1. Overview of Subledger Accounting Oracle Subledger Accounting

2. Objectives After completing this lesson, you should be able to: Describe Subledger Accounting key concepts and terminology. Describe how Oracle Subledger Accounting integrates with other Oracle E-Business Suite applications. Give a basic overview of accountings setups, ledgers, and multiple representations (reporting currencies and secondary ledgers).

3. What is Subledger Accounting? Oracle Subledger Accounting is: A rule based engine for generating accounting entries based on subledger transactions from all Oracle applications. Single source of truth

4. Introduction to Subledger Accounting Rule-based accounting engine, toolset, and repository supporting Oracle E-Business Suite modules. Allows multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements. Retains the most granular level of detail in the subledger accounting model, with different summarization options in the General Ledger, allowing full auditability and reconciliation. Introduces a common data model and user interface across subledgers, providing single source of truth for financial and management analysis.

5. Introduction to Subledger Accounting Subledger Accounting provides the following services to Oracle Applications: –Generation and storage of detailed accounting entries –Storage of subledger balances –Subledger accounting entries; with drilldown to transactions –Subledger reporting; for example, subledger journal reports, open account balances listing –Configurable rules instead of hard-coded ones, common accounting engine

6. Introduction to Subledger Accounting Subledger Accounting is not a product, it is a set of services to a product. There are no Subledger Accounting responsibilities. You do not log in to Subledger Accounting. Subledger Accounting forms and programs are embedded within standard Oracle Application responsibilities (e.g. Payables Manager).

7. Introduction to Subledger Accounting Management Framework Information Delivery Regulatory Reporting Subledger Accounting Transaction Systems Oracle Payroll Oracle Projects Oracle Payables Oracle Receivables Centralized accounting rules Predefined Validations Date effective policies Sophisticated error handling Full audit trail Bidirectional drilldowns Centralized accounting rules Predefined Validations Date effective policies Sophisticated error handling Full audit trail Bidirectional drilldowns Detailed Journal Entries Detailed Journal Entries Configurable Reference Information Configurable Reference Information Consistent Balances Consistent Balances Online inquiries Online inquiries Detailed Journal Entries Detailed Journal Entries Configurable Reference Information Configurable Reference Information Consistent Balances Consistent Balances Online inquiries Online inquiries AnalyticsAnalytics

8. Introduction to Subledger Accounting US GAAP US COA US Calendar $ US GAAP US COA US Calendar £ Simultaneous accounting for all entities… US GAAP US COA US Calendar $ …while ensuring corporate visibility & local compliance French IAS Plan Comptable French Calendar € Operations in US, UK, and France

9. Introduction to Subledger Accounting

10. Invoice Internal Identifier: 1001 Ledger: FR Statutory GL Date: 2-Mar-2006 Invoice# 100 Supplier: ABC Networks Invoice #100 ABC Networks 2 Monitors – Marketing $1000 5 Printers – Marketing $ 500 Freight $ 100 Tax $ 110 Total $1710 Ledger: US Corporate GL Date: 2-Mar-2006 Invoice# 100 Supplier: ABC Networks Invoice Internal Identifier: 1001 DRCR 1 Expense 01-EXP-200$1500 2 Freight 01-FR-200$100 3 Tax 01-TX-200 $110 4 Liability 01-LIAB-200$1710 Invoice Line 1 Invoice Line 2 Invoice Line 3 Invoice Line 4

11. Introduction to Subledger Accounting Invoice #100 $1000 01-EXP-200 DRCR $800 01-EXP-240 DRCR $200 Invoice #100 - 01-LIAB-200 DRCR 01-LIAB-240 DRCR - Invoice #100 $200 $800 -Pmt 1101 for Invoice #100 $100 Pmt 1101 for Invoice #100 - $400 01-CASH- 200 DRCR 01-CASH-240 DRCR $100$400 - Pmt 1101 for Invoice #100 Payment #1101 $500 Invoice #100

12. Applications that use Subledger Accounting Payables Receivables Projects Assets Costing Process Manufacturing Public Sector Federal Financials Payroll Property Manager Loans Lease Management (Post R12) Cash Management Globalizations Intercompany

13. What is a subledger? Subledgers are applications to manage operational transactions with financial impact. Subledgers store accounting at transaction level of detail. Subledgers post summarized activity information to a general ledger periodically to maintain centralized account balances for the company.

14. Subledger Balances Third Party Control Account Balances Track balances by account and Customer/Supplier Statutory reporting requirement in certain countries Open Account Balances Track balances by originating transactions and downstream applied transactions Balances calculated and stored AFTER Accounting Program completes.

15. Summary In this lesson, you should have learned how to: Describe Subledger Accounting key concepts and terminology. Describe how Oracle Subledger Accounting integrates with other Oracle E-Business applications. Give a basic overview of accountings setups, ledgers, and multiple representations (reporting currencies and secondary ledgers).

16. Practice 1: Create a New User Note: You should choose to follow either the Payables or the Receivables practices throughout the training.

17. Practice 2: Create a Supplier