What Is Sub ledger Accounting

Subledger Accounting is a New R12 feature that functional users can customize the Accounting engine to generate accounting to meet different accounting needs by.it is a Rule-based accounting engine which  supports most of Oracle business Suite modules.It is  ot a Module on its own but forms a part of all transactional modules like accounts payable, Accounts receivable.

Let us look at a the need for subledger accounting.Suppose a company is based out of India has to generate Accounting reports as per :

1) I Gaap
2) US Gaap
3)IFRS
let us take a example here

In this case we would three ledgers the I GAAP ledger will be primary Ledger

we would need two secondary ledgers for IFRS & US GAAP.Once we attach the subledger accounting rules to the ledgers the Accounting would happen as desired.

Let us look at the components of Subledger accounting:

1)Journal entry Discription+ Journal Line type+ Accounting Derviation rules

2)Gets attached to Journal Lines Definition (JLD)

3)JLD gets Attached to Application Accounting Definitions (AAD)

4)(AAD) gets attached to SLAM

5) SLAM gets attached to Ledger

Now let us create 2 ledgers

Now let us look at JED (determines what will be the discription of the journal lines as well as Header

Now let us Look at JLT

JLT tells us if this rules is for a debit or credit side

ADR helps defines the accounting CCID.This is very similar to consolidation mapping.You can create  ADR for a particular Segment or entire Flexfield

we can then attach this to JLD

then to AAD & then to SLAM finally after you run create accounting you will get following entries