Journal line types are defined for a particular event class. They must then be assigned to a journal lines definition along with supporting references, account derivation rules, and journal entry descriptions.
The definition of a journal line type includes the following features:
Subledger Accounting uses rounding class along with the transaction rounding reference to group journal lines tighter and calculate transaction rounding. Subledger transaction rounding differences can occur when a transaction has multiple distributions.
The journal entry line can have an actual, budget, or encumbrance balance type.
For products like Oracle public sector applications that use encumbrance accounting, separate journal line types can be created for encumbrance lines.
Journal line types specify if the journal line is to be a debit, credit, or gain/loss line.
For example, when a Payables invoice is generated, the liability account should normally be credited. The journal line type must therefore specify the Side option as Credit. On the other hand, the payment of the Payables invoice must be accounted with a debit to the liability account. A separate journal line type must be defined to create this debit line.
The gain/loss amount is the difference in the ledger currency due to foreign currency fluctuations. Gain or loss amounts occur when two related transactions, such as an invoice and its payment, are entered in a currency other than the ledger currency, and the conversion rate fluctuates between the time that the two are accounted.
Users can specify whether to merge matching journal entry lines.
Users can specify whether the gain or loss has been calculated in the primary ledger so that the gain or loss amount is not converted to the reporting currency or non-valuation method secondary ledgers.
Users can specify whether to derive journal entry components from a related journal entry.
The business flow method determines if and how a journal line should inherit journal entry values.
Users can specify whether to apply multiperiod accounting to a journal line type.
Journal entry lines are transferred to General Ledger in summary or detail mode.
Users can define conditions to restrict the use of a journal line type by controlling when a particular journal line type is used by the Subledger Accounting program.
Users can assign accounting attributes.
If an accounting attribute is relevant to the accounting event's underlying transaction, then its value is required to generate subledger journal entries for the transaction. By assigning standard sources to accounting attributes in the Accounting Attributes window, you can use standard source values as the values for accounting attributes.
See: Accounting Attributes Guidelineand To Define Journal Line Types