GL R12

R12 General Ledger Session Finance Track
Date: June 3rd 2008 Location:Hyderabad

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Confidential. All trademarks appearing herein belong to their respective owners.
Agenda
R12 : New Financial Architecture:

Ledger & Ledger Sets Oracle Legal Entity Configurator Accounting Set Up Multi Org Access Control - MOAC Multi Currency Support Sub Ledger Accounting - SLA Oracle E-Business Tax (EB Tax) Centralized Business Functions Centralized Bank Model Intercompany Processing using Advanced Global Intercompany(AGIS)
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Ledger
Legal Entity Configuration Ledger & Ledger Sets Accounting Options Setup Reporting Currencies Setup Data Access Set Multi Leger Processing Replacement for Disabled Accounts Management Reporting and Security Journal Reversal Enhancements and Benefits Control Account Benefits
Security Definitions
Journal Reconciliation Benefits Enhanced Intercompany Functionality (AGIS)
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R11i Pain Points Modeling Entities with Sets of Books

SOBs
SOB USA ($)
SOB BEL ( )
SOB ATS ( )
SOB DM ( )
Legal Entities
USA
Belgium
Austria
Germany
OUs
OU USA
OU BEL
OU ATS
OU DM
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R11i Pain Points (continued) Modeling Entities with Sets of Books

Pros
Each legal entity is a separate set of books Data is secure Easy to secure definitions, such as FSG reports
Cons
Many books to maintain Changing responsibilities Difficult to share data and setup information Cannot perform processes across books Time-consuming open/close process Difficult reporting
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R11i Pain Points (continued) with Balancing Segment Values

SOBs
SOB North America ($) US (01) Belgium (02) SOB Europe ( ) Austria (03) Germany (04)
LEs (BSVs)
OUs
OU USA
OU BEL
OU ATS
OU DM
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R11i Pain Points (continued) with Balancing Segment Values

Pros
Fewer books to maintain No changing responsibilities Share setup information Perform processes across legal entities Easy reporting Consolidated information
Cons
Cannot share setup and data across currency boundary No data security Cannot secure definitions, such as FSG Reports and Mass Allocations
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R12 Objectives
Provides Security, Autonomy, and Flexibility
Support for multiple reporting requirements for global companies Explicit Legal Entity Accounting and Modeling Legal Entity and Ledger Level Security and Autonomy Cross/Multiple-Ledger Operations and Reporting Share data and perform operations across multiple legal entities/ledgers When security and independence is preferred, secure data and allow certain processes to be performed independently Management Reporting Efficiency
Eliminate the Challenges of Modeling Legal Entities in 11i!

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Ledger
One Repository of Financial Truth Implements the 4 Cs:

Chart of Accounts Currency Calendar Accounting Convention The balance on Creditors (COA) is 4.2M Eur (Currency) on March 31, 2006 (Calendar) according to IAS/IFRS definitions (Accounting Convention)
Example:
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Customer Impact/Upgrade Considerations Terminology Changes

Release 11i
Sets of Books Global Accounting Engine AX Posting Sets of Books Global Intercompany System (GIS) GL Intercompany Accounts Translated Currency Multiple Reporting Currencies MRC Primary Set of Books MRC Reporting Set of Books Thin MRC Reporting Book Full MRC Reporting Book Translated Balance
Release 12
Ledgers Subledger Accounting Secondary Ledgers Advanced Global Intercompany System (AGIS) Intracompany Balancing Balance level RCs Reporting Currencies (RCs) Primary Ledger Reporting Currency Journal level RC Subledger level RC Balance Level RC
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Ledger Sets
Ledger Set
Ledger A French Rules Plan Comptable French Calendar EUR
Ledger B US GAAP US COA US Calendar EUR
Ledger C US GAAP US COA US Calendar USD

Ledger D US GAAP US COA US Calendar AUD
Reporting Currency
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Ledger Architecture
Ledger Set Legal Legal Legal Entities Entities Entities Primary Ledger Primary Ledger Primary Ledger (local statutory) (local statutory) (local statutory) option: reporting option: reporting option: reporting currency currency currency Secondary Secondary Secondary Ledger Ledger Ledger (corporate) (corporate) (corporate)
SLAs
SLAs Operating Units Operating OperatingUnits Units
Transactions
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Key Concepts and Terminology

Primary Ledger (PL)
Main, record-keeping ledger
Secondary Ledger
Optional, additional
Reporting Currency
Optional, currency
accounting representation of Primary Ledger
representation of Primary or Secondary Ledger

Only differs in: Currency
Defined by 4Cs: Chart of accounts Accounting calendar Primary currency Subledger aCounting Method
Can differ in one or all 4Cs: Chart of accounts Accounting calendar Primary currency Subledger aCcounting Method
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Multiple Currency Support For General Ledger Data From All Sources
If one or more of the following are different, use a Secondary Ledger If difference is only currency, use Reporting Currencies
Chart of accounts Calendar Currency
Accounting Method
US GAAP Accrual
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Currencies
1.Currency of the Ledger (Ledger Currency)- The currency you
use to record transactions and maintain your accounting data within Oracle Applications. The ledger currency is generally the currency in which you transact most of your business transactions.
2.Currency of the Reporting Currency: A currency other than your

ledger currency for which you need to report accounting data .A reporting currency is a financial reporting entity that is associated with a ledger. The reporting currency has the same chart of accounts and accounting calendar as the ledger, but usually has a different currency.
3. Transaction Currency: The currency in which a transaction

originates. For example, if you are In US organization and you trade with organizations located in Canada, you must enable the Canadian Dollar if you will be issuing purchase orders, generating invoices, paying bills, and receiving payments in Canadian Dollar.
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Multiple Currency Enhancement

In Release 11i Multiple Reporting Currencies (MRC) were used to maintain subledger transactions and General Ledger Journal in a different reporting currency.
In Release 12 this has been renamed the feature to Reporting Currencies.
Reporting currencies are integrated with Ledger. Instead of creating an additional ledger for each reporting currency, you specify the reporting currency as a part of the ledger setup.
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Currency representation at different levels Balance Level: Maintains translated balances.
When running translation in GL, balances stored in a balance level reporting currency.
Journal Level:
It is a currency representation of only your General Ledger Journals and balances. When posting a journal in GL, the journal will be converted to one or more journal level reporting currencies.
Subledger
It is a complete currency representation of your subledger transactions, General Ledger journals entries and balances. A transaction entered in Subledger or enter and post a journal directly in GL, the same transaction and journal are converted to one or more associated subledger level reporting currencies.
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Level:
Multiple Currency Support For General Ledger Data From All Sources Process
PROCESS
JOURNAL LEVEL REPORTING CURRENCY
PROCESS
BALANCE LEVEL REPORTING CURRENCY
Post Journal in the Primary or Secondary Ledger
Run Translation in the Primary or Secondary Ledger
Journal is Replicated to the Reporting Currency
Balances Converted to the Balance Level Reporting Currency
Automated process
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Multiple Currency Support For General Ledger Data From All Sources Benefits
Increased Visibility
Have complete currency representations of your accounting data in any reporting currency at any level you choose
Addresses Multiple Currency Reporting Requirements

Meet statutory and local reporting requirements in addition to corporate reporting requirements
Simplifies Setup
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Key Concepts and Terminology Secondary Ledger Benefits

Supports an unlimited number of additional accounting representations to meet the following reporting requirements: Legal reporting to comply with different countries legal requirements Regulatory reporting to meet industry-specific requirements, such as the banking and insurance industry Management reporting Consolidation
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Key Concepts and Terminology Reporting Currency Benefits

Supports an unlimited number of additional currency representations to meet the following reporting requirements:
Statutory Reporting
Corporate Reporting and Consolidation Supports changing business needs by allowing you to add reporting currencies at anytime with automated conversion programs to convert historical data
For example, as companies get acquired, they may need to take advantage of reporting currencies for corporate reporting to the new parent entity
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Impacted Applications
Data Access Sets

Data Access Set is only used by GL and SLA 11i GL: Set of Books Name profile option renamed to GL Ledger Name GL: Data Access Set is now used to control access to ledgers. For SLA, set the profile option SLA: Enable Data Access Set Security in Subledgers If set to Yes, it will respect the profile options: GL: Data Access Set SLA: Additional Data Access Set SLA allows users to have two Data Access Sets
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Data Access Sets

In 11i :
One responsibility per set of books and could not restrict read or write access.
In R12:
1SOB/Legal entity or Multiple Legal entities in a
Set of Books model is excelled by using data security.
Data Access Sets:
Provide new access and security features that allows users to grant and secure access to ledger, or portions of the ledger, by its balancing segment value or management segment values.
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Data Access Security for Legal Entities and Ledgers Description

Data Access Sets Provide read-only and/or write access to data by ledger, balancing segment values (BSVs), or management segment values (MSVs) Full Ledger Access Access to all data in a ledger Specific BSV Access Access to only some of the BSVs in a ledger Specific MSV Access Access to only some of the MSVs in a ledger
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Key Concepts and Terminology

Data Access Sets
Ledgers must share same COA/Calendar combination
Assign ledgers and/or ledger sets
COA must have management segment to use
Specify Read Only or Read/Write Access

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Multi-Ledger Processing
PROCESS
Select a Program from the Concurrent Manager
Do you have sufficient access to all ledgers in the ledger set? No
Yes
Select the Ledger Set from the LOV
Programs submitted for each ledger in the ledger set
Automated process
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Multi-Ledger Processing Process Simultaneous Opening and Closing of Periods
Programs available for multiple ledgers: Open Period Close Period Gapless Close Period Permanently Close Period
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Multi-Ledger Processing Process Simultaneous Year-End Closing Journals

Generate the following Closing Journals programs for multiple ledgers in a single submission
Create Balance Sheet Closing Journals Create Income Statement Closing Journals
Run the Income Statement Closing Journals program to transfer yearend revenue and expense accounts to the Retained Earnings account for multiple ledgers in a single submission.
Run the Balance Sheet Closing Journals program to close out the YTD balances of balance sheet accounts across multiple ledgers at once. Data Access Set security ensures that only users with full read and write access to ledgers can successfully submit the programs.
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Multi-Ledger Processing Process Simultaneous Currency Translation

Translation: Translate balances across multiple ledgers simultaneously Access:
From the Translate balances form By submitting the Translation program from the Submit Request form
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Multi-Ledger Processing Process Financial Reporting Across Ledgers

Use the Run Individual Reports form to specify a single ledger or a ledger set at runtime when generating FSG reports.
To leverage the use of ledger sets with FSG reports, you must define a ledger set with a default ledger assigned.
Running standard reports with ledger sets does not require a default ledger be assigned to the ledger set.
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Financial Reports Across Ledgers Description

Financial Reports
Aggregate data for all ledgers in a ledger set
Defined with ledger set
Defined with ledgers
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Financial Reporting Across Ledgers Description

Ledger Sets allow you to aggregate data across multiple ledgers in the ledger set. Here is an example of the output from an FSG report. The total column represents the aggregated or summarized balances across multiple ledgers. This report is generated with the rows representing the accounts and the columns representing the ledgers; the total column represents the total across the ledgers using a ledger set.
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Financial Reports Across Ledgers Benefits

Instant Summarization
Report on aggregate data for the ledger set
Greater Control on Visibility

Control view data across one or more ledgers regardless of accounting setup
Increased Efficiency
No need to consolidate ledger data before reporting
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Financial Reports Across Ledgers Process

PROCESS
Financial Reporting Across Ledgers Process

Generate Report
When you submit your FSG report, specify the ledger set and the report will aggregate the data for the ledger set.
The difference between running individual reports and an aggregate report using a ledger set lies in the FSG report definition. When the column or row of the report definition includes a ledger set, the system automatically aggregates the data across ledgers in that ledger set for you
Select Ledger Set
Runs an Aggregate Report
Automated process
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Financial Reports Across Ledgers Setup

SETUP
Define FSG Report Across Ledgers
Define a Ledger Set
Data Access Set Is Automatically Generated
Assign the Data Access Set to the GL: Data Access Set profile option
Automated process
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Cross-Ledger and Foreign Currency Allocations Description

Cross-Ledger Allocations
Perform allocation in one ledger based on amounts from another ledger Perform allocations in multiple ledgers based on a single formula
Foreign Currency Allocations

Create allocations in foreign currencies Select treatment of converted amounts
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Cross-Ledger and Foreign Currency Allocations - Description

There have been several enhancements to Mass Allocations. As mentioned earlier, a single responsibility can now access data for multiple ledgers. Therefore Mass Allocations has been enhanced to allow you to create cross-ledger allocations where the data from one or more source ledgers can be allocated to one or more target ledgers. One example of this is allocating corporate or regional expenses to local subsidiaries when each subsidiary has its own ledger. Support for foreign currency allocations is also expanded. You can now create allocations in foreign currencies. When specifying the calculation lines, you can also choose different currency options. One currency option is to allocate existing converted amounts for the foreign currency balance. The second option is to calculate the converted amount for allocation based on a rate type provided.
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Cross-Ledger and Foreign Currency Allocations Benefits

Better Operational Efficiency
Reduce operational time by creating a single allocation definition spanning multiple ledgers instead of creating separate allocation definitions for each ledger
More Flexibility
Manage your allocations process across your entire enterprise rather than according to your accounting setup Create allocations in foreign currencies
More flexibility when defining Mass Allocations. You can allocate amounts across different ledgers. You also have more flexibility in allocating foreign currency amounts, because you can select the treatment for converted amounts.
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Cross-Ledger and Foreign Currency Allocations Setup and Process
SETUP
Define MassAllocation
PROCESS
Generate MassAllocation
MassAllocation Journal is Created
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Streamlined Automatic Posting/Reversal Description

Streamlined Automatic Posting
Share AutoPost Criteria sets across multiple ledgers that share the same chart of accounts and calendar Automatically post journals for multiple ledgers simultaneously
Streamlined AutoReversal Criteria Setup

Share Journal Reversal Criteria definition across ledgers
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Streamlined Automatic Posting and Reversal

Automatic Posting has been streamlined to allow you to share AutoPost Criteria Sets across multiple ledgers that share the same chart of accounts, calendar, and period type. This allows you to reuse a single AutoPost definition to post journals for multiple ledgers. In the same manner, AutoReversal has been streamlined to allow you to share AutoReversal Criteria Sets across multiple ledgers. This allows you to reuse a single AutoReversal definition to reverse or to reverse and post journals for multiple ledgers. Note: Autoreversal Criteria sets can be shared across ledgers regardless of the COA and calendar.
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Streamlined Automatic Posting/Reversal Benefits

Streamlined Setup and Maintenance
Define AutoPost criteria once and post journals across multiple ledgers simultaneously Share AutoReversal criteria sets across multiple ledgers
Streamlined Automatic Posting and Reversal - Benefits The benefits of streamlined automatic posting/reversal include less setup and maintenance. Instead of defining a different AutoPost or AutoReversal Criteria Set for each ledger, you can just define one and reuse it for multiple ledgers.
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Streamlined Automatic Posting/Reversal Setup and Process
SETUP
Define AutoPost Criteria Set Define Journal Reversal Criteria Set
PROCESS
Run AutoPost Program Run AutoReverse Program
Assign Journal Reversal Criteria Set to Ledger
Journals Are Posted
Journals Are Reversed
Automated process
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Integrated Web-based Spreadsheet Interface Description

Journal Wizard
Launch spreadsheet web-interface from GL responsibility to create actual, budget, or encumbrance journals Import data from text files to create journals
Budget Wizard
Launch spreadsheet web-interface from GL responsibility to download, modify, and upload budget amounts Compare budget amounts and actual amounts Create Graphs Add Budget Notes to add descriptions
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Integrated Web-based Spreadsheet Interface Benefits

Increased Flexibility
Access spreadsheet directly from the web-interface Leverage familiar spreadsheet functionality Customize spreadsheets Work offline Enter recurring journals from saved spreadsheets
Reduced Costs
Reduce Training Costs Reduce IT Costs
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Integrated Web-based Spreadsheet Interface Setup and Process

SETUP PROCESS
Launch Journal Wizard Launch Budget Wizard
Define profile option: Default Desktop Viewer
Select Layout
Select Layout
Select Data to Import (optional) Create Excel document Enter journals
Select Budget to Download Create Excel document
Enter budget amounts
Upload
Upload
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Journal Copy Description

AutoCopy Batch
Copy an existing journal batch to create a new journal batch with the same journals Easily change the following for the journal batch:
Batch Name Period Effective date
Journal batch with any status can be copied Automatic Journal Copy: You can now copy: Entire journal batches Journal batches with any status The system creates a new journal batch containing the same journal entries.You may also change the batch name, period, and/or effective date while copying the journal batch. After copying the journal batch, you may modify the unposted journals in the same manner as any manually created journals.
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Journal Copy Benefits

Increase Journal Entry Speed
Quickly create new journals by copying an existing one
Reduce Data Entry Errors

Reduce errors caused by having to manually enter new journals from scratch
Automatic Journal Copy Benefits Benefits of the automatic journal copy include: Increased journal entry speed Reduced data entry errors
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Journal Copy Setup and Process

SETUP
No setup required
PROCESS
Select Journal To Be Copied in Enter Journals window
Enter Batch Name, Period, Effective Date for the New Batch
Automated process
Create New Journal Batch by Concurrent Program
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Streamlined Consolidation Mappings Description

Chart of Accounts Mapping
Formerly known as Consolidation Mappings Define mappings between two charts of accounts Share mappings across Consolidation Definitions for pairs of parent and subsidiary ledgers that share the same chart of accounts and mapping rules Use mappings for secondary ledgers Secure mappings using definition access sets
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Streamlined Consolidation Mappings

Navigation: Setup : Accounts > Chart of Accounts Mapping Chart of Accounts Mapping replaced the Release 11i Consolidation Mappings feature. A chart of accounts mapping is a set of instructions for mapping accounts or entire account segments from one chart of accounts to another chart of accounts. You can use chart of accounts mapping for consolidation purposes and for secondary ledgers. The enhancement in R12 allows you to define mappings between charts of accounts instead of between sets of books, so that they can be shared across multiple Consolidation Definitions. Therefore, if you have multiple Consolidation Definitions for parent and subsidiary ledgers that share the same chart of accounts pair, and their mapping rules are the same, you only have to define a single Chart of Accounts Mapping. You can also secure access to chart of accounts mappings using definition access set security. This allows you to secure which users can view, modify, and/or use chart of account mappings in consolidation definitions.
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Usage
Transfer journals and balances from a subsidiary ledger to a consolidation ledger Propagate journals from the primary ledger to secondary ledger(s)
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Maps any two charts of accounts
Source Chart of Accounts
Target Chart of Accounts
Co
Assign single value

Copy value
LE
Dept
Acct
LOB
Acct
Use rollup rules
I/C
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Streamlined Consolidation Mappings Benefits

Reduced Setup and Maintenance
For same pair of chart of accounts and same mapping rules:
No need to create a mapping per source/target ledger; Define one mapping and apply it repeatedly to multiple source/target ledger pairs
Fewer mappings to maintain going forward
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Streamlined Consolidation Mappings Setup and Process

SETUP
Define Chart of Accounts Mapping
PROCESS
Run Consolidation Transfer Program In Source Ledger
Define Consolidation Definition
Assign to Consolidation Definition or Accounting Setup
Data Is Mapped And Transferred To Target Ledger
Automated process
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Entered Currency Reporting and Analysis Description

View balances for amounts entered in the ledger currency separately from amounts entered and converted to the ledger currency View amounts entered in a specific currency
FSG Reports Online Account Inquiry
Create journals based on account balances entered in a specific currency

Recurring Journals Mass Allocations
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Entered Currency Reporting and Analysis

In Release 11i, when you performed an account inquiry or ran a report using the currency assigned to the ledger, you viewed balances for amounts entered in the ledger currency as well as foreign currencies that were converted to the ledger currency. Now in Release 12, the entered ledger currency balances are tracked separately from the foreign entered and converted balances. You can use the entered ledger currency amounts for viewing balances for the purposes of currency valuation and hedging FSG reporting Navigation: Reports > Request > Standard, Submit the request called Program - Publish FSG Report Online account inquiry Navigation: Inquiry > Account Recurring Journals Navigation: Journals : Define > Recurring Mass Allocations Navigation: Journals : Define > Allocation
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Entered Currency Reporting and Analysis Description
Acct
Currency
Entered Debit Credit
Converted Debit Credit
Cash Cash
USD GBP
1,000 500 1,200
Ledger Currency: USD
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Entered Currency Reporting and Analysis

Example: Assume a ledger and the ledger currency is USD. Two journals are entered and posted; one in 1,000 US Dollars, and another in 500 British Pounds that gets converted to 1200 US Dollars. In Release 11i, you can review the 500 GBP and the 1200 USD that results from converting the 500 GBP, and the total 2200 USD which is the USD balance in the Cash Account. The $2200 is the sum of the $1000 entered in USD and the $1200 converted from the 500 British Pounds. However, you view that a 1000 USD were entered directly in USD. In Release 12, you can view the 1000 USD by performing an account inquiry on the Cash account for balances entered only in the ledger currency. The amounts entered in foreign currencies that were converted to the ledger currency are not included in the balance. You can still retrieve all balances in USD, both the entered as well and the converted.
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Entered Currency Reporting and Analysis Benefits

Better Information
Perform currency analysis on entered ledger currency amounts for valuation and analysis
More Flexible Allocations

Create allocations based on amounts entered in a specific currency
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Entered Currency Reporting and Analysis Setup

No set up required. General Ledger automatically tracks balances. Entered ledger currency balances are available once balances are posted.
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Entered Currency Reporting and Analysis Setup

No set up required. General Ledger automatically tracks balances. Entered ledger currency balances are available once balances are posted.
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Foreign Currency Recurring Journals Description

Create foreign currency journals that are recurring Select conversion rate type
Calculate the converted amount for journal based on rate type provided
Foreign Currency Recurring Journals In Release 11i, you could define recurring journals using the functional currency or STAT currency. In Release 12, you can create recurring journals using foreign currencies. This is useful if you need to create foreign currency journals that are recurring. For example, assume a subsidiary that uses a different currency from its parent borrows money from the parent. The subsidiary can now generate a recurring entry to record monthly interest payable to the parent company in the parents currency.
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Foreign Currency Recurring Journals Benefits

More Flexibility You have more currency options for creating recurring journals Increased Efficiency Use the system to convert currency amounts instead of calculating manually
Foreign Currency Recurring Journals Benefits With foreign currency recurring journals, you are no longer restricted to using the ledger currency or stat. You can use any currency which means more flexibility in defining recurring journals and generating your allocations and journals more efficiently.
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Foreign Currency Recurring Journals Process
PROCESS
Generate Recurring Journal
Journal is Created
Automated process
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Implementation Considerations
SETUP
Define Recurring Journal in any currency
Implementation Considerations Navigation: Journals > Define > Recurring You must set up foreign currency recurring journals, define a recurring journal, and a foreign currency and conversion rate type.
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Replacement for Disabled Accounts
Alternate Accounts -Define an alternate account for an account that is disabled

or end-dated. -Subledger Accounting and GL Journal Import processes replace disabled accounts with alternate accounts Benefits: It increases processing efficiency by reducing processing errors from disabled/end-dated accounts.
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Management Reporting and Security

A new flexfield qualifier added to the chart of accounts i.e Management segment qualifier.
Typically a segment can be qualify to be the Management segment if that segment has management responsibility. Ex: Line of business, cost center or a product line.
Secure Management segment values by using data access sets. You can grant read only or read and write access to specific management segment values to prevent certain managers from viewing and updating data for cost centers, line of business or product lines outside of their management responsibility.
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Management Reporting and Security Description

Optionally qualify a segment as the management segment Perform management reporting Secure read and write access to Ledger/Management Segment Value combinations using Data Access Sets
Balancing
Cost Center Management
Natural Account
Intercompany
Co
CC
Acct
I/C
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Management Reporting and Security Cost Center Hierarchy

No Access Director A Read/Write MSV Access
Vice President 0683
X
Director C OX53
Director A OU97
Create/Post Journals Update Balances Run Reports View Data
Director B OS69
X
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Journal Reversal Enhancements Description and Benefits

Prevents reversal of journals with frozen sources Benefit: Enforces consistency between source system and GL account balance Prevents reversal of unposted journals Benefits: Improves data integrity All reversals can be tied back to the originating journal Improves auditability No Setups required. These features are automatically available in GL
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Control Accounts description and Benefits

Ensures control accounts can only contain data from an approved journal source Prevents manual journal entry to control accounts Provides better control Specify authorized sources for control accounts Streamlines reconciliation Enforce consistency between source system and GL account balance
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Security for Definitions Description

Definition Access Set Secure definitions Grant one or more of the following privileges to responsibilities
Use Access View Access Modify Access
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Security for Definitions
Securable definitions
Accounting Calendars AutoAllocations AutoPost Criteria Sets AutoReversal Criteria Sets Budget Formulas Budget Organizations Elimination Sets FSG Reports and components MassAllocations MassBudgets Rate Types Recurring Journals
Chart of Accounts Mappings

Consolidation Definitions Consolidation Sets
Revaluations
Transaction Calendars
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Security for Definitions Example
GL Clerk
Privileges Use View Modify
Controller
Rent Allocation
Rent Allocation
Recurring Rent
Recurring Rent
Balance Sheet Income Stmt
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Security for Definitions Benefits

Greater Control
Limits a responsibilitys access from using, viewing, and modifying definitions Reduces errors and accidental changes to important definitions Secures access to definitions independently from data access
Selectively choose definitions that you want shared and restrict access to those you do not want shared
Supports Shared Service Centers

Shared definitions can be restricted to authorized users
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Security for Definitions Setup and Process

SETUP
System Administrator Define Definition Access Set Assign responsibility to Definition Access Set GL Accountant Create a Definition Enable Security on the Definition Assign privilege for the definition to the Definition Access Set Do you have View privilege? Yes View Definition Query Definition Do you have Use privilege? Yes Use Definition
PROCESS
Have Modify privilege?
Yes
Modify Definition
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Accounting and Reporting Sequencing Description

New journal sequencing options
Accounting Sequence
Sequence GL journals when posted in GL Sequence subledger journals when completed in Subledger Accounting
Reporting Sequence
Sequence GL Journals when you close a GL Period Sequence subledger Journals when you complete the accounting in SLA Replaces Accounting Engine (AX) legal sequencing and Libro Giornale
Assign mutually exclusive sequences
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Accounting and Reporting Sequencing Description

In Release 11i, document sequencing sequentially numbered documents upon creation. In Release 12, sequential numbering has been enhanced to better support sequencing requirements in countries, such as Asia, Latin America, and Europe. There are now two new Journal Sequencing options: Accounting Sequencing: Automatically assigns a sequence number to General Ledger journal entries that are posted in General Ledger. Theres also an option to sequence subledger journals when they are completed in Subledger Accounting.
Reporting Sequencing: Use to sequence both General Ledger journals and subledger journals when the General Ledger period is closed. This feature replaces the Accounting Engine (AX) legal sequencing and Libro Giornale features. You can assign mutually exclusive sequences based on ledgers or reporting currencies, journal sources, journal categories, and balance types.
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Accounting and Reporting Sequencing Benefits

Legal Compliance
Addresses business requirements in many countries Allows fiscal authorities to verify the completeness of a companys accounting records
Provides greater flexibility in choosing different journal sequencing options Sequence journals based on different criteria
Ledgers Reporting currencies Journal sources Journal categories Balance types
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Accounting and Reporting Sequencing - Benefits

With the new journal sequencing options, you can now better meet legal requirements in different countries, such as Europe, Asia and Latin America. Fiscal authorities can now easily verify the completeness of a companys accounting records. You have much more flexibility in choosing how they want to sequence journals based on different criteria. You no longer need to worry about localizations. The former Accounting Engine (AX) legal sequencing and Libro Giornale features have now been included in the base product. This allows more customers to take advantage of this new feature.
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Accounting and Reporting Sequencing Setup and Process

SETUP
Define Sequence (Optional) Define Sequencing Context for Ledger
PROCESS
Post Journal or Close Period
Is sequence defined?
Should the journal be sequenced?
Yes
No Define Sequence Yes Journal is sequenced
Assign Sequence To Ledger Automated process
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Journal Line Reconciliation Description

Manually or automatically reconciles journal lines that should net to zero Formerly known as the GL Entry Reconciliation feature within Oracle Financials Common Country Features Now part of Oracle General Ledger and renamed to Journal Line Reconciliation
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Journal Line Reconciliation Benefits

Automated Reconciliation
Provides automated way to reconcile journal lines that should net to zero Reduces close cycle time
No Localization Required
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Journal Line Reconciliation Setup and Process

SETUP
Enable Journal Reconciliation for Ledger
PROCESS
Enter Reconciliation Reference in SLA or GL during manual journal entry Manual Automatic
Enable Reconciliation Qualifier for Natural Account value
Query Journal Lines In Reconcile Journal Lines Window Select Journal Lines to Reconcile
Run Automatic Reconciliation
Automated process Reconciliation ID assigned
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Enhanced Intercompany Description

Advanced Global Intercompany System (AGIS)
Previously Global Intercompany System feature Now a separate product with many enhancements
Intracompany Balancing Rules

Previously Intercompany Balancing Used across Subledger Accounting and General Ledger to balance journals within a legal entity or ledger
Intercompany Accounts
Used across Subledger Accounting and General Ledger to balance cross legal-entity journals
Support for encumbrance journals
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Enhanced Intercompany Benefits

Improved User Interface
Improved user interface makes defining rules more intuitive
Better Control
Consistent application of Intercompany Accounts and Intracompany Balancing Rules in Subledger Accounting and General Ledger
Increased Efficiency
Support for encumbrance journals
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Enhanced Intercompany Accounting and Balancing Rules Process

PROCESS
Unbalanced Journal is posted
Intercompany Accounts are used for balancing journals Yes Multiple BSV assigned to different legal entities? Yes
Unbalanced journal is for multiple BSV?
No
No
Suspense Account is used for balancing journals (if suspense acct is defined)
Intracompany Balancing Rules are used for balancing journals
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Enhanced Balancing Process Intracompany Journals

Creation: Journal Mode
1 to 1 1 to Many Many to 1 Many to Many
If Intercompany and Intracompany lines are mixed Balancing API handles all situations Intercompany accounts are balanced first before intracompany balancing
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Enhanced Intercompany Accounting and Balancing Rules Setup

SETUP
Define Legal Entity and Ledger Setup Enable Intracompany Balancing for Ledger Define Intercompany Accounts Define Intracompany Balancing Rules
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Implementation Considerations
AGIS Balancing API Intracompany Balancing Rules Intercompany Accounts
General Ledger Posting Program
Subledger Accounting Create Accounting Program
Balancing Entries Created
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Advanced Global Intercompany System
Web UI
Subledger Invoices & Documents
Open Interfaces/API
Advanced Global Intercompany System
Online Reconciliation Reporting
Excel (Web ADI)

Dr Cr
XML Publisher Reports
General Ledger
Subledger Accounting
Receivables
Payables
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Contact Information
Presenters name : Srinivas Vellanki
Email address: [email protected] Telephone number: 9885438890
www.genpact.com
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GL R12

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What are some of the pain points faced in R11i when modeling entities with sets of books?

What are some of the pain points faced in R11i when modeling entities with sets of books?

What are the objectives of R12?

What are the objectives of R12?

R12 General Ledger Session Finance Track

Date: June 3rd 2008 Location:Hyderabad

R12 : New Financial Architecture:

R11i Pain Points Modeling Entities with Sets of Books

SOB USA ($)

R11i Pain Points (continued) Modeling Entities with Sets of Books

R11i Pain Points (continued) with Balancing Segment Values

R11i Pain Points (continued) with Balancing Segment Values

Eliminate the Challenges of Modeling Legal Entities in 11i!

One Repository of Financial Truth Implements the 4 Cs:

Customer Impact/Upgrade Considerations Terminology Changes

Ledger A French Rules Plan Comptable French Calendar EUR

Ledger B US GAAP US COA US Calendar EUR

Ledger C US GAAP US COA US Calendar USD

SLAs Operating Units Operating OperatingUnits Units

Key Concepts and Terminology

accounting representation of Primary Ledger

representation of Primary or Secondary Ledger

2.Currency of the Reporting Currency: A currency other than your

3. Transaction Currency: The currency in which a transaction

Multiple Currency Enhancement

In Release 12 this has been renamed the feature to Reporting Currencies.

Currency representation at different levels Balance Level: Maintains translated balances.

Post Journal in the Primary or Secondary Ledger

Run Translation in the Primary or Secondary Ledger

Journal is Replicated to the Reporting Currency

Balances Converted to the Balance Level Reporting Currency

Addresses Multiple Currency Reporting Requirements

Key Concepts and Terminology Secondary Ledger Benefits

Key Concepts and Terminology Reporting Currency Benefits

Data Access Sets

Data Access Sets

1SOB/Legal entity or Multiple Legal entities in a

Set of Books model is excelled by using data security.

Data Access Sets:

Data Access Security for Legal Entities and Ledgers Description

Key Concepts and Terminology

Assign ledgers and/or ledger sets

COA must have management segment to use

Specify Read Only or Read/Write Access

Do you have sufficient access to all ledgers in the ledger set? No

Select the Ledger Set from the LOV

Programs submitted for each ledger in the ledger set

Multi-Ledger Processing Process Simultaneous Opening and Closing of Periods

Multi-Ledger Processing Process Simultaneous Year-End Closing Journals

Multi-Ledger Processing Process Simultaneous Currency Translation

Multi-Ledger Processing Process Financial Reporting Across Ledgers

Financial Reports Across Ledgers Description

Defined with ledger set

Defined with ledgers

Financial Reporting Across Ledgers Description

Financial Reports Across Ledgers Benefits

Greater Control on Visibility

Financial Reports Across Ledgers Process