{"id":7709,"date":"2020-08-27T05:43:41","date_gmt":"2020-08-27T05:43:41","guid":{"rendered":"https:\/\/rax-stg-wp-aws.com\/blogs\/customize-sla-in-five-easy-steps\/"},"modified":"2026-11-03T19:28:59","modified_gmt":"2026-11-03T19:28:59","slug":"customize-sla-in-five-easy-steps","status":"publish","type":"blogs","link":"https:\/\/www.rackspace.com\/en-gb\/blogs\/customize-sla-in-five-easy-steps\/","title":{"rendered":"Customize SLA in five easy steps"},"content":{"rendered":"

Introduction<\/strong><\/p>\n

Subledger Accounting (SLA) is a dynamic feature of Oracle&reg; R12 that you can use for meeting the accounting needs of the business.<\/p>\n

Overview<\/strong><\/p>\n

By using SLA, you can easily modify all the accounting requirements by following a few steps. In this post, I offer five easy steps to customize SLA. By implementing these steps, you can modify the accounting process according to your business needs.<\/p>\n

Business Requirement<\/strong><\/p>\n

To illustrate with an example, assume Company ABC Ltd. has included a company, account, and cost center in their chart of account structure, and they use standard accrual at the ledger level for their accounting method.<\/p>\n

When they enter a standard invoice in the payables module, SLA generates the following standard accounting entry:<\/p>\n

\n    Expense: 001.10100.0001.00000 DR (Manually entered combination)
\n    Liability:  001.20000.0000.00000 CR (Derived from the Supplier\/Supplier Site or Financial Options)<\/em><\/p>\n

\"SLA<\/p>\n

The business’s finance department wants the process to pick the Cost Center <\/strong>Segment from the Expense Account entered at the invoice distribution level. Thus, the third segment’s value should be changed from `0000` to `0001` <\/em>on the Liability
\naccount combination. <\/p>\n

Solution<\/strong><\/p>\n

To fulfill this business requirement, you need to customize SLA to implement the desired accounting process by using the following steps:<\/p>\n

Step 1: Create a new Account Derivation Rule (ADR)<\/strong><\/p>\n

Select Payables > Setup > Accounting Setups > Subledger Accounting Setup > Accounting Method Builder > Journal Entry Setups > Account Derivation Rules<\/strong>.<\/p>\n

\"SLA<\/p>\n

The rule explains that SLA should pick the value from the standard Oracle source, Invoice Distribution Account<\/strong>, for the COST CENTER<\/strong> segment. <\/p>\n

Step 2: Create a Journal Line Definition (JLD)<\/strong><\/p>\n

A JLD is a set of all the Journal Line Types (JLT) defined for a specific Subledger module.<\/p>\n

1. Select Payables > Setup > Accounting Setups > Subledger Accounting Setup > Accounting Method Builder > Methods and Definitions > Journal Line Definitions<\/strong>.<\/p>\n

2. Copy the Standard Oracle JLD and create a new JLD, as shown in the following
\n   example:<\/p>\n

\"sla<\/p>\n

Step 3. After you copy the definition, add the ADR rule you created for the COST CENTER segment in Step 1 and save the definition. Because the example is on the Liability account, you will use the JLT as a `Liability, Basic`.<\/em><\/strong><\/p>\n

Step 4: Create an Application Accounting Definition (AAD)<\/strong>
\nAn AAD is a set of Event Classes or Event Types and JLDs.<\/p>\n

1. Select Payables > Setup > Accounting Setups > Subledger Accounting Setup > Accounting Method Builder > Methods and Definitions > Application Accounting Definitions<\/strong>.<\/p>\n

2. Copy the Standard Oracle AAD and create a new AAD, as shown in the following
\n   example:<\/p>\n

 <\/p>\n

\"sla<\/p>\n

3. After you copy the definition, add the JLD created in Step 2 and save the definition. You can individually attach the JLD to all the Event Classes. For this session, you can use Event Class as `Invoices`.<\/em><\/p>\n

Step 5: Create a Subledger Accounting Method (SLAM):<\/strong><\/p>\n

A SLAM is a group of AADs defined for the Subledger modules.<\/p>\n

1. Select Payables > Setup > Accounting Setups > Subledger Accounting Setup > Accounting Method Builder > Methods and Definitions > Subledger Accounting Method<\/strong>.<\/p>\n

2. Copy the standard Oracle SLAM (Standard Accrual) and create a new SLAM, as shown in the following image.<\/p>\n

\"sla<\/p>\n

3. After you copy the definition, add the AAD you created in Step 3 against the Payables application and save the definition.<\/p>\n

4. To run the Validate Accounting Definitions<\/strong> program for Payables, select Payables > View > Request > Submit a New Request<\/strong>.<\/p>\n

\"sla<\/p>\n

 <\/p>\n

Step 6: Attach the SLAM to the Ledger<\/strong><\/p>\n

1. Select Payables > Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups<\/strong>.<\/p>\n

\"sla<\/p>\n

2. Attach the SLAM created in Step 4 and complete the Ledger setups.<\/p>\n

Step 7: Validation<\/strong><\/p>\n

To validate your SLA setup, create a new invoice, validate it, and run the Create Accounting<\/strong> program.<\/p>\n

You can now see the change: The Cost Center value has been changed from `0000`<\/em>
\nto `0001`<\/em> for the Liability String.<\/p>\n

  Expense: 001.10100.0001.00000 DR (Manually entered combination)
\n    Liability:  001.20000.0001.00000 CR (Derived from the SLA)<\/em><\/p>\n

\"sla<\/p>\n

Conclusion<\/strong><\/p>\n

In R12 Oracle, SLA is one of the most well-organized methodical approaches to confront the accounting needs that various businesses require. Understanding the requirements is the key to this process. After you have a plan ready, you can effortlessly customize the SLA by using the steps in this post to meet your business requirements by customizing SLA.<\/p>\n","protected":false},"excerpt":{"rendered":"

Customize SLA in five easy steps<\/p>\n","protected":false},"author":2,"featured_media":7711,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"content-type":"","nid":"26482","content_type":"blog","created_by":"10130","authored_on":"2024-01-14T06:43:41+00:00","field_article_industries":"","tag_category":"Technical","field_blog_author_text":"by Vinit Bhatnagar, Oracle Business Systems Analyst , Rackspace Technology","seo_description":"Learn to customize Subledger Accounting (SLA) in Oracle R12 in five easy steps, adjusting the accounting process according to your specific business needs.\r\n","field_featured_image":"","insights_image":"\/wp-content\/uploads\/2026\/blog_technical_images\/26482-insights_image-oracle-technical-blog-1-insights.jpg","field_partners":"","rxt_platforms":"Oracle Commerce, Oracle E-Business Suite, Oracle ERP","product":"","publisheddate":"2020-08-27T05:43:41","rxt_solutions":"Application Management & Operations, Application Modernization, Data","opengraph_tag":"","x_tag":"","teaser_flag":"Technical Blog","seo_titile":"Subledger Accounting Customization Guide | Rackspace","field_topics":"","field_slug":"customize-sla-in-five-easy-steps","footnotes":""},"categories":[178],"tags":[204],"class_list":["post-7709","blogs","type-blogs","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-technical"],"_links":{"self":[{"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/blogs\/7709","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/blogs"}],"about":[{"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/types\/blogs"}],"author":[{"embeddable":true,"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/comments?post=7709"}],"version-history":[{"count":3,"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/blogs\/7709\/revisions"}],"predecessor-version":[{"id":9628,"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/blogs\/7709\/revisions\/9628"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/media\/7711"}],"wp:attachment":[{"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/media?parent=7709"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/categories?post=7709"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rackspace.com\/en-gb\/wp-json\/wp\/v2\/tags?post=7709"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}