1. Accounting Events

2. Objectives
After completing this lesson, you should be able to do the following:
Describe the accounting flow in Oracle Cash Management
Describe how to set up Oracle Subledger Accounting for Cash Management

3. Agenda Overview of accounting events Key concepts of SLA
Setting up Subledger Accounting
Subledger Accounting in Cash Management
Posting journal entries to General Ledger

4. Overview of Accounting and Cash Management
SLA
General Ledger
Bank Account
Transfers
Accounting
Events
Accounting
Program
Journal Entries
and Balances
Bank Statement
Cash Flows
Overview of Accounting and Cash Management
You can automatically create accounting entries for bank account transfers and bank statement cash flows using Oracle Subledger Accounting (SLA). You can also create manual journal entries if you need to account for any business events not related to bank account transfers and cash flows.
Oracle Subledger Accounting is a rule-based accounting engine that centralizes journal entry creation for E-Business Suite products. SLA creates journal entries for subledgers and transfers them to Oracle General Ledger.
Cash Management provides predefined rules that SLA uses to create journal entries for each accounting event. You can also define your own accounting rules.
SLA allows multiple accounting representations for a single business event, resolving differences between corporate and local fiscal accounting requirements. The most granular level of journal entry detail is retained in the subledgers and summarized in General Ledger.
You can view all journal entries produced by Cash Management accounting events in the Transactions pages in Cash Management. You can also drill down from the journal entry in General Ledger to view its source transaction in Cash Management.

5. Oracle Subledger Accounting
Oracle Subledger Accounting is a rule-based accounting engine, toolset, and repository supporting both Oracle E-Business Suite and external 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, enabling full auditability and reconciliation
Introduces a common data model and user interface across subledgers providing a single source of truth for financial and management analysis
Oracle Subledger Accounting
Oracle Subledger Accounting (SLA) is primarily a rule-based accounting engine that centralizes accounting for Oracle E-Business Suite products as well as providing an accounting toolset and repository. It is not a separate product in itself, but it is Oracle’s engine catering to the accounting needs of both Oracle and external modules.
Together with the ledger support, it enables support of multiple accounting requirements concurrently in a single instance. Different accounting regulations can be satisfied by maintaining and applying different sets of rules to different sets of transactions. It can also provide accounting for the same transaction with multiple methods.
By maintaining a full link between the transaction and accounting data, it allows powerful reconciliation and auditing capabilities.
SLA provides the setup user interface (UI), inquiry UI, and data model for accounting across Oracle E-Business Suite modules. This common UI provides consistency in reporting, analysis, and user experience. In turn allowing it to replaces various product specific accounting setups that were common in earlier Oracle E-Business Suite releases.

6. Oracle Subledger Accounting Integration
Transactions
Accounting Events
Oracle Application
SLA
Accounting
Configurations
Journal Entry Setup
Program
Subledger
Balances
Journal Entries GL
Journal Entries
and Balances
General Ledger
Oracle Subledger Accounting Integration
Oracle Subledger Accounting integrates with the following E-Business Suite applications:
Payables
Receivables
Projects
Assets
Costing
OPM
Public Sector/Federal
Payroll
Property Manager
Loans
Lease Management
Intercompany
Cash Management
Globalizations
For complete details regarding Subledger Accounting, see: Oracle Subledger Accounting Implementation Guide.

7. Subledger Accounting Key Concepts
Event Model: definition of the subledger transaction types and lifecycle
Event Class: classifies transaction types for accounting rule purposes
Event Type: for each transaction type, defines possible actions with accounting significance
Transaction object: data model containing transaction information to be used in accounting
Source: any attribute of a transaction that can be used in defining the journal entry rules and when generating an entry
Subledger Accounting Key Concepts
The event model defined in SLA for each subledger represents the transaction or document types and the lifecycle of each transaction:
Event class classifies transaction types
Event type defines possible actions on each event class with possible accounting significance.
The journal creation rules are defined per event class and event type.
Transaction object and sources are the data model for each subledger that contains the transaction attributes and information made available to be used during journal rule setup and journal entry generation.

8. Subledger Accounting Key Concepts in Cash Management
Sources
Event Type
Event Class
Create
Bank Account Transfer Date
Cash Flow Amount
Bank Account Number
other
Bank Account
Transfer
Cancel
Clear
Unclear
Bank Statement Date
Bank Statement Number
Cash Flow Amount
other
Bank Statement
Cash Flow
Record
Cancel
Subledger Accounting Key Concepts in Cash Management
In Cash Management, there are two event classes: Bank Account Transfer and Bank Statement Cash Flows. SLA uses seeded accounting rules to create journal entries for each event type.
Bank Account Transfer: An accounting event is raised when a bank account transfer is created, canceled, cleared or uncleared.
If you run the Create Accounting Program to create accounting for these event types, no accounting is created. Additionally, once the Bank Account Transfer is cleared and the Create Accounting Program is successfully run, the status of the accounting events is set to ‘Partially Accounted’ rather than ‘Accounted’, even though the accounting entries have been created. This is intended. This is because there are no Journal Line Definitions seeded for the event type ‘Bank Account Transfer Created’
If you create journal entries for the Bank Account Transfer Create event and then cancel the bank account transfer, the Bank Account Transfer Canceled event will produce reversing journal entries. If you cancel a bank account transfer before creating journal entries, then no journal entries are created at all.
Each bank account transfer produces two cash flows: an outflow for the source bank account and an inflow for the destination bank account. Since you clear bank account transfers by bank account, the clearing status of cash flows can be different.
Bank Statement Cash Flows: An accounting event is raised when a bank statement cash flow is recorded or canceled.
If you create journal entries for the Bank Statement Cash Flow Recorded event and then cancel the bank statement cash flow, the Bank Statement Cash Flow Canceled event will produce reversing journal entries. If you cancel a bank statement cash flow before creating journal entries, then no journal entries are created at all.

9. Subledger Accounting Setup and Process
Journal Entry Setup
Methods and Definitions
Ledger Setup
Define account derivation rules
Define descriptions
Define journal line types
Define journal line definitions
Define application accounting definition
Validate application accounting definition
Define subledger accounting method
Assign
subledger accounting
method
to ledger
Subledger Accounting Setup and Process
You can define your own accounting rules in addition to the accounting rules seeded for Cash Management, The setup for subledger accounting is common for all subledger applications and involves setting up journal entries, defining a subledger accounting method and assigning the subledger accounting method to the ledger. The setup steps are described in detail in the Oracle Subledger Accounting Implementation Guide.

10. Subledger Accounting Process for Cash Management
Create Bank Account Transfer
Or Bank Statement Cash Flow
Run Create Accounting Program
Transfer Journals to
General Ledger
Post Journals in General Ledger
Subledger Accounting Process for Cash Management
(N) Other: Programs > Run
Accounting Process in Cash Management
To create journal entries, run the Create Accounting program. This program retrieves all eligible accounting events, creates journal entries, and transfers them to GL. You can schedule this program to run at specific times if you want.
Run this program in Draft mode if you want to review the journal entries before they are created in the system. You can also specify other parameters to determine whether to automatically transfer and post journal entries to General Ledger when the program runs or to specify which accounting events to capture.
Parameters
Process Category: Bank Account Transfers Cash Flows, Bank Statement Cash Flows, Manual, Third Party Merge or leave blank to create journal entries for all available accounting events.
End Date: Specify the last date
Mode: Draft or Final
Errors Only: Yes, No
Report: Summary, Detail, or No Report
Transfer to General Ledger: Yes, No
Post in General Ledger: Yes, No
Include User Transaction Identifiers: Yes, No
Refer to Guided Demonstration - Create Accounting [LAB3F7CY]

11. Creating Manual Journal Entries
Create Journal Entry
Transfer Journals to
General Ledger
Post Journals in General Ledger
Creating Manual Journal Entries
To create journal entries manually:
1. Navigate to the Subledger Journal Entries page.
2. Click Create Journal Entry
3. Enter Balance Type, GL Date, Ledger, Category, Description and and other attributes.
4. Select GL accounts and enter debit and credit amounts.
5. Click Save as Incomplete if you plan to finalize later, or click Continue.
6. Click Finish to validate and finalize the journal entry.
7. Run the Transfer Journal Entries to GL concurrent program.

12. Summary In this lesson, you should have learned how to:
Describe Oracle General Ledger setup for Oracle Cash Management
Describe related setup for Payables, Receivables, and Payroll
Describe Oracle Cash Management setup