Application accounting definitions that comply with a common set of accounting requirements can be grouped into a subledger accounting method. The grouping allows a set of application accounting definitions to be assigned collectively to a ledger. This reduces setup time and helps ensure a consistent method of accounting for all subledgers feeding into a particular ledger.
For example, a subledger accounting method entitled French GAAP can be defined to group application accounting definitions that are accounted for using French GAAP criteria. As another example, a Cash Basis Accounting Method can be defined to group application accounting definitions that are used to account for transactions on a cash basis.
By assigning different subledger accounting methods to ledgers, the AMB enables users to create multiple accounting representations of transactions.