R12 – Subledger Accounting – XLA

Back to R12 – Upgrade Overview

Subledger Accounting is a new application that provides an accounting abstraction layer for subledgers – between subledger accounting events and GL journal entries.

This functionality was in 11i placed in each of the subledgers implemented in different way resulting in different reconciliation processes for each of the subledgers.

Subledger Accounting also replaces the Global Accounting Engine (AX) which essentially in 11i was a add-on or workaround that bypassed the subledger accounting entries to provide a better audit trail and catered for special localization requirements for countries like Italy and Spain.

However the AX was only supported for some countries so in a global implementation you would have different reconciliation processes for the same application depending on the country was using AX or not.

Global Accounting Engine module is therefore obsolete in R12.

Subledger Accounting is now supported for all countries for the following modules:

  • Assets  
  • Cash Management  
  • Contract Commitment  
  • Cost Management  
  • Federal Financials  
  • Financials Common Modules  
  • Loans  
  • Payables  
  • Payroll  
  • Process Manufacturing Financials
  • Projects  
  • Property Manager  
  • Purchasing  
  • Receivables  
  • Trade Management

Subledger Accounting streamlines the accounting and reconciliation process between any of the above subledgers and the GL.

Each of the subledgers interface to Subledger Accounting sending the accounting events and amounts and then Subledger Accounting translates this into accounting entries for GL based on accounting rules.

Subledger Reporting and Reconciliation


Accounting Method Builder (AMB)


Accounting Setup

Subledger Accounting setup screen are located as a sub-application General Ledger:


This will give you access to the Accounting Setup form:


As Subledger Accounting setup is always done in the context of the ledger you must first search for this.

Click “Update Accounting Options” and you will get the following form:


For “Subledger Accounting Options” click “Update”:


This provides you with a list of currently supported subledgers for which you can update either the Accounting Options or the System Options.

System Options:


This is most a technical tuning page and has no functional impact.

From the user guide:

You can define the processing unit size at the event class level to process a large
number of items in one commit cycle. A processing unit is the number of
transactions processed by the Create Accounting program in one commit cycle. The
Create Accounting program processes the default processing unit size at the
application level.

Accounting Options:


These options used to be in each individual application but are now moved to a common screen. Great!

A nice new feature is “Stop at Error Limit” – especially handy when designing a new chart of accounts.

Scroll down and you get:


The Journal Category – used to be specified in the subledger as well now much more ordered and can be customized for any application and any event.


Had a look at the tables in SQL Developer. It looks to me that Subledger Accounting has borrowed the AP concept of the AP_AE_… tables – now in XLA called XLA_AE_… tables.

Main tables are:

  • XLA_AE_HEADERS – containing information about source application and accounting event
  • XLA_AE_LINES – containing multiple lines of information for each of the above events regarding the financial side of the transaction like DR/CR and CCID

The new tables is also now segmented by LEDGER_ID rather than by ORG_ID as it was in 11i. This completely ties in with the new R12 architecture and is a great improvement.





So the entity id in XLA_AE_HEADERS is for AP_INVOICES validation event.

This entry was written by Kent Willumsen , posted on Tuesday September 08 2009at 10:09 am , filed under Functional Knowledge, Subledger Accounting and tagged , , . Bookmark the permalink . Post a comment below or leave a trackback: Trackback URL.

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