Author: Priya Chachara, R2R Senior Consultant, Namos Solutions
There are some exciting new features and enhancements introduced in release 24D across Finance and Supply Chain areas. In this blog, we’ll explore one of the amazing updates in Record to Report – Exception-Based Approvals for Manual Subledger Entries.
Exception-Based Approvals for Manual Subledger Entries
Prior to this feature, there was no such functionality available for approval of manual subledger journals. With this new release, users can now set up approvals for specific subledgers, aligning the same with business attributes. The approval workflow for manual subledger journal entries enhances validation over subledger accounting activities, giving organisations better control and governance within subledger. By defining these approval rules based on the attributes, organisations can ensure that each manual subledger entry follows the approval workflow process.
Understanding the functionality:
- Adjustment journals created from any specific Subledger source can now be routed for approval.
- Approval rules can be configured according to various business attributes, such as amount, category, and more.
- The approval workflow can be customised to fit client-specific needs such us supervisory level approval, approval group, role-based approvals etc.
In this blog, we’ll walk through an example of creating an adjustment journal from Payables and the approval workflow associated with it:
If Approval is enabled for the journals getting created from Subledger, Post option will be disabled and must be sent for approval:
This Journal will then be sent for approval based on the approval rule defined in the system:
Approver will then receive the notification in the equivalent way as other approvals in BPM and will be needed to take actions, as necessary.
The advantages for the business include:
Better Governance:
- Identify and resolve exceptions: As soon as any exceptions occur in the subledger accounting process, it can be resolved in Subledger itself.
- Improved Transaction Accuracy: This feature improves the transaction accuracy in General Ledger as it follows the approval within Subledger.
- Elimination of Ad-hoc adjustment Journals: It drops the need for ad hoc solutions which involves creating an adjustment journal through the general ledger, to resolve adjustments related to the subledgers.
- Accounting Accuracy: Keep transactions as valid upstream as possible in Subledger Accounting to maximise accounting accuracy and reduce misrepresentation of subledger balances.
Ability to upload the Approval rules:
- Facilitates bulk upload of Approval rules: It allows users to upload the approval rules in bulk if there are multiple rules based on unique conditions.
- Allow users to create multiple workflows: It allows defining approval rules in a spreadsheet based on specific workflows and can be created according to business requirements.
For more information on our other Oracle 24D articles, visit our Blog. If you’d like to learn how Namos Solutions can assist with implementing or supporting your current Oracle system, feel free to get in touch.
