Subledger Accounting

Subledger Accounting

1. What is Subledger Accounting
2. 4c’s in Ledger definition
3. How Accounting is create in Subledger

Why SLA and what does it do?

Oracle Sub Ledger accounting (SLA) is accounting hub in Oracle Application Release 12 (R12). Subledger accounting determines how the Account is to be generated in the Subledger. SLA gives the flexibility to modify the accounting generation in the sub ledgers like Receivables, Payables, Purchasing, Order Management, Inventory , Fixed Assets ….etc

4c’s in Ledger
• Chart of Accounts
• Calendar
• Currency
• Subledger Accounting Convention (New in R12)

How Accounting is create in Subledger

• In Subledger Accounting is created by running the create accounting program.
• Create Accounting can three options in creating the account for a transaction or a set of transactions
1. Draft Mode
2. Final Mode
3. Final and Post mode
• Draft Mode
It provides us preview of the accounting to be created for transaction nor set of transactions.
Note: Any change made in the accounting structure will be considered even though we run accounting is created in Draft mode previously
• Final Mode
once the accounting is created in Final mode the, new modifications done to the accounting structure will not be effected for the transactions or the set of transactions
• Final and Post mode
Once we run the created accounting in the final and post mode the final accounting is created and entries are transferred to GL and also posted in GL

AR Receipt Accounting Entries

AR Receipt Accounting entries , starting from prepayment in OM

No Remittance, Direct clearing (Eg:Cash):
-----------------------------------------------------

When Order is booked

Cash a/c------------------DR
To Prepayment a/c---------CR

After shipping and invoice

Prepayment a/c ----------DR
To Receivable a/c -------CR



No Remittance, clearing by match (Eg:Check)
-------------------------------------------

When Order is booked

Remitted Cash a/c-----------DR
To Prepayment a/c-----------CR


After shipping and invoice


Prepayment a/c ----------DR
To Receivables a/c ------CR

After clearing

Cash a/c-----------------------DR
To Remitted Cash --------------CR

Standard remittance, Clearing by match (Eg:Credit Card)
-------------------------------------------------------

When Order is booked

Confirmed Cash a/c --------DR
To Prepayment a/c --------CR


After shipping and invoice

Prepayment a/c ---------------------DR
To Receivables a/c -----------------CR


After remittance

Remitted Cash ----------------DR
To Confirmed Cash a/c --------CR

After clearing

Cash a/c ------------------------DR
To Remitted Cash ----------------CR