Accounting Methods Builder (AMB) Overview

Accounting Methods Builder (AMB) Overview:

The Financial Accounting Hub (FAH) is based on Subledger Accounting concept. It works on Transactional basis. To setup Financial Accounting Hub for a specific custom Application the Accounting Methods Builder (AMB) must be setup.

The AMB enables you to create and modify subledger journal line setups and application accounting definitions. These definitions define the journal entries that enable an organization to meet specific fiscal, regulatory, and analytical requirements. These definitions are then grouped into subledger accounting methods and assigned collectively to a ledger.

Oracle Applications development provides startup application accounting definitions and at least one subledger accounting method for all products using Oracle Subledger Accounting. If users do not have any special accounting requirements, these start up definitions may meet their needs and the only required setup step is to assign subledger accounting methods to the ledger.

If users have specific accounting requirements that are not met by the start-up definitions, they can copy and modify the seeded definitions or create new definitions.

The Components for Building Accounting Definitions figure below shows the components in the Accounting Methods Builder process for building accounting definitions. 

Define Journal Line Types**

Define Journal Entry Descriptions

Define Mapping Sets

Define Account Derivation Rules**

Define Supporting References

Define Journal Line Definitions**

Define Application accounting Definitions**

Define Subledger Accounting Methods**

Financial Accounting Hub Process

The Data Fetching Process includes three major processes. These three major processes are both custom and standard programs that would be Auto Scheduled for each Custom Source. These are:

1. Data Upload to Financial Accounting Hub Program

• Event Creation Program
• Subledger Accounting Program
•  

The first two programs would be different for all the Sources which would be used in the same data fetching process. The Data Upload program will fetch the balanced data through Data Base Link and keep it in the staging environment from where system will validate the fetched data and place it in the Custom Transaction Tables.

Validation process includes data validation in which system check whether fetched data is balanced or not, the period for which system is fetching the data is in opened status or not in General Ledger, the Currency is enable, uploaded in value set and mapped in Financial Accounting Hub and in Oracle General Ledger or not for which system is fetching the data and so on.

Once validation process completes successfully system completes first program successfully i.e. Data Upload to Financial Accounting Hub Program.

The second program i.e. Event Creation Program which uses Standard API to create Event and generate Event ID for all fetched line. Once it is completed successfully system will allow importing fetched balanced data into Oracle General Ledger through Financial Accounting Hub for the particular Source that would be achieved with the help of Subledger Accounting Program.

The “Subledger Accounting Program” creates Journal Entries for each fetched lines first as per the defined FAH setup and then importing program transfers all the created Journal Entries into Oracle General Ledger automatically.

The “Subledger Accounting Program” calls four more major Programs while running. These Programs are:

·                  Create Accounting

·                  Accounting Program

·                  Import Journal

·                  Subledger Accounting Balances Update

All these programs run consequently. The “Create Accounting” program creates the Accounting for each fetched line as per the defined Application Accounting Definition in the Financial Accounting Hub Setup through “Accounting Program”. Once Accountings are created for all the fetched line system imports the Journal Entries with the help of “Import Journal” program and then updates the accounts balances through “Subledger Accounting Balances Update program”.

The Financial Accounting Hub (FAH) is based on Subledger Accounting concept. It works on Transactional basis. For each fetched line the GL Account must be either debited or credited. If one side is debited for one GL Account system will automatically take the other side as credited for other GL Account that would be applicable for fetched Transactional Data (Transaction basis).

If system is not fetching Transactional basis balanced data(Line level account is not available for corresponding Header Level Account) in this case system will automatically balance each line by placing other line(whether debited or credited) having imaginary Account Code Combination for Line level Account because Oracle FAH works on the basis of Transaction.