Integration with Oracle Subledger Accounting : AP Module 12 Release New Features

Integration with Oracle Subledger Accounting

Release 12 introduces a new module, Subledger Accounting (SLA), for managing accounting across subledger transactions. With the introduction of SLA, Payables will no longer create accounting entries, but will instead rely on the central SLA engine to do so. During the upgrade, accounting options and their settings, and the existing accounting entries in the Payables data model are moved to the new SLA accounting data model. Also during the upgrade, Payables sets up SLA to replicate the accounting created by Payables in Release 11i.

The new SLA architecture requires Payables to maintain specific data relating to transactions. SLA uses this data to generate accounting entries. In order to achieve this it was determined that both payment distributions and prepayment application distributions would be introduced into the Payables data model. Unlike invoice

distributions that can be entered by the user, payment distributions will be generated automatically and will be associated with each accounted payment.

During the upgrade, all accounting events, headers and lines from the 11i data model are upgraded to the new Subledger Accounting events, headers and lines data model, regardless of the number of periods you specify when submitting the upgrade. If the Global Accounting Engine (AX) is enabled for the set of books associated with a given Operating Unit, then the upgrade migrates the AX accounting events, headers and lines to SLA instead of those in Payables. The payment distributions and prepayment application distributions are upgraded based on time periods you specify during the submission of the upgrade. During the upgrade, Payables creates payment distributions and prepayment application distributions for existing transactions in the periods you specify for upgrade and creates links between these new distributions and the original invoice distributions.

If you have customizations based on the 11i AP accounting tables, you need to transition them to use the SLA data model. Also note, if you use Oracle Projects, Projects uses SLA in Release 12 and creates accounting entries for adjustments rather than using Payables to create those entries as in prior releases. If you have any customizations based on Project adjustments, you will need to transition them to the SLA data model.

The Deferred Expenses feature, supported with Global Descriptive Flexfields at the invoice distribution level in Release 11i, has been replaced by the Multi-Period Accounting feature in SLA.

Upgrading Payables Accounting Entries to Subledger Accounting

The following table displays the mapping from 11i entities to new Release 12 entities.

Source 11i Entity	Release 12 Entity
AP/AX Accounting Events, Headers, Lines	SLA Accounting Events, Headers, Lines
AP Payment History, Invoice Payments and Invoice Distributions	AP Payment History and AP Payment Distributions
AP Prepayment History and Invoice Distributions	AP Prepayment Application Distributions
AP Accounting Lines and Invoice Distributions	AP Distribution Links

Upgrading Payables System Options to SLA

The following table displays the mapping from 11i system option settings to the new

accounting setup entities and settings.

Source 11i Window and Field	Release 12 Window and Field
Payables Options: Primary Accounting Method	GL Accounting Setup: Sub-ledger Accounting Method
Payables Options: Secondary Accounting Method	GL Accounting Setup: Sub-ledger Accounting Method
Payables Options: Primary Set of Books	GL Accounting Setup: Primary Ledger
Payables Options: Secondary Set of Books	GL Accounting Setup: Secondary Ledger
Payables Options: Prevent Prepayment Application Across Balancing Segment	Obsolete. Supported by SLA inter-company Balancing.
Payables Options: Relieve Future Dated Payment Liability When: • Payment is Issued • Payment Matures • Payment Clears	Obsolete. Supported by Payments bills payable feature.

Creating Payment Distributions and Prepayment Application Distributions

During the upgrade, Payables creates payment distributions for existing payments, links those distributions with the original invoice distributions and adds payment, payment adjustment and payment cancellation information to the payment history records. Since you control the periods that are upgraded (by setting them during the SLA upgrade), Payables also adds an indicator to mark which historical data has been upgraded.

Also during the upgrade, Payables creates prepayment application distributions for existing prepayment invoices, links those distributions with the original prepayment distributions and adds a prepayment history entity to track historical prepayment application and non-application entries. Since you control the periods that are upgraded (by setting them during the SLA upgrade), Payables also adds an indicator to mark which historical data has been upgraded.

After the upgrade, if you find that you need to adjust a historical payment or need to unapply a prepayment application that did not have its data upgraded, you can run the SLA postupgrade process to upgrade the entries for that record.

Creating Distribution Links

During the upgrade, Payables migrates invoice distribution links, prepayment application distribution links and payment distribution links into the SLA distribution links entity for the data that has been populated in the payment distributions and prepayment application distributions table for the periods you selected to upgrade.

Populating the Initial Balances for the Open Account Balances Listing Report

As part of the Subledger Accounting introduction, a new report, the Open Account Balances Listing, replaces the 11i Payables Trial Balance. During the upgrade, Payables and SLA populate the initial liability balances by ledger, formerly "set of books," based on Payables transactions as of the periods you selected to upgrade.

The following table displays the mapping from 11i standard reports to the new SLA-based reports.

Obsolete 11i Standard Reports	Release 12 SLA Report
Accounts Payable Trial Balance	Accounts Payable Trial Balance
Payables Accounting Entries Report	Journal Entries Report (SLA)
Payables Account Analysis Report	Account Analysis Report (SLA)