You create accounting entries for invoices and other transactions in Oracle Receivables using the Oracle Subledger Accounting architecture.
Oracle Subledger Accounting is a rule-based accounting engine, toolset, and repository that centralizes accounting across the E-Business Suite. Acting as an intermediate step between each of the subledger applications and Oracle General Ledger, Oracle Subledger Accounting creates the final accounting for subledger journal entries and transfers the accounting to Oracle General Ledger.
Receivables includes a set of predefined accounting rules that Subledger Accounting uses to create accounting, but you can define your own detailed accounting rules using a centralized accounting setup in a common user interface.
Leveraging this accounting architecture, Receivables lets you:
Store a complete and balanced subledger journal entry in a common data model for each business event that requires accounting
Maintain multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements
Retain the most granular level of detail in the subledger, with different summarization options in the general ledger, allowing full auditability and reconciliation because the link between transaction and accounting data is preserved
For more information about Subledger Accounting, see: Oracle Subledger Accounting Implementation Guide.
Each business event that has accounting impact is called an accounting event. See: Receivables Accounting Event Model.
For each accounting event, Receivables uses AutoAccounting to derive the default accounting. You then submit the Submit Accounting program to create the accounting in Subledger Accounting. (Receivables predefines setup in Oracle Subledger Accounting so that the Submit Accounting program accepts the default accounts that AutoAccounting derives without change.) See: Creating Accounting in Receivables.
Finally, Subledger Accounting transfers the final accounting to Oracle General Ledger. See: Posting.
You can optionally define your own accounting rules in Subledger Accounting to create accounting that meets your business requirements. See: Subledger Accounting Setup for Receivables and Oracle Subledger Accounting Implementation Guide.
If you customize the Subledger Accounting setup to create your own accounting, then Subledger Accounting overwrites the default accounts, or individual segments of accounts, that AutoAccounting originally derived during transaction entry. However, you must still set up AutoAccounting. See: Using AutoAccounting.
Other Sources
Oracle Subledger Accounting Implementation Guide