition into the AA rule). SLA needs to build this logic into the rule (e.g., If a capital
transaction gets mapped to Account 1234 and non capital transactions get mapped to 5678
then the Account Derivation Rule would have to check to see if the transaction is capital or
not).
SLA comes with a seeded setup that cannot be modified. As mentioned previously, the
seeded setup accepts the CCIDs created by the applicable AA rule. In order to change the
configuration, the seeded setup needs to be copied then modified (i.e., The seeded setup
cannot be changed).
SLA allows the users to populate the entire CCID within one rule versus populating each
segment independently as is the case for both AG and AA.

Subledger Accounting Configuration


The configuration of SLA can be grouped into two categories:
-

Ledger based setups that control program defaults and the overall mapping of the collective
rules for the application to utilize.
Accounting Methods Builder configurations allow the users to build their own detailed logic
to control the population of transaction CCIDs based upon their own requirements.

Ledger setup In r12 the Implementation Options for Oracle Projects maps to a ledger (Set of Books
(SOB) is no longer used). A ledger has its own set of SLA configuration options. The ledger SLA
configuration options are grouped into two additional categories: Ledger Definition and Accounting
Options. The following is a description of the different options for both categories.
Ledger Definition Within the ledger definition, there is a section for Subledger Accounting setups. The
following screen shot displays all the different options but the most important option to consider for setting
up SLA is the Subledger Accounting Method. The value entered in this configuration option determines the
rules that will be used by all the subledgers that reference the applicable ledger. This is the hook that needs
to be set to change how the accounting will work when the applicable processes run. In the screen shot
below the Subledger Accounting Method has been changed to a User Defined Method (Test) from the
seeded setup value.

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Accounting Options Each ledger has a set of Subledger Accounting Options for each Subledger (e.g.,
Projects has its own Subledger Accounting Options,) that cover the following items:
-

General Accounting Options set some high level application settings such as: General Ledger
summarization method; Reversal Method; Rounding Rule; Third Party Merge Accounting
Option. These configuration options are relatively straightforward and additional
configuration details can be provided in the Oracle Subledger Accounting Implementation
Guide.
Accounting Program Defaults These configuration items control the defaults that will be
used by the applicable SLA process (e.g., PRC: Create Accounting). In addition, there is a
configuration for each default that determines if the default can be overridden or not. The
program default settings are: Accounting Program Mode; Transfer to GL; Post in GL;
Accounting Report Level; Stop at Error Level. These configuration options are relatively
straightforward and if additional configuration details are needed then please reference the
Oracle Subledger Accounting Implementation Guide.
Event Class Options For each event class (e.g., Burden Cost, Labor Cost, Inventory Cost,..)
a journal category can be set that will be referenced when the Subledger entries are interfaced
into the General Ledger.

The following screen shot details the different settings referenced above:

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Accounting Methods Builder (AMB) The AMB is the collective group of rules that can be configured to
allow the users to build the transaction CCID logic based upon their requirements. Note: This would be
done if the users determined that they did not want the project transactions to be ultimately posted to the
GL based upon the logic created in AA.
The following steps need to be followed to implement the AMB:
Step 1: Journal Line Types Sets the characteristics of the Subledger journal lines such as if the balances
are actual, budget or encumbrance.
Step 2: Journal Entry Descriptions Allows the users to configure the descriptions passed to the journal
header and lines.
Step 3: Mapping Sets Users can map transaction characteristics to segment values (or complete CCID
string). These mappings have effective dates.
Step 4: Account Derivation Rules The rules that determine how the CCID will be populated.
Step 5: Journal Line Definitions Groups the journal line types, account derivation rules and journal entry
descriptions for different event types (e.g., Labor Cost has a set of definitions).
Step 6: Application Accounting Definitions Ties all the different application event classes to journal line
definition.
Step 7: Subledger Accounting Methods The Subledger accounting ties the application accounting
definitions to each individual application.
Configuration Strategy Determining the appropriate method (i.e., Utilize the seeded SLA or utilize AA)
to implement the accounting logic for your business requires analyzing several factors including:

Fresh Implementation v. Upgraded Instance


Future Direction of Oracle Projects Accounting Functionality
Resource Skill Sets
Cross Training between Production Support Personnel

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The conclusion of this document provides a recommendation on the SLA configuration strategy.

Upgrade Considerations
Data - Although the upgrade to r12 is the initial introduction to the Subledger Accounting functionality, the
r12 upgrade still needs to consider the Subledger Accounting data requirements. During the upgrade,
accounting data from the affected applications (Projects, Payables,..) will be upgraded to the SLA data
model. The default for upgrading the data is the current fiscal year or six months, whichever is greater.
However, the default can be changed to as many periods as deemed necessary. The recommendation
provided within Metalink is to upgrade the data that you need. In order to determine the data you need,
it is helpful to consider the use of the upgraded data by the applications. The data facilitates queries, drill
down functionality between products and reports. Therefore, defining the amount of data that is needed
should be a pre-upgrade task that considers: System Space, Reporting Requirements and On-line Analysis
Requirements. The upgrade to the SLA data model is a two-step process and allows the users flexibility in
timing the data migration. The two-steps are:
-

Pre-Upgrade The pre-upgrade process allows customers to increase the default number of
periods that are being upgraded (e.g., If the customer decides that they want two years of data
v. only six periods then the pre-upgrade process would be used to change the default). The
pre-upgrade process does not upgrade any data but changes the setting in the
GL_Period_Statuses table. This process cannot be run in r12.
Post-Upgrade The post-upgrade process populates the Subledger accounting tables. The
process, SLA post-upgrade process, can be run after the upgrade during business hours or
during scheduled down-time to minimize the affect on the users and other processes.

Configuration The AutoAccounting rules implemented in the previous releases will be upgraded to r12.
As is the case with a fresh install, the default seeded SLA configuration is to accept the CCIDs provided by
the applicable AA function. As is the case with a fresh install, consideration must be given to implementing
the new SLA accounting model. The conclusion of this document provides a recommendation on the SLA
configuration strategy when upgrading to r12.

Conclusion
The differences between AutoAccounting/Account Generator and Subledger Accounting are numerous but
conceptually the process is very similar (i.e., The user can populate segments of the accounting code
combination based upon transaction attributes). Therefore, it is only a matter of getting used to the new
terminology/processes versus relearning the underlying concept of populating the CCID for Oracle Project
Transactions.
The fact that r12 Oracle Projects still requires the setup of AutoAccounting and the seeded Subledger
Accounting Setup accepts the values created by AutoAccounting means that there is a decision to be made
when building your accounting logic for Oracle Project transactions (i.e., Use AA to build the accounting
logic or SLA?). It is recommended for new implementations that the accounting logic is built using SLA
and only set constant values for AA. This recommendation is based upon the following: SLA appears to be
the future accounting engine (AA/AG will no longer be used in Fusion), SLA is used by other financial
applications and therefore users are cross training for other applications when configuring SLA (i.e., The
configuration AA Rules are unique to Oracle Projects), Users will not have to learn a temporary skill set
and SLA is more robust than AutoAccounting (e.g., Users can effective date rules, populate the entire
CCID in one rule,). For upgrades it is recommended to utilize the AA rules until there is time to
reconfigure SLA with the AA logic (or new logic if applicable). This recommendation is based upon the
fact that the AA skill set is already in house (i.e., No learning curve), AA is already configured (No extra
upgrade time would be required) and this will allow the users to focus on other issues during the time
sensitive upgrade (i.e., Adding the setup of SLA would be another cutover task).

Reference Material

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The following documents (and referenced sections where listed) provide valuable information on the use of
Subledger Accounting within Oracle Projects along with the information on upgrading Subledger Data.
-

Oracle Projects Implementation Guide Release 12 Part No. B25623-02: Appendix G (pps.
G52 G57) and Accounting for Costs (pps. 3-40 3-47)
Oracle Subledger Accounting Implementation Guide Release 12 Part No. B19384-03
Oracle Projects Fundamentals Release 12 Part No. B25617-02: Integrating with Oracle
Subledger Accounting (pps. 12-9 12-33)
Oracle Applications Upgrade Guide: Release 11i to Release 12.04 Part No. E12011-02
Metalink Document - R12: FAQ for the SLA Upgrade: SLA Pre-Upgrade, Post-Upgrade, and
Hot Patch (Doc ID 604893.1)

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