SLA Part 10 - Testing and explaination of SLA Config

In the SLA articles Part 1 to Part 6, we understood the basic concepts of Subledger Accounting.
In the SLA articles Part 7 to Part 9, we configured SLA for Payables as an example.

In this article, we will test the configuration to see the results of the configuration performed in Part 7 to Part 9 of the SLA articles. We will also explain the results of the test.

Our SLA setup was done for Payables, hence we will create an Invoice in Payables and check the accounting entries to reconcile those against our SLA setup.


If you recollect, we created an AAD named ANIL_PAYBLES which is attached to Oracle Payables module. This AAD will invoke JLD named ANIL_JLD to build the journal lines when an event takes place against the Payables invoice.

In the image below we are creating an Invoice from Payables responsibility and ensuring its invoice line distribution account is 01-110-6100-0000-000.
Next we click on Actions button and validate the invoice and create accounting entries.



Now check the accounting generated by clicking on menu title Reports||View Accounting as shown in the image below.





You will notice that the Debit entry of 1000 is charged to 01-110-7450-0000-000 instead of being charged to 01-110-6100-0000-000 in the Invoice Distribution Line of Payables. Please note that the third segments value of 6100 from Invoice Distribution has been replaced by 7450 from ADR named ANIL_EXPENSE_ADR as shown below.  

The complete logic is described after this image.


Now, let us revisit how the credit line in the journal has been built. Typically Code Combination for the credit/liability accounting entry of the invoice line is picked from Payables Options setup of the operating unit. However in this case, in SLA we have hard coded the credit account to be 01.000.2220.0000.000. This was done by defining ANIL_LIABILIY_ADR as shown below. In this case the ADR returns the complete CCID because the Output Type radio button is set to Flexfield.

Hence, the SLA has generated the same Credit entry CCID for the invoice, as shown in image below
Needless to say that the ANIL_LIABILITY_ADR was attached to the Journal Line Type=ANIL_JLT_CREDIT.  

Tax accrual at goods receipt

A recoverable tax is a tax that allows full or partial recovery of taxes paid on purchases, either as a recoverable payment or as an offset against taxes owed. For example, most VAT-type taxes allow for full recovery of taxes paid on goods and services that relate to taxable business supplies. In cases where an organization purchases both taxable and exempt supplies, the tax authority can designate a partial recovery rate to reflect the combination of taxable and exempt statuses. Non-Recoverable Tax that record tax amounts on earned and unearned discounts and adjustments that you cannot claim as a deduction against tax liability.

Non recoverable Tax nothing but we don't recover anything from Paid Tax Amount, Ex: Sales Tax and VAT on Expense and Fixed Assets (In case of End Consumers) Recoverable Tax nothing but we recover Some or Full of the Tax amount which we paid already. Ex: VAT on Inventory Items, Some Geography or Product Exemptions or Rebates Most of the Cases the Company's have Sales tax and VAT, For Sales Tax, The company doesn't recover any amount and Treats all amount as Expense...so for this Tax Rates define is enough and no need to setup Recoverable Tax Rates. Ex: IF Sales Tax is 3%, we need to set up as follows. Tax rate -> 3%....No need to define Recovery rates. For VAT, The company Recovers Full (100%) amount for Inventory Items (Make the product and sell to Customers); and Don't Recover(0%) any amount for Expense items and Fixed Asset Purchases because the company is End Consumer for this,......so for this we need to Define Tax Rate and Recoverable Rates ( 0% and 100% separately).....we need to assign, for which Transactions or Accounts we are Recovering and not Recovering the amounts in Tax rules through Determining factors. Ex: IF VAT IS 4%, we need to set up as follows. Tax rate -> 4% Recoverable Rate ->100% Recoverable Rate ->0% Based on our requirement we can define Various Tax Recovery rates Like 2%,5%,10%,.... (not only 0% and 100%).

Tax accrual at goods receipt

•	When goods are received, entries are created for received item cost (1) and tax (2).

•	When an invoice is received, entries are created for invoice value, including tax (3).

•	When an invoice is matched, entries are created for item cost (4), variance (5), tax on item cost (6), and tax on variance (7).

Tax accrual at supplier invoice

•	When goods are received, entries are created for received item cost (1) but not tax.

•	When an invoice is received, entries are created for invoice value, including tax (2).

•	When an invoice is matched, entries are created for item cost (3), variance (4), tax on item cost (5), and tax on variance (6).

AP Issue , Create Accounting

Issue :

Subledger Accounting was unable to derive an accounting code combination using the account derivation rule Discount Account owned by Oracle. Please review the account derivation rule and make sure it derives a valid accounting flexfield combination for the source values passed for the transaction.


Solution:
 solved the issue with
1.Go to Setup -> Options -> Financials Options
2.Select the Accounting Tab
3.Change the value for the discount taken account.
4.Save
5.Change the value for the discount taken account back to it's original value.
6.Save
7.Run accounting and the discount lines for that org will account properly.
8.Repeat steps 1-7 for all orgs.

Issue In AP Payment , Creating Accounting

Issue  In AP Payment  , Creating accounting  :

 “Subledger Accounting was unable to derive an accounting code combination using the account derivation rule Future Dated Payment Account owned by Oracle. Please review the account derivation rule and make sure it derives a valid accounting flexfield combination for the source values passed for the transaction.”

Soloution : 

I solved the issue with add account number in supplier > terms and control > bill payable: