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R12.x Oracle Subledger Accounting Fundamentals: Activity Guide

This document provides an overview and instructions for using Oracle's R12.x Subledger Accounting functionality. It covers how to create users, suppliers, customers and journal entries. It also demonstrates how to define accounting methods, journal lines, account derivation rules and application accounting definitions using the Accounting Methods Builder. Finally, it shows how to create manual journal entries, reports and configure advanced options like business flows and multi-period accounting. The goal is to teach the user how to set up and use the key capabilities within Oracle's Subledger Accounting module.

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0% found this document useful (0 votes)

65 views199 pages

R12.x Oracle Subledger Accounting Fundamentals: Activity Guide

Uploaded by

Hazem Waheeb

We take content rights seriously. If you suspect this is your content, claim it here.

Available Formats

Download as PDF, TXT or read online on Scribd

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R12.

x Oracle Subledger
Accounting Fundamentals
Activity Guide
Table of Contents

R12.x Oracle Subledger Accounting Fundamentals .....................................................................................1-1

R12.x Oracle Subledger Accounting Fundamentals.......................................................................................1-3
Objectives ......................................................................................................................................................1-4
Overview ........................................................................................................................................................1-5
Practice - Create a New User.....................................................................................................................1-6
Solution - Create a New User.....................................................................................................................1-7
Practice - Create a Supplier with One Site .................................................................................................1-9
Solution - Create a Supplier with One Site .................................................................................................1-11
Practice - Create a Customer (Required) ...................................................................................................1-19
Solution – Create a Customer (Required) ..................................................................................................1-21
Create Accounting and Transfer Journal Entries to General Ledger..............................................................1-24
Practice - Enter an Invoice with Two Lines That Are Distributed to Different Departments ........................1-25
Solution - Enter an Invoice with Two Lines That Are Distributed to Different Departments ........................1-26
Practice - Create an Invoice for Receivables .............................................................................................1-29
Solution - Create an Invoice .......................................................................................................................1-30
Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in
Payables ....................................................................................................................................................1-31
Guided Demonstration - Run the Create Accounting Program and Transfer Journal Entries to GL Program in
Receivables................................................................................................................................................1-32
Inquiries .........................................................................................................................................................1-34
Guided Demonstration - Inquiring on Subledger Journal Entries in Payables or Receivables ...................1-35
Practice - Inquiring on Subledger Journal Entries for Payables and Receivables ......................................1-36
Solution – Inquiring on Subledger Journal Entries for Payables and Receivables .....................................1-37
Accounting Methods Builder (AMB) ...............................................................................................................1-40
Guided Demonstration - Defining Journal Line Types in Payables ............................................................1-41
Practice - Defining Journal Line Types for Payables..................................................................................1-43
Solution – Defining Journal Line Types for Payables .................................................................................1-44
Guided Demonstration - Defining Journal Line Types in Receivables........................................................1-48
Practice - Defining Journal Line Types for Receivables .............................................................................1-49
Solution – Defining Journal Line Types for Receivables ............................................................................1-51
Guided Demonstration - Defining Journal Lines Definitions for Payables ..................................................1-57
Practice - Defining Journal Lines Definitions for Payables .........................................................................1-58
Solution – Defining Journal Lines Definitions for Payables ........................................................................1-59
Guided Demonstration - Defining Journal Lines Definitions for Receivables .............................................1-62
Practice - Defining Journal Lines Definitions for Receivables ....................................................................1-63
Solution – Defining Journal Lines Definitions for Receivables....................................................................1-64
Guided Demonstration - Defining Account Derivation Rules for Payables .................................................1-67
Practice - Defining Account Derivation Rules for Payables ........................................................................1-69
Solution – Defining Account Derivation Rules for Payables .......................................................................1-71
Guided Demonstration - Defining Account Derivation Rules in Receivables..............................................1-79
Practice - Defining Account Derivation Rules for Receivables ...................................................................1-81
Solution – Defining Account Derivation Rules for Receivables ..................................................................1-83
Guided Demonstration - Defining an Application Accounting Definition in Payables..................................1-92
Practice - Defining an Application Accounting Definition for Payables .......................................................1-93
Solution – Defining an Application Accounting Definition for Payables ......................................................1-94
Guided Demonstration - Defining an Application Accounting Definition in Receivables.............................1-98
Practice - Defining an Application Accounting Definition for Receivables ..................................................1-99

i
Solution – Defining an Application Accounting Definition for Receivables..................................................1-100
Guided Demonstration - Defining Subledger Accounting Methods in Payables .........................................1-104
Practice - Defining Subledger Accounting Methods for Payables ..............................................................1-107
Solution – Defining Subledger Accounting Methods for Payables..............................................................1-108
Guided Demonstration - Defining Subledger Accounting Methods in Receivables ....................................1-112
Practice - Defining Subledger Accounting Methods for Receivables..........................................................1-115
Solution – Defining Subledger Accounting Methods for Receivables.........................................................1-116
Practice - Defining Mapping Sets in Payables............................................................................................1-119
Solution – Defining Mapping Sets in Payables...........................................................................................1-122
Reports ..........................................................................................................................................................1-127
Guided Demonstration - Creating an Open Account Balances Listing Definition .......................................1-128
Practice - Control Accounts, Running Subledger Accounting Reports, Diagnostics...................................1-130
Solution - Control Accounts, Running Subledger Accounting Reports, Diagnostics...................................1-132
Creating Manual Subledger Journal Entries...................................................................................................1-145
Guided Demonstration - Creating Manual Subledger Journal Entries in Payables ....................................1-146
Practice - Creating Manual Subledger Journal Entries in Payables ...........................................................1-147
Solution – Creating Manual Subledger Journal Entries in Payables ..........................................................1-148
Guided Demonstration - Creating Manual Subledger Journal Entries in Receivables................................1-151
Practice - Creating Manual Subledger Journal Entries in Receivables ......................................................1-152
Solution – Creating Manual Subledger Journal Entries in Receivables......................................................1-153
Advanced Options..........................................................................................................................................1-156
Practice - Business Flows Example for Subledger Accounting ..................................................................1-157
Solution - Business Flows Example for Subledger Accounting ..................................................................1-158
Practice - Multiperiod Subledger Accounting..............................................................................................1-170
Solution - Multiperiod Subledger Accounting..............................................................................................1-171
Practice - Primary and Secondary Ledger Subledger Accounting..............................................................1-184
Solution - Primary and Secondary Ledger Subledger Accounting..............................................................1-185
R12.x Oracle Subledger
Accounting Fundamentals
Chapter 1
R12.x Oracle Subledger Accounting Fundamentals
Objectives

There are no labs created for this Topic.

Overview
Practice - Create a New User
Overview
In this practice, you will create a new user.

Tasks
1. Switch to the System Administrator responsibility.
− (I) Black Hat (on toolbar)
− Responsibility = System Administrator
2. Create a new user.
− User Name = XXUSER
− Password = welcome
− Person = Stock, Ms. Pat
Note: You have to tab and enter the password again.
3. Enter the responsibilities for this user.
Responsibility Security Group
General Ledger, Vision Operations (USA) Standard
Receivables, Vision Operations (USA) Standard
Payables, Vision Operations (USA) Standard
System Administrator Standard
4. Sign on as your new user.
Solution - Create a New User
Tasks

Sign on
1. Switch to the System Administrator responsibility.
− (I) Black Hat (on toolbar)
− Responsibility = System Administrator

Create a New User

2. Navigate to the Define User form
(N) Security > User > Define
− User Name = XXUSER, where XX is your terminal ID.
− Password = welcome (tab, re-enter to verify)
− Person = Stock, Ms. Pat
− (B) OK to the message that the employee is assigned to another user.

Add Responsibilities
3. Add the following responsibilities to your new username

Responsibility Security Group

General Ledger, Vision Operations (USA) Standard
Receivables, Vision Operations (USA) Standard
Payables, Vision Operations (USA) Standard
System Administrator Standard
4. Save and close the form.

Log in as New User

5. Exit Oracle Applications
− (M) File > Exit Oracle Applications
− (B) OK
6. From the Oracle E-Business Suite home page:
− (L) Log out
7. Log back in to the system with your newly created User ID and password.
− Old Password = welcome
− New Password = XXuser (Tab, re-enter to verify)
8. (B) Submit.
Practice - Create a Supplier with One Site
Overview
Your supervisor has notified you that the company will be purchasing materials and services
from new suppliers. In this practice, you will create a supplier with one site.

Tasks

Responsibility = Payables, Vision Operations (USA)

1. Create a supplier.
• (N) Suppliers > Entry
• (B) Create
− Supplier Type = Standard supplier
− Organization Name = XXIBM Corporation
− Type = Manufacturing
− Allow Tax Applicability = Checked
− Create Debit Memo from RTS Transaction = Checked
− Receipt Routing = Standard Receipt
− Allow Substitute Receipts = Checked
− Match Approval Level = 2-Way
− Invoice Match Option = Purchase Order
− Terms = Immediate
− Always Take Discount = Checked
− Payment Method : Electronic = Checked
2. Create a pay site.
− Address Line 1 = 1 Main St.
− City = San Francisco
− County = San Francisco
− State = CA
− Postal Code = 94105
− Address Name = San Francisco
− Addressee = San Francisco
− Phone Area Code = 415
− Phone Number = 555-1234
− Email Address = [email protected]
− Address Purpose, Payment option = Checked
3. Assign the San Francisco address to the Vision Operations operating unit.
4. Create a contact for the pay site.
− Navigate to (L) Contact Directory
− (B) Create
− First Name = John
− Last Name = Doe
− Email Address = [email protected]
− Phone Area Code = 415
− Phone Number = 555-1234
− Phone Extension = 1234
− Create User Account for this Contact = Checked
− iSupplier Portal Full Access = Checked

5. Set the Tolerance level for the San Francisco supplier site to Vision Operations –
Tolerance.
Solution - Create a Supplier with One Site
Tasks

Responsibility = Payables, Vision Operations (USA)

Create a Supplier
1. Navigate to the Suppliers page.
− (N) Suppliers > Entry
2. (B) Create Supplier.
− Supplier Type = Standard supplier
− Organization Name = XXIBM Corporation

3. (B) Apply.
4. Navigate to (L) Organization.
− Type = Manufacturing
5. (B) Save.
6. Navigate to (L) Tax and Reporting.
− Allow Tax Applicability = Checked

7. (B) Save.
8. Navigate to (L) Purchasing.
− Create Debit Memo from RTS Transaction = Checked

Note: Enable the Create Debit Memo From RTS Transaction option if you want the system
to automatically create a Debit Memo in Payables when you enter a Return to Supplier
(RTS) in Purchasing. The value for supplier site defaults from the Purchasing Options
window.
9. (B) Save.
10. Navigate to (L) Receiving.
− Receipt Routing = Standard Receipt
− Note: To find Standard Receipt:
− (I) Search
− Change the search criteria to Routing Name, not Routing Description.
− Receipt Routing = Standard Receipt
− Match Approval Level = 2-Way
− Allow Substitute Receipts = Checked
11. (B) Save.
12. Navigate to (L) Invoice Management.
− Invoice Match Option = Purchase Order
− Terms = Immediate
− Always Take Discount = Checked
13. (B) Save.
14. Navigate to (L) Payment Details.
− Payment Method : Electronic = Checked

15. (B) Save.

21. (B) Apply. This creates the basic supplier site.

22. To update the supplier site attributes, click Manage Sites.
23. (T) Uses.
− Pay = Checked
− Primary Pay = Checked

24. (T) Communication.

− Supplier Notification Method = Print
25. Apply.
Practice - Create a Customer (Required)
Overview
Before creating a customer, use the Customer Search page to determine if the customer
already exists and to minimize the possibility of creating a duplicate.
The Create Customer page displays differently, depending upon your customer type selection,
Organization or Person, on the Customer Search page.
In this practice, you will create an Organization customer.

Assumptions
• You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
• You have the Receivables, Vision Operations (USA) or Order Management Super
User, Vision Operations (USA) responsibility.
• Replace XX in the Practice with a unique identifier such as your initials or terminal
number. (For instructor-led training classes, this number will be assigned to you). This
is necessary in order to create unique records within the database when performing the
Practice.

Tasks

Create an Organization Customer

1. Navigate to the Customer Search page.
(N) Customers > Create/Maintain Customers
2. Search for the customer XXMegamart.
3. If the customer does not exist, click (B) Create
4. Enter the following data:
Enter the following customer information to create the new Organization customer:
Field Name Value
Organization Name XXMegamart
Alias Platinum

Enter the following account information to create the new Organization customer:

Field Name Value

Account Description XX- XXMegamart Account1
Profile Class DEFAULT
Account Type External
Enter the following account site information to create the new Organization customer:

Field Name Value

Country United States
Address Line 1 200 E Randolph Street
City Chicago
County Cook
State IL
Postal Code 60601
Address Description Western United States
Operating Unit Vision Operations
Business Purposes Bill To
5. Click (B) Save And Add Details to go to the Account Overview page. Alternatively, click (B)
Apply to go to the Customer Overview page.
6. Click the Details icon to the far right of the Bill To address
• Click the Business Purpose tab.
• On the Bill To Line, click Details.
• Salesperson: Abbott, Ms. Rachel
7. (B) Apply
8. Click Apply on the Account Overview page (or on the Customer Overview page if you
clicked (B) Apply in Step 5 to save the customer and return to the Customer Search page.
Solution – Create a Customer (Required)
Tasks

Create an Organization Customer

Enter the following account information to create the new Organization customer:
Field Name Value
Account Description XX- XXMegamart Account1
Profile Class DEFAULT
Account Type External

Enter the following account site information to create the new Organization customer:
Field Name Value
Country United States
Address Line 1 200 E Randolph Street
City Chicago
County Cook
State IL
Postal Code 60601
Address Description Western United States
Operating Unit Vision Operations
Business Purposes Bill To
5. Click (B) Save And Add Details to go to the Account Overview page. Alternatively, click (B)
Apply to go to the Customer Overview page.
6. Click the Details icon to the far right of the Bill To address
• Click the Business Purpose tab.
• On the Bill To Line, click Details.
• Salesperson: Abbott, Ms. Rachel
7. (B) Apply
8. Click Apply on the Account Overview page (or on the Customer Overview page if you
clicked (B) Apply in Step 5 to save the customer and return to the Customer Search page.
Create Accounting and Transfer Journal Entries to General Ledger
Practice - Enter an Invoice with Two Lines That Are Distributed to
Different Departments
Overview
You have received invoice XX1000 from XXIBM Corporation, which you will be entering into the
Oracle Payables system. The invoice is to be distributed to two departments in your company.

Tasks
Responsibility: Payables, Vision Operations (USA)
1. Navigate to the Invoices window.
2. Enter the following invoice:
Trading Invoice Invoice Description Payment Payment
Partner Num Amount terms Method
XXIBM XX1000 10000 Promotional Immediate Electronic
Corporation Giveaway
3. Enter the invoice lines based on the following table:
Num Type Amount Distribution Account
1 Item 4000 01-402-7110-0000-000
2 Item 6000 01-404-7110-0000-000
4. Save your work.
Solution - Enter an Invoice with Two Lines That Are Distributed to
Different Departments
Tasks

Enter Invoice
1. Navigate to the Invoices window.
(N) Invoices > Entry > Invoices
You may receive a message asking if you want to exit your current forms session. If you
do, click (B) Yes and then (B) OK. This message is received because we had a form open
as “OPERATIONS” and we have been working in self-service pages as “XXUSER”.
2. Enter an invoice using the following information:

Trading Invoice Invoice Description Payment Payment

Partner Num Amount terms Method
XXIBM XX1000 10000 Promotional Immediate Electronic
Corporation Giveaway

Enter Two Invoice Lines and Distribute Each Line to a Different Department
3. (T) Lines
4. Enter the invoice lines according to the following table:

Num Type Amount Distribution Account

1 Item 4000 01-402-7110-0000-000
2 Item 6000 01-404-7110-0000-000
5. Save.
6. (B) All Distributions. Note that because you entered the Distribution account for each Item
line, the distributions are automatically created for these lines.

7. Change Navigation menu to “Invoice Workbench”.

8. Validate the invoice.
Close the Distributions form.
(B) Actions… 1
Select the Validate check box.
(B) OK
9. Close the form back to the Navigation menu.
Practice - Create an Invoice for Receivables
Overview
In this practice you will create a receivables invoice.

Assumptions
• If you are not attending training at an Oracle University or Authorized Partner
Education Center, you must have access to an Oracle Application Vision database or
comparable training test instance on which to complete this Practice.
• Replace XX in the practice with a unique identifier such as your initials or a number.
(For instructor-led training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
practice.

Tasks

Create an Invoice

Responsibility = Receivables, Vision Operations (USA)

1. Navigate to the Transactions window
(N) Transactions > Transactions
− Source: Manual
− Class: Invoice
− Type: Invoice
2. Create an invoice for XXMegamart using the following information:

Line Item Quantity Unit Tax

Number Number Price
1 CS03755 10 1500 Location
2 CS32698 5 1750 Location

3. Complete the invoice

4. Note the transaction number: ____________________________________
Solution - Create an Invoice
Create an Invoice

Responsibility = Receivables, Vision Operations (USA)

1. Navigate to the Transactions window
(N) Transactions > Transactions
− Source: Manual
− Class: Invoice
− Type: Invoice
2. (T) Main
− Bill To Name: XX Megamart.
3. (B) Line Items “(I) Folder > Standard”.

Line Item Quantity Unit Tax

Number Number Price
1 CS03755 10 1500 Location
2 CS32698 5 1750 Location

4. (I) Save.
5. Close the Lines window.
6. (B) Complete.
7. Note the transaction number: ____________________________________
Guided Demonstration - Run the Create Accounting Program and
Transfer Journal Entries to GL Program in Payables
Responsibility: Payables, Vision Operations (USA)

Run the Create Accounting Program

1. (N) Other > Requests > Run.
2. (B) OK.
3. In the Name field, select Create Accounting.
Instructor Note: The instructor may want to run this in draft mode, so the payables invoices
created by the students are not transferred to GL. If they are transferred to GL with this
demonstration, the students will need to enter another invoice; a separate invoice is entered
in a later practice.
4. Enter the following information in the Parameters window:
Field Name Value
Ledger Vision Operations (USA)
Process Category Invoices
End Date <today’s date>
Mode Final
Errors Only No
Report Detail
Transfer to General Ledger Yes
Post in General Ledger No
Include User Transaction No
Identifier
5. (B) OK.
6. (B) Submit.
7. (B) No.
8. View - Requests.
Guided Demonstration - Run the Create Accounting Program and
Transfer Journal Entries to GL Program in Receivables
Responsibility: Receivables, Vision Operations (USA)

Run the Create Accounting Program

1. (M) View > Requests.
2. (B) Submit a New Request.
3. (B) OK.
4. In the Name field, select Create Accounting.
Instructor Note: The instructor may want to run this in draft mode, so the receivables
transactions created by the students are not transferred to GL. If they are transferred to GL
with this demonstration, the students will need to enter another transaction; a separate
transaction is entered in a later practice.
5. Enter the following information in the Parameters window:

Field Name Value

Ledger Vision Operations (USA)
Process Category Transactions
End Date <today’s date>
Mode Final
Errors Only No
Report Detail
Transfer to General Ledger Yes
Post in General Ledger No
Include User Transaction No
Identifier
6. (B) OK
7. (B) Submit
8. (B) No
9. (B) Find to view requests.
Inquiries
Guided Demonstration - Inquiring on Subledger Journal Entries in
Payables or Receivables
Responsibility = Payables, Vision Operations (USA) or Receivables, Vision Operations
(USA)
1. Navigate to the Subledger Journal Entries window.
In Payables: (N) Accounting > Subledger Accounting > Journal Entries
In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries
2. (T) Headers
3. In the Advanced Search window, enter the following search information:
− Ledger: Vision Operation (USA)
− From GL Date: <today’s date>
− To GL Date: <today’s date>
4. (B) Go
5. To view the details of an entry, click the appropriate ledger link to display the Subledger
Journal Entry window.
6. To view detailed line information, click the appropriate Show link.
Practice - Inquiring on Subledger Journal Entries for Payables and
Receivables
Overview
In this practice, you will do the following:
• Inquire on subledger journal entries for the Vision Operations (USA) ledger.
Note: This practice applies to both Oracle Payables and Oracle Receivables.

Assumptions
• You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
• Responsibility selected to complete this practice is Payables, Vision Operations (USA)
or Receivables, Vision Operations (USA).

Tasks

Log on to the System

• Responsibility = Payables, Vision Operations (USA) or Receivables, Vision
Operations (USA)

Inquire on Subledger Journal Entries

Inquire on subledger journal entries for the Vision Operations (USA) ledger for today’s date.
Solution – Inquiring on Subledger Journal Entries for Payables and
Receivables
Responsibility = Payables, Vision Operations (USA) or Receivables, Vision Operations
(USA)
1. Navigate to the Subledger Journal Entries window.
In Payables: (N) Accounting > Subledger Accounting > Journal Entries
In Receivables: (N) Inquiry > Subledger Accounting > Journal Entries
2. Ensure that the Headers tab is selected.
3. In the Advanced Search window, enter the following search information:
− Ledger: Vision Operation (USA)
− From GL Date: <today’s date>
− To GL Date: <today’s date>

4. (B) Go
The subledger journal entries are displayed in the Results region.
5. To view the details of an entry, click the appropriate ledger link to display the Subledger
Journal Entry window.

6. To view detailed line information, click the appropriate Show link. For example, the
screenshot below shows detailed information for the Item Expense line.
Accounting Methods Builder (AMB)
Guided Demonstration - Defining Journal Line Types in Payables
Responsibility = Payables, Vision Operations (USA)
1. Navigate to the Journal Line Types window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types
2. (B) New.
3. In the Event Class field, select Invoices.
4. In the Line Type Code field, enter XX_MISC_EXPENSE.
5. In the Accounting Class field, select Miscellaneous Expense.
6. In the Name field, enter XX Miscellaneous Expense.
7. In the Description field, enter XX Miscellaneous Expense.
8. In the Balance Type region, select Actual.
9. In the Side region, select Debit.
10. Select Yes from the Switch Debit/Credit drop-down list.
11. In the Merge Matching Lines field, select No.
12. In the Transfer to GL region, select Summary.
13. (B) Conditions.
14. In the Seq field, enter 10.
15. In the Source field, select Invoice Distribution Type.
16. In the Operator field, select ‘=’.
17. In the Value Type field, select Constant.
18. In the Value field, select Item.
19. (M) File – Save
20. Close the Journal Line Type Conditions - Payables window.
22. Create a Liability journal line type based on the following information:
Field Name Liability Journal Line Type
Event Class Invoices
Line Type Code XX_AP_LIAB_INV
Accounting Class Liability
Name XX Liability
Description XX Liability when invoice
validated
Balance Type Actual
Side Credit
Switch Debit/Credit Yes
Merge Matching Lines No
Transfer to GL Summary
Note: No conditions are required for the Liability journal line type.
23. (I) Save
24. (M) File – Close Form
Practice - Defining Journal Line Types for Payables
Overview
In this practice, you will do the following:
• Define two journal line types, as follows:
• Expense
• Liability

Assumptions
• Replace XX with your terminal number or initials.
• You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
• Responsibility selected to complete this practice is Payables, Vision Operations (USA).

Tasks

Log on to the System

• Responsibility = Payables, Vision Operations (USA)

Defining Journal Line Types

1. Navigate to the Journal Line Types window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types
2. Create two journal line types using the following information:
Field Name Expense Journal Line Liability Journal Line
Type Type
Event Class Invoices Invoices
Line Type Code XX_MISC_EXPENSE XX_AP_LIAB_INV
Name Miscellaneous Liability
Expense
Description Miscellaneous Liability when invoice
Expense validated
Accounting Class Miscellaneous Liability
Expense
Balance Type Actual Actual
Side Debit Credit
Switch Debit/Credit Yes Yes
Merge Matching No No
Lines
Transfer to GL Summary Summary
3. Save the journal line types.
Solution – Defining Journal Line Types for Payables
Defining Journal Line Types

Responsibility = Payables, Vision Operations (USA)

1. Navigate to the Journal Line Types window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types
The Find Journal Line Types window appears.

2. (B) New.
The Journal Line Types window appears.
The Application field is automatically populated with the application name associated with
the user’s responsibility, in this example, Payables.
The Owner field is automatically populated. For components seeded by Oracle, the value is
Oracle. For components created on site by users, the value is User.
The Enabled field is automatically checked, and makes this journal line type available for
use.
3. In the Event Class field, select the event class from the list of values, Invoices.
4. In the Line Type Code field, enter a code, for example, XX_MISC_EXPENSE.
Note: You cannot modify a seeded journal line type or any other seeded component as it
could be overwritten in an upgrade. Instead you can copy the seeded type and then modify
it appropriately. The copied journal line type has an Owner type of User. The list of values
displays the component name and the owner to distinguish between seeded and user-
defined components.
5. In the Accounting Class field, select Miscellaneous Expense.
The accounting class is shared across applications and enables you to classify journal entry
lines.
The list of values for this field contains all accounting classes that are seeded but you can
add new accounting classes.
The Rounding Class defaults to the accounting class, in this example, Miscellaneous
Expense.
The rounding class, along with the transaction rounding reference accounting attribute,
groups lines together in order to determine whether rounding is necessary.
6. In the Name field, enter XX Miscellaneous Expense.
7. In the Description field, optionally enter a description, XX Miscellaneous Expense.
8. In the Balance Type region, select Actual.
9. In the Side region, select Debit.
10. Select Yes from the Switch Debit/Credit drop-down list.
This option determines whether negative amounts will result in negative amounts on the
same side or positive amounts on the opposite side.
11. In the Merge Matching Lines field, select No.
This option summarizes subledger journal lines within each subledger entry. Journal entry
lines with matching criteria are merged.
12. In the Transfer to GL region, select Summary to summarize subledger journal entry lines by
account combination.
13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous
expense when an invoice is validated.
14. In the Seq field, enter 10.
15. In the Source field, select Invoice Distribution Type.
16. In the Operator field, select ‘=’.
17. In the Value Type field, select Constant.
18. In the Value field, select Item.

19. (M) File – Save

20. Close the Journal Line Type Conditions - Payables window
The Journal Line Types window should now look like this:
22. Create a Liability journal line type based on the following information. Be sure to use the
(M) File > New or (I) New before you start your entry.
Field Name Liability Journal Line Type
Event Class Invoices
Line Type Code XX_AP_LIAB_INV
Name XX Liability
Description XX Liability when invoice
validated
Accounting Class Liability
Balance Type Actual
Side Credit
Switch Debit/Credit Yes
Merge Matching Lines No
Transfer to GL Summary
Note: No conditions are required for the Liability journal line type.
23. (I) Save
24. Close the Journal Line Types form
Guided Demonstration - Defining Journal Line Types in Receivables
Responsibility: Receivables, Vision Operations (USA)
1. Navigate to the Journal Line Types window.
(N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal
Line Types
2. (B) New.
3. In the Event Class field, select Invoice.
4. In the Line Type Code field, enter XX_INV_REV.
5. In the Accounting Class field, select Revenue.
6. In the Name field, enter XX Invoice Revenue.
7. In the Description field, optionally enter a description, Revenue for Invoices.
8. In the Balance Type region, select Actual.
9. In the Side region, select Credit.
10. Select Yes from the Switch Debit/Credit drop-down list.
11. In the Merge Matching Lines field, select No.
12. In the Transfer to GL region, select Summary.
13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous
expense when a credit memo is validated.
14. In the Seq field, enter 10.
15. In the Source field, select Transaction Distribution Account Class.
16. In the Operator field, select ‘=’.
17. In the Value Type field, select Constant.
18. In the Value field, type REV.
19. (I) Save
20. Close the Journal Line Type Conditions - Receivables window.
21. If desired, create a Receivable journal line type based on the following information:
Field Name Receivable Journal Line Type
Event Class Invoice
Line Type Code XX_AR_REC
Accounting Class Receivable
Name XX Invoice Receivable
Description XX Receivable for Invoices
Balance Type Actual
Side Debit
Switch Debit/Credit Yes
Merge Matching Lines No
Transfer to GL Summary
Note: No conditions are required for the Liability journal line
Practice - Defining Journal Line Types for Receivables
Overview
In this practice, you will create two journal line types as follows:
• Revenue
• Receivables

Tasks

Log on to the System

• Responsibility = Receivables, Vision Operations (USA)

Defining Journal Line Types

1. Navigate to the Journal Line Types window.
(N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal
Line Types
2. Create journal line types using the following information:
Field Name Revenue Receivable
Journal Line Journal Line
Type Type
Event Class Invoice Invoice
Line Type XX_INV_REV XX_AR_REC
Code
Name XX Invoice XX Invoice
Revenue Receivable
Description XX Revenue XX
for Invoices Receivable
for Invoices
Accounting Revenue Receivable
Class
Balance Type Actual Actual
Side Credit Debit
Switch Yes Yes
Debit/Credit
Merge No No
Matching
Lines
Transfer to GL Summary Summary
3. Save the journal line types.
Solution – Defining Journal Line Types for Receivables
Defining a Revenue Journal Line Type

Responsibility = Receivables, Vision Operations (USA)

1. Navigate to the Journal Line Types window.
(N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal
Line Types
The Find Journal Line Types window appears.

2. (B) New.
The Journal Line Types window appears.
The Application field is automatically populated with the application name associated with
the user’s responsibility, in this example, Receivables.
The Owner field is automatically populated. For components seeded by Oracle, the value is
Oracle. For components created on site by users, the value is User.
The Enabled field is automatically checked, and makes this journal line type available for
use.
3. In the Event Class field, select the Invoice event class from the list of values.
4. In the Line Type Code field, enter a code, XX_INV_REV.
Note: You cannot modify a seeded journal line type or any other seeded component as it
could be overwritten in an upgrade. Instead you can copy the seeded type and then modify
it appropriately. The copied journal line type has an Owner type of User. The list of values
displays the component name and the owner to distinguish between seeded and user-
defined components.
5. In the Accounting Class field, select Revenue.
The accounting class is shared across applications and enables you to classify journal entry
lines.
The list of values for this field contains all accounting classes that are seeded but you can
add new accounting classes.
The Rounding Class defaults to the accounting class, in this example, Revenue.
The rounding class, along with the transaction rounding reference accounting attribute,
groups lines together in order to determine whether rounding is necessary.
6. In the Name field, enter XX Invoice Revenue.
7. In the Description field, optionally enter a description, XX Revenue for Invoices.
8. In the Balance Type region, select Actual.
9. In the Side region, select Credit.
10. Select Yes from the Switch Debit/Credit drop-down list.
This option determines whether negative amounts will result in negative amounts on the
same side or positive amounts on the opposite side.
11. In the Merge Matching Lines field, select No.
This option summarizes subledger journal lines within each subledger entry. Journal entry
lines with matching criteria are merged.
12. In the Transfer to GL region, select Summary to summarize subledger journal entry lines by
account combination.
13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous
expense when a credit memo is validated.
14. In the Seq field, enter 10.
15. In the Source field, select Transaction Distribution Account Class.
16. In the Operator field, select ‘=’.
17. In the Value Type field, select Constant.
18. In the Value field, enter REV.

19. Save the condition, this will also save the Journal Line Type.
20. Close the Journal Line Type Conditions - Receivables window.
The Journal Line Types window should now look like this:
22. Create a Receivable journal line type based on the following information. Be sure to use the
(M) File > New or (I) New before you start your entry.

Field Name Receivable Journal

Line Type
Event Class Invoice
Line Type Code XX_AR_REC
Accounting Class Receivable
Name XX Invoice
Receivable
Description XX Receivable for
Invoices
Balance Type Actual
Side Debit
Switch Debit/Credit Yes
Merge Matching No
Lines
Transfer to GL Summary
23. (B) Conditions to add a condition for the Invoice Receivable journal line type.
24. In the Seq field, enter 10.
25. In the Source field, select Transaction Distribution Account Class.
26. In the Operator field, select ‘=’.
27. In the Value Type field, select Constant.
28. In the Value field, select REC.

29. Save the condition, again this will save the Journal Line Type.
30. Close the Journal Line Type Conditions - Receivables window.
The Journal Line Types window should now look like this:
32. Close the Journal Line Types form.
Guided Demonstration - Defining Journal Lines Definitions for
Payables
Responsibility: Payables, Vision Operations (USA)
1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definition > Journal Lines Definitions
Or (B) Journal Lines Definitions from the Application Accounting Definitions window
2. (B) New
3. In the Event Class field, select Invoices.
4. In the Event Type field, select All.
5. In the Definition Code field, enter XX_ACCRUAL_INVOICES.
6. In the Definition Name field, enter XX AP Accrual Invoices.
7. Optionally, enter a description, for example, XX Payables Accrual.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
9. In the Line Assignments region, enter the following information based on the journal line
types you previously defined:
Journal Line Type Line Description
XX Miscellaneous Expense Invoice Distribution Description
XX Liability Invoice Distribution Description
10. (M) File - Save.
Practice - Defining Journal Lines Definitions for Payables
Overview
In this practice, you will do the following:
• Define a journal line definition for accrual invoices.

Tasks

Log on to the System

• Responsibility = Payables, Vision Operations (USA)

Define a Journal Lines Definition

1. Navigate to the Journal Lines Definitions window:
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definition > Journal Lines Definitions
2. Create a new journal lines definition.
3. Save the definition code as XX_ACCRUAL_INVOICES.
4. Save the definition name as XX AP Accrual Invoices.
5. Set the event type to All.
6. Select the Operations Accounting Flex accounting chart of accounts.
7. Apply the journal line types previously created, XX Miscellaneous Expense and XX Liability.
8. Add a non-recoverable tax.
9. Save your work.
Solution – Defining Journal Lines Definitions for Payables
Defining Journal Lines Definitions

Responsibility = Payables, Vision Operations (USA)

1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definition > Journal Lines Definitions
The Find Journal Lines Definitions window appears.

2. (B) New.
The Journal Lines Definitions window appears.
The application name defaults from the application associated with the responsibility.
The Owner field is automatically populated. For components seeded by Oracle, the value is
Oracle. For components created on site by users, the value is User.
The Enabled check box is enabled by default and makes the journal lines definition
available for use for this application and the selected chart of accounts (if applicable).
3. In the Event Class field, select Invoices from the drop-down list.
4. In the Event Type field, select All.
5. In the Definition Code field, enter XX_ACCRUAL_INVOICES.
6. In the Definition Name field, enter XX AP Accrual Invoices.
7. Optionally, enter a description, for example, XX Accrual Invoices.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
9. In the Journal Line Type field, assign the Expense journal line type that you previously
created to the event type by selecting XX Miscellaneous Expense.
The Owner field is automatically populated based on the journal line type selected.
10. In the Line Description field, select Invoice Distribution Description.
This is the journal entry description to be used to populate the subledger journal entry lines.
11. Ensure that the Active check box is selected to use this line assignment to generate
subledger journal entries.
12. In the Journal Line Type field, assign the Liability journal line type you previously created to
the event type by selecting XX Liability.
13. In the Line Description field, select Invoice Distribution Description.
14. Ensure that the Active check box is selected.
15. In the Line Assignments region, enter the following:

Field Name Value

Journal Line Type Non-Recoverable Tax
Line Description Invoice Distribution Description
In the Account Derivation Rules region, enter the following:

Field Name Value

Segment Type All Segments
Rule Name Invoice Distribution Account

16. Save the journal line definition:

(M) File - Save
Guided Demonstration - Defining Journal Lines Definitions for
Receivables
Responsibility: Receivables, Vision Operations (USA)
1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Journal Lines Definitions
2. (B) New
3. In the Event Class field, select Invoice.
4. In the Event Type field, select All.
5. In the Definition Code field, enter XX_ACCRUAL_INVOICES.
6. In the Definition Name field, enter XX Accrual Invoices.
7. Optionally, enter a description, for example, XX Receivables Accrual Invoices.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
9. In the Line Assignments region, enter the following information based on the journal line
types you previously defined:
Journal Line Type Line Description
XX Invoice Revenue Invoice Header Description
XX Invoice Receivable Invoice Header Description
10. (I) Save.
11. (M) File – Close Form
Practice - Defining Journal Lines Definitions for Receivables
Overview
In this practice, you will do the following:
• Define a journal line definition for accrual invoices.

Tasks

Log on to the System

• Responsibility = Receivables, Vision Operations (USA)

Define a Journal Lines Definition

1. Navigate to the Journal Lines Definitions window:
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definition >
Journal Lines Definitions
2. Create a new journal lines definition.
3. Save the definition code as XX_ACCRUAL_INVOICES.
4. Apply the journal line types previously created, XX Invoice Receivable and XX Invoice
Revenue.
5. Save the definition name as XX Accrual Invoices.
6. Set the event type to All.
7. Select the Operations Accounting Flex accounting chart of accounts.
8. Apply the Invoice Header Description line descriptions to both of the journal line types.
9. Save the journal lines definition.
Solution – Defining Journal Lines Definitions for Receivables
Defining Journal Lines Definitions

Responsibility = Receivables, Vision Operations (USA)

1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definition >
Journal Lines Definitions
The Find Journal Lines Definitions window appears.

2. (B) New.
The Journal Lines Definitions window appears.
The application name defaults from the application associated with the responsibility.
The Owner field is automatically populated. For components seeded by Oracle, the value is
Oracle. For components created on site by users, the value is User.
The Enabled check box is enabled by default and makes the journal lines definition
available for use for this application and the selected chart of accounts (if applicable).
3. In the Event Class field, select Invoice.
4. In the Event Type field, select All.
5. In the Definition Code field, enter XX_ACCRUAL_INVOICES.
6. In the Definition Name field, enter XX Accrual Invoices.
7. Optionally, enter a description, for example, XX Receivables Accrual Invoices.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
9. In the Journal Line Type field, assign the Receivable journal line type that you previously
created to the event type by selecting XX Invoice Receivable.
The Owner field is automatically populated based on the journal line type selected.
10. In the Line Description field, select Invoice Header Description.
This is the journal entry description to be used to populate the subledger journal entry lines.
11. Ensure that the Active check box is selected to use this line assignment to generate
subledger journal entries.
12. In the Journal Line Type field, assign the Revenue journal line type that you previously
created to the event type by selecting XX Invoice Revenue.
13. In the Line Description field, select Invoice Header Description.
14. Ensure that the Active check box is selected.
15. Save the journal line definition:
(M) File - Save
Guided Demonstration - Defining Account Derivation Rules for
Payables
Responsibility: Payables, Vision Operations (USA)

Creating an Account Derivation Rule for the Liability Journal Line Type
1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definition > Journal Lines Definitions
2. In the Definition Name field, select XX AP Accrual Invoices.
3. (B) Find
4. Select the XX Liability journal line type.
5. (B) Account Derivation Rule
6. (B) New
7. In the Rule Code field, enter XX_LIAB_ACC.
8. In the Rule Name field, enter XX Liability Account.
9. In the Description field, enter XX Liability Account.
10. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
11. Select the Flexfield radio button.
12. In the Priority field, enter 1.
13. In the Value Type field, select Constant.
14. In the Value field, enter 01-520-2210-0000-000.
15. (M) File – Save
16. (M) File – Close Form
17. In the Journal Lines Definitions window, select the XX Liability journal line type.
18. In the Segment field, select All Segments.
19. In the Rule Name field, select XX Liability Account.
20. (M) File - Save

Creating an Account Derivation Rule for the Expense Journal Line Type
21. Select the XX Miscellaneous Expense journal line type.
Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
select the next journal line type if pressing the down arrow key does not work.
22. (B) Account Derivation Rule
23. (B) New
24. In the Rule Code field, enter XX_EXPENSE_ACCOUNT.
25. In the Rule Name field, enter XX AP Expense Account.
26. In the Description field, enter XX Expense Account.
27. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
28. In the Output Type region, select the Flexfield radio button.
29. In the Priority field, enter 1.
30. In the Value Type field, select Source.
31. In the Value field, select Invoice Distribution Account.
32. (M) File – Save
33. (M) File – Close Form
34. In the Journal Lines Definitions window, place the cursor in the XX Miscellaneous Expense
line.
35. In the Segment field, select All Segments.
36. In the Rule Name field, select XX Expense Account.
37. (M) File – Save
Practice - Defining Account Derivation Rules for Payables
Overview
In this practice, you will do the following:
• Define two account derivation rules: one for the Liability journal line type and another
for the Expense journal line type.
• Assign the account derivation rules to the relevant journal line types in the Journal
Lines Definitions window.

Tasks

Log on to the System

• Responsibility = Payables, Vision Operations (USA)

Create an Account Derivation Rule for the Liability Journal Line Type
1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definition > Journal Lines Definitions
2. Search for the XX AP Accrual Invoices journal line definition.
3. Select the XX Liability journal line type.
4. Go to the Account Derivation Rule window.
5. Create a new account derivation rule code called XX_LIAB_ACC with a rule name of XX
Liability Account.
6. Associate this rule with the Operations Accounting Flex chart of accounts.
7. Enter a flexfield rule for the constant 01-520-2210-0000-000.
8. Save the liability rule.

Assign the Liability Account Derivation Rule to the Liability Journal Line Type
9. In the Journal Lines Definitions window, select the XX Liability journal line type.
10. In the Account Derivation Rules region, apply the XX Liability Account rule to all segments.
11. Save your work.

Create an Account Derivation Rule for the Expense Journal Type

12. Select the XX Miscellaneous Expense journal line type in the Journal Lines Definitions
window.
13. Go to the Account Derivation Rule window.
14. Create a new account derivation rule code called XX_EXPENSE_ACC with a rule name of
XX Expense Account.
15. Associate this rule with the Operations Accounting Flex chart of accounts.
16. Enter a flexfield rule for the Invoice Distribution Account source.
17. Save the expense rule.

Assign the Liability Account Derivation Rule to the Expense Journal Line Type
18. In the Journal Lines Definitions window, select the XX Miscellaneous Expense journal line
type.
19. In the Account Derivation Rules region, apply the XX Expense Account rule to all segments.
20. Save your work.
Solution – Defining Account Derivation Rules for Payables
Responsibility: Payables, Vision Operations (USA)

2. In the Definition Name field, select XX AP Accrual Invoices.

3. (B) Find
The Journal Lines Definitions window appears.
4. Select the XX Liability journal line type.
Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
select the next journal line type if pressing the down arrow key does not work.
5. (B) Account Derivation Rule
The Find Account Derivation Rules window appears.
6. (B) New
The Account Derivation Rules window appears.
The application name defaults from the application associated with the responsibility, in this
example, Payables.
The Owner field is automatically populated by Subledger Accounting. For components
seeded by Oracle, the value is Oracle. For components created on site by users, the value
is User.
Retain the default for the Enabled check box that is selected to make the account derivation
rule available for use.
7. In the Rule Code field, enter XX_LIAB_ACC.
8. In the Rule Name field, enter XX Liability Account.
9. In the Description field, enter XX Liability Account.
10. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
11. Select the Flexfield radio button.
12. In the Priority field, enter 1.
Rules are evaluated in ascending order, where the highest priority has the lowest number,
until a condition is met. It is advantageous to list the most commonly met rules and
conditions first. The order in which rules and conditions are evaluated can be changed by
updating the priority number instead of by deleting and rewriting detail lines. Once the
conditions associated with a detail line are satisfied, the value from that line is used and
other lines are ignored.
13. In the Value Type field, select Constant to specify the method of deriving the account
combination or segment value.
14. In the Value field, enter 01-520-2210-0000-000.
15. Save your work:
(M) File – Save
16. Close the Account Derivation Rules window:
(M) File – Close Form
17. In the Journal Lines Definitions window, select the XX Liability journal line type.
18. In the Segment field, select All Segments.
19. In the Rule Name field, select XX Liability Account.
20. Save your work:
(M) File - Save

Creating an Account Derivation Rule for the Expense Journal Line Type
21. In the Journal Lines Definitions window, select the XX Miscellaneous Expense journal line
type.
Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
select the next journal line type if pressing the down arrow key doesn’t work.
22. (B) Account Derivation Rule
The Find Account Derivation Rule window appears.
23. (B) New
The Account Derivation Rules window appears.
24. In the Rule Code field, enter XX_EXPENSE_ACCOUNT.
25. In the Rule Name field, enter XX AP Expense Account.
26. In the Description field, enter XX Expense Account.
27. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
28. In the Output Type region, select the Flexfield radio button.
29. In the Priority field, enter 1.
30. In the Value Type field, select Source.
31. In the Value field, select Invoice Distribution Account.
32. Save your work:
(M) File – Save
33. Close the Account Derivation Rules window:
(M) File – Close Form
34. In the Journal Lines Definitions window, place the cursor in the XX Miscellaneous Expense
line.
35. In the Segment field, select All Segments.
36. In the Rule Name field, select XX AP Expense Account.
37. Save your work:
(M) File – Save
Guided Demonstration - Defining Account Derivation Rules in
Receivables
Responsibility: Receivables, Vision Operations (USA)

Create a New Receivables Account Derivation Rule

1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Journal Lines Definitions
2. In the Definition Name field, select XX Accrual Invoices.
3. (B) Find.
4. In the Journal Line Type field, select XX Invoice Receivable.
5. (B) Account Derivation Rule.
6. (B) New.
7. In the Rule Code field, enter XX_REC_ACC.
8. In the Rule Name field, enter XX Receivables Account.
9. In the Description field, enter XX Receivables Account.
10. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
11. In the Output Type region, select Flexfield.
12. In the Priority field, enter 1.
13. In the Value Type field, select Constant.
14. In the Value field, enter 01-520-1210-0000-000.
15. (M) File - Save
16. (M) File – Close Form

Assign the XX Receivables Account Rule to the XX Invoice Receivable Journal Line Type
17. In the Journal Lines Definitions window, place the cursor in the XX Invoice Receivable line.
18. In the Segment field, select All Segments.
19. In the Rule Name field, select XX Receivables Account.
20. (M) File – Save

Create a New Revenue Account Derivation Rule

21. In the Journal Lines Definition window, select the XX Invoice Revenue journal line type.
Note: To move between regions on the form, remember that the combination Shift +
PgDn will move to the next region and the combination Shift + PgUp will move to the
previous region in the form.
22. (B) Account Derivation Rule.
23. (B) New.
24. In the Rule Code field, enter XX_TRX_DIST_GL.
25. In the Rule Name field, enter XX Transaction Distribution GL Account.
26. In the Description field, enter Transaction Distribution GL Account.
27. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
28. In the Output Type region, select Flexfield.
29. In the Priority field, enter 1.
30. In the Value Type field, select Source.
31. In the Value field, select Transaction Distribution GL Account.
32. (M) File- Save.
33. (M) File – Close Form.

Assign the XX Transaction Distribution GL Account rule to the XX Invoice Revenue

Journal Line Type
34. In the Journal Lines Definitions window, place the cursor in the XX Invoice Revenue line.
35. In the Segment field, select All Segments.
36. In the Rule Name field, select XX Transaction Distribution GL Account.
37. (M) File – Save.
Practice - Defining Account Derivation Rules for Receivables
Overview
In this practice, you will do the following:
• Define two account derivation rules; one for the Receivable journal line type and
another for the Revenue journal line type.
• Assign the account derivation rules to the relevant journal line types in the Journal
Lines Definitions window.

Tasks

Log on to the System

• Responsibility = Receivables, Vision Operations (USA)

Create a New Receivables Account Combination Account Derivation Rule

1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definition >
Journal Lines Definitions
2. Search for the XX Accrual Invoices journal line definition.
3. Select the XX Invoice Receivable journal line type.
4. Go to the Account Derivation Rule window.
5. Create a new Account Derivation Rule rule code called XX_REC_ACC with a rule name of
XX Receivables Account.
6. Associate this rule with the Operations Accounting Flex accounting chart of accounts.
7. Enter a flexfield rule for the constant 01-000-1210-0000-000.
8. Save the Receivable rule.

Assign the XX Receivables Account Derivation Rule to the Invoice Receivable Journal
Line Type
9. In the Journal Lines Definitions window, select the XX Invoice Receivable journal line type.
10. In the Account Derivation Rules region, apply the XX Receivables Account rule to all
segments.
11. Save the definition.

Create a New Revenue Account Derivation Rule

12. In the Journal Lines Definitions window, select the XX Invoice Revenue journal line type.
13. Go to the Account Derivation Rule window.
14. Create a new account derivation rule code called XX_TRX_DIST_GL with a rule name of
XX Transaction Distribution GL Account.
15. Associate this rule with the Operations Accounting Flex chart of accounts.
16. Save the Revenue rule.

Assign the Revenue Account Derivation Rule to the XX Invoice Revenue Journal Line
Type
17. In the Journal Lines Definitions window, select the XX Invoice Revenue journal line type.
18. In the Account Derivation Rules region, apply the XX Transaction Distribution GL Account
rule to all segments.
19. Save the definition.
Solution – Defining Account Derivation Rules for Receivables
Responsibility = Receivables, Vision Operations (USA)

Create a new Receivables Account Derivation Rule

1. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Journal Lines Definitions
The Find Journal Lines Definitions window appears.

2. In the Definition Name field, select XX Accrual Invoices.

3. (B) Find.
The Journal Lines Definitions window appears.
4. In the Journal Line Type field, select XX Invoice Receivable.
5. (B) Account Derivation Rule.
The Find Account Derivation Rules window appears.
6. (B) New.
The Account Derivation Rules window appears.
The application name defaults from the application associated with the responsibility, in this
example, Receivables.
The Owner field is automatically populated by Subledger Accounting. For components
seeded by Oracle, the value is Oracle. For components created on site by users, the value
is User.
Retain the default for the Enabled check box that is selected to make the account derivation
rule available for use.
7. In the Rule Code field, enter the code name, for example, XX_REC_ACC.
8. In the Name field, enter the rule name, for example, XX Receivables Account.
9. In the Description field, optionally enter a description, for example, Receivables Account.
10. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
11. In the Output Type region, select Flexfield.
12. In the Priority field, enter 1.
Rules are evaluated in ascending order, where the highest priority has the lowest number,
until a condition is met. It is advantageous to list the most commonly met rules and
conditions first. The order in which rules and conditions are evaluated can be changed by
updating the priority number instead of by deleting and rewriting detail lines. Once the
conditions associated with a detail line are satisfied, the value from that line is used and
other lines are ignored.
13. In the Value Type field, select Constant to specify the method of deriving the account
combination or segment value.
14. In the Value field, enter 01-000-1210-0000-000.
The Account Derivation Rules window should now look like this:
15. Save the rule:
(M) File > Save
16. Close the Account Derivation Rules window:
(M) File – Close Form

Create a New Revenue Account Derivation Rule

21. In the Journal Lines Definition window, select the XX Invoice Revenue journal line type.
Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
select the next journal line type if pressing the down arrow key does not work.
22. (B) Account Derivation Rule.
The Find Account Derivation Rules window appears.
23. (B) New.
The Account Derivation Rules window appears.
The application name defaults from the application associated with the responsibility, in this
example, Receivables.
The Owner field is automatically populated by Subledger Accounting. For components
seeded by Oracle, the value is Oracle. For components created on site by users, the value
is User.
Retain the default for the Enabled check box that is selected to make the account derivation
rule available for use.
24. In the Rule Code field, enter XX_TRX_DIST_GL.
25. In the Rule Name field, enter XX Transaction Distribution GL Account.
26. In the Description field, enter Transaction Distribution GL Account.
27. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
28. In the Output Type region, select Flexfield.
29. In the Priority field, enter 1.
30. In the Value Type field, select Source.
31. In the Value field, select Transaction Distribution GL Account.

32. Save the rule:

File- Save
33. Close the Account Derivation Rules window:
(M) File – Close Form
Assign the XX Transaction Distribution GL Account Rule to the XX Invoice Revenue
Journal Line Type
34. In the Journal Lines Definitions window, place the cursor in the XX Invoice Revenue line.
35. In the Segment field, select All Segments.
36. In the Rule Name field, select XX Transaction Distribution GL Account.

37. Save the definition:

(M) File – Save
Guided Demonstration - Defining an Application Accounting
Definition in Payables
Responsibility: Payables, Vision Operations (USA)
1. Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Application Accounting Definitions
2. In the Definition Name field, enter Accrual Basis.
3. (B) Find.
4. (B) Copy
5. In the Definition Code field, enter XX_ACC_BASIS.
6. In the Definition Name field, enter XX Accrual Basis for Payables.
7. Optionally, enter a description, for example XX AP Accrual Basis.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
9. (B) Done
10. In the Event Class and Event Type Assignments region, select the Invoices event class.
11. In the Journal Lines Definition Name field, delete the Accrual, Invoices All journal lines
definition.
12. In the Journal Lines Definition Name field, assign the XX AP Accrual Invoices journal lines
definition to the Invoices event class.
13. (B) Validate
Practice - Defining an Application Accounting Definition for Payables
Overview
In this practice, you will do the following:
• Copy an existing application accounting definition and then modify it to use the rules
you created in earlier practices.

Tasks

Log on to the System

• Responsibility = Payables, Vision Operations (USA)

Copy and Modify an Accrual Basis Application Accounting Definition

1. Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Application Accounting Definitions
2. Search for the Accrual Basis application accounting definition and make a copy of it.
3. Save the new definition code as XX_ACC_BASIS and the definition name as XX Accrual
Basis for Payables.
4. Assign this application accounting definition to the Operations Accounting Flex Accounting
chart of accounts.
5. Select the Invoices event class, delete the existing journal lines definition, and assign the
XX Accrual Invoices journal lines definition.
6. Validate the definition.
Solution – Defining an Application Accounting Definition for Payables
Copying and Modifying an Existing Application Accounting Definition

Responsibility = Payables, Vision Operations (USA)

2. In the Definition Name field, select Accrual Basis.

3. (B) Find.
The Application Accounting Definitions window appears.
4. (B) Copy.
The Copy Application Accounting Definitions window appears.
5. In the Definition Code field, enter XX_ACC_BASIS.
6. In the Definition Name field, enter XX Accrual Basis for Payables.
7. Optionally, enter a description, for example XX AP Accrual Basis.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. If a chart of
accounts is selected, the application accounting definition can only be assigned to a
subledger accounting method with the same chart of accounts.
9. (B) Done
The Application Accounting Definitions window is displayed.

The application name defaults from the application associated with the responsibility, in this
example, Payables.
The Owner field is automatically populated. For components seeded by Oracle, the value is
Oracle. For components created on site by users, the value is User.
The Enabled check box should remain selected so that the application accounting definition
is available.
10. In the Event Class and Event Type Assignments region, select the Invoices event class.
11. In the Journal Lines Definition Name field, delete the Accrual, Invoices All journal lines
definition, (M) Edit > Delete.
12. In the Journal Lines Definition Name field, assign the previously defined XX Accrual
Invoices journal lines definition.

13. (B) Validate to validate the application accounting definition.

Guided Demonstration - Defining an Application Accounting
Definition in Receivables
Responsibility: Receivables, Vision Operations (USA)
1. Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Application Accounting Definitions
2. In the Definition Name field, select Receivables Default Accrual.
3. (B) Find.
4. (B) Copy
5. In the Definition Code field, enter XX_AR_ACCRUAL_BASIS.
6. In the Definition Name field, enter XX Receivables Accrual Basis.
7. In the Description field, enter XX Accrual Basis Accounting Definition.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
9. (B) Done
10. In the Event Class and Event Type Assignments region select the Invoice event class.
11. In the Journal Lines Definition Name field, delete the Invoices – Default Accrual journal
lines definition.
12. In the Journal Lines Definition Name field, assign the XX Accrual Invoices journal lines
definition to the Invoice event class.
13. (I) Save
14. (B) Validate
Practice - Defining an Application Accounting Definition for
Receivables
Overview
In this practice, you will do the following:
• Copy an existing application accounting definition and then modify it to use the rules
you created in earlier practices.

Tasks

Log on to the System

• Responsibility = Receivables, Vision Operations (USA)

Copy and Modify an Accrual Basis Application Accounting Definition

1. Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Application Accounting Definitions
2. Search for the Receivables Default Accrual Basis application accounting definition and
make a copy of it.
3. Save the new definition code as XX_AR_ACCRUAL_BASIS and the definition name as XX
Accrual Basis Accounting Definition.
4. Assign this application accounting definition to the Operations Accounting Flex Accounting
chart of accounts.
5. Select the Invoice event class and delete the Invoices - Default Accrual journal lines
definition.
6. Assign the XX Accrual Invoices journal lines definition you previously defined to the Invoice
event class.
7. Validate the definition.
Solution – Defining an Application Accounting Definition for
Receivables
Copying and Modifying an Existing Application Accounting Definition

Responsibility = Receivables, Vision Operations (USA)

1. Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Application Accounting Definitions
The Find Application Accounting Definitions window appears.
2. Search for the Receivables Default Accrual Basis application accounting definition and
make a copy of it. In the Definition Name field, select Receivables Default Accrual Basis.

3. (B) Find.
The Application Accounting Definitions window appears.
4. (B) Copy.
The Copy Application Accounting Definitions window appears.
5. In the Definition Code field, enter as XX_AR_ACCRUAL_BASIS.
6. In the Definition Name field, enter XX Accrual Basis Accounting Definition.
7. Optionally, enter a description
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex. If a chart of
accounts is selected the application accounting definition can only be assigned to a
subledger accounting method with the same chart of accounts.
9. (B) Done
The Application Accounting Definitions window appears.

The application name defaults from the application associated with the responsibility, in this
example, Receivables.
The Owner field is automatically populated. For components seeded by Oracle, the value is
Oracle. For components created on site by users, the value is User.
The Enabled check box should remain selected so that the application accounting definition
is available.
10. In the Event Class and Event Type Assignments region, select the Invoices event class.
11. In the Journal Lines Definition Name field, delete the Accrual, Invoices All journal lines
definition, (M) Edit > Delete.
12. In the Journal Lines Definition Name field, assign the XX Accrual Invoices journal lines
definition previously defined.
13. (N) File > Save.
14. (B) Validate to validate the application accounting definition.
Guided Demonstration - Defining Subledger Accounting Methods in
Payables
Responsibility: Payables, Vision Operations (USA)

Copying and Modifying an Existing Subledger Accounting Method

1. Navigate to the Subledger Accounting Methods window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Subledger Accounting Methods
2. In the Method Name field, enter Standard Accrual.
3. (B) Find
4. (B) Copy
5. In the Method Code field, enter XX_STANDARD_ACCRUAL.
6. In the Name field, enter XX Standard Accrual.
7. In the Description field, enter XX Standard Accrual.
8. In the Accounting field, select Operations Accounting Flex.
9. (B) OK
10. (B) Done

End-date an Existing Application Accounting Definition and Add a New One

11. Place the cursor in the Payables line and enter an end-date of 31-Dec-2006.
12. Add a new line.
13. In the Applications field, select Payables.
14. In the Name field, select XX Accrual Basis for Payables.
15. (B) OK
16. In the Start Date field, enter 01-Jan-2007.
17. (M) File – Save

Assigning the Subledger Accounting Method to the Vision Operations (USA) Ledger
18. (N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups
19. Search for the Vision Operations (USA) ledger.
20. Click Update Accounting Options next to the ledger.
21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger.
22. In the Subledger Accounting Method field, update the subledger accounting method to XX
Standard Accrual.
23. (B) Select.
24. (B) Finish.

Run the Create Accounting Program

To view the changes you have made to the setup, run the Create Accounting program in draft
mode for a second time.
25. Navigate to the Submit a New Request window.
(N) Other > Requests > Run
26. Select Single Request.
27. (B) OK
28. In the Name field, select Create Accounting.
29. In the Ledger field, select Vision Operations (USA).
30. In the Process Category field, select Invoices.
31. In the End Date field, enter today’s date.
32. In the Mode field, select Draft.
33. In the Errors Only field, select No.
34. In the Report field, select Detail.
35. (B) OK
36. (B) Submit.
37. (M) View – Requests, check the request status.

Inquire on the Journal Entry

38. Navigate to the Subledger Journal Entries window.
(N) Accounting > Subledger Accounting > Journal Entries
39. Ensure that the Headers tab is selected.
40. In the Advanced Search window, enter the following search information:
− Ledger: Vision Operations (USA)
− From GL Date: <today’s date>
− To GL Date: <today’s date>
41. (B) Go
The subledger journal entries are displayed in the Results region.
42. To view the details of the entry you just created, click the appropriate ledger link to display
the Subledger Journal Entry window.

(Optional) Update Merge Matching Lines Setting and Rerun the Create Accounting
Program
You previously set the Merge Matching Lines setting for the journal line types to No and then
generated draft accounting. Now that you have completed setting up Subledger Accounting, you
could set the option to All, generate draft accounting again, and view the difference in the
results. In the first instance you saw multiple lines displayed for similar journal entry lines even
though all of the information is identical with the exception of the amount. In the second
instance, the same journal entry lines would be combined. To view the difference when lines are
merged, follow these instructions:
43. Navigate to the Journal Lines Types window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Journal Line Type
44. Search for the XX Liability journal line type that you previously created.
45. In the Merge Matching Lines field, select All.
46. (M) File – Save
47. Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Application Accounting Definitions
48. Search for the XX Accrual Basis for Payables application accounting definition that you
previously created.
49. (B) Validate.

(Optional) Run the Create Accounting Program

To view the changes you have made to the setup, run the Create Accounting program in draft
mode for a second time.
50. Navigate to the Submit a New Request window.
(N) Other > Requests > Run
51. Select Single Request.
52. (B) OK
53. In the Name field, select Create Accounting.
54. In the Ledger field, select Vision Operations (USA).
55. In the Process Category field, select Invoices.
56. In the End Date field, enter today’s date.
57. In the Mode field, select Draft.
58. In the Errors Only field, select No.
59. In the Report field, select Detail.
60. (B) OK
61. (B) Submit
62. (M) View – Requests, check the request status.

View the Create Accounting Report

63. (M) View > Requests
64. Ensure that the All My Requests radio button is selected and (B) Find.
65. Select the Create Accounting report that you have just generated and (B) View Output.
Practice - Defining Subledger Accounting Methods for Payables
In this practice, you will do the following:
• Copy an existing subledger accounting method.
• End-date an existing application accounting definition and add a new one.
• Assign the subledger accounting method to the Vision Operations (USA) ledger.

Tasks

Log on to the System

• Responsibility = Payables, Vision Operations (USA)

Copy an Existing Subledger Accounting Method

Navigate to the Subledger Accounting Methods window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Subledger Accounting Methods
Copy the Standard Accrual subledger accounting method and save it as
XX_STANDARD_ACCRUAL.
Assign the subledger accounting method to the Operations Accounting Flex Accounting
chart of accounts.

End-date an Existing Application Accounting Definition and Add a New One

Enter an end-date of 31-Dec-2006 for the Payables application accounting definition.
Add a new line and enter a new Payables application accounting definition, called XX
Payables Accrual.
Enter a start date of 01-Jan-2007.

Assign the Subledger Accounting Method to the Vision Operations (USA) Ledger
Navigate to the Accounting Setups window:
(N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups
Drill-down to the Vision Operations (USA) ledger.
Change the subledger accounting method to XX Standard Accrual.
Solution – Defining Subledger Accounting Methods for Payables
Responsibility: Payables, Vision Operations (USA)

Copying and Modifying an Existing Subledger Accounting Method

3. (B) Find
The Subledger Accounting Methods window appears.
4. (B) Copy
5. In the Method Code field, enter XX_STANDARD_ACCRUAL.
6. In the Name field, enter XX Standard Accrual.
7. In the Description field, enter XX Standard Accrual.
8. In the Accounting field, select Operations Accounting Flex.
9. (B) OK, if you use the LOV to select the Accounting Chart of Accounts.

10. (B) Done

The Subledger Accounting Methods window appears.
End-dating an Existing Application Accounting Definition and Adding a New One
11. Place the cursor in the Payables line and enter an end-date of 31-Dec-2006.
12. Add a new line.
13. In the Application field, select Payables.
14. In the Name field, select XX Accrual Basis for Payables Accrual.
15. (B) OK, if you use the LOV to select the Accounting Chart of Accounts.
16. In the Start Date field, enter 01-Jan-2007.

17. (M) File – Save

STOP - The instructor will perform the rest of the steps for the class.

Assigning the Subledger Accounting Method to the Vision Operations (USA) Ledger
18. Navigate to the Accounting Setups window:
(N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups
19. Search for the Vision Operations (USA) ledger.
20. Click Update Accounting Options next to the ledger.
21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger.
22. In the Subledger Accounting Method field, change the subledger accounting method to XX
Standard Accrual.
23. (B) Select

24. (B) Finish

Guided Demonstration - Defining Subledger Accounting Methods in
Receivables
Responsibility: Receivables, Vision Operations (USA)

Copying and Modifying an Existing Subledger Accounting Method

1. Navigate to the Subledger Accounting Methods window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Subledger Accounting Methods
2. In the Method Name field, select Standard Accrual.
3. (B) Find
4. (B) Copy
5. In the Method Code field, enter XX_ STANDARD_ACCRUAL.
6. In the Name field, enter XX Standard Accrual.
7. In the Description field, enter XX Standard Accrual.
8. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
9. (B) OK
10. (B) Done

End-dating an Existing Application Accounting Definition and Adding a New One

11. Place the cursor in the Receivables Default Accrual line and enter an end-date of 31-Dec-
2006.
12. Add a new line.
13. In the Application field, select Receivables.
14. In the Name field, select XX Receivables Accrual Basis.
15. (B) OK
16. In the Start Date field, enter 01-Jan-2007.
17. (M) File – Save

Assigning the Subledger Accounting Method to the Vision Operations (USA) Ledger
18. Navigate to the Accounting Setups window:
(N) Setup > Financials > Accounting > Ledger > Accounting Setups
19. Search for the Vision Operations (USA) ledger.
20. Click Update Accounting Options next to the ledger.
21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger.
22. In the Subledger Accounting Method field, update the subledger accounting method to XX
Standard Accrual.
23. (B) Select.
24. (B) Finish.

Running the Create Accounting program

25. Navigate to the Submit a New Request window.
(M) View > Requests and click Submit a New Request
26. Select Single Request.
27. (B) OK
28. In the Name field, select Create Accounting.
29. In the Ledger field, select Vision Operations (USA).
30. In the Process Category field, select Transactions.
31. In the End Date field, enter today’s date.
32. In the Mode field, select Draft.
33. In the Errors Only field, select No.
34. In the Report field, select Detail.
35. (B) OK.
36. (B) Submit.
37. (M) View – Requests, check the request status.

Inquiring on the Journal Entry

38. Navigate to the Subledger Journal Entries window.
(N) Inquiry > Subledger Accounting > Journal Entries
39. (T) Headers
40. In the Advanced Search window, enter the following search information:
− Ledger: Vision Operations (USA)
− From GL Date: <today’s date>
− To GL Date: <today’s date>
41. (B) Go
42. To view the details of the entry that you just created, click the appropriate ledger link to
display the Subledger Journal Entry window.

(Optional) Updating the Merge Matching Lines Setting

43. Navigate to the Journal Line Types window.
(N) Setup > Accounting > Accounting Methods Builder > Journal Entry Setups > Journal
Line Types
44. Search for the XX Invoice Receivable journal line type.
45. In the Merge Matching Lines field, select All.
46. (M) File – Save.
47. Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Application Accounting Definitions
48. Search for the XX Receivables Accrual Basis application accounting definition.
49. (B) Validate.

(Optional) Running the Create Accounting Program

50. Navigate to the Submit a New Request window.
(M) View > Requests and click Submit a New Request
51. Select Single Request.
52. (B) OK
53. In the Name field, select Create Accounting.
54. In the Ledger field, select Vision Operations (USA).
55. In the Process Category field, select Transactions.
56. In the End Date field, enter today’s date.
57. In the Mode field, select Draft.
58. In the Errors Only field, select No.
59. In the Report field, select Detail.
60. (B) OK.
61. (B) Submit.
62. (M) View – Requests, check the request status.

View the Create Accounting report

63. (M) View > Requests
64. Ensure that the All My Requests radio button is selected and (B) Find.
65. Select the Create Accounting report that you have just generated and (B) View Output.
Practice - Defining Subledger Accounting Methods for Receivables
In this practice, you will do the following:
• Query the subledger accounting method you created for Payables.
• End-date an existing application accounting definition and add a new one.
• Assign the subledger accounting method to the Vision Operations (USA) ledger.

Tasks

Log on to the System

• Responsibility = Receivables, Vision Operations (USA)

Copy an Existing Subledger Accounting Method

Navigate to the Subledger Accounting Methods window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Subledger Accounting Methods
Query the Standard Accrual subledger accounting method you created for Payables.

End-date an Existing Application Accounting Definition and Add a New One

Enter an end-date of 31-Dec-2006 for the Receivables application accounting definition.
Add a new line and enter a new Receivables application accounting definition, called XX
Receivables Accrual Basis.
Enter a start date of 01-Jan-2007.

Assign the Subledger Accounting Method to the Vision Operations (USA) Ledger
Navigate to the Accounting Setups window:
(N) Setup > Financials > Accounting > Ledger > Accounting Setups
Drill-down to the Vision Operations (USA) ledger.
Change the subledger accounting method to XX Standard Accrual.
Solution – Defining Subledger Accounting Methods for Receivables
Responsibility: Receivables, Vision Operations (USA)

Copying and Modifying an Existing Subledger Accounting Method

1. Navigate to the Subledger Accounting Methods window.
(N) Setup > Accounting > Accounting Methods Builder > Methods and Definitions >
Subledger Accounting Methods
The Find Subledger Accounting Methods window appears.
2. In the Method Name field, enter or select XX_STANDARD_ACCRUAL.
3. (B) Find
The Subledger Accounting Methods window appears.

End-dating an Existing Application Accounting Definition and Adding a New One

11. Place the cursor in the Receivables Default Accrual line and enter an end-date of 31-Dec-
2006.
12. Add a new line by pressing the down arrow key.
13. In the Application field, select Receivables.
14. In the Name field, select XX Receivables Accrual Basis.
15. (B) OK, if you use the LOV to select the Accounting Chart of Accounts.
16. In the Start Date field, enter 01-Jan-2007.
17. Save the accounting method:
(M) File – Save
STOP - The instructor will perform the rest of the steps for the class.

21. In the Primary Ledger region, click the Update icon for the Vision Operations (USA) ledger.
22. In the Subledger Accounting Method field, change the subledger accounting method to XX
Standard Accrual.
23. (B) Select.
24. (B) Finish.
Practice - Defining Mapping Sets in Payables
In this practice, you will do the following:
• Define a mapping set that maps values to suppliers on Invoices.

Tasks

Log on to the System

• Responsibility = Payables, Vision Operations (USA)
1. Navigate to the Mapping Sets window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Mapping Sets
2. (B) New
3. In the Mapping Set Code field, enter the code name for the mapping set,
XX_MAPPING_SET.
4. In the Mapping Set Name field, enter the name for the mapping set, XX Mapping Set.
5. In the Description field, enter Populate Product Segment based on Specific Suppliers.
6. In the Output region, select the Operations Accounting Flex in the Accounting Chart of
Accounts.
7. Select the Segment radio button and select the Product segment.
8. In the Mapping Set Values region, enter the following information:
Value Type Input Value Output Value Start Date
Default 000 <the first day of class>
Input Your Supplier 110 <the first day of class>
Input 01 IBM 120 <the first day of class>
Corporation
Input 02 IBM 130 <the first day of class>
Corporation
Input Your Supplier Pick a product value <the first day of class>
Input Your Supplier Pick a different product <the first day of class>
value
Etc, for as many suppliers from class as you want. Note: Depending on the case of the
supplier name and any abbreviations used, some of the above Input lines may not be
applied. In a production environment, you would use the Supplier Number rather than the
Supplier Name, this is because the Supplier Name may be changed and the Supplier
Number would not be. Document your mapping set.
You can restrict a mapping set to a range of dates by entering the start and end dates. The
GL date of the potential subledger entry is compared to the effective date range of the
mapping set. This determines whether mapping set values should be applied.
9. (I) Save

Create a New Account Derivation Rule for the Product Segment

10. Navigate to the Account Derivation Rules window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Account Derivation Rules
The Find Account Derivation Rules window opens.
11. (B) New
12. In the Rule Code field, enter XX_PRODUCT.
13. In the Rule Name field, enter XX Product.
14. In the Description field, enter XX Product.
15. In the Accounting Chart of Accounts Field, enter Operations Accounting Flex.
16. Select the Segment radio button in the Output Type area.
17. Select Product in the corresponding Segment field.
18. In the Priority field, enter 1.
19. In the Value Type, select Mapping Set.
20. In the Value field, select your XX Mapping Set.
21. In the Input Source field, select Supplier Name.

Add the New Account Derivation Rule to Your Journal Line Definition
22. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Journal Lines Definitions
The Find Journal Lines Definitions window opens.
23. Find your Journal Lines Definition. Hint: Enter XX in the Rule Code field and (B) Find.
24. Select your XX Liability Journal Line Type.
25. Select the first blank line in the Account Derivation Rules tab.
26. In the Segment field, select Product.
27. In the Rule Name field, select your XX Product account derivation rule.
28. Delete the Priority Information
29. (I) Save

Validate Your Application Accounting Definition

30. Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Application Accounting Definitions
The Find Application Accounting Definitions window opens.
31. Find your Application Accounting Definition. Hint: Enter XX in the Rule Code field and (B)
Find.
32. (B) Validate
STOP

Test the Altered Application Accounting Definition

The instructor will test the application accounting definition for class review.
Solution – Defining Mapping Sets in Payables
Responsibility = Payables, Vision Operations (USA)

Defining Mapping Sets

1. Navigate to the Mapping Sets window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Mapping Sets
The Find Mapping Sets window appears.

2. (B) New
The Mapping Sets window appears.
The Enabled check box is automatically selected; this makes the mapping set available for
use.
3. In the Mapping Set Code field, enter the code name for the mapping set,
XX_MAPPING_SET.
4. In the Mapping Set Name field, enter the name for the mapping set, XX Mapping Set.
5. In the Description field, enter Populate Product Segment based on Specific Suppliers.
6. In the Output region, select the Operations Accounting Flex in the Accounting Chart of
Accounts.
7. Select the Segment radio button and select the Product segment.
8. In the Mapping Set Values region, enter the following information:
Value Type Input Value Output Value Start Date
Default 000 <the first day of class>
Input Your Supplier 110 <the first day of class>
Input 01 IBM 120 <the first day of class>
Corporation
Input 02 IBM 130 <the first day of class>
Corporation
Input Your Supplier Pick a product value <the first day of class>
Input Your Supplier Pick a different product <the first day of class>
value
Etc, for as many suppliers from class as you want. Note: Depending on the case of the
supplier name and any abbreviations used, some of the above Input lines may not be
applied. In a production environment, you would use the Supplier Number rather than the
Supplier Name, this is because the Supplier Name may be changed and the Supplier
Number would not be. Document your mapping set.
You can restrict a mapping set to a range of dates by entering the start and end dates. The
GL date of the potential subledger entry is compared to the effective date range of the
mapping set. This determines whether mapping set values should be applied.
The Mapping Sets window should now look something like this:

9. (I) Save

Create a New Account Derivation Rule for the Product Segment

Add the New Account Derivation Rule to Your Journal Line Definition
24. Navigate to the Journal Lines Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Journal Lines Definitions
The Find Journal Lines Definitions window opens.
25. Find your Journal Lines Definition. Hint: Enter XX in the Definition Code field and (B) Find.
26. Select your XX Liability Journal Line Type.
27. Select the first blank line in the Account Derivation Rules tab.
28. In the Segment field, select Product.
29. In the Rule Name field, select your XX Product account derivation rule.
30. (I) Save

Validate Your Application Accounting Definition

31. Navigate to the Application Accounting Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Application Accounting Definitions
The Find Application Accounting Definitions window opens.
32. Find your Application Accounting Definition. Hint: Enter XX in the Definition Code field and
(B) Find.
33. (B) Validate

STOP

Test the Altered Application Accounting Definition

The instructor will test the application accounting definition for class review.
Reports
Guided Demonstration - Creating an Open Account Balances Listing
Definition
Create Open Account Balances Listing for the Vision Operations (USA) ledger

Responsibility = Payables, Vision Operations (USA)

1. Navigate to the Open Account Balances Listing Definition window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Open Account
Balances Listing Definitions.
2. (T) Open Account Balances Listing Definitions .
3. (B) Create.
The Create Open Account Balances Listing Definition window appears.
4. In the Code field, enter XX_LIAB_BALANCE.
5. In the Name field, enter XX Liability Balance.
6. In the description field, enter XX Liability Account Balance.
7. In the Ledger field, select Vision Operations (USA) from the list of values.
8. In the Defined By field, select segment from the drop-down list.
9. In the Balance Side field, select Credit from the drop-down list.
10. In the Open Account Balances Listing Journal Sources region, (B) Add Another Row.
11. Select Payables from the list of values for Journal Sources.
12. In the Definition Details region, (B) Add Another Row.
13. In the segment field, select Account from the list of values.
14. In the Value From and Value To field, select 2210 from the list of values.

15. (B) Apply.

16. (H) Close Window.
17. Navigate to the Submit a New Request window
(N) Other > Requests > Run
18. Select a Single Request
19. (B) OK.
20. In the Name field, select Open Account Balances Listing.
21. In the Report Definition field, select XX Liability Balance
22. In the Start Date, select 01-Jan-2007
23. (B) OK.
24. (B) Submit.

Viewing the Open Account Balances Listing Report

25. (M) View > Requests
26. Ensure the All My Requests radio button is selected and (B) Find.
27. Select the Open Account Balances Listing Report you have just generated and (B) View
Output

Sample of the Open Account Balances Listing Report

Practice - Control Accounts, Running Subledger Accounting Reports,
Diagnostics
Overview
In this lab you will set up and test control accounts and you will run some of the seeded
Subledger Accounting Reports, including:
• Third party Balances Report
The third party balances report displays balance and account information for suppliers
and customers.
• Open Account Balance Listing Report
The Open Account Balances Listing identifies General Ledger Accounts with
outstanding balances and displays the subledger transactions that contribute to that
balance.
• Journal Entries Report
The Journal Entries report displays detailed header and line information for subledger
and General Ledger journal entries.
Note: To avoid duplication with subledger journal entries, General Ledger journal
entries imported from subledger accounting are not included in this report.
• Account Analysis report
The Account Analysis report provides drill-down information about the movement on a
particular account for a period or a range of periods. It includes only journal entries
transferred to and posted to General Ledger.
• Subledger Period Close Exception Report
The Subledger Period Close Exception report shows details of transactions that are
either not fully accounted for or are not transferred to GL. All transactions other than
posted to GL are shown in this report.
Also when period is closed in GL, this report is triggered automatically.
• Transaction Objects Diagnostics Report
The transaction objects diagnostics report can assist in diagnosing problems if the
Create Accounting program fails with errors.

Tasks

Responsibility: Payables, Vision Operations (USA)

Note that only the major steps involved creating this lab is listed here. Details of each Step are
highlighted in the Solutions topic.
1. Control Accounts and the Third Party Balances Report
Run the Third Party Balances report
2. Running the Open Account Balances Report
3. Run the Open Account Balances Data Manager program
4. Run the Open Account Balances report
5. Run the Journal Entries Report
6. Run the Account Analysis Report
7. Run the Transaction Objects Diagnostics Report
8. Run the Subledger Period Close Exception Report
Solution - Control Accounts, Running Subledger Accounting Reports,
Diagnostics
Note: Some of the reports require setup before they will produce data, so the setup is
documented in this lab as well.

Control Accounts and the Third Party Balances Report

Verify that the ledger is set up to track third party account balances.
Responsibility: General Ledger, Vision Operations (USA)
1. Navigate to the Accounting Setups window.
• (N) Setup > Financials > Accounting Setup Manager > Accounting Setups.
2. In the Accounting Setups window, search the Vision Operations (USA) ledger.
3. Click the Update Accounting Options icon for the Vision Operations (USA) ledger.
4. Click the Update icon for the Subledger Accounting Options for Vision Operations (USA)
ledger in the Primary Ledger: Vision Operations (USA) region.
5. In the Subledger Applications window, click the Update Accounting Options icon for the
Payables application.
6. In the Update Accounting Options: Payables region, verify that the Third Party Merge
Accounting Option is set to Transfer Third Party Control Account Balances. If it is not set
correctly, set it and click the Apply button.

Set up a custom segment value for the natural account segment and identify it as a
control value.
1. Navigate to the Segment Values window.
• (N) Setup > Financials > Flexfields > Validation > Values.
2. In the Find Value Set window, make sure the radio button is set to Value Set, enter
Operations Account in the Name field and click (B) Find.
3. In the Segment Values window, position your cursor in the lower block of the window and
then click on the new record (green plus sign) icon in the toolbar.
4. Enter the following as the value:

Field Name Value

Value 26XX (where XX is your number)
Description XX AP Liability
Allow Budgeting Yes
Allow Posting Yes
Account Type Liability
Reconcile No
Third Party Control Supplier
5. (M) File > Save.
6. Verify that you receive a popup that a request was submitted to recompile value set
hierarchies.
Note: If you change a segment value to a third party control account after combinations
have already been created, you must run the program called “Program-Segment Value
Inheritance” in General Ledger for the combinations to inherit the change you made to the
segment value.

Enter a manual Journal Entry to your control account

1. Navigate to the Journals window.
(N) Journals > Enter
2. Click (B) New Journal in the Find Journals window.
3. In the Journals window, enter:
− Journal = XXCONTROLTEST
4. Put your cursor in the lines region and enter:
− Line = 10
− Account = 01-000-26XX-0000-000
5. Tab out of the account field and verify that you receive an error message:
"You cannot use control accounts. Please enter a different account."
6. Close the Journal Entry window.

Enter an invoice and code it to your control account

Responsibility: Payables, Vision Operations (USA)
1. Navigate to the Invoices window.
(N) Invoices > Entry > Invoices
2. In the Invoice Workbench window, enter the following:

Field Name Value

Trading Partner XXIBM Corporation
Supplier Site SAN FRANCISCO
Invoice Date today
Invoice Num XXCONTROL001
Invoice Amount 1069.00
Description XXCONTROL001
3. (M) File > Save.
4. Click (N) Folder > Show Field. From the list of fields, choose the Liability Account field.
5. CHANGE the liability account from the default of 01-000-2210-0000-000 to 01-000-26XX-
0000-000
6. (M) File > Save.
7. Click the lines tab.
8. Enter the following:

Field Name Value

Num 1
Type Item
Amount 1000.00
Distribution 01-470-5110-0000-000
Description XXCONTROL001LINE
9. (M) File > Save.
10. (B) Actions.
11. In the Invoice Actions window, check the Validate checkbox and click (B) OK.
12. (B) Actions.
13. In the Invoice Actions window, check the Create Accounting checkbox and the Final Post
radio button and click (B) OK.
14. Verify that you receive a Note popup indicating that accounting has been successfully
created for this transaction.
15. Click on (N) Reports > View Accounting
16. Verify that you see the following subledger journal entry:
Account Accounting Class DR CR
01-470-5110-0000-000 Item Expense XX.00
01-000-26XX-0000-000 Liability XX.00
17. Close the Subledger Journal Entry Lines window.

Run the Third Party Balances report

1. Navigate to the Submit Request window.
(N) Other > Requests > Run
2. In the Submit Requests window, choose the Third Party Balances Report, and enter the
following runtime parameters:

Field Name Value

Ledger > Ledger Set Vision Operations (USA)
Journal Entry Source Payables
Period From Current Period
Period To Current Period
Party Type Supplier
Third Party Name XXIBM Corporation
Account From 01-000-26XX-0000-000
Account To 01-000-26XX-0000-000
Include User Transaction. Yes
Identifiers
3. (B) Ok.
4. (B) Submit.
5. View the status of the request using (M) View > Requests
6. Verify that the report output is similar to that shown below (it may not match exactly).
Running the Open Account Balances Report
Update the Liabilities Payables, Vision Operations (USA) Open Account Balances Listing
Definition
Responsibility: Payables, Vision Operations (USA)
1. Log into the application as your user.
2. Navigate to the Open Account Balances Listing Definitions window.
(N) Setup > Accounting Setups > Subledger Accounting Setup > Open Account
Balances Listing Definitions
3. In the Open Account Balances Listing Definitions window, enter the following:
Ledger Vision Operations (USA)
Defined By Accounting Flexfield
4. (B) Go.
5. Click the pencil (update) icon in the Actions column for the Liabilities Payables, Vision
Operations (USA) definition.
6. In the Definition Details region, click (B) Add Another Row.
7. Enter your new account combination 01-000-26XX-0000-000.
8. (B) Apply and verify that you receive a confirmation message.

Run the Open Account Balances Data Manager program

Note: Usually when the Create Accounting program is run, the Open Account Balances
Data Manager program is submitted automatically. However, it can also be run manually as
a concurrent request, which is what you are going to do.
1. Navigate to the Submit Request window.
• (N) Other > Requests > Run.
2. In the Submit a New Request window, choose Single Request.
3. In the Submit Request window, choose the Open Account Balances Data Manager program
and run with these parameters:
− Ledger = Vision Operations (USA)
− Trial Balance Definition Name = Liabilities Payables, Vision Operations (USA)
4. Monitor the status of the request using View > Requests and verify that the request
completes successfully.
Run the Open Account Balances report
1. Navigate to the Submit Request window.
• (N) Other > Requests > Run.
2. In the Submit a New Request window, choose Single Request.
3. In the Submit Request window, run the Open Account Balances Listing report using the
following parameters:
Field Name Value
Report Definition Liabilities Payables, Vision Operations (USA)
Journal Source Payables
Start Date 01-JAN-2008
Show Transaction Detail Yes
Account From 01-000-26XX-0000-000
Account To 01-000-26XX-0000-000
Account Balance Year to Date
4. (B) Ok.
5. Once you have entered the report parameters, click (B) Options in the Submit Request
window.
6. In the Upon Completion window, change the template name to Open Account Balances
Listing - Group by Account, Detail.
7. (B) Ok.
8. (B) Submit.
9. (B) No.
10. Close the Window.
11. Monitor the status of your request using (M) View > Requests and verify that it completes
successfully.
12. The output should look similar to that below:
Run the Journal Entries Report
1. Navigate to the Submit Request window.
• (N) Other > Requests > Run.
2. In the Submit a New Request window, choose Single Request.
3. In the Submit Request window, run the Journal Entries report with the following parameters:

Field Name Value

Ledger > Ledger Set Vision Operations (USA)
Period From Current Period
Period To Current Period
Journal Entry Status Final
Journal Source Payables
Include User Transaction Yes
Identifiers
4. (B) Ok.
5. (B) Submit.
6. (B) No.
7. Monitor the status of the request via View > Requests.
8. Your report output should look similar to the following:
9. (B) No.

Run the Account Analysis Report

1. Navigate to the Submit Request window.
• (N) Other > Requests > Run.
2. In the Submit a New Request window, choose Single Request.
3. In the Submit Request window, run the Account Analysis report with the following
parameters.

Field Name Value

Ledger > Ledger Set Vision Operations (USA)
Period From Current Period
Period To Current Period
Balance Type Actual
Flexfield From 01-000-26XX-0000-000
Flexfield To 01-000-26XX-0000-000
Include User Trx ID’s Yes
4. Click (B) Ok.
5. Click (B) Submit.
6. Monitor the status of your request via View > Requests.
7. The request output should look similar to below:
Run the Transaction Objects Diagnostics Report
The transaction objects diagnostics report can help you diagnose errors with your setup if the
Create Accounting program fails with errors. In order for the report to collect information, you
must first set the SLA: Diagnostics Enabled profile option to Yes at the User level for the user
running the Create Accounting program.
1. Switch responsibility to System Administrator.
2. Choose (M) Profile.
3. Choose (M) System.
4. Select the profile in the Profile prompt on the Find System Profile Value window.
5. Click Find.
6. Change the value as indicated.
Then, run the Create Accounting program. Once the Create Accounting program is run you can
run the Transaction Objects Diagnostics report.
1. Using the Payables, Vision Operations (USA) responsibility, go to Other > Requests > Run.
2. In the Submit a New Request window, choose Single Request.
3. In the Submit Request window, run the Transaction Objects Diagnostics report with the
following parameters:

Field Name Value

Ledger Vision Operations (USA)
Event Class Name Invoices
Transaction Number Pick one
Display Source Name Yes
Display Acctng. Att Yes
4. Monitor the status of the request via View > Requests.
5. The request output should look similar to below:
NOTE: Turning on diagnostics will have a negative impact on performance!! Once you
have tested the functionality of turning diagnostics on and run the report, make sure to
return to the System Administrator responsibility and set the SLA: Diagnostics Enabled
profile option back to “No” for your user.

Run the Subledger Period Close Exception Report

1. Navigate to the Submit Request window.
• (N) Other > Requests > Run.
2. In the Submit a New Request window, choose Single Request.
3. In the Submit Request window, run the Subledger Period Close Exception report with the
following parameters.
Field Name Value
Journal Source Payables
Ledger > Ledger Set Vision Operations (USA)
Period From Current Period
Period To Current Period
Event Class Invoices
Journal Category Payments
4. Monitor the status of your request via View > Requests.
5. The request output should look similar to that below:
Creating Manual Subledger Journal Entries
Guided Demonstration - Creating Manual Subledger Journal Entries in
Payables
Responsibility: Payables, Vision Operations (USA)
1. Navigate to the Subledger Journal Entries window.
(N) Accounting > Subledger Accounting > Journal Entries
2. (B) Create Journal Entry.
3. In the Ledger field, select Vision Operations (USA).
4. In the GL Date field, enter today’s date.
5. In the Category field, select Purchase Invoices.
6. In the Description field, enter Project Meeting.
7. If the lines are not displayed, (B) Add 5 Lines.
8. Enter the following lines:
Operations Accounting Flex Accounting Class Entered DR Entered CR
01-450-7640-0000-000 Item Expense 1702
01-450-7670-0000-000 Item Expense 750
01-450-7650-0000-000 Item Expense 455
01-000-2210-0000-000 Liability 2907
9. (B) Calculate Totals
10. (B) Continue
11. In the Complete field, select Draft.
12. (B) Finish.
Practice - Creating Manual Subledger Journal Entries in Payables
Overview
In this practice, you will do the following:
• Create manual subledger journal entries in Payables.

Tasks

Log on to the System

• Responsibility = Payables, Vision Operations (USA)

Creating a Manual Subledger Journal Entry in Payables

1. Navigate to the Subledger Journal Entries window.
(N) Accounting > Subledger Accounting > Journal Entries
2. (B) Create Journal Entry.
3. Use the following setup information:
Vision Operations (USA) ledger
Use today’s date as the GL date
Purchase Invoices journal category
Enter a description of XX Project Meeting
4. Enter the following lines:
Operations Accounting Flex Accounting Class Entered DR Entered CR
01-450-7640-0000-000 Item Expense 1702
01-450-7670-0000-000 Item Expense 750
01-450-7650-0000-000 Item Expense 455
01-000-2210-0000-000 Liability 2907
5. Calculate the totals.
6. Continue to the Review Subledger Journal Entry window and complete the journal entry in
Draft mode.
Note: Check with your instructor to see if you should use "Final and Post" so that you can
see the results in the General Ledger
Solution – Creating Manual Subledger Journal Entries in Payables
Responsibility = Payables, Vision Operations (USA)
1. Navigate to the Subledger Journal Entries window.
(N) Accounting > Subledger Accounting > Journal Entries
2. (B) Create Journal Entry.
3. In the Ledger field, select Vision Operations (USA).
The primary and secondary ledgers displayed in the ledger list of values are determined by
the system profile option SLA: Enable Data Access Security in Subledgers. If this profile
option is set to Yes, the list of values displays only the primary and secondary ledgers
defined in the GL: Data Access Set and the SLA: Additional Data Access Set profile
options. If the profile option is set to No, the list of values displays all primary and
secondary ledgers.
4. In the GL Date field, enter today’s date. This is the GL date for posting the subledger
journal entry.
5. In the Category field, select the Purchase Invoices journal category.
6. In the Description field, enter XX Project Meeting.
7. If the lines are not displayed, (B) Add 5 Lines.
8. Enter the following lines:
Operations Accounting Flex Accounting Class Entered DR Entered CR
01-450-7640-0000-000 Item Expense 1702
01-450-7670-0000-000 Item Expense 750
01-450-7650-0000-000 Item Expense 455
01-000-2210-0000-000 Liability 2907
9. (B) Calculate Totals

10. (B) Continue to review all subledger journal entry header and line information.
The Review Subledger Journal Entry window appears.
11. In the Complete field, select Draft.

Note:
• Draft status indicates that the results cannot be transferred or posted to General
Ledger. Entries can be updated and deleted. Funds reservation cannot be
performed.
• Check with your instructor to see if you should use "Final and Post" so that you can
see the results in the General Ledger.
12. (B) Finish.
Guided Demonstration - Creating Manual Subledger Journal Entries in
Receivables
Responsibility: Receivables, Vision Operations (USA)
1. Navigate to the Subledger Journal Entries window.
(N) Inquiry > Subledger Accounting > Journal Entries
2. (B) Create Journal Entry.
3. In the Ledger field, select Vision Operations (USA).
4. In the GL Date field, enter today’s date.
5. In the Category field, select Sales Invoices.
6. In the Description field, enter Sentinal Standard Desktop.
7. If the lines are not displayed, (B) Add 5 Lines.
8. Enter the following lines:

Operations Accounting Flex Accounting Class Entered DR Entered CR

01-000-1210-0000-000 Receivable 2238.30
01-000-2520-2113-000 Tax 126.70
01-600-4150-0000-000 Revenue 2111.60
9. (B) Calculate Totals
10. (B) Continue
11. In the Complete field, select Draft.
12. (B) Finish.
Practice - Creating Manual Subledger Journal Entries in Receivables
Overview
In this practice, you will do the following:
• Create manual subledger journal entries in Receivables.

Tasks

Log on to the System

• Responsibility = Receivables, Vision Operations (USA)

Creating a Manual Subledger Journal Entry in Receivables

1. Navigate to the Subledger Journal Entries window.
(N) Inquiry > Subledger Accounting > Journal Entries
2. (B) Create Journal Entry.
3. Use the following setup information:
Vision Operations (USA) ledger
Use today’s date as the GL date
Sales Invoices journal category
Enter a description of XX Sentinal Standard Desktop
4. Enter the following lines:
Operations Accounting Flex Accounting Class Entered DR Entered CR
01-000-1210-0000-000 Receivable 2238.30
01-000-2520-2113-000 Tax 126.70
01-600-4150-0000-000 Revenue 2111.60
5. Calculate the totals.
6. Continue to the Review Subledger Journal Entry window and complete the journal entry in
Draft mode.
Note: Check with your instructor to see if you should use "Final and Post" so that you can
see the results in the General Ledge
Solution – Creating Manual Subledger Journal Entries in Receivables
Responsibility = Receivables, Vision Operations (USA)
1. Navigate to the Subledger Journal Entries window.
(N) Inquiry > Subledger Accounting > Journal Entries
2. (B) Create Journal Entry.
3. In the Ledger field, select Vision Operations (USA).
The primary and secondary ledgers displayed in the ledger list of values are determined by
the system profile option SLA: Enable Data Access Security in Subledgers. If this profile
option is set to Yes, the list of values displays only the primary and secondary ledgers
defined in the GL: Data Access Set and the SLA: Additional Data Access Set profile
options. If the profile option is set to No, the list of values displays all primary and
secondary ledgers.
4. In the GL Date field, enter today’s date. This is the GL date for posting the subledger
journal entry.
5. In the Category field, select the Sales Invoices journal category.
6. In the Description field, enter XX Sentinal Standard Desktop.
7. If the lines are not displayed, (B) Add 5 Lines.
8. Enter the following lines:
Operations Accounting Flex Accounting Class Entered DR Entered CR
01-000-1210-0000-000 Receivable 2238.30
01-000-2520-2113-000 Tax 126.70
01-600-4150-0000-000 Revenue 2111.60

9. (B) Calculate Totals

10. (B) Continue to review all subledger journal entry header and line information.
The Review Subledger Journal Entry window appears.
11. In the Complete field, select Draft.

Note:
• Draft status indicates that the results cannot be transferred or posted to General
Ledger. Entries can be updated and deleted. Funds reservation cannot be
performed.
• Check with your instructor to see if you should use "Final and Post" so that you can
see the results in the General Ledger.
12. (B) Finish.
Advanced Options
Practice - Business Flows Example for Subledger Accounting
Overview
In this example, you will define two Journal Lines Definitions – one to create a journal entry for
an AP invoice, and another to create a journal entry for the payment, which is applied to the AP
invoice. The journal lines definition for the payment uses a business flow to assure that the
liability account, which is posted to in the GL by the invoice is the same account that is cleared
by posting the payment to the General Ledger.
In this example, create an account derivation rule for the Expense account for the AP Invoice.

Tasks

Responsibility = Payables, Vision Operations (USA)

Note that only the major steps involved creating this lab is listed here. Details of each Step are
highlighted in the Solutions topic.
1. Create an Account Derivation Rules for the Expense account for the AP Invoice.
2. Create an Account Derivation Rules for the AP Liability account for the AP Invoice.
3. Create an Account Derivation Rules for the Cash account for the AP payment
4. Create a Journal Line Types for the AP Expense account for the invoice
5. Create a Journal Line Types for the AP Liability account for the invoice
6. Create a Journal Line Types for the AP Cash account for the payment
7. Create a Journal line Types for the AP Liability account for the payment, using a Business
8. Flow method of prior entry.
8. Create a Journal Lines Definitions for the AP invoice
9. Create a Journal Lines Definitions for the AP payment
10. Create an Application Accounting Definition for the Payables application
11. Create a new Subledger Accounting Method
12. Replace the Subledger Accounting Method referenced on the Vision Operations ledger with
your new Subledger Accounting Method.
13. Enter an Accounts Payable invoice.
14. Run the Create Accounting Process for the invoice.
15. Pay the Invoice.
16. Run the Create Accounting Process for the invoice.
Solution - Business Flows Example for Subledger Accounting
Responsibility = Payables, Vision Operations (USA)

Create an Account Derivation Rules for the Expense account for the AP Invoice.
1. Navigate to the Account Derivation Rules window
• (N) Setup > Accounting Setups > Subledger Accounting Setups > Accounting Methods
Builder > Journal Entry Setups >Account Derivation Rules.
2. (B) New.
.3. In the Account Derivation Rules window, enter:

Field Name Value

Rule Code XXBFAPEXPENSE
Rule Name XX BF AP Expense
Description XX BF AP Expense
Accounting Operations Accounting Flex
Output Type Flexfield
Priority 1
Value type Constant
Value 01-410-7740-0000-000
4. Save.

Create an Account Derivation Rules for the AP Liability account for the AP Invoice.
1. Navigate to the Account Derivation Rules window.
• (N) Setup > Accounting Setups > Subledger Accounting Setups > Accounting Methods
Builder > Journal Entry Setups > Account Derivation Rules.
2. (B) New.
3. In the Account Derivation Rules window, enter:

Field Name Value

Rule Code XXBFAPLIABILITY
Rule Name XX BF AP Liability
Description XX BF AP Liability
Accounting Operations Accounting Flex
Output Type Flexfield
Priority 1
Value type Constant
Value 01-000-2220-0000-000
4. Save.
Create an Account Derivation Rules for the Cash account for the AP payment
1. Navigate to the Account Derivation Rules window.
• (N) Setup > Accounting Setups > Subledger Accounting Setups > Accounting Methods
Builder > Journal Entry Setups > Account Derivation Rules.
2. (B) New.
3. In the Account Derivation rules window, enter the following:

Field Name Value

Rule code XXBFAPCASH
Rule Name XX BF AP Cash
Description XX BF AP Cash
Accounting Operations Accounting Flex
Output Type Flexfield
Priority 1
Value Type Constant
Value 01-000-1210-0000-000
4. Save.
Note You do not need to create an account derivation rule for the liability account to be
cleared on the payment because the account is derived using a business flow that
references the liability account from the invoice.
Create a Journal Line Types for the AP Expense account for the invoice
1. Navigate to the Journal Line Types window.
• (N) Setup > Accounting Setups > Subledger Accounting Setups > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types.
2. (B) New.
3. In the Journal Line types window, enter the following:

Field Name Value

Event Class Invoices
Line type Code XXBFAPEXPENSE
Accounting Class Item Expense
Name XX BF AP EXPENSE
Rounding Class Item Expense
Description XX BF AP Expense
Balance type Actual
Side Debit
Business Flow Method None
Switch Debit > Credit Yes
Merge Matching No
Subledger Gain/Loss No
Multiperiod None
Transfer to GL Summary
4. (B) Condition
5. Enter the following:
• Seq – 1
• Source – Invoice Line Type
• Operator – =
• Value Type – Constant
• Value – Item
6. (M) File > Save.

Create a Journal Line Type for the AP Liability account for the invoice
1. Navigate to the Journal Line Types window.
• (N) Setup > Accounting Setups > Subledger Accounting Setups > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types.
2. (B) New.
3. In the Journal Line types window, enter the following:
Field Name Value
Event Class Invoices
Line type Code XXBFAPLIABILITY
Accounting Class Liability
Name XX BF AP Liability
Rounding Class Liability
Description XX BF AP Liability
Balance type Actual
Side Credit
Business Flow None
Method
Business Flow Accounts Payable
Class Liability <<< Important!!
Switch Debit > Yes
Credit
Merge Matching No
Subledger Gain > No
Loss
Multiperiod None
Transfer to GL Summary
4. Save.

Create a Journal Line Types for the AP Cash account for the payment
1. Navigate to the Journal Line Types window.
• (N) Setup > Accounting Setups > Subledger Accounting Setups > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types.
2. (B) New.
3. In the Journal Line types window, enter the following:

Field Name Value

Event Class Payments
Line type Code XXBFAPCASH
Accounting Class Cash
Name XX BF AP Cash
Rounding Class Cash
Description XX BF AP Cash
Balance type Actual
Side Credit
Business Flow Method None
Switch Debit > Credit Yes
Merge Matching No
Subledger Gain > Loss No
Multiperiod None
Transfer to GL Summary
4. Save.

Create a Journal Line Types for the AP Liability account for the payment, using a
Business Flow method of prior entry.
1. Navigate to the Journal Line Types window.
• (N) Setup > Accounting Setups > Subledger Accounting Setups > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types.
2. (B) New.
3. In the Journal Line types window, enter the following:

Field Name Value

Event Class Payments
Line type Code XXBFAPLIABCLEARING
Accounting Class Liability
Name XX BF AP Liability Clearing
Rounding Class Liability
Description XX BF AP Liability Clearing
Balance type Actual
Side Debit
Business Flow Method Prior Entry <<Important!!
Field Name Value
Class Accounts Payable Liability<Important!
Switch Debit > Credit Yes
Merge Matching No
Subledger Gain > Loss No
Multiperiod None
Transfer to GL Summary
4. Save.

Create a Journal Lines Definitions for the AP invoice

1. Navigate to the Journal Lines Definitions window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Journal Lines Definitions.
2. (B) New.
3. In the Journal Lines Definitions window, enter the following:

Field Name Value

Event Class Invoices
Event Type ALL
Definition Code XXBFAPINVOICE
Definition Name XXBFAPINVOICE
Accounting Operations Accounting Flex
4. In the Line Assignments region, enter the following:
Expense Line
− Journal Line type = XX BF AP EXPENSE
− Line Description = Invoice Distribution Description
− Account Derivation Rules
− Segment = All Segments
− Rule Name = XX BF AP Expense
− Save
Liability Line
− Journal Line type = XX BF AP LIABILITY
− Line Description = Invoice Header Description
− Account Derivation Rules
− Segment = All Segments
− Rule Name = XX BF AP Liability
− Save.
Non Recoverable Tax Line
− Journal Line type = Non-Recoverable Tax
− Line Description = Invoice Distribution Description
− Account Derivation Rules
− Segment = All Segments
− Rule Name = Invoice Distribution Account
− Save

Rule Name = XX BFAP Liability Create a Journal Lines Definition for the AP payment
1. Navigate to the Journal Lines Definitions window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Journal Lines Definitions.
2. (B) New.
3. In the Journal Lines Definitions window, enter the following:

Field Value
Event Class Payments
Event Type ALL
Definition Code XXBFAPPAYMENT
Definition Name XX BF AP Payment
Accounting Operations Accounting Flex
4. In the Line Assignments region, enter the following:
Liability
− Journal Line type = XX BF AP LIABILITY
− Line Description = Invoice Description
Cash
− Journal Line type = XX BF AP CASH
− Line Description = Payment Header Description
− Segment = All Segments
− Rule Name = XX BF AP CASH
− Save.
6. Save.
Note For the XX BF AP LIABILITY line type, you do not need to enter an account
derivation rule because it uses a business flow to derive the account.

Create an Application Accounting Definition for the Payables application

Once again, copy the seeded Application Accounting definition for payables, because the only
things to change are the journal lines definitions for Invoices and Payments.
1. Navigate to the Application Accounting Definitions window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Application Accounting Definitions.
2. In the Find Application Accounting Definitions window, enter Accrual Basis in the Definition
Name field.
3. (B) Find.
4. Click (B) Copy in the Application Accounting Definitions window.
5. In the Copy Application Accounting Definitions window, enter the following:

Field Name Value

Definition Code XXBUSFLOWAAD
Definition Name XX Business Flow AAD
Accounting Operations Accounting Flex
Header Assignment Checked
Line Assignment Checked
Display after copy Checked
6. (B) Done.
7. In the Applications Accounting Definitions window, click the Invoices line in the Event Class
and Event Type Assignments region.
8. Click the Accrual, Invoices All journal lines definition in the Journal Lines Definition
Assignments region.
9. Delete the Accrual, Invoices All journal lines definition and save.
10. In the Journal Lines Definition Assignments region, enter your XX BF AP INVOICE journal
lines definition.
11. (M) File > Save.
12. In the Applications Accounting Definitions window, click the Payments line in the Event
Class and Event Type Assignments region.
13. Click the Accrual, Payments All Journal lines definition in the Journal Lines Definition
Assignments region.
14. Delete the Accrual, Payments All Journal Lines Definition and save.
15. In the Journal Lines Definition Assignments region, enter the XX BF AP PAYMENT journal
lines definition.
16. (M) File > Save.
17. In the Application Accounting Definitions window, click the Validate button.
18. Wait a few moments and verify that the status for all journal lines definitions changes to
Valid.

Create a new Subledger Accounting Method

Once again, copy the seeded Standard Accrual subledger accounting method, because the only
thing to change is the application accounting definition for the payables application.

1. Navigate to the Subledger Accounting Methods window.

• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Subledger Accounting Methods
2. In the Find Subledger Accounting Methods window, enter Standard Accrual in the Method
Name field.
3. (B) Find.
4. Click (B) Copy in the Subledger Accounting Methods window
5. In the Copy Subledger Accounting Method window, enter the following:

Field Name Value

Method Code XXBFSLAM
Method Name XX Business Flow Subledger Accounting Method
Accounting Operations Accounting Flex
Display after copy Checked
6. (B) Done.
7. In the Subledger Accounting Methods window, delete the Payables Application Accounting
Definition and save.
8. In the Applications Accounting Definitions region, create a new record, and enter:

Field Name Value

Application Payables
Name XX Business Flow AAD
Start Date 01-JAN-2006
9. (M) File > Save.

Replace the Subledger Accounting Method referenced on the Vision Operations ledger
with your new Subledger Accounting Method
Note: The Instructor will perform this Task and show the result.
1. Navigate to the Accounting Setup window.
• (N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setup.
2. In the Accounting Setups window, enter Vision Operations (USA) in the Search By field and
click (B) GO.
3. Click the Update Accounting Options icon.
4. Click the Update icon for the Vision Operations (USA) ledger.
5. In the Update Ledger:Ledger definition window, change the Subledger Accounting Method
from Standard Accrual to your new XX Business Flow Subledger Accounting Method.
6. Click the Finish button.

Enter an Accounts Payable invoice

1. Navigate to the Invoices window.
• (N) Invoices > Entry > Invoices.
2. In the Invoice workbench window, enter the following:

Field Name Value

Trading Partner Advantage Corp
Supplier Site Advantage - US
Invoice Date today
Invoice Num XXBFTEST01
Invoice Amount 1075.00
GL Date today
Description XXBFTEST001
Terms Immediate
Payment Method Check
3. Click on the Lines tab and enter the following

Field Name Value

Num 1
Type Item
Amount 1000.00
Dist. Account 01-410-7110-0000-000
Description XXBFTEST001
4. (M) File > Save.
5. Click the Actions button.
6. In the Invoice Actions window, check the Validate checkbox and click the OK button.
7. Verify that the invoice status changes to Validated in the General tab.

Run the Create Accounting Process for the invoice

1. Navigate to the Submit Request window.
• (N) Other > Requests > Run.
2. Choose to Submit a Single Request.
3. In the Requests window, enter Create Accounting in the Request name field.
4. (B) Find or OK.
5. In the Create Accounting Parameters window, enter the following:

Field Name Value

Ledger Vision Operations (USA)
Process Category Leave Blank
End Date tomorrow
Mode Final
Errors Only No
Report Detail
Transfer to GL Yes
Post in GL Yes
GL Batch Name Leave blank
Field Name Value
Include User Yes
Transaction
Identifiers
6. (B) OK.
7. (B) Submit.
8. Monitor the status of the request via View > Requests.
9. When the request completes, click the View Output button for the Create Accounting
request and verify that accounting was correctly created for the invoice, using the journal
lines definition that you created for invoices in Payables.
Note The Create Accounting process utilized the account derivation rules that were
specified to use a constant value of 01-410-7740-0000-000 for the expense line (even
though the expense line on the invoice was 01-410-7110-0000-000) and a constant value
of 01-000-2220-0000-000 for the liability line (even though the liability account on the
invoice was 01-000-2210-0000-000).

Instructor Demonstration: Pay the invoice

1. Navigate to the Payments window.
• (N) Payments > Entry > Payments.
2. In the payments window, enter the following:

Filed Name Value

Type Quick
Operating Unit Vision Operations
Trading Partner Advantage Corp
Supplier Site Advantage-US
Payment Date today
Bank Account BofA-204
Payment Currency USD
Payment Method Check
Payment Document Check 204
Payment Process Check – USD
Profile
Remit to Account Leave the field blank. If there is a
value, delete the value.
Document Number ___________Write this down
3. (B) Enter or Adjust Invoices.
4. Choose the XXBFTEST001 invoice from the list of values and tab.
5. (M) File > Save.
Run the Create Accounting Process for the invoice
1. Navigate to the Submit request window.
• (N) Requests > Run.
2. Choose Single Request.
3. In the Requests window, enter Create Accounting in the Request name field and click (B)
Find or OK.
4. In the Create Accounting Parameters window, enter the following:

Field Name Value

Ledger Vision Operations (USA)
Process Leave Blank
Category
End Date tomorrow
Mode Final
Errors Only No
Report Detail
Transfer to GL Yes
Post in GL Yes
GL Batch Name Leave blank
Include User Yes
Transaction
Identifiers
5. (B) OK.
6. (B) Submit.
7. Monitor the status of the request via View > Requests.
When the request completes, click the View Output button for the Create Accounting request
and verify that accounting was correctly created for the payment, using the journal lines
definition that you created for payments in Payables.
Verify that the cash account is 01-000-1210-0000-000, which is the constant value associated
with the account derivation rule for the cash line type in the payments journal lines definition.
Verify that the liability account is 01-000-2220-0000-000, which is the same account that you
used in the account derivation rules for the liability account on the invoice.
The SLAM used this account because of the business flow information referenced on the liability
clearing line type in the journal lines definition for the payments event class.
Practice - Multiperiod Subledger Accounting
Overview
In this practice you will create Multiperiod Subledger Accounting.

Tasks

Responsibility = Payables, Vision Operations (USA)

Note that only the major steps involved creating this lab is listed here. Details of each Step are
highlighted in the Solutions topic.
1. Create the Account Derivation Rules for the invoice liability account for the multiperiod
accrual entry.
2. Create the Account Derivation Rules for the invoice item expense account for the
multiperiod accrual entry.
3. Create the Account Derivation Rules for the invoice item expense account for the
multiperiod recognition entry on the condition that the supplier name is Advanced Network
Devices.
4. Create a Journal Entry Line Types to specify the balance type, side, so on for the liability
line for the multiperiod accrual entry.
5. Create a Journal Entry Line Types to specify the balance type, side, so on for the expense
line for the multiperiod accrual entry.
6. Create a Journal Entry Line Types to specify the balance type, side, so on for the expense
line for the multiperiod recognition entry.
7. Create A Journal Lines Definitions for the Accrual Journal Entry to be produced, with
included references for the Recognition Entries to be produced.
8. Create a new Application Accounting Definition for Payables for Invoices.
9. Create a new Subledger Accounting Method.
10. Assign the new Subledger Accounting Method to the Vision Operations (USA) Ledger.
11. Enter a Prepayment Invoice into Payables.
12. Run Create Accounting for the invoice.
Solution - Multiperiod Subledger Accounting
Responsibility = Payables, Vision Operations (USA)

Create the Account Derivation Rules for the invoice liability account for the multiperiod
accrual entry.
1. Navigate to the Accounts Derivation Rules window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Account Derivation rules.
2. (B) New.
3. In the Account Derivation rules window, enter the following:

Field Name Value

Rule Code XX_MPACCRUAL_LIAB_ACC
Rule Name XX Multiperiod Accrual Liability Account
Description XX Multiperiod Accrual Liability Account
Accounting Chart of Operations Accounting Flex
Accounts
Output type Flexfield
Priority 1
Value Type Constant
Value 01-000-2220-0000-000
4. SAVE.
Note: You can specify conditions to control what method is used to determine the account
combination for SLA. For example, you could specify that if there is a voucher number then
the account combination is copied from the invoice. If there is no voucher number, then it is
generated using mapping sets for the example.

Create the Account Derivation Rules for the invoice item expense account for the
multiperiod accrual entry.
1. Navigate to the Accounts Derivation Rules window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Account Derivation rules.
2. (B) New.
3. In the Account Derivation rules window, enter the following:

Field Name Value

Rule Code XX_MPACCRUAL_EXP_ACC
Rule Name XX Multiperiod Accrual Expense
Account
Description XX Multiperiod Accrual Expense
Field Name Value
Account
Accounting Chart of Operations Accounting Flex
Accounts
Output type Flexfield
Priority 1
Value Type Constant
Value 01-000-1340-0000-000
4. SAVE.

Create the Account Derivation Rules for the invoice item expense account for the
multiperiod recognition entry on the condition that the supplier name is XXIBM
Corporation.
1. Navigate to the Accounts Derivation Rules window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Account Derivation rules.
2. (B) New.
3. In the Account Derivation rules window, enter the following:

Field Name Value

Rule Code XX_MPRECOG_EXP_ACC
Rule Name XX Multiperiod Recognition Expense Account
Description XX Multiperiod Recognition Expense Account
Accounting Chart of Operations Accounting Flex
Accounts
Output type Flexfield
Priority 1
Value Type Constant
Value 01-410-7740-0000-000
4. SAVE.
5. Click on the Conditions button.
6. In the Account Derivation Rule conditions window, enter the following:

Field Name Value

Seq 1
Source Supplier Name
Operator =
Value Type Constant
Field Name Value
Value XXIBM Corporation (make sure that you type this
exactly – it is not validated)
7. SAVE.
8. Close the Account Derivation Rule Conditions – Payables window.
9. Enter a second priority:

Field Name Value

Priority 2
Value Type Constant
Value 01-410-7615-0000-000
10. SAVE.

Create a Journal Entry Line Types

Create a Journal Entry Line Types to specify options such as balance type, side, for expense
line for the multiperiod accrual entry.
1. Navigate to the Journal Line Types window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types
2. (B) New.
3. In the Journal Line Types window, enter the following:

Field Name Value

Event Class Prepayments
Line Type Code XX_MPACCRUAL_LIAB_LINE
Accounting Class Liability
Name XX Multiperiod Accrual Liability Line
Rounding Class Liability
Description XX Multiperiod Accrual Liability Line
Balance type Actual
Side Credit
Business Flow None
Method
Switch Debit > Yes
Credit
Merge Matching No
Lines
Subledger Gain > No
Loss
Field Name Value
Multiperiod None
Transfer to GL Summary
4. SAVE.

Create a Journal Entry Line Types

Create a Journal Entry Line Types to specify options such as balance type, side, for expense
line for the multiperiod accrual entry.
1. Navigate to the Journal Line Types window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types.
2. (B) New.
3. In the Journal Line Types window, enter the following:

Field Name Value

Event Class Prepayments
Line Type Code XX_MPACCRUAL_PPAID_EXP_LINE
Accounting Class Prepaid Expense
Name XX Multiperiod Accrual
Rounding Class Prepaid Expense
Description XX Multiperiod Accrual Expense Line
Balance type Actual
Side Debit
Business Flow Method None
Switch Debit > Credit Yes
Merge Matching Lines No
Subledger Gain > Loss No
Multiperiod Accrual
Transfer to GL Summary
4. SAVE.
5. (B) Condition.
6. Enter the following values:
Field Name Value
Sequence 1
Source Invoice Distribution Type
Operator =
Value Type Constant
Value Item

Create a Journal Entry Line Types

Create a Journal Entry Line Types to specify options such as balance type, side, for expense
line for the multiperiod recognition entry.
1. Navigate to the Journal Line Types window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types.
2. (B) New.
3. In the Journal Line Types window, enter the following:

Field Name Value

Event Class Prepayments
Line Type Code XX_MPRECOG_EXP_LINE
Accounting Class Item Expense
Name XX Multiperiod Recognition Expense
Rounding Class Item Expense
Description XX Multiperiod Recognition Expense
Balance type Actual
Side Debit
Business Flow Method None
Switch Debit > Credit Yes
Merge Matching Lines No
Subledger Gain > Loss No
Multiperiod Recognition
Transfer to GL Summary
4. SAVE.
5. Click on the Accounting Attribute assignments button.
6. In the Journal Line Accounting Attribute Assignments window, verify the following settings
are checked:
− Multiperiod Option = Event Class Default
− Multiperiod Start Date = Event Class Default.
− Multiperiod End Date = Event Class Default

Create a Journal Line Definition

Create a Journal Line Definition for the Accrual Journal Entry to be produced, with included
references for the Recognition Entries to be produced.
1. Navigate to the Journal Lines Definitions window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Journal Lines Definitions.
2. (B) New.
3. In the Journal Lines Definitions window, enter:

Field Name Value

Event Class Prepayments
Event Type All
Definition Code XX_MP_PREPAYMENTS
Definition Name XX Multiperiod AP Prepayment
Description XX Multiperiod AP Prepayment
Enabled Checked
Acc. Chart of Accounts Operations Accounting Flex
4. SAVE.
5. Specify the first line (liability) to be included in the accrual journal entry:
6. Put your cursor in the Line Assignments region and enter:
In the Line Assignments region, enter the following:

Field Name Value

Journal Line Type XX Multiperiod Accrual Liability Line
Line Description Invoice Header Description
In the Account Derivation Rules region, enter the following:

Field Name Value

Segment Type All Segments
Rule Name XX Multiperiod Accrual Liability Account
7. SAVE.
8. Specify the second line (expense) to be included in the accrual journal entry:
9. Put your cursor in the Line Assignments region and enter:
In the Line Assignments region, enter the following:

Field Name Value

Journal Line Type XX Multiperiod Accrual Expense Line
Line Description Invoice Distribution Description
In the Account Derivation Rules region, enter the following:

Field Name Value

Segment Type All Segments
Rule Name XX Multiperiod Accrual Expense
10. SAVE.
11. Specify the third line (tax) to be included in the accrual journal entry:
12. Put your cursor in the Line Assignments region and enter:
In the Line Assignments region, enter the following:

Field Name Value

Journal Line Type Non-Recoverable Tax
Line Description Invoice Distribution Description
In the Account Derivation Rules region, enter the following:

Field Name Value

Segment Type All Segments
Rule Name Invoice Distribution Account
13. SAVE.
14. Enter the multiperiod information to create the recognition entry.
15. With your cursor on the XX Multiperiod accrual expense line type, click the (B) Multiperiod
Accounting.
16. In the Multiperiod Accounting Assignment window, enter the following in the Options tab:

Field Name Value

Header Description Invoice Header Description
Number of Journal Enries One Per Period
GL Dates First Day GL Period
Proration Type Days in Period.
17. SAVE.
18. (B) Line Assignments.
19. In the Line Assignments window, you can see the Multiperiod Accrual Expense line
assigned, because the same account that was debited in the accrual entry is credited in the
recognition entry.
20. Create a new line in the line assignments region and enter the following:

Field Name Value

Journal Line Type XX Multiperiod Recognition Expense Line
Line Description Invoice Distribution Description
21. Click in the Account Derivation Rules region and enter the following:
Field Name Value
Segment All Segments
Rule Name XX Multiperiod Recognition Expense
22. SAVE.

Create a new Application Accounting Definition for Payables for Invoices

Remember that an application accounting definitions is created for each application.
1. Navigate to the Application Accounting Definitions window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Application Accounting Definitions.
Note: The simplest way to create a new application accounting definition is to copy one of
the Oracle seeded definitions and make your changes to the copy. You will copy the
seeded Accrual Basis application accounting definition.
2. In the Find Application Accounting Definitions window, enter Accrual Basis in the Definition
Name field and click (B) Find.
3. Click (B) Copy in the Application Accounting Definitions window.
4. In the Copy Application Accounting Definition window, enter the following to create your
copy:

Field Name Value

Definition Code XX_MPACCRUAL
Name XX Multiperiod Accrual Basis
Description XX Multiperiod Accrual Basis
Accounting Chart of Operations Accounting Flex
Accounts
Display After Copy Checked
Include Header Checked
Assignments
Include Line Assignments Checked
5. (B) Done.
6. Your XX_MPACCRUAL Application Accounting Definition should now display.
7. In the Event Class and Event Type assignments region, position your cursor on the
Prepayments class.
8. Position your cursor in the Journal Lines Definition Assignments region.
9. Delete the Accrual, Prepayments All journal lines definition from the invoices event type and
save.
10. ADD the XX Multiperiod AP Prepayments journal line definition to the journal line definition
assignments for the Prepayments event type.
11. (M) File > Save.
12. In the Application Accounting Definitions window, click the Validate button.
13. When validation completes, verify that the validation status for all event classes has
changed to Valid.
Create a new Subledger Accounting Method
1. Navigate to the Subledger Accounting Methods window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Subledger Accounting Methods.
Note: The simplest way to create a new subledger accounting method is to copy one of the
seeded Oracle Subledger accounting methods and modify the copy.
2. In the Find Subledger Accounting Methods window, enter Standard Accrual in the Method
Name field and click (B) Find.
3. Click (B) Copy in the Subledger Accounting Methods window.
4. In the Copy Subledger Accounting Method window, enter the following:

Field Name Value

Method Code XX_MPSLA_METHOD
Method Name XX Multiperiod SLA Method
Description XX Multiperiod SLA Method
Accounting Chart of Operations Accounting Flex
Accounts
Display After Copy Checked
5. (B) Done.
6. In the Subledger Accounting Methods window, you can now see your new
XX_MPSLA_METHOD.
7. Place your cursor on the Payables line in the Application Accounting Definition
Assignments region and delete the record.
8. Insert a new record and enter the following:

Field Name Value

Application Payables
Name XX Multiperiod Accrual
Start Date 01-JAN-2006
9. SAVE.

Assign the new Subledger Accounting Method to the Vision Operations (USA), Ledger.
Note: The Instructor will perform these steps in this topic.
1. Navigate to the Accounting Setups window.
• (N) Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups.
2. In the Accounting Setups window, search for the Vision Operations ledger.
3. Click the Update Accounting Options icon.
4. Click the Update icon for the Vision Operations (USA) primary ledger.
5. Change the Subledger Accounting Method to XX Multiperiod SLA Method and click (B)
Finish in the Accounting Setups window.
6. Verify that you receive confirmation that the Subledger Accounting Options have been
changed.

Enter a Prepayment Invoice into Payables

1. Navigate to the Invoices window.
• (N) Invoices > Entry > Invoices.
2. In the Invoices Workbench, enter the following:

Field Name Value

Operating Unit Vision Operations
Type Prepayment
Trading Partner Advantage Corp
Supplier Site Advantage - US
Invoice Date 12-SEP-2008 (make sure to use this
date!!)
Invoice Num XXMPTEST001
Invoice Amount 3225.00
GL Date Defaults from Invoice date
Terms Immediate
Note: The Instructor may advice you to use more current date for the Invoice date.
3. SAVE.
4. Click the Lines region.
5. In the Lines region, enter the following:

Field Name Value

Amount 3000.00
Distribution Account 01-000-1340-0000-000 (this defaults
because it is a prepayment)
Description Testing SLA Multiperiod
Deferred Option CHECKED. (NOTE: You must tab to this
field and press the spacebar to check
the checkbox.)
Deferred Start Date 01-OCT-2008
Deferred End Date 31-DEC-2008
Note: The Instructor may advice you to use more current date for the Deferred Start and
End date.
6. SAVE.
7. (B) Actions.
8. Check the Validate option, click (B) OK.
9. Verify that the invoice status changes to Unpaid in the General tab.

Run Create Accounting for the invoice

Note: The Instructor will perform the Create Accounting Task and show the result.
Note: To Create Accounting for the invoice, GL periods must be open for OCT-08 through
DEC-08 in both the Vision Operations ledger and the IAS reporting ledger (the secondary
ledger for Vision Operations).
1. Navigate to the Submit Request window.
• (N) Other > Requests > Run.
2. Choose Single Request and click (B) Ok.
3. In the Submit Request window, choose the Create Accounting program and click (B) Ok.
4. In the Create Accounting Parameters window, enter the following:

Field Name Value

Ledger Vision Operations (USA)
Process Category Leave blank
End Date Last day of current period
Mode Final
Errors Only No
Report Detail
Transfer to GL Yes
Post in GL Yes
GL Batch Name XXMPTEST
Include User Trx… Yes
5. (B) OK.
6. (B) Submit.
7. Monitor the status of the request using the (M) View > Requests. Note that the Create
Accounting program is runs, and the Accounting Program, and the Subledger Multiperiod
Accounting and Accrual Reversal report.
8. When the Create Accounting program is complete, view the Output file to verify that the
following subledger entries were created:
One entry for Sept-2008 for the prepaid expense, which debits 01-000-1340-0000-000
(prepaid expense) and credits 01-000-2220-0000-000 (AP liability from the account
derivation rule for the liability account, for 3000.00).
One entry each for Oct-2008, Nov-2008, and Dec-2008, which debits the actual expense
account (01-000-7615-0000-000 from the account derivation rule for the expense
recognition line) and credits 01-000-1340-0000-000 (prepaid expense).
7. The report output for the Multiperiod Accounting and Accrual Reversal Report program
should resemble the following:
Practice - Primary and Secondary Ledger Subledger Accounting
Overview
The goal of this exercise is to have two ledgers with two different charts of accounts, such that
when you create a subledger entry from a subledger of the primary ledger, it will create a
subledger and GL journal entry in the primary ledger using the Standard Accrual subledger
accounting method, and in the secondary ledger, it will create a subledger and GL journal entry
using the account derivation rules provided in the secondary ledger’s subledger accounting
method.
Also, when a manual journal entry is created in the primary ledger, the entry will be replicated in
the secondary ledger using chart of accounts mapping rules (different than using mapping sets
from the subledger accounting method).

Tasks

Responsibility = Payables, Vision Operations (USA)

Note: Using the Payables, Vision Operations (USA) responsibility, run the Update Subledger
Accounting Options program for Public Sector Financials International before running this lab.
Only the major steps involved creating this lab is listed here. Details of each Step are
highlighted in the Solutions topic.
1. Plan and know what it is you want.
2. Create a new Subledger Accounting Method for the Secondary Ledger
3. Enter Invoices
4. Run the Create Accounting program in FINAL POST mode.
5. Enter a manual journal entry in General Ledger.
Solution - Primary and Secondary Ledger Subledger Accounting
Responsibility = Payables, Vision Operations (USA)
Note: Instructor to verify that the Subledger Accounting Method for Vision Operations is
Standard Accrual.

Plan and decide what you want the journal entries to look like.
1. An invoice is entered in Payables on Feb 28 (which falls in the FEB period in the primary
ledger) in the primary ledger as follows:
Expense 01-000-5110-0000-000 100.00
Expense 01-000-5110-0000-000 100.00
Liability 01-000-2210-0000-000 200.00
2. The invoice is validated.
3. The Create Accounting program is run.
4. This results in a subledger entry for the primary ledger as follows:
01-000-5110-0000-000 200.00
01-000-2210-0000-000 200.00
Since in the seeded Standard Accrual Subledger Accounting method, the accounts for the
primary ledger are copied directly from the transaction, the multiple distributions to the same
account combination are merged into a single subledger journal entry line.
A General Ledger entry is created for the primary ledger as follows:
01-000-5110-0000-000 200.00
01-000-2210-0000-000 200.00
Because data from the subledger entry is transferred to the General Ledger in summary. If the
invoice supplier is Advantage Corp, this same invoice transaction should create a subledger
entry in the secondary ledger (EUR) of:
01-410-7740-000 70.00
01-410-7740-000 70.00
01-000-2220-000 70.00
01-000-2220-000 70.00
(Assuming that the exchange rate on Feb 28 is 1.00 USD = .70 EUR) because the Subledger
Accounting method for the secondary ledger is set up with an account derivation rule to use a
constant value of 01-410-7740-000 for the expense account if the supplier is Advantage Corp
(regardless of what the actual account is on the invoice). The account derivation rule for the
liability account uses a constant value of 01-000-2220-000. In the Subledger Accounting Method
for the secondary ledger, multiple distributions to the same account on the invoice will not
merged into a single line in the subledger entry.
If the Supplier is anyone other than the Advantage Corp, the same invoice transaction creates a
subledger entry for the secondary ledger of:
01-410-5240-000 70.00
01-410-5240-000 70.00
01-000-2220-000 70.00
01-000-2220-000 70.00
Since the Subledger Accounting method for the secondary ledger will be set up with an account
derivation rule to use a constant value of 01-410-5240-000 for the expense account if the
supplier is anyone other than Advantage Corp (regardless of what the actual account is on the
invoice). The account derivation rule for the liability account will always use a constant value of
01-000-2220-000. In the Subledger Accounting Method for the secondary ledger, multiple
distributions to the same account on the invoice are not merged into a single line in the
subledger entry.
And a General Ledger journal entry in the secondary ledger is as follows:
01-410-5240-000 200.00
01-000-2220-000 200.00
Because data from the subledger entry will be transferred to the General Ledger in summary.
If the following manual journal entry is made in the Vision Operations (USA) primary ledger:
01-000-5142-0000-000 100.00
01-000-2220-0000-000 100.00
When the entry is posted it results in the following journal entry in the Secondary Services
ledger, due to chart of accounts mapping rules associated with the Primary to Secondary ledger
mapping.
01-000-5110-000 100.00
01-000-2210-000 100.00
The rules specify that when accounts are converted, the company and department are copied
from the Operations accounting entry, the account segment are derived from rollup ranges:
5101-5199 in Operations rolls to 5110 in Services
2201-2299 in Operations rolls to 2210 in Services
To accomplish this, follow these steps.

Plan and know what it is you want.

1. Review the seeded Standard Accrual subledger accounting method used for the primary
ledger:
Subledger Accounting Method
Application Accounting Definition
Journal Lines Definition
Journal Line Types
Account Derivation Rules
2. Create a new subledger accounting method for the Secondary Ledger:
1. Create Account Derivation Rules
2. Create Journal Line Types
3. Create Journal Lines Definitions
4. Create Application Accounting Definition
5. Create Subledger Accounting Method
3. Create chart of accounts mapping rules to replicate manual journal entries from the primary
ledger in the secondary ledger.
4. Create a secondary ledger with a different currency, calendar and chart of accounts and
attach the new Subledger accounting method and the chart of accounts mapping to it.
5. Test
Create a new Subledger Accounting Method for the Secondary Ledger

Create Account Derivation Rules

Create an account derivation rule for the expense account.
1. Navigate to the Account Derivation Rules window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Account Derivation Rules.
2. (B) New.
3. In the Account Derivation Rules window, enter the following:

Field Name Value

Rule Code XXEXPOPSTOSERV
Rule Name XX Expense Ops to Service
Description XX Expense Ops to Service
Transaction Operations Accounting Flex
Accounting Services Accounting Flex
Output Type Flexfield
Priority 1
Value Type Constant
Value 01-410-7740-000
3. (B) Conditions.
4. In the Account Derivation Rule Conditions – Payables window, enter the following:

Field Name Value

Seq 1
Source Supplier Name
Operator =
Value Type Constant
Value Advantage Corp
Note: As there is no list of values on the Value field, you must type the supplier name
EXACTLY.
5. (N) File > Save.
6. Close the Account Derivation Rule Conditions – Payables window.
7. In the Account Derivation Rules window in the Priorities region, enter a second record:

Field Name Value

Priority 2
Value type Constant
Value 01-410-5240-000
8. (N) File > Save.

Create an Account Derivation Rule for the Liability Account

1. Navigate to the Account Derivation Rules window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Account Derivation Rules.
2. (B) New.
3. Enter the following in the Account Derivation Rules window:
Field Name Value
Rule Code XXLIABOPSTOSERV
Rule Name XX Liability Ops to Service
Description XX Liability Ops to Service
Transaction Operations Accounting Flex
Accounting Services Accounting Flex
Output Type Flexfield
Priority 1
Value Type Constant
Value 01-000-2220-000

4. (M) File > Save.

Create Journal Line Types

Create a journal line type for the expense account
1. Navigate to the Journal Line Types window.
• (N) Setup > Subledger Accounting Setup > Accounting Methods Builder > Journal Line
Types.
2. (B) New.
3. In the Journal Line Types, enter the following:

Field Name Value

Event Class Invoices
Line Type Code XXEXPOPSTOSERV
Accounting Class Item Expense
Rounding Class Item Expense
Name XX Expenses Ops to Services
Balance Type Actual
Side Debit
Switch DR > CR Yes
Merge Matching Lines No
Subledger Gain > Loss No
Multiperiod None
Transfer to GL Summary

4. (B) Condition.
5. Enter the following value:
Field Name Value

Seq 10

Source Invoice Line Type

Operator =

Value Type Constant

Value Item

6. (M) File > Save.

Create a Journal Line Type for the Liability Account

1. Navigate to the Journal Line Types window.
• (N) Setup > Accounting Setups > Subledger Accounting Setups > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types.
2. (B) New.
3. In the Journal Line Types, enter the following:

Field Name Value

Event Class Invoices
Line Type Code XXLIABOPSTOSERV
Accounting Class Liability
Rounding Class Liability
Name XX Liability Ops to Services
Balance Type Actual
Side Credit
Switch Debit/Credit Yes
Merge Matching Lines No
Subledger Gain/Loss No
Multiperiod None
Transfer to GL Summary
4. (M) File > Save.

Create a Journal Lines Definition

Field Name Value

Event Class Invoices
Event Type All
Definition Code XXOPSTOSERV
Definition Name XX Ops to Service
In the Chart of Accounts region, enter the following:
− Transaction = Operations Accounting Flex
− Accounting = Services Accounting Flex
For the liability line:
In the Line Assignments region, enter the following:
− Journal Line Type = XX Liability Operations to Service
− Line Description = Invoice Header Description
In the Account Derivation Rules region, enter the following:
− Segment = All Segments
− Rule Name = XX Liability Ops to Service
− (M) File > Save.
For the expense Line:
In the Line Assignments region, enter the following:
− Journal Line Type = XX Expense Operations to Service
− Line Description = Invoice Distribution Description
In the Account Derivation Rules region, enter the following:
− Segment = All Segments
− Rule Name = XX Expense Ops to Service
4. (M) File > Save.
Enter the Tax Line
In the Line Assignments region, enter the following:

Field Name Value

Journal Line Type Non-Recoverable Tax
Line Description Invoice Distribution Description
In the Account Derivation Rules region, enter the following:
Field Name Value
Segment Type All Segments
Rule Name Invoice Distribution Account
5. (M) File > Save.

Create a new Application Accounting Definition

1. Navigate to the Application Accounting Definition window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Methods and Definitions > Application Accounting Definition.
2. In the Find Application Accounting Definitions window, enter Accrual Basis in the Definition
Name field and click on the Find button.
3. In the Application Accounting Definitions window, click on the Copy button.
4. In the Copy Application Accounting Definition window, enter the following:

Field Name Value

Definition Code XXOPSTOSERV
Name XX Operations to Service
Description XX Operations to Service
Transaction Operations Accounting Flex
Accounting Services Accounting Flex
Display after copy Yes
5. (B) Done.
6. In the Application Accounting Definition window, position your cursor on the Invoices Event
Class.
7. Click in the Accrual, Invoices All Journal Lines definition assignment, delete it by clicking
the red X in the toolbar, and save.
8. Choose your XX Operations to Service journal line definition from the list of values in the
Journal Lines Definition Name field and save.
9. Click the Validate button to validate your Application Accounting Definition. It takes a minute
or two for the validation process to complete. Verify that the Validation status changes to
Valid for all event classes.

Create a new Subledger Accounting Method that uses your new application accounting
definition.
1. Navigate to the Subledger Accounting Methods window.
• (N) Setup > Accounting Setups > Subledger Accounting Setups > Accounting Methods
Builder > Methods and Definitions > Subledger Accounting Methods.
2. In the Find Subledger Accounting Methods window, enter Standard Accrual in the Method
Name field and click (B) Find.
3. Click (B) Copy in the Subledger Accounting Methods window.
4. In the Copy Subledger Accounting Method window, enter the following:
Field Name Value
Method Code XXOPSTOSERVICE
Name XX Operations to Service
Description XX Operations to Service
Transaction Operations Accounting Flex
Accounting Services Accounting Flex
Display after Copy Yes
5. (B) Done.
6. In the Subledger Accounting Methods window, position your cursor on the Payables record
in the Application Accounting Definition Assignments region, click the Red X icon and
delete the record, and save.
7. Click the Green Plus (New Record) icon in the Application Accounting Definition
Assignments region to create a new record and enter the following:

Field Name Value

Application Payables
Name XX Operations to Service
Start Date 01-JAN-1990
8. (M) File > Save.

Create a Chart of Accounts Mapping for the replication of manual Journal Entries from
the Primary ledger to the Secondary ledger.
1. Switch responsibility to General Ledger Vision Operations (USA)
2. Navigate to the Chart of Accounts Mapping window.
• (N) Setup > Accounts > Chart of Accounts Mapping.
3. In the Chart of Accounts mapping window, enter the following
Field Name Value
Mapping XXOPSTOSERVICEMAP
Description XX Ops to Service Mapping Secondary
Ledger
Target Services Accounting Flex
Source Operations Accounting Flex
4. (B) Segment Rules.
5. In the Segment Rules window, enter the following:
For the company segment:
− Services Accounting Flex = Services Company
− Action = Copy Value From
− Operations Accounting Flex = Company
− Ok the Note
− (M) File > Save
For the Department Segment:
− Services Accounting Flex = Services Department
− Action = Copy Value From
− Operations Accounting Flex = Department
− Ok the Note
− (M) File > Save
For the Account Segment:
− Services Accounting Flex = Services Account
− Action = Use Rollup Rules From
− Operations Accounting Flex = Account
− (M) File > Save
Rollup Rules Target Segment
− Detail Value = 5110
− Transfer Level = Detail
− Using = Detail Ranges
− Low = 5101
− High = 5199
− (M) File > Save
6. (B) Ok.
Rollup Rules Target Segment
− Detail Value = 2220
− Transfer Level = Detail
− Using = Detail Ranges
− Low = 2201
− High = 2299
− (M) File > Save
7. (B) Ok.
For the product segment:
− Services Accounting Flex = Services Product
− Action = Assign Single Value
− Operations Accounting Flex = 000
8. (M) File > Save.

Create a Secondary Ledger Utilizing the Services Chart of Accounts, the 4-4-5 fiscal
month calendar, and the EUR currency.
Note: Run the Update Subledger Accounting Options program on the master environment
especially when running the Public Sector Financials International. This is required to be
run to create a Secondary Ledger.
1. Navigate to the Accounting Setups window.
• (N) Setup > Financials > Accounting Setup Manager > Accounting Setups.
2. In the Accounting Setups window, search the Vision Operations (USA) ledger.
3. Click the Update Accounting Options icon for the Vision Operations (USA) ledger.
4. In the Accounting Options: Vision Operations (USA) window, click (B) Add Secondary
ledger.
5. In the Add Secondary ledgers window, enter the following:

Filed Name Value

Name XXSECONDARY
Chart of Accounts Services Accounting Flex
Accounting Calendar 4-4-5 Calendar > FiscalMonth
Currency EUR
Subledger Accntg Method XX Operations to Service
Data Conversion Level Subledger
6. (B) Apply.
7. Back in the Accounting Options: Vision Operations (USA) window, scroll down until you see
the XXSECONDARY ledger. Note that the status column for Ledger options shows a clock,
indicating that the setup is not yet complete.
8. Click the Update icon for Ledger options for your XXSECONDARY ledger.
9. In the Update Ledger: Ledger Definition window, enter the following:
− First Ever Open Period = Jan-09
10. (B) Next.
11. In the Update Ledger: Ledger Options window, enter the following:
− Retained Earnings Account = 01-000-3200-000
− Rounding = 01-740-7827-000 (Note: You may have to create this code combination)
12. (B) Next.
13. In the Update Ledger: Advanced Options window, click (B) Next.
14. In the Update Ledger: Review Ledger: XXSECONDARY window, click (B) Finish.
15. Back in the Accounting Options: Vision Operations (USA) window, click the Update icon for
Primary to Secondary ledger mapping for the XXSECONDARY ledger.
16. In the Update Primary to Secondary Ledger mapping window, enter the following:

Field Name Value

Mapping Set XXOPSTOSERVICEMAP
Default Rate Type Corporate
Retain Transaction Rate Type Yes
Use Last Rate Checked
Number of Days to find the Last 30
Rate
Post Journals Automatically from Yes
Source Ledger
Retain Journal Creator from Yes
Primary Ledger
Review and ensure that the Journal Source and Category conversion region are set to
Yes.
Transfer Journals To this Secondary Ledger =Yes
Note: By choosing Yes for Source and Category Other it is like selecting All Sources and
All Categories
17. In the Update Primary to Secondary Ledger Mapping window, click (B) Complete.
18. Back in the Accounting Options: Vision Operations (USA) window, verify that the status
column for your XXSECONDARY ledger now shows a green checkbox.

Create a new responsibility for the new XX SECONDARY.

1. Navigate to the System Administrator responsibility.
2. Navigate to the Responsibilities window.
• (N) Security > Responsibility > Define.
3. In the Responsibilities window, enter the following:
Field Name Value
Responsibility Name XXSECONDARY
Application General Ledger
Responsibility Key XXSECONDARY
In the Data Group region, enter the following:
− Name = Standard
− Application = General Ledger
− Menu = GL_SUPERUSER
In the Request Group region, enter the following:
− Name = GL Concurrent Program Group
− Application = General Ledger
4. (M) File > Save.

Attach the new responsibility to your Ledger using the GL: Data Access Set Profile
Option
1. Navigate to the System Profile window.
• (N) Profile > System.
2. In the Find System Profile values window, enter the following
− Responsibility = XXSECONDARY
− Profile = GL: Data Access Set
3. (B) Find.
4. Ignore the popup message that appears.
5. In the System Profile values window, where the profile option and responsibility intersect,
set the value of the GL: Data Access Set profile option to XXSECONDARY for the
XXSECONDARY responsibility.
Attach the new responsibility to the Your User
1. Navigate to the Users window.
• (N) Security > User > Define.
2. Query Your user.
3. Place your cursor in the bottom half of the window, press CTRL-down arrow to create a
new record and add the XXSECONDARY responsibility to Your user.
4. (M) File > Save.

Open the first accounting period in the new XXSECONDARY secondary ledger.
1. Log into applications as operations > welcome.
2. Switch Responsibility to new XXSECONDARY responsibility.
3. Navigate to Setup > Open/Close.
4. In the Find Periods window, click (B) Find.
5. In the XXSECONDARY window, click (B) Open to open JAN-09 as the first period for the
ledger.
6. (B) Yes and (B) Ok.
7. Wait for the concurrent program to finish.
8. Go back to Setup > Open/Close.
9. In the Open periods window, open periods up to and including FEB-09.

TEST

Enter an invoice for supplier Advantage Corp and validate the invoice.
1. Navigate to Payables, Vision Operations (USA) responsibility.
2. Navigate to the Invoices window.
• (N) Invoices > Entry > Invoices.
3. In the Invoice Workbench window, enter the following:
Field Name Value
Trading Partner Advantage Corp
Supplier Site ADVANTAGE - US
Invoice Date 28-FEB-2009
Invoice Number XXSECONDARYTEST
Invoice Amount 215.00
GL Date 28-FEB-2009
Description XXTESTHEADER
4. (M) File > Save.
5. Put your cursor in the lines tab and enter the following:

Field Name Value

Num 1
Type Item
Amount 100.00
Account 01-470-5110-0000-000
Description XXTESTLINE1
6. Add a second line:

Field Name Value

Num 2
Type Item
Amount 100.00
Account 01-480-5110-0000-000
Description XXTESTLINE2
7. (M) File > Save.
8. (B) Actions.
9. In the Invoice actions window, check the Validate checkbox and click (B) OK.
10. Verify that the invoice status changes to Validated in the General tab.

Enter an invoice for a different supplier and validate the invoice.

1. Navigate to Payables, Vision Operations (USA) responsibility.
2. Navigate to the Invoices Entry window.
• (N) Invoices > Entry > Invoices.
3. In the Invoice Workbench window, enter the following:

Field Name Value

Trading Partner Abbott Laboratories, Inc.
Supplier Site CORP HQ
Invoice Date 28-FEB-2009
Invoice Number XXSECONDARYTEST002
Invoice Amount 212.00
GL Date 28-FEB-2009
Description XXTESTHEADER002
Note: The Instructor might ask you to use more later date.
4. (M) File > Save.
5. Put your cursor in the lines tab and enter the following:

Field Name Value

Num 1
Type Item
Amount 100.00
Account 01-470-5110-0000-000
Description XXTEST002LINE1
6. Add a second line:

Field Name Value

Num 2
Type Item
Amount 100.00
Account 01-480-5110-0000-000
Description XXTEST002LINE2

7. (M) File > Save.

8. (B) Actions.
9. In the Invoice actions window, check the Validate checkbox and click (B) OK.

Run the Create Accounting program in FINAL POST mode.

Note: The Instructor may want to run the Create Accounting program using the Concurrent
Request program.
1. (B) Actions.
2. In the Invoice actions window, check the Create Accounting checkbox and select Final
Post, click (B) OK.
3. Repeat for your second invoice
4. Once accounting has been created view the accounting for both invoices using:
• (M)Tools>View Accounting Events
• (B) View Journal Entries
5. Verify that, for the first invoice where the supplier was Advantage Corp., those journal
entries were created in the Primary and Secondary ledgers as follows:
Note that the currency for the primary ledger’s subledger journal entry is USD and for the
secondary ledger is EUR. The subledger entry for the primary ledger merged matching
lines and that for the secondary did not.
Also, the expense account in the secondary ledger is 01-410-7740-000 because of the
expense account derivation rule that was created with the condition that the supplier name
is Advantage Corp. The liability account is from the liability account derivation rule, which
specified to use 01-000-2220-000 regardless of the supplier.
6. Verify that, for the second invoice with a different supplier, that journal entries were created
in the primary and secondary ledgers as follows:
The accounts specified in your account derivation rules were utilized for the conversion of
the entry from the Operations Accounting Flexfield to the Services Accounting Flexfield.
Also, the currency for the subledger entry in the secondary ledger is EUR, and that the
entered amounts are shown in USD, but the accounted amounts are in their equivalent
EUR amount, based on the daily exchange rate for Feb 28, 2009.
Since the journal line type definitions for both the primary and secondary ledger had the
Merge Matching Lines property set to NO, that each distribution was created as a separate
subledger journal entry line.

Enter a manual journal entry in General Ledger.

Responsibility: General Ledger, Vision Operations (USA)

1. Navigate to the Journals window.
• (N) Journals > Enter.
2. (B) New Journal.
3. In the Journals window, enter the following:
Field Name Value
Journal XX PRIMARY TO SECONDARY TEST
Description XX Primary to Secondary Test
Category Adjustment
Period Feb-09
Effective Date 28-FEB-2009
Line Account Debit Credit
10 01-410-5110-0000-000 100.00
20 01-000-2210-0000-000 100.00
4. (M) File > Save.
5. (B) Post.
6. Monitor the status of the posting program using (N) View > Requests.
7. When the posting program completes, switch responsibilities to the XXSECONDARY
responsibility.
8. Navigate to Journals > Enter.
9. In the Find Journals window, click (B) Find.
10. Verify that a journal entry was created in the secondary ledger as shown:

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R12.x Oracle Subledger Accounting Fundamentals: Activity Guide

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R12.x Oracle Subledger Accounting Fundamentals: Activity Guide

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R12.

R12.x Oracle Subledger Accounting Fundamentals .....................................................................................1-1

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Create a New User

Responsibility Security Group

Log in as New User

Responsibility = Payables, Vision Operations (USA)

Responsibility = Payables, Vision Operations (USA)

15. (B) Save.

Create a Pay Site

21. (B) Apply. This creates the basic supplier site.

24. (T) Communication.

Create an Organization Customer

Field Name Value

Field Name Value

Create an Organization Customer

Trading Invoice Invoice Description Payment Payment

Num Type Amount Distribution Account

7. Change Navigation menu to “Invoice Workbench”.

Responsibility = Receivables, Vision Operations (USA)

Line Item Quantity Unit Tax

3. Complete the invoice

Responsibility = Receivables, Vision Operations (USA)

Line Item Quantity Unit Tax

Run the Create Accounting Program

Run the Create Accounting Program

Field Name Value

Log on to the System

Inquire on Subledger Journal Entries

Log on to the System

Defining Journal Line Types

Responsibility = Payables, Vision Operations (USA)

19. (M) File – Save

Log on to the System

Defining Journal Line Types

Responsibility = Receivables, Vision Operations (USA)

Field Name Receivable Journal

Log on to the System

Define a Journal Lines Definition

Responsibility = Payables, Vision Operations (USA)

Field Name Value

Field Name Value

16. Save the journal line definition:

Log on to the System

Define a Journal Lines Definition

Responsibility = Receivables, Vision Operations (USA)

Log on to the System

Create an Account Derivation Rule for the Expense Journal Type

2. In the Definition Name field, select XX AP Accrual Invoices.

Create a New Receivables Account Derivation Rule

Create a New Revenue Account Derivation Rule

Assign the XX Transaction Distribution GL Account rule to the XX Invoice Revenue

Log on to the System

Create a New Receivables Account Combination Account Derivation Rule

Create a New Revenue Account Derivation Rule

Create a new Receivables Account Derivation Rule

2. In the Definition Name field, select XX Accrual Invoices.

Create a New Revenue Account Derivation Rule

32. Save the rule:

37. Save the definition:

Log on to the System

Copy and Modify an Accrual Basis Application Accounting Definition

Responsibility = Payables, Vision Operations (USA)

2. In the Definition Name field, select Accrual Basis.

13. (B) Validate to validate the application accounting definition.

Log on to the System

Copy and Modify an Accrual Basis Application Accounting Definition

Responsibility = Receivables, Vision Operations (USA)

Copying and Modifying an Existing Subledger Accounting Method

End-date an Existing Application Accounting Definition and Add a New One

Run the Create Accounting Program

Inquire on the Journal Entry

(Optional) Run the Create Accounting Program

View the Create Accounting Report

Log on to the System

Copy an Existing Subledger Accounting Method