Control Account in Oracle R12

Very often the GL Super Users create manual journals either directly from
the screens or using the Web ADI to upload the journals straight into
General Ledger. However account codes used in these manual journals are
secured via value set security and the cross validation rules. But this level
of security is not enough. For the sake of an example, the GL Users must
not be allowed to tamper with the amount of expenditure a company has
made on Office Furniture for their offices. Let us say that all the GL
Account segment value Office Furniture related expenses are 5115.
A feature named Third Party account is a feature of R12 which helps keep
the Sub ledger like Payables or Receivables in sync with General Ledger.
The control account functionality of 11i is now called Third Party
account in R12. Some accounts should only be entered via the Sub
ledger, and not be allowed for manual journal creation in GL. Hence for
those entries, we can enable the qualifier to flag those as Third Party
account.
In the value set definition screen, query the segment value as shown in
image below. In this case, the Account Segment value is 5115. Against the
segment qualifier, in Third Party Control Account, select value = Supplier,
because in this example we will control the charges to this account
segment via Payables whilst ensuring that Supplier details are specified. In
other words, this configuration will ensure that you cannot put a charge
against office supplier into GL unless you have specified the Supplier from
whom the goods were purchased.

Now create a Journal from GL Super User as shown below.

Now let us try to create a manual journal from Payables.

Click create journal

Create journal lines using the account segment value of 5115. IMPORTANT - Do
not enter the supplier details as yet in the expanded line section.

You will again get a message stating that the Account code combination
x.y.5115.z.a for line is a control account. Please provide a third party site for
such subledger journal entry line that uses a control account.

Now expand the lines region and in Third Party section capture the Supplier
Name and Supplier Site, whilst ensuring that the Third Party Type=Supplier.

Now you can create a journal line with the Supplier details.

Sub ledger accounting in Oracle EBS R12

Source: https://www.linkedin.com/pulse/20140623072448-19818376subledger-accounting-in-oracle-ebs-r12
Sub ledger accounting in R12 is an enhanced accounting process. The SLA
process allows customers to personalize the process for specific events.
The user sets the rules to be followed. Accounts are still defined the same
way as prior application versions via the same forms. Organizations are
defined the same way. If there are no rules entered into the SLA engine,

the accounts defined the traditional way will be used to generate the
journal entries posted to GL. All setups to use preR12 functionality are
automatic. The default base setup is US GAAP. This uses the traditional
account definitions. This is delivered and works out of the box.
With SLA, account generation is now centralized as opposed to each
application being responsible for its own accounting. This causes the
setup steps for SLA to be the same across products, i.e., Payables,
Receivables, and Cost Management.
Benefits of SLA include:
- For customers users define and manage accounting parameters in once
centralized place. Users do not have to have different setups for each sub
ledger application.
- Gives customers flexibility to address different and changing accounting
requirements to meet business needs
- Allows users to define all components of the journal entry in a simple
way as opposed to generating accounting through logic embedded in the
accounting programs.
- Allows users to change accounting rules in response to new legal
requirement changes in business practices or acquisition of new
companies.
- Users can easily control and modify accounting rules. SLA tracks all
changes and ensures the programs creating the journal entries are using
the latest rules. This is called Compilation and is a PL/SQL package that
validates and checks the rules that are being used.
- SLA rules can be date based. So journal entries can be created according
to rules depending on accounting date of the transaction.

Pre-R12 Accounting Process:

A transaction is received and accounted for in the local subledger
-orA transaction is costed and accounted for in the local subledger
The transaction is specifically passed to GL via the Transfer to GL process.
View Accounting Windows will then show the details for these
transactions.
Events

Event Entities have Event Classes. Each Event Class has Event Types.
There are four Main Entities for Cost Management:

Inventory:
Material Accounting Events
Event Classes:
PO Delivery in Inventory
Sales Order Issue
Internal Order to Expense
WIP Material
Consigned Inventory Ownership Transfer
Miscellaneous
IntraOrg transfer
Direct Interorg Shipment
Direct Interorg Receipts
In transit Interorg Shipment FOB Shipment
In transit Interorg Receipt FOB Receipt
All other in transit Interorg transactions
Material cost update

Retroactive price adjustment

Logical Intercompany
WIP Material Lot

Purchasing/Receiving
Write Off Accounting Events
Receiving Accounting Events

Work in Process:
WIP Accounting Events
Event Class:
WIP Absorption
Event Type:
Resource Absorption
Resource Overhead Absorption
Scrap Absorption
Outside Processing
Event Type:
OSP Transaction
Shop Floor Delivery for Direct Items
IPV transfer to Work Order
WIP Variance
Event Type:
Period Close Variance
Job close Variance
Final Completion Variance
WIP Lot
Event Type:
WIP Lot Split

WIP Lot Merge

WIP Lot Update Quantity
WIP Lot Bonus
WIP Cost Update
Event Type:
WIP Cost Update

The Work in Process list above shows the Main Event Entity is WIP
Accounting.
The Event Classes are then listed with each Event Type that is part of the
Event Class.
Sub ledger Accounting Method (SLAM)
This is the sub ledger accounting method that is built and assigned to a
Ledger. This will be created via the Accounting Methods Builder and
includes all the details needed to created the appropriate journal entries.