Sub-ledger Accounting Configuration - Part 1

Sub Ledger Accounting method (SLAM):

SLA is a rule based accounting Engine that introduced the ability to define how transactions originating in Sub Ledgers can be Accounted. Hence in order achieve this high level of flexibility SLA is accommodated with lot of configurable and predefined components.

This article will talk about different Predefined and configurable components of SubLedger Accounting which are used to setup accounting rules in order to achieve various accounting requirement.

Below mentioned are Predefined Components of SLA. We will talk about their specific Examples as we move on.

Predefined Components of SLA:

Entities:

Entities in SLA represent a Specific Document category in the Application. For example an Invoice or Payment in Account Payables. 

Event Class:

Event Class in SLA represents a specific type of the entity for which the Corresponding accounting entry will be generated. For Example a Standard Invoice is a Type Of invoice there by Standard Invoice will be an Event class for the Entity AP Invoice.

Event Type:

Event type is an Action or an event which should be defined as trigger for the creation of accounting entries.

For example: in reference to a Standard accounting requirement an Standard Invoice should get accounted once it is validated. Hence the Event which will initiate the accounting for the invoice is Validation. So Standard invoice validation is the Event Type for Event Class Standard Invoice

In Order to explain the complete concept let’s take one more example.

There should be accounting entries generated for Cancellation of a credit memo. And hence Credit Memo is a Type of Account Payables invoice.

Entities à AP invoice

Event Class à Credit Memo

Event à Cancellation.