1.
SLA Overview with screenshots 1
Reviewing the Standard Accrual Subledger Accounting Method
Enter an invoice in Accounts Payable as shown. Note that the liability account default into the
invoice header from the supplier site setup. The distribution accounts are either entered
manually for a non-PO invoice or copied from the purchase order for a PO matched invoice.
Save the invoice. Then click on the Actions button and choose the Validate option. The
invoice will validate successfully if the total of the lines is equal to the total invoice amount on
the header. If you then click on the Actions button again, you have the option to Create
Accounting. You can choose Final Post and click the OK button.

2.
SLA Overview with screenshots 1
You should see the popup message that accounting has been successfully created for the
transaction.
Then, if you click on Reports/View Accounting you can view the subledger accounting entry.
This screen is showing data from the XLA tables (see the Subledger Accounting Table
Relationship handout). This is the subledger journal entry.
So, this entry was created by the SLA logic. Let’s take a look at how that is referenced.

3.
SLA Overview with screenshots 1
Every ledger is associated with one and only one Subledger Accounting method or SLAM.
The Vision Operations ledger is associated with the Standard Accrual Subledger Accounting
Method.

4.
SLA Overview with screenshots 1
Every SubLedger Accounting Method contains one or more Application Accounting
Definitions, one per feeder application such as Payables or Receivables.

5.
SLA Overview with screenshots 1
Every Application Accounting Definition contains one or more Journal Lines Definitions, one
for each unique combination of Event Type (ex. Invoice) and Event Class (ex. Validation,
Cancellation, etc.)

6.
SLA Overview with screenshots 1
Every Journal Lines Definition contains one or more Journal Line Types, each of which is
associated with one or more Account Derivation Rules.
The subledger journal entry from our invoice had two lines – item expense and liability, as
seen in the Journal Lines definition screen.

7.
SLA Overview with screenshots 1
The journal line type for the Item Expense line looks like this, and specifies that the item
expense line in the SLA journal should be created as a Debit, multiple distributions for the
same account code combination should be merged into a single line and the Accounting
Class should be Item Expense. Note that there are specific conditions under which an SLA
journal line of this type would be created.
The Account derivation rule for the Item Expense line looks like this and specifies that the
account code combination in the SLA journal entry should be copied from the Invoice
distribution.

8.
SLA Overview with screenshots 1
The journal line type for the Liability line looks like this, and specifies that the Liability line in
the SLA journal should be created as a Credit, and should have an Accounting Class of
Liability. Note that there are specific conditions under which an SLA journal line of this type
would be created.
The Account Derivation rule for the Liability line looks like this, and specifies that the Liability
account on the SLA journal line should be copied from the Invoice Liability account.

9.
SLA Overview with screenshots 1
In the Journal Lines Definition for the Invoices event type, there is another line type called
Freight Expense, which looks like this. The conditions under which a line of this type would
be created were not met by our invoice transaction since we did not have an invoice
distribution of type Freight.

10.
SLA Overview with screenshots 1
So, what if, instead of the account on the SLA journal entry expense line being copied from
the invoice distribution, we wanted to use other information to derive the correct account code
combination? We could create a new Account Derivation rule, which might look like this:
So, the account derivation rule above specifies that if the supplier on the invoice is Advantage
Corp, that the account code combination on a line will be 01-410-7740-0000-000, regardless
of what the account code combination was on the invoice.