Transaction codes (TC) are no longer needed in places where SLA builds the accounting.
Why Not?
Transaction codes were shorthand aliases to determine which accounts (DR/CR) pair should be created for a specific transaction distribution line.
Why Is SLA better?
People who enter transactions don’t have to remember what TC to use, this avoids data entry mistakes and provides consistent treatment based on rules defined in SLA.
Example:
For Payables Invoices — Accounting for credit and debit memos depends how the credit and debit memo was created and if it is matched to a paid invoice/ prepaid PO.
In the case of a Credit Memo without prior year adjustments
-
DR 4901 if CM is for an unpaid invoice /4902 a paid invoice
-
CR 4610 for Category A or B fund/4620 for Category C/4650 Expired fund
In prior releases, this would have required six TCs for each possible DR/CR pair.
NOTE: the accounts in the examples are for illustrative purposes only
Another huge benefit of SLA for our TC using customers, is with SLA the proprietary and budgetary journal lines are now contained in one Subledger entry. Prior to SLA, you had separate journals for proprietary and budgetary. Tremendous benefit for auditing transactions!!!!
By: Jeff Waterman on 05 Mar 08
at 1:57 pm
Dear Anne,
I’m new to EBS and need to setup R12 for a public sector company in Europe. If you could explain what is the best approach to conform with user’s requests like: 1. several liability accounts for one invoice, 2. additional pair of transactions for AP invoice, 3. payment request with no supplier defined? I’ve read about automatic offset feature for item 1, transaction code for item 2. I’ve applaied a patch for enabling Transaction Codes and U.S. Federal Agencies but now I’m confused with arround 30 new responsibilites starting with Public Sector? For example, I cannot find the Transaction Code field on the AP invoice screen, unlike Journal entry where now it exists.
Thank you very much in advance. I would appreciate very much if you can get back to me to my email directly.
Kind regards,
Nenad
By: Nenad on 22 Jul 08
at 1:51 am
Hi Nenad – check out this post
http://annewong.wordpress.com/2008/08/14/whats-the-best-way-to-extend-the-seeded-sla-rules/
GL still has transaction codes because GL does NOT call SLA.
By: AnneW on 14 Aug 08
at 2:26 pm
Hi Anne,
Can you explain in more detail how the SLA has to be adjusted to get the results from your examples?
DR 4901 if CM is for an unpaid invoice /4902 a paid invoice
CR 4610 for Category A or B fund/4620 for Category C/4650 Expired fund
Thanks,
Nenad
P.S. You can send me hints to my email directly.
By: Nenad on 17 Dec 08
at 3:30 am