Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
SLA in Process Manufacturing
Sathya Sundar / Saimani BalasubramanianOracle SSI
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
• Subledger Architecture (SLA) replaces OPM Manufacturing Accounting Controller (MAC)• Financial Integration (FI) is obsolete since SLA takes care of data push to GL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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
The OPM-SLA Footprint
Cost Setup Calculate Cost Store Costs SLA Oracle GL
Oracle Inventory
Purchasing GMD, GMEOrder Management
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Types
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
SLA Event Model
Event Class
Event Type
Entity
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Sources
Displayed Name
Data Type
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
• 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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
• 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
rules
• 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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
OPM example with MAC
Order Management
Shipping
Customer Returns(RMA)
Internal Order Shipments
Shipping
(OMSO)
SOURCE EVENT SUBEVENT
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
OPM example with SLA
Order Management
Shipping
Customer Returns(RMA)
Internal Order Shipments
Shipping
(OMSO)
EVENT ENTITY EVENT CLASSES EVENT TYPES
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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)
Yes
No
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Scenarios
• Category based accounting using SLA• Inventory Valuation accounts based on Subinventory
using SLA
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Attach the GL business class category to the Item
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Create a custom AAD
• AAD created with owner ‘User’
• Specific to a particular application
• Contains all event classes and event types
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Create a new SLAM (Subledger accounting method)
• SLAM created with owner ‘User’
• Specific to a ledger
• Contains AADs from all applications
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Perform a Miscellaneous Transaction
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Run OPM accounting preprocessor
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Run Create Accounting
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Output of create accounting- INV and IVA accounts derived from Category based rules
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Drill down Subledger entries
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Drill down to Draft sub ledger entries and T accounts
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Scenarios
• Category based accounting using SLA• Inventory Valuation accounts using Subinventory
using SLA
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Inventory valuation accounts using Subinventory
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Inventory valuation accounts using Subinventory
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
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
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Create ADR (Account derivation rule)
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Create JLD(Journal lines definition)
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Create New AAD (Application accounting definition)
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Create a new SLAM (Subledger accounting method)
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Verify results
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
Business Enquiries
• For more information on SLA in OPM, consulting requests, sales and presales assistance
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.
AQ&Q U E S T I O N S
A N S W E R S
Q and A
Oracle InternalOracle SSI – Consulting. Beyond Boundaries.