Accounting Methods Builder

AMB Beyond the Basics
Accounting Methods Builder

(AMB) Beyond the Basics
A presentation by Anne E. Ristau

April, 2013
IT Convergence 2013
All rights reserved.
About the Author

Managing Principal Instructor, IT Convergence
Teach R12 Financial New Features
R12 Upgrade Strategy and Planning
Subledger Accounting
More than 23 years working with Oracle Applications

Several full cycle E-Business Suite implementations, upgrades
and assessments
Oracle Developer since 1983
Computer Science and Accounting degrees
Passion for the OAUG!
IT Convergence 2013
Review of AMB Hierarchy
Scenario Overview
Multi Period Accounting Setup (Payables) used to

illustrate some of the different components

Ledger
Subledger Accounting Method
Application Accounting Definitions
Event Classes / Event Types
Journal Line Definitions
Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Ledger
Ledger
The accounting transactions which

represent one or more legal entities.
Legal Entities that share the 4cs may
be grouped into a single ledger
Calendar, Chart of Accounts, Currency,
and aCcounting method. Ie: Vision
Operations (USA) Ledger

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule

Ledger
A group of accounting rules that define

by module how the accounting should be
determined for any logical condition. A
ledger can have one and only one
Subledger Accounting Method. Ie: US
GAAP Standard Accural

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Application Accounting Definition

Ledger
Rules with respect to a single module.

A Subledger Accounting method can
have one or many Application
Accounting Definitions. Ie: Payables,
Receivables, Fixed Assets

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Event Classes
Ledger
The predetermined events within an

application that should trigger
accounting transactions: ie: Invoices,
Credit Memos, Debit Memos, Payments

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Journal Line Definition

Ledger
The predetermined accounting entries

which could be possible for each event.
Ie: Payables Invoices: Expense, Liability,
Tax, Gain/Loss

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Journal Line Type

Ledger
Determines the characteristics of the

Journal definition. Ie: Payables Liability is
an actual balance type, it is a credit
transaction.

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Journal Entry Description

Ledger
Determines the actual description to

record for the single event/journal being
created.

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Account Derivation Rule

Ledger
Determines the segments of the

Accounting Flexfield to be created for the
journal line created.

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Transaction Objects
Ledger
The actual data available at the time of

entry. A Transaction Object can be a
source. Ie: Supplier Name, Transaction
Date

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Sources
Ledger
The input used to feed

into/determine a Journal Line Type,
Description, or Derivation Rule.
A Source could be a transaction
object, custom mapping set, or
custom pl/slq function that derives
a new source. Ie: full moon on
Monday needs to be a pl/sql
procedure that uses the transaction
object, Transaction Date as an input
and determines the day of the week.
A Mapping set could then be used
which sets the account for Monday
to be 1234 and Tuesday to be 5678.
IT Convergence 2013

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
Account
Derivation
Rule
Scenario Overview

Scenario Overview
Requirement
Topics Covered
Ability to enter a Payables

Invoice once, accrue the
invoice yet recognize the
expenditure over a series of
periods.
Mapping sets, Multiperiod

Accounting, Transaction
and Accounting Charts of
Accounts
IT Convergence 2013
Scenario Overview

Multi Period Accounting Setup

(Optionally) Create a triggering event for MPA.
AP Invoice Lines will use the Invoice Lines Descriptive Flexfield to
determine the type of accrual needed.
Identify the Application Accounting Method Currently Defined

AP uses the Payables Accrual Basis
Identify the Event Class to be used for MPA.

AP will use the Invoices
Identify the Journal Line type to be used for MPA.

AP uses the Item Expense
IT Convergence 2013
Create Value Set and Values
IT Convergence 2013
Create Descriptive Flexfield

(Triggering Object)
Note: you may want this to be a context sensitive DFF
IT Convergence 2013
Modify the Accounting Methods Builder

Ledger
Research Top Down

Build Bottom Up

Journal
Line
Type
Journal
Entry
Description
Sources
Transaction Objects
IT Convergence 2013
Account
Derivation
Rule
Create New Accounting Derivation Rule

View shows completed ADR to be used
for the Recognition Line Type
The Input to the rule is the value stored in
the Invoice Line Flexfield Segment1
(Attribute1) as defined in the DFF earlier.
Notice the Output type is the

Account Segment
Notice my naming MAP
Ledger
Journal
Line
Type
Journal
Account
Entry
Derivation
Description
Rule
Sources
Transaction Objects
IT Convergence 2013
Notice the Accounting COA

- From this step upwards.
This rule can only be used
for the specific Accounting
COA
Create Mapping Set

Mapping set uses the Input Source
value to determine
the output
Ledger
Journal
Line
Type
Journal
Account
Entry
Derivation
Description
Rule
Sources
Transaction Objects
IT Convergence 2013
Mapping Set Definition

DFF Values are Input
Desired Account Numbers as
Output
Must Define the Accounting
COA
Ledger
Journal
Line
Type
Journal
Account
Entry
Derivation
Description
Rule
Sources
Transaction Objects
IT Convergence 2013
Create Journal Line Types (2)

Accrual: this is Debited initially and then is credited each
subsequent period.
Recognition: this is the actual expense account which will be
debited in each subsequent Period.
Use the AMB Copy Feature!
Ledger
Journal
Line
Type
Journal
Account
Entry
Derivation
Description
Rule
Sources
Transaction Objects
IT Convergence 2013
Create Accural Journal Line Types

Copy from seeded
AP_ITEM_EXPENSE_INV
Ledger
Journal
Line
Type
Journal
Account
Entry
Derivation
Description
Rule
Sources
Transaction Objects
IT Convergence 2013
Accrual Journal Line cont
Set Multiperiod Accrual
Business Flows provide a link between related

accounting transactions values can be inherited
from a linked transaction.
This is not needed for this example
See pages 2-14 in the Oracle Subledger Accounting

Implementation Guide to understand Accounting
Attribute Assignments! but the accounting program
uses special values to determine special
processingentered currency code.
This is not needed for this example

Ledger

Journal
Line
Type
Journal
Account
Entry
Derivation
Description
Rule
Sources
Transaction Objects
IT Convergence 2013
Create Recognition Journal Line Types

Copy from seeded
AP_ITEM_EXPENSE_INV
Ledger
Journal
Line
Type
Journal
Account
Entry
Derivation
Description
Rule
Sources
Transaction Objects
IT Convergence 2013
Recognition Journal Line cont

Set Mulitperiod Recognition
Remove all conditions as they would
not exist at time of creation.
Ledger
Journal
Line
Type
Journal
Account
Entry
Derivation
Description
Rule
Sources
Transaction Objects
IT Convergence 2013
Create Journal Line Definition

Copy from seeded
ACCRUAL_INVOICES_ALL
Ledger
Journal
Line
Type
Journal
Entry
Description
Account
Derivation
Rule
Sources
Transaction Objects
IT Convergence 2013
Create Journal Line Definition (Cont.)

Add your New Accrual Journal
Line Type
Disable the existing Item Expense
Ledger
Journal
Line
Type
Journal
Entry
Description
Account
Derivation
Rule
Sources
Transaction Objects
IT Convergence 2013

Set Multiperiod Accounting
Options for Accrual Journal
Line Type
Ledger
Journal
Line
Type
Journal
Entry
Description
Account
Derivation
Rule
Sources
Transaction Objects
IT Convergence 2013
Enter Multiperiod Options
Enter Line Assignments to group the

Recognition and the Accrual
Number of Journal Entres: One or One

per GL Period
GL Dates: First Day GL Period, Last Day

GL Period, Originating Day
Proration Type: 360 days, Days in a

Period, First Period, Total Days in
Period
Ledger

Journal
Line
Type
Journal
Entry
Description
Account
Derivation
Rule
Sources
Transaction Objects
IT Convergence 2013

Add the Recognition to the Assignment
Add the Account ADR to the Recognition
Ledger
Journal
Line
Type
Journal
Entry
Description
Account
Derivation
Rule
Sources
Transaction Objects
IT Convergence 2013
Start with the Invoice distribution Account

as sent into the Rule for the Accrual, then
Replace the Account Segment value with
the value determined by our mapping set
Use the Invoice distribution Account as
sent into the Rule for the Accrual
Create Application Accounting Definition

Copy from seeded
Payables ACCRUAL
Ledger
Journal
Line
Type
Journal
Entry
Description
Account
Derivation
Rule
Sources
Transaction Objects
IT Convergence 2013
Create Application Accounting Definition

(Cont.)
Change JLD to the new one
Save then Validate
Notice the Accounting COA
Ledger
Journal
Line
Type
Journal
Entry
Description
Account
Derivation
Rule
Sources
Transaction Objects
IT Convergence 2013
Create Subledger Accounting Definition

Copy from seeded
STANDARD_ACCRUAL
Replace Payables Accrual Basis with
new Application Accounting
definition
Set the Accounting COA
Ledger
Journal
Line
Type
Journal
Entry
Description
Account
Derivation
Rule
Sources
Transaction Objects
IT Convergence 2013
Attach SLAM to Ledger

Be careful
do this after hours!
Ledger
Journal
Line
Type
Journal
Entry
Description
Account
Derivation
Rule
Sources
Transaction Objects
IT Convergence 2013
Great References, Learn From the Masters

Turbo-Charge Your Accounting With the Release 12 Subledger Accounting Engine
Alyssa Johnson, Rolta (OAUG Conference Paper)
R12 Multiperiod Accounting: A Users Guide
Jeannine Suwalski, BizTech (OAUG Conference Paper)
Subledger Accounting White Paper on Multi Period Accounting (MPA) in R12
Sanjay Prasad and Sriram Ramanujam Oracle (Metalink)
SLA: What is it
Anne Ristau (www.youtube.com/itconvergencemkt, specifically
http://www.youtube.com/watch?v=70wBFOJfbx0&list=UUjdkzv8ai9H4LT1jwkJTgBA&index=17)
Oracle Subledger Accounting Implementation Guide
IT Convergence 2013
Stay Connected
Twitter
Go with an experienced
Oracle Fusion Applications
provider.
@IT_Convergence
Blog
itconvergence.blogspot.com
LinkedIn
www.linkedin.com/company/it-convergence
Support your Oracle Solution

Any Time Any Where. Visit our
Global Rollouts Page.
YouTube
www.youtube.com/user/ITConvergenceMKT
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IT Convergence 2013

Accounting Methods Builder - Beyond The Basics

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AMB Beyond the Basics

A presentation by Anne E. Ristau

All rights reserved.

AMB Beyond the Basics

About the Author

More than 23 years working with Oracle Applications

All rights reserved.

Review of AMB Hierarchy

Multi Period Accounting Setup (Payables) used to

AMB Beyond the Basics

Review of AMB Hierarchy

All rights reserved.

AMB Beyond the Basics

The accounting transactions which

Subledger Accounting Method

All rights reserved.

AMB Beyond the Basics

Subledger Accounting Method

A group of accounting rules that define

Subledger Accounting Method

All rights reserved.

AMB Beyond the Basics

Application Accounting Definition

Rules with respect to a single module.

Subledger Accounting Method

All rights reserved.

AMB Beyond the Basics

The predetermined events within an

Subledger Accounting Method

All rights reserved.

AMB Beyond the Basics

Journal Line Definition

The predetermined accounting entries

Subledger Accounting Method

All rights reserved.

AMB Beyond the Basics

Journal Line Type

Determines the characteristics of the

Subledger Accounting Method

All rights reserved.

AMB Beyond the Basics

Journal Entry Description

Determines the actual description to

Subledger Accounting Method

All rights reserved.

AMB Beyond the Basics

Account Derivation Rule

Determines the segments of the

Subledger Accounting Method

All rights reserved.

AMB Beyond the Basics

The actual data available at the time of

Subledger Accounting Method

All rights reserved.

AMB Beyond the Basics

The input used to feed

All rights reserved.

Subledger Accounting Method

Review of AMB Hierarchy

Multi Period Accounting Setup (Payables) used to

AMB Beyond the Basics

Ability to enter a Payables