From Oracle R12.0, subledger accounting (SLA) is introduced to Oracle E-Business Suite, which is a event-based accounting generation engine. From R12.1, MPA feature is introduced to SLA architecture. It enables users to create accounting for a single accounting event for more than one GL period. Taking an example for prepaid expense, when AP invoice validated, an accounting event “Invoice Validation” will be created, by create accounting, the multiple period accounting journals will created for this event. As one SLA accounting journal can have only one GL date, so the relationship between event and SLA journal is 1:m.
The multiple period accounting process is depicted as below diagram.
- Define Accounting Derivation Rule (ADR): This is used to get the journal entry account for recogonition entries. (Dr. Expense, Cr. Prepaid expense)
- Define Journal Entry Type (JLT):
- Accural journal entry type
- Recogonition journal entry type
Dr. Accrual journal entry type (first period)
Cr. Liability (first period)
Dr. Recogonition journal entry type (first period)
Cr. Accrual journal entry type (first period)
Dr. Recogonition journal entry type (second period)
Cr. Accrual journal entry type (second period)
The three options in red circle will be mapping to accounting attribute in SLA to create multiple accounitng. The two options in blue circle doesn’t make sense currently.
|Name||Data Type||Journal Entry Level||Accounting Method Builder Components||Accounting Attribute Assignment Rules||Optional or Mandatory||Validation Rules|
|Multiperiod Option||Alphanumeric||Line||Event class||Should be assigned if another multiperiod accounting attribute is assigned||Optional||Should be Y for yes or N for no|
|Multiperiod Start Date||Date||Line||Event class||Should be assigned if another multiperiod accounting attribute is assigned||Mandatory if multiperiod option is populated|
|Multiperiod End Date||Date||Line||Event class||Should be assigned if another multiperiod accounting attribute is assigned||Mandatory if multiperiod period type is not populated|
For opened AP period, the status is Final;
For unopened AP period, the status is Incompleted;
Note that it depends on AP period status.
If the accounting calendar has not been defined for the period, the journal entry will not be generated, the remaining balance will be recogonized in the last defined period.
Another very important point is the relationship between the first accrual journal entry and repeated recogonition journal entries. In xla_ae_headers, accrual journal entry is the parent journal entry of recogonition journal entries.
Please also understand that all of journal entries are generated by “Create Accounting”. It is very important for us to extent the MPA functionality.
The program has outout to tell you how many and what MPA journal entries are handled.
Below is the a section of complete MPA journal entry program code. It shows how MPA journal entries are controled. (Package Name: XLA_MULTIPERIOD_ACCOUNTING_PKG)
After the concurrent program is run, the journal entry will be finally processed and can be transferred to GL.