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.
