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SLA in Process Manufacturing

Sathya Sundar / Saimani Balasubramanian

Oracle SSI

Oracle SSI Consulting. Beyond Boundaries.

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Agenda SLA (Subledger accounting) - Overview and Structure SLA Key Concepts Impact of SLA on OPM
Convergence on SLA MAC vs. SLA

Oracle Process Manufacturing with SLA - The process Discrete vs. OPM - The SLA difference Demo scenarios Custom sources - An example Q&A

Oracle SSI Consulting. Beyond Boundaries.

Oracle Internal

Agenda SLA (Subledger accounting) - Overview and Structure SLA Key Concepts Impact of SLA on OPM
Convergence on SLA MAC vs. SLA

Oracle Process Manufacturing with SLA - The process Discrete vs. OPM - The SLA difference Demo scenarios Custom sources - An example Q&A

Oracle SSI Consulting. Beyond Boundaries.

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SLA - Overview Rule-based flexible accounting engine, toolset & repository supporting Oracle E-Business Suite modules Introduces a common data model and UI across subledgers, replaces various disparate 11i setups, providing single source of truth for financial and management analysis Retains the most granular level of detail in the subledger accounting model, with different summarization options in the General Ledger, allowing full auditability and reconciliation

Oracle SSI Consulting. Beyond Boundaries.

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SLA in OPM

Subledger Architecture (SLA) replaces OPM Manufacturing Accounting Controller (MAC) Financial Integration (FI) is obsolete since SLA takes care of data push to GL

Oracle SSI Consulting. Beyond Boundaries.

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The OPM-SLA Footprint

Oracle Inventory

Purchasing

Order Management

GMD, GME

Cost Setup

Calculate Cost

Store Costs

SLA

Oracle GL

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SLA- Structure

Accounting Methods Builder

Ledger (OPM US)
Subledger Accounting Method (Standard Accrual)
Rules for all products All rules for a product, Eg. Process Mfg Financials A rule for a given event Eg. Miscellaneous Receipt

Application Accounting Definition (AAD for Process Manufacturing Financials)

Journal Line Definition (JLD for Miscellaneous Receipt) Event Classes and Event Types

Journal Line Types (JLT) INV, IVA

Account Derivation Rules (ADR for INV with Conditions) Sources Transaction Objects

Journal Entry Descriptions

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Agenda SLA (Subledger accounting) - Overview and Structure SLA Key Concepts Impact of SLA on OPM
Convergence on SLA MAC vs. SLA

Oracle Process Manufacturing with SLA - The process Discrete vs. OPM - The SLA difference Demo scenarios Custom sources - An example Q&A

Oracle SSI Consulting. Beyond Boundaries.

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SLA Event Model Entity

Event Class

Event Type

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Sources

Displayed Name

Data Type

Oracle SSI Consulting. Beyond Boundaries.

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Agenda SLA (Subledger accounting) - Overview and Structure SLA Key Concepts Impact of SLA on OPM
Convergence on SLA MAC vs. SLA

Oracle Process Manufacturing with SLA - The process Discrete vs. OPM - The SLA difference Demo scenarios Custom sources - An example Q&A

Oracle SSI Consulting. Beyond Boundaries.

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Convergence on SLA

Concept of Subinventories and Locators Valuation accounts originating from Subinventories Create Immediate and Adjust Immediate replaced by Miscellaneous Issue and Receipt transaction Adjustment account mandatory in all Miscellaneous Transactions Move Immediate replaced by Subinventory Transfer

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MAC vs SLA
Subledger Accounting (SLA)

Manufacturing accounting controller (MAC)

MAC - Acted as a subledger for all

Unified repository of accounting

rules
Process Manufacturing

OPM transactions
A single source of truth for

Financials is the Subledger for all OPM transactions

No need for separate

accounting definitions in OPM

Need for accounting units and

accounting units and accounts

No need for Ledger mappings Account derivation based on

accounts
Need for Ledger Mappings Account derivation based on

flexible condition based rules

Test Subledger update

selection criteria

replaced by Create accounting-Draft

Subledger Update replaced

by Create accounting- Final mode

Test Mapping replaced by

Create accounting-Draft

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OPM example with MAC

SOURCE

EVENT

SUBEVENT

Shipping

Shipping (OMSO)

Internal Order Shipments

Order Management

Customer Returns(RMA)

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OPM example with SLA

EVENT ENTITY

EVENT CLASSES

EVENT TYPES

Shipping

Shipping (OMSO)

Internal Order Shipments

Order Management

Customer Returns(RMA)

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Agenda SLA (Subledger accounting) - Overview and Structure SLA Key Concepts Impact of SLA on OPM
Convergence on SLA MAC vs. SLA

Oracle Process Manufacturing with SLA - The process Discrete vs. OPM - The SLA difference Demo scenarios Custom sources - An example Q&A

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OPM with SLA - The Process

Calculate Cost Prelim Cost Update OPM Accounting Preprocessor Create Accounting (Draft Mode) Review Journal Entries

Incorrect journals? No

Yes

Make changes

Final inventory close

Final Cost Update

OPM Accounting Preprocessor

Create Accounting (Final Mode)

Export to GL

Oracle SSI Consulting. Beyond Boundaries.

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Agenda SLA (Subledger accounting) - Overview and Structure SLA Key Concepts Impact of SLA on OPM
Convergence on SLA MAC vs. SLA

Oracle Process Manufacturing with SLA - The process Discrete vs. OPM - The SLA difference Demo scenarios Custom sources - An example Q&A

Oracle SSI Consulting. Beyond Boundaries.

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Discrete vs. OPM - The SLA difference

Discrete All the seeded SLA entities (SLAM,AAD,JLD,ADR) can be used SLA uses distributions created Presence of Transaction Distribution GL account as rule Source Familiarity of entering accounting information for entities
WIP accounting class Subinventory valuation accounts

OPM A custom SLA,AAD,JLD,ADR is always needed Seeded Source Transaction account not of use since Transaction account does not get derived All accounts need to be specified in the Custom ADR

Oracle SSI Consulting. Beyond Boundaries.

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Agenda SLA (Subledger accounting) - Overview and Structure SLA Key Concepts Impact of SLA on OPM
Convergence on SLA MAC vs. SLA

Oracle Process Manufacturing with SLA - The process Discrete vs. OPM - The SLA difference Demo scenarios Custom sources - An example Q&A

Oracle SSI Consulting. Beyond Boundaries.

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Scenarios Category based accounting using SLA Inventory Valuation accounts based on Subinventory using SLA

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Attach the GL business class category to the Item

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Define a new custom ADR

ADR created with owner User Output type can be an entire accounting flexfield or a specific segment in the accounting code combination

Multiple conditions can be separated by AND/OR logic

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Create a custom JLD

JLD created with owner User JLDs are created for an Event class and Event type combination The journal line types are automatically displayed ADRs are associated to the JLTs

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Create a custom AAD

AAD created with owner User Specific to a particular application Contains all event classes and event types

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Create a new SLAM (Subledger accounting method)

SLAM created with owner User Specific to a ledger Contains AADs from all applications

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Perform a Miscellaneous Transaction

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Run OPM accounting preprocessor

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Run Create Accounting

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Output of create accounting- INV and IVA accounts derived from Category based rules

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Drill down Subledger entries

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Drill down to Draft sub ledger entries and T accounts

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Scenarios Category based accounting using SLA Inventory Valuation accounts using Subinventory using SLA

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Inventory valuation accounts using Subinventory

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Inventory valuation accounts using Subinventory

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Agenda SLA (Subledger accounting) - Overview and Structure SLA Key Concepts Impact of SLA on OPM
Convergence on SLA MAC vs. SLA

Oracle Process Manufacturing with SLA - The process Discrete vs. OPM - The SLA difference Demo scenarios Custom sources - An example Q&A

Oracle SSI Consulting. Beyond Boundaries.

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Custom Sources
Extend the list of sources available to application accounting definitions Used to derive accounts based on non-standard sources PL/SQL function used to derive the source Return value can be a string, an accounting flexfield or a value set
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Create ADR (Account derivation rule)

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Create JLD(Journal lines definition)

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Create New AAD (Application accounting definition)

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Create a new SLAM (Subledger accounting method)

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Verify results

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Business Enquiries

For more information on SLA in OPM, consulting requests, sales and presales assistance
ssi_rfp_ww@oracle.com sathya.sundar@oracle.com saimani.balasubramanian@oracle.com

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Q and A

QUESTIONS ANSWERS

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