SubLedger Accounting Setup

In OPM, the accounting setup was done in MAC in R11. In R12, MAC is replaced by subledger
accounting method. In the case of migration from R11 to R12, the MAC setup can be imported
to R12 as account derivative rules.

Setup
1. Create Account Derivation Rules
Navigation: Subledger Accounting Accounting Methods Builder Journal Entry Setups
Account Derivation Rules

Click on Find button. You will get all the seeded account derivation rules. These rules contain
the source account as Transaction Account. But in most of the OPM transactions, there is no
provision to enter the account combination details. Hence the seeded account derivation rules can
not be used. We need to create new account derivation rules. Before creating new account
derivation rules, note down all the seeded account derivation rule details including the
conditions.
Also, for each seeded rule code, we need to create a new rule code for each segment in our chart
of account. We have the following COA structure.
1. Company
2. Branch
3. Cost Center
4. Account
5. Sub Account
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6. Intercompany
7. Future
Hence for each seeded account derivation rule, we will create seven account derivation rules.
For the documentation purpose, let us take the following seeded rule code (AAC) and the
condition.
Seeded Account Derivation Rule (Rule code AAC)

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Seeded Condition for the Rule Code AAC

Now let us create new account derivation rules. Click on New button to create a new account
derivation rule.
Remember, you need to plan the accounting requirements for OPM before doing account
derivation rules. For example, you can have different accounts for each OPM warehouse or one
account for all OPM warehouses in an OPM organization. Based on the requirements, the
conditions for the rules will vary.

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Owner should be User

Select COA segment. Rule should be

defined for each segment

Application
Rule Code
Rule name
Description
Owner
Enabled
Transaction COA
Accounting
Output Type
Priority
Value Type
Value

Enter Process Manufacturing Financials

Enter a unique rule code. Remember that you need to create a rule code
for each segment in your COA for each seeded rule.
Enter a unique rule name
Enter appropriate description
This field is display only field, the default value will be User
Check this checkbox
Select appropriate COA from LOV
Select appropriate COA from LOV
Select Segment radio button and select the appropriate segment value.
We have selected Company in this document.
Enter sequence number as 1,2 ,3 etc
Select Constant
Enter the company code in the value field. If you have more than one
OPM companies, then enter all the companies. For each company,
we need to setup the conditions.

Click Conditions button to create conditions. Condition(s) need to be entered for all companies.

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Sequence
Source

Operator
Value Type
Value

Enter sequence number as 1,2,3, etc

Select appropriate source from the LOV. The source depends on the
accounting requirements. If you want to use the same MAC setup, the
following sources will be useful
a. Journal Line Type
b. Ledger
c. Legal Entity
d. Organization
e. Subinventory
f. Item GL Category
Select = symbol
Select Constant from LOV
Enter appropriate values for each source. You should have completed all the
OPM setups like organizations, subinventories, etc before entering rules.

Repeat the steps for all the other segment values. I have just given the screen shots for few other
segments. As stated earlier, account derivation rule. We should complete the conditions for each
line.

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Once account derivation rules are created for Accrued Acquisition Cost for all the segments, we
need to create derivation rules for all other seeded rules like AAP, ACV, ALC, ALV, etc.
2. Create Journal Line Types
Navigation: Subledger Accounting Accounting Methods Builder Journal Entry Setups
Journal Line Types
First query the journal line type code for Process Manufacturing Financials.

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Seeded Journal Line Type for the Line Type Code AAC

Click on Copy button to create a new journal line type.

Enter a unique line type code. You can prefix the legal entity
name with the seeded code name
Name
Enter appropriate name for this line type
Description
Enter appropriate description
Transaction chart of accounts Select appropriate COA from the LOV.
Display after Copy
Check this checkbox. If checked, the newly created line type
will be displayed.
Line Type Code

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The screen shot of the newly created line type is shown below. You need not change any value in
this screen.

You need to repeat this step for all the seeded line type codes for Process manufacturing
Financials application.
3. Create Journal Lines Definition
Navigation: Subledger Accounting Accounting Methods Builder Methods and Definitions
Journal Lines Definitions
First query the journal lines definition for Process Manufacturing Financials application. One
of the seeded journal lines definition is given below.

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Seeded Journal Line Definition

Click on Copy Definition button.

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After creating a new journal line definition, first delete the journal line types in Line
Assignments section. Then add the newly created journal line definition in the previous step.

Delete the seeded journal line type and add

the newly created one.

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New journal Line Type

added

After adding the new journal line type, add the account derivation rules for the line type.
Repeat the above steps for all event classes.
4. Create Application Accounting Definitions
Navigation: Subledger Accounting Accounting Methods Builder Methods and Definitions
Application Account Definitions
First query the application accounting definitions for the application Process Manufacturing
Financials.

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Seeded Application Accounting Definition

Click on Copy button.

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Delete the seeded Journal Line Definition

and add the newly created one.

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Now the validation status for all the event classes will be Not Validated. Go to the event class
and click on Validate button. Once it is validated, the status will be changed to Valid

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5. Create Subledger Accounting Methods

Navigation: Subledger Accounting Accounting Methods Builder Methods and Definitions
Subledger Accounting Methods

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Delete the seeded accounting definition

for OPM and add the new one.

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6. Attach custom Subledger method to the Ledger

Navigation: GL Resp Setup Financials Accounting Setup Manager Accounting
Setups

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