Sub-Ledger
Accounting
Sub ledger accounting traditionally had accounting rules
spread across multiple Products and Sub ledger applications hence it was
Difficult to keep the rules up to date and manage.
And if there used to be any requirement which requires a
different Accounting treatment as per different geographies, Regulations or entity it was extremely difficult to
implement and many times the ultimate solution was to implement a customization
or pass manual Adjustment entries.
The New Sub Ledger accounting feature of oracle E-business
Suite R12 popularly known as SLA addresses such issues through a central
accounting rule engine allowing among other things, Superior controller ship of
definition of accounting rules.
SLA is a rule based accounting Engine that introduced the
ability to define how transactions originating in Sub Ledgers can be Accounted.
One of the significant benefits of SLA is the ability to generate multiple
accounting representations (IFRS and local GAAP) for a single sub ledger
transaction.
Hence in Simple words, Different from 11i where accounting
Entries used to get created in respective Sub ledgers and then get transferred
to GL, In R12 the Entries get created using SLA for all the Sub ledger
applications and then gets transferred to GL. Hence it would be appropriate to
say SLA is placed between different Sub ledgers such as AP, AR, CE, PA and
General Ledger as mentioned in below.
Sub Ledger Accounting Gives capability to Massage/ Change
the accounting entries which gets generated as part of the Standard Sub Ledger
application specific account so as to have the accounting entries posted to the
desired accounts to address various geographies or entity specific accounting
requirement
