OPM_SLA in OPM

transcript

Oracle InternalOracle SSI – Consulting. Beyond Boundaries.

SLA in Process Manufacturing

Sathya Sundar / Saimani BalasubramanianOracle SSI

Agenda

• SLA (Subledger accounting) - Overview and Structure• SLA – Key Concepts• Impact of SLA on OPM

• Convergence on SLA• MAC vs. SLA

• Oracle Process Manufacturing with SLA - The process

• Discrete vs. OPM - The SLA difference• Demo scenarios• Custom sources - An example• Q&A

Agenda

SLA - Overview

• Rule-based flexible accounting engine, toolset & repository supporting Oracle E-Business Suite modules

• Introduces a common data model and UI across subledgers, replaces various disparate 11i setups, providing single source of truth for financial and management analysis

• Retains the most granular level of detail in the subledger accounting model, with different summarization options in the General Ledger, allowing full auditability and reconciliation

• Subledger Architecture (SLA) replaces OPM Manufacturing Accounting Controller (MAC)• Financial Integration (FI) is obsolete since SLA takes care of data push to GL

SLA in OPM

The OPM-SLA Footprint

Cost Setup Calculate Cost Store Costs SLA Oracle GL

Oracle Inventory

Purchasing GMD, GMEOrder Management

A rule for a given event

Eg. Miscellaneous Receipt

Accounting Methods BuilderLedger (OPM US)

Subledger Accounting Method (Standard Accrual)

Application Accounting Definition (AAD for Process Manufacturing Financials)

Journal Line Types (JLT)

INV, IVA

Account Derivation Rules (ADR for INV

with Conditions)

Journal Entry Descriptions

Journal Line Definition (JLD for Miscellaneous Receipt)

Transaction Objects

Sources

Rules for all products

All rules for a product,

Eg. Process Mfg Financials

SLA- Structure

Event Classes and Event

Agenda

SLA Event Model

Event Class

Event Type

Entity

Sources

Displayed Name

Data Type

Agenda

• Concept of Subinventories and Locators• Valuation accounts originating from Subinventories• Create Immediate and Adjust Immediate replaced by Miscellaneous Issue and Receipt transaction• Adjustment account mandatory in all Miscellaneous Transactions• Move Immediate replaced by Subinventory Transfer

Convergence on SLA

• MAC - Acted as a subledger for all OPM transactions

• A single source of truth for accounting definitions in OPM

• Need for accounting units and accounts

• Need for Ledger Mappings

• Account derivation based on selection criteria

Manufacturing accounting

controller (MAC)• Unified repository of accounting

• Process Manufacturing Financials is the Subledger for all OPM transactions

• No need for separate accounting units and accounts

• No need for Ledger mappings

• Account derivation based on flexible condition based rules

• Test Subledger update replaced by Create accounting-Draft

• Subledger Update replaced by Create accounting- Final mode

• Test Mapping replaced by Create accounting-Draft

Subledger Accounting (SLA)

MAC vs SLA

OPM example with MAC

Order Management

Shipping

Customer Returns(RMA)

Internal Order Shipments

Shipping

(OMSO)

SOURCE EVENT SUBEVENT

OPM example with SLA

Order Management

Shipping

Customer Returns(RMA)

Internal Order Shipments

Shipping

(OMSO)

EVENT ENTITY EVENT CLASSES EVENT TYPES

Agenda

OPM with SLA - The Process

Prelim Cost Update

Calculate Cost

Export to GL

OPM Accounting Preprocessor

Create Accounting (Draft Mode)

Final inventory close

Review Journal Entries

Final Cost Update

Incorrect journals?

Make changes

OPM Accounting Preprocessor

Create Accounting (Final Mode)

Agenda

Discrete vs. OPM - The SLA difference

Discrete• All the seeded SLA entities

(SLAM,AAD,JLD,ADR) can be used

• SLA uses distributions created• Presence of ‘Transaction

Distribution GL account’ as rule ‘Source’

• Familiarity of entering accounting information for entities• WIP accounting class• Subinventory valuation

accounts

OPM• A custom SLA,AAD,JLD,ADR

is always needed• Seeded Source ‘Transaction

account not of use since Transaction account does not get derived

• All accounts need to be specified in the Custom ADR

Agenda

Scenarios

• Category based accounting using SLA• Inventory Valuation accounts based on Subinventory

using SLA

Attach the GL business class category to the Item

Define a new custom ADR

• ADR created with owner ‘User’

• Output type can be an entire accounting flexfield or a specific segment in the accounting code combination

• Multiple conditions can be separated by ‘AND/OR’ logic

Create a custom JLD

• JLD created with owner ‘User’

• JLDs are created for an Event class and Event type combination

• The journal line types are automatically displayed

• ADRs are associated to the JLTs

Create a custom AAD

• AAD created with owner ‘User’

• Specific to a particular application

• Contains all event classes and event types

Create a new SLAM (Subledger accounting method)

• SLAM created with owner ‘User’

• Specific to a ledger

• Contains AADs from all applications

Perform a Miscellaneous Transaction

Run OPM accounting preprocessor

Run Create Accounting

Output of create accounting- INV and IVA accounts derived from Category based rules

Drill down Subledger entries

Drill down to Draft sub ledger entries and T accounts

Scenarios

• Category based accounting using SLA• Inventory Valuation accounts using Subinventory

using SLA

Inventory valuation accounts using Subinventory

Agenda

Custom Sources

• Extend the list of sources available to application accounting definitions

•Used to derive accounts based on non-standard sources

• PL/SQL function used to derive the source

• Return value can be a string, an accounting flexfield or a value set

Create ADR (Account derivation rule)

Create JLD(Journal lines definition)

Create New AAD (Application accounting definition)

Create a new SLAM (Subledger accounting method)

Verify results

Business Enquiries

• For more information on SLA in OPM, consulting requests, sales and presales assistance

• ssi_rfp_ww@oracle.com• sathya.sundar@oracle.com• saimani.balasubramanian@oracle.com

AQ&Q U E S T I O N S

A N S W E R S

Q and A

OPM_SLA in OPM

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