APPS TO FUSION

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SLA Part 1 - Why SLA

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In these article, we will explore the very basics of SLA and why it exists.
Firstly, what exactly does SLA do?
SLA is a module which now sits between the SubLedgers like AP/AR etc and the General Ledger. Have a look at this diagram below.  As you will notice, SLA can act as a mediator between the subledgers and Oracle General Ledger.


Before we progress, some terminologies of R12 must be revisited. In 11i we had set of books, and in R12 we call them Ledgers. Likewise in R12 we also have secondary ledgers and reporting ledgers. Hence from 11i perspective think of Ledger as Set of Books. As for Subledger, a Subledger is nothing but a module like AP/AR/PO/Inventory etc.

In the diagram below, the second scenario is explained whereby let's say that payables module generates a charge account segment combination for an invoice distribution line as A.B.C.D. In such case, if SLA module is not customized, then the very same A.B.C.D combination will be passed to Oracle General Ledger via the SLA. And before you wonder... Yes, SLA module has its own set of tables to capture these accounting entries.
Please see the image below.




In the image above, SLA passes to GL whatever value is fed by the Subledger, in this case A.B.C.D


There are cases where SLA module can alter or massage the CCID or code combination that is generated in Subledger before transferring the same to Oracle General Leger. This scenario is explained whereby let's say that payables module generates a charge account segment combination for an invoice distribution line as A.B.C.D. In such case, if SLA module is customized, then the A.B.C.D code combination of Payables can be passed to Oracle General Ledger via the SLA as A.B1.C1.D instead.


The most important application however of the SLA is its ability to create shadow journals that contain different values or differing credit/debit entries for the transactions. This is the main reason why SLA module was invented/designed.  Let us take an example. For company "Apps2Fusion UK", it might have operations in France, which is "Apps2Fusion France". With UK being the parent company, the French company has to do accounting journals in formats that can be reported as per French legislation and also as per UK legislation. For example, in France an inventory item is accounted as expense, whereas in UK the inventory item is accounted as an asset. In the example below, A.B.C.D is never passed to the GL. Instead to GL A.B1.C1.D is passed to the Primary Ledger FRANCE and A2.B2.C.D is passed to the Secondary Ledger UK. The picture below shows the role that SLA plays in such scenario.
Therefore in this article you have learnt the different usages of Subledger accounting.


Comments   

0 #1 shibu 2010-11-29 22:05
Hi Anil,
I have got an assignment in OAF of R12 cash management module. My task is of customization Bank Account Transfer Page...could you plz guide how SLA is connected to Cash management & what should be my approach for extension of "Bank Account Transfer" Page as its a seeded page i am trying to run this page in jdev but till now no success because controller class throws compilation error in jdev....plz helpp i am working without any input with strict deadlines..
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0 #2 Anil Passi 2010-11-30 10:39
Hi Shibu, Extension of Bank Account Transfer page has nothing to do with SLA. Please pencil your requirement, and so that I am in a position to advice.

Thanks ,
Anil Passi
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0 #3 Divya 2010-12-03 00:24
The articles on SLA are really good. You just rock, Anil !!! :)
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0 #4 Kavi Prabhakar 2011-01-14 11:33
Thanks for detailing the SLA process. You made it very easy to understand.
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0 #5 Nash 2011-04-07 04:16
Cracking Article ... Like always
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0 #6 KRP 2011-09-09 01:05
Excellent Explanation!! thanks :)
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0 #7 Jon Carr 2011-11-11 03:51
Very useful, clear explanations. Thanks.
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0 #8 Satamanyu 2012-03-01 02:07
HI Anil,

Thanks a lot lot for this great article. Its very useful to have the understanding of SLA. Do we have the ability to Split between actual and Accrual w.r.t. advanced intercompany?
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0 #9 Rajc 2012-05-02 15:04
Very good article, keep up the good work.

Thanks,
Raj
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0 #10 karthikeyan palanisamy 2012-10-25 08:03
Great very good article. I was breaking my head to learn but now i find it easy......
:) :) :) :) :) :)

Thanks
P.Karthikeyan
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0 #11 sangita deshmukh 2013-04-15 03:35
Very Good Article.

Thank s,
Sangita Deshmukh
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0 #12 Sreenivas Kumar 2013-04-16 10:46
Hi Anil,

First of all thank you very much for providing excellent posts to understand the concepts.
We have a requirement for intercompany accounting where 2 operating units are involved belonging to different legal entities.
In SLA, we can create mapping rules between Primary Ledger and Secondary Ledger in order to create entries in Secondary Ledger based on the coversion level.
In the same way, Can we create mapping between 2 primary ledgers. For Eg: When we create any invoice in primary ledger1, can we post these entries in Primary Ledger 2 through SLA? Also we wanted to restrict only few entries to be transferred to Primary Ledger 2.

Is it feasible in R12 SLA?

Please provide some thoughts on it


Thanks a lot
Sreenivas
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0 #13 Muzaffar Ali 2013-09-24 07:13
Excellent Document Good Job Mr.Passi Thanks.... You made it very easy to understand
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