You create accounting entries for invoices and other transactions in Oracle Receivables using the Oracle Subledger Accounting architecture. See: Accounting in Receivables.

Receivables uses AutoAccounting to derive the default accounting. Receivables predefines setup in Oracle Subledger Accounting so that the Create Accounting program accepts the default accounts that AutoAccounting derives without change. For information on the setup that Receivables predefines in Oracle Subledger Acccounting, see: Predefined Setup for Oracle Subledger Accounting.

However, you can optionally define your own accounting rules in Subledger Accounting to create accounting that meets your business requirements. In Subledger Accounting, you use the Accounting Methods Builder (AMB) to define the way subledger transactions are accounted. To do this, you create and modify subledger journal line setups and application accounting definitions. These definitions define the journal entries that enable an organization to meet specific fiscal, regulatory, and analytical requirements. These definitions are then grouped into subledger accounting methods and assigned collectively to a ledger. See: Accounting Methods Builder (AMB) Overview.

To customize the setup in Subledger Accounting:

1. Define custom sources.

   Sources are pieces of information that Subledger Accounting uses to determine how to create accounting for an accounting event. You use sources to provide information from transactions to Subledger Accounting. Receivables predefines a comprehensive set of sources, but you can optionally define custom sources to extend the list of sources available to application accounting definitions.

   See: Custom Sources.

2. Define journal line types.

   Journal line types determine the characteristics of subledger journal entry lines. These characteristics include whether the line is used to create actual, budget, or encumbrance entries, whether the line is a debit or a credit, whether matching lines are merged, and whether data is transferred to the general ledger in summary or detail form.

   See: Journal Line Types.

3. Define journal entry descriptions.

   Journal entry descriptions determine both the content and sequence in which the elements of a description appear on a subledger journal header and line.

   Receivables does not provide any predefined journal entry descriptions. You can optionally define your own journal entry descriptions. You can build descriptions using any of the sources for Receivables.

   Assign journal entry descriptions headers and lines in the Applications Accounting Definition window.

   See: Defining Journal Entry Descriptions.

4. Define mapping sets.

   Mapping sets associate a specific output value for an account or account segment. Based on the input value, a specific value can be assigned to a single segment or to the entire account. You use mapping sets when you set up account derivation rules.

   See: Mapping Sets.

5. Define account derivation rules.

   Account derivation rules determine the accounting for subledger journal entries.

   See: Account Derivation Rules.

6. Define journal lines definitions.

   Journal lines definitions let you create sets of line assignments (journal line types, journal entry descriptions, and account derivation rules) for an event class or event type. These sets can be shared across application accounting definitions. You can assign multiple journal lines definitions to an event class or event type.

   See: Journal Lines Definitions.

   An event class represents a category of business events for a particular transaction type or document. An event type represents a business operation that you can perform for an event class. See: Receivables Accounting Event Model.

7. Define application accounting definitions.

   An application accounting definition is a collection of components or rules that determine how Subledger Accounting processes accounting events to create subledger and general ledger journal entries. You can also indicate whether to create accounting for a particular event class or event type.

   Each event class and event type assignment consists of a header assignment and one or more journal lines definition assignments. A header assignment includes a journal entry description and journal lines definition.

   See: Application Accounting Definitions.

8. Define subledger accounting methods.

   A subledger accounting method is a grouping of application accounting definitions that comply with a common set of accounting requirements.

   Assign newly defined application accounting definitions to a subledger accounting method in the Subledger Accounting Methods window.

   See: Subledger Accounting Methods.

9. Assign each subledger accounting method to a ledger using the Accounting Setup Manager.

   See: Using Accounting Setup Manager in the Oracle Financials Implementation Guide.

10. If you have customized your Receivables responsibilities, then add the function SLA: View Accounting - Lines Inquiries to your menu. This lets you create accounting online from the Transactions workbench.

Other Sources

• Oracle Subledger Accounting Implementation Guide