When oracle designed EBS R12 oracle wanted to have a common accounting engine for all sub ledgers, so they built Sub ledger Accounting (SLA). Oracle also wanted to provide a platform for customers to generate accounting for all their non Oracle Apps transnational systems using a rule based system. So we created Financial Accounting Hub (FAH) which exposes the SLA rules engine to external systems so you can bring those into EBS and generate the accounting for multiple systems in one place, using standardized, transparent accounting rules.
Oracle also wanted to provide a way for Peoplesoft, EBS and JDEdwards customers to move to Fusion in an incremental manner, maybe consolidating data from several GL instances into one Fusion system. The result was Fusion Accounting Hub (FAH).
FAH and SLA both use the exact same technology, XLA is the common framework which handles all accounting feeds into the E-Business Suite General Ledger. Therefore, technically XLA = SLA = FAH
Financials Accounting Hub (FAH):
The EBS Accounting Integration Hub
Sub ledger Accounting (SLA):
•Deals with the E-Business Suite subledger applications (AR, AP, etc.).
•Seeded event models which cannot be changed (extensions can be build using Custom Sources).
•Seeded accounting methods which can be customized (copied and modified) at will.
•Integral part of E-Business Suite Financials (R12 onwards).
Scenario:
Organization acquires new business with legacy Application /Financials (AP, AR, etc)
Management decision:
-Continue transaction in legacy system.
- Perform accounting in EBS.
Mapping:
1. Business Transaction in legacy system
2. Custom tables in ebs to store transaction data from legacy Application.
3. Accounting of Data in Custom table, based on Accounting rule configured in SLA
4. Journals creation for Accounting in GL.
Setup Overview in FAH
Define
FAH supports two types of accounting events that create journals.
Reference: Oracle FAH Implementation guide, user guide and oracle support
Oracle also wanted to provide a way for Peoplesoft, EBS and JDEdwards customers to move to Fusion in an incremental manner, maybe consolidating data from several GL instances into one Fusion system. The result was Fusion Accounting Hub (FAH).
FAH and SLA both use the exact same technology, XLA is the common framework which handles all accounting feeds into the E-Business Suite General Ledger. Therefore, technically XLA = SLA = FAH
Financials Accounting Hub (FAH):
The EBS Accounting Integration Hub
- Rules Engine to generate accounting for transactions from third party source systems
- Single hub automation upstream to ledger with bi-directional drill-down
- Rules configuration with accountant orientated user interface and streamlined accounting generation Trust in figures through centrally controlled accounting rules and full audit trail
- Based on the Sub ledger Accounting Architecture
- Deals with external (i.e. non-E-Business Suite) applications.
- No seeded event models
- Event models need to be build from scratch.
- No seeded accounting rules
- Accounting rules need to be build from scratch.
- Requires purchasing a separate license.
Sub ledger Accounting (SLA):
•Deals with the E-Business Suite subledger applications (AR, AP, etc.).
•Seeded event models which cannot be changed (extensions can be build using Custom Sources).
•Seeded accounting methods which can be customized (copied and modified) at will.
•Integral part of E-Business Suite Financials (R12 onwards).
Scenario:
Organization acquires new business with legacy Application /Financials (AP, AR, etc)
Management decision:
-Continue transaction in legacy system.
- Perform accounting in EBS.
Mapping:
1. Business Transaction in legacy system
2. Custom tables in ebs to store transaction data from legacy Application.
3. Accounting of Data in Custom table, based on Accounting rule configured in SLA
4. Journals creation for Accounting in GL.
Setup Overview in FAH
Define
- Event Model
- Accounting Event Option
- Mapping Set & Account Derivation Rules (ADR)
- Business Flow Class
- Journal Line Types (JLT)
- Journal Lines Definition (JLD)
- Application Accounting Definition (AAD)
- Subledger Accounting Method (SLAM)
Accounting Method Builder (Accounting Rules):
Sources: Feeder Systems into FAH
Entities: Used to group transactions for accounting generation by technique (i.e. ‘Pass through’ vs‘Event Based’)
Event Classes: Used to group transactions for accounting generation (i.e. ‘(Receivable Transaction’, ‘Receipt’)
Event Types: Used to segregate feeder system data into transnational categories (i.e. For Transaction: Invoice, Credit Memo, Debit Memo, etc)
Account Derivation Rules: Determines logic for creation of journal entries from feeder system
Sources: Feeder Systems into FAH
Entities: Used to group transactions for accounting generation by technique (i.e. ‘Pass through’ vs‘Event Based’)
Event Classes: Used to group transactions for accounting generation (i.e. ‘(Receivable Transaction’, ‘Receipt’)
Event Types: Used to segregate feeder system data into transnational categories (i.e. For Transaction: Invoice, Credit Memo, Debit Memo, etc)
Account Derivation Rules: Determines logic for creation of journal entries from feeder system
FAH supports two types of accounting events that create journals.
- Pass Through: Accounting entries have been created in the source system and are mapped to the Oracle Chart of Accounts.
- Event Based: Data elements from a transaction are used to create the journal entry.
Reports in SLA/FAH:
- Create Accounting Report
- Journal Entries report
- Sub ledger period close exception report
- sub ledger accounting rules detail listing report
- sub ledger Multi period accounting and accrual reversal report.
Reference: Oracle FAH Implementation guide, user guide and oracle support
