Subledger Accounting Architecture

Oracle Assets : Subledger Accounting Architecture:-
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In Release 12, Oracle Assets adds Subledger Accounting (SLA) functionality. By default,
transactions in the current fiscal year in Asset books will have their accounting lines
migrated to the Subledger Accounting model. Accounting for current period
depreciation will be upgraded only if depreciation has already run for the period, and
the period remains open. After the upgrade, customers can run the SLA postupgrade
process to update accounting for the past transaction data as needed.

The upgrade for Subledger Accounting performs a number of tasks:

• Transactions that have occurred in the current open period will be upgraded.
Previously, accounting records were not created until after depreciation had run.
The upgrade will create these lines immediately. For example, if a user added an
asset and went to the Transaction History form, he would not see any Addition
accounting lines if depreciation had not been run. Postupgrade, however, these
records would appear in the Transaction History form for the Addition event.

The following transactions are affected:

• Additions

• Backdated Additions

• Backdated Transfers

• Retirements

• Accounting lines for transaction, depreciation, and deferred depreciation events
will be copied from the core Assets data model into the Subledger Accounting data
model. These accounting lines that are upgraded would be viewable in the new
Subledger Accounting pages and reports. Accounting lines that were not upgraded
would only appear in the old historical forms and reports.

• For transaction events, only the data for the current fiscal year are upgraded by
default. When there are less than six periods in the current fiscal year, additional
data from the previous fiscal year are upgraded to ensure that there are at least six
periods worth of data. The customer, however, can change this default setting in the
preupgrade. For depreciation and deferred depreciation events, only the current
open period is upgraded, and this is not changeable during the preupgrade. The
customer can upgrade any of the transactions, depreciation, and deferred
depreciation events that are not upgraded during the down time with the SLA
postupgrade process.

The Subledger Accounting upgrade is generic, and there are very few assumptions that
have been made:

• All of the accounting lines data that are upgraded are copied as is, and no
calculations or functional checks are done. Therefore, the data after the upgrade will
be the same as it was before the upgrade.

• Transactions that have no accounting impact will not be upgraded. That is, if there
are no accounting lines corresponding to a transaction event, that record will not be
upgraded. Tax book events that have accounting lines that correspond to their
corporate book transaction event, but not a tax book one, however, will still be
upgraded.

• Books or reporting books that are disabled will not be upgraded.

After the Subledger Accounting upgrade, a number of changes have been made to the
business flows for the Journal Entry processing as the following:

• Profile option FA: Use Workflow Account Generation is set to Yes during the
upgrade. Customers should analyze current customizations in the workflow setup.
If the requirement is to use the rules in workflow for generating code combinations
for asset transactions, there are two options:

Re-implement the custom rules in Subledger Accounting. Use the workflow rules as they are, which is the default value upon upgrade.

• Journal Source and Journal Category setups have been removed from the Book
Controls setup form. This setup has moved to Subledger Accounting.

• Depreciation Expense Account and the Bonus Expense Account for all category and
book combinations in the Asset Category setup form have been upgraded from a
single segment account value to entire account combinations.

• The intercompany account setup in Book Controls form has been replaced by
Intercompany/Intracompany setup in Accounting Setups.

Note: In Release 12, the Intercompany setups will be maintained at
the ledger level. The upgrade will update the existing
Intercompany setup at book level to ledger level.

• Users will need to run Create Accounting instead of Create Journal Entries.

• Users will need to run Calculate Deferred Depreciation and then Create Accounting
instead of Create Deferred Depreciation Journal Entries.

The following lists those features that are obsolete in Release 12 or replaced by another
feature:

• The Create Journal Entries and Rollback Journal Entries programs are now obsolete.
Create Journal Entries has been replaced by Create Accounting.

• The Create Deferred Depreciation Journal Entries program is now obsolete. Users
now need to run Calculate Deferred Depreciation followed by Create Accounting.

• The Account Drill Down report has been replaced by a new Subledger Accounting
report called the Account Analysis report.

• Profile option "FA: Include Nonrecoverable Tax in Mass Addition" is obsolete. This
is replaced by Post Accounting Programs under SLA. The setup for all eligible lines
from Payables to Assets for Mass Additions Create program is done in Post
Accounting Programs.