R12 subledgeraccountingandgl

Release 12 Financials Best Practices
Subledger Accounting and
the General Ledger

Alyssa Johnson
Solution Beacon

Agenda

• Global Financial Management
• E-Business Tax
• Intercompany
• Setting up the General Ledger
• Subledger Accounting
• Reporting
• General Ledger New Features
• More Information
Copyright 2009 Solution Beacon, LLC All Rights Reserved Any other commercial product names herein
are trademark, registered trademarks or service marks of their respective owners. 2

Global Financial Management


E-Business Tax

• Global Tax Solution for the Order-to-Cash and Procure-
to-Pay processes
• Utilizes centrally defined rules, rates, and jurisdictions
which are stored in a Tax Content Repository
• Manages Transaction Taxes and Calculates Tax at Line
Level
• Provides for Integration with third party vendors
• Tax Record Repository stores all tax lines for more
efficient reporting and to provide strong auditability
• Tax Simulator


E-Business Tax

• Home Setup Page Specifies if setup
is required

Setups in one
location Ease of
navigation


E-Business Tax

Use the pencil
for updates

Click on links View additional
to drilldown information


E-Business Tax

• While setups can be accessed from one form
there are many levels of setup
• Allow for additional time to test this application
with all transaction scenarios
E-Business Tax section (p32-35) of “Best
Practices for Adopting Oracle E-Business Suite,
Release 12”(MetaLink Doc. ID: 580299.1)
provides excellent troubleshooting tips


Advanced Global
Intercompany System

Advanced Global Intercompany System

• Automatic
Intercompany
Invoicing
• Entry – manual or
upload
• Batches of
transactions can be
applied across
different ledgers
• Proration of
distribution amounts
• Reconciliation Tool

AGIS

• Setup Tab
– Easy to Update
– Evaluation of
rules listed
– Setups
• Periods
• Accounting
• Security
• Organization
• Invoicing Options
• Transaction Types
• System Options

AGIS

• AGIS replaced 11i Global Intercompany System
(GIS)
• The Intercompany accounts in GIS are upgraded
to AGIS Intracompany Balancing rules
• Auto-Accounting rules in GIS are not upgraded
and should be set up as Account Derivation
Rules and compiled with the Transaction
Account Builder in Subledger Accounting


AGIS


Setting up the General Ledger

Best Practices
Make every effort to model your business processes
to take full advantage of the new R12 architecture
and flow
Requires review of business processes
Familiarize yourself with the new R12 features
Design of Accounting Structure is Key
Run the Accounting Setup Manager Pre-Update
Diagnosis Report to identify setups that are
potentially problematic

Setting up General Ledger

• Set of Books is now referred to as Ledger
• Accounting Structure
– Chart of Accounts
– Calendar
– Currency
– Subledger Accounting Convention (New in R12)
• Legal Entity
– Reflects legal corporate structure
– Utilized by Accounting Functions, E-Business Tax,
Intercompany, and Bank Account


• Primary Ledgers
– Legal Entities are associated with Primary Ledgers
– Primary Ledgers typically reflect your transactional accounting
– Primary Ledgers not associated with a Legal Entity can be used
for consolidation
• Secondary Ledgers
– Secondary Ledgers can be utilized for statutory, management,
and/or consolidation reporting
– Mapping from Primary to Secondary Ledger(s) is defined in
General Ledger and is assigned in the Accounting Setup
Manager
• When accounting is created, journal entries are
generated for the Primary Ledger and any associated
Secondary Ledgers based on the defined mapping rules


• Ledger Sets
– All Ledgers in a Ledger Set must have the same
Calendar and Chart of Accounts
– Can Open/Close Periods, Create Journals, Translate
Balances, Reporting, and View Information across a
Ledger Set
– Improves Data Security, Reliability, and Consistency
• On upgrade, each Set of Books becomes a
Ledger and a Ledger Set composed of one
Ledger



• All Ledgers in a Ledger Set
must have the same
– Calendar
– Chart of Accounts


Accounting Setup Manager

• New Tool to Streamline Accounting Setups
• Define Accounting-Related Setups in a
Central Location
• Reduce Errors
• Access Accounting Setup Information More
Quickly
• Navigation: General Ledger Responsibility
Setup – Financials – Accounting Setup
Manager – Accounting Setups


• Create Accounting Structure

Assign Define
Define Define
Legal Secondary
Legal Primary
Entities Ledgers
Entities Ledger
(optional) (optional)


Legal Entity

• Reflects legal corporate structure
• Consists of: Name, Identification, Address,
Establishments, Registrations, Contacts and
Intercompany Parties
• On upgrade, Operating Units become Establishments
(remember Operating Unit is tied to Ledger in R12)
• Utilized by Accounting Functions, E-Business Tax,
Intercompany, and Bank Account
• Resides in TCA as a Party
Represent Legal Entity correctly – has much bigger
impact in R12

Setting Up General Ledger
Legal Entity

• Two locations for setup
– Accounting Setup Manager
• GL Responsibility
• Efficiency of setup
• Can assign balancing segment
Once a balancing segment is assigned to a Legal Entity it
cannot be deleted only end dated
– Legal Entity Configurator
• Separate Responsibility
• Exact setup steps as ASM
• Cannot assign balancing segment

Create Accounting Structure

If only Currency is different
use Reporting Currency
instead of Secondary Ledger

The 4 Cs



• Next Step: Define Accounting Options

Complete
Assign Define
Ledger
Balancing Operating
Options
Segments Units
(required)

Define
Complete
Subledger Define
Reporting
Accounting Sequencing
Currencies
Options


Define Accounting Options

More
Tips

Note:
Status

Enforces
flow



• Define Secondary Ledgers

Primary to
Secondary Secondary
Ledgers Ledger
Mapping


Define Secondary Ledgers

Any of 4Cs can be
Data Conversion Level
different


• Data Conversion Levels
– Subledger
• Subledger Journal Entries
• General Ledger Journal Entries
• Balances
– Journal
• General Ledger Journal Entries
• Balances
– Balance
• Balances
– Adjustments Only
• Incomplete accounting picture


• Setup of Secondary Ledger is similar to Primary Ledger
• Mapping setup specifies conversion options to transfer
data from Primary Ledger to Secondary Ledger



Chart of Accounts
Mapping

Currency Conversion
Rules

Journal Conversion Rules


Examples

Consolidation Ledger Set

Ledger:
Ledger: Orig Co Ledger: Acq Co
Primary Global CoA Acquisition CoA
Consolidation
Cons CoA
Ledgers Calendar Year Acquisition Calendar
Cons Calendar
USD Acquisition Currency
Cons Currency
Entries created by GL
Transfer and Elimination
Process
Secondary Ledger: Acq CON
Global CoA
Ledgers Calendar Year
USD

Ledger:
Consolidated Reporting to
Use Secondary Ledgers and Ledger Sets for Acquisition
Statutory
Secondary
preventLedger
the need to perform balance transfer Calendar
consolidations every period, and
Statutory CoA
Fiscal
to obtain a cross-company view of your organization
Currency

Note: This does not replace the consolidation process


Examples

Consolidation Ledger Set

Ledger: US Ledger: UK Ledger: FR
Primary Global CoA UK CoA FR CoA
Ledgers Calendar Year Calendar Year Calendar Year
USD GBP EUR

Secondary Ledger: UK CON Ledger: FR CON
Global CoA Global CoA
Ledgers Calendar Year Calendar Year
USD USD

Ledger: FR Statutory
Secondary Statutory CoA
Ledger Fiscal Calendar
EUR

• The FR Statutory Secondary Ledger contains entries which comply with
statutory regulations
34


Time spent on
design will not
be wasted


Subledger Accounting

• Rule-based accounting engine with a centralized
data model and repository (XLA)
• Generates and stores detailed accounting
entries
• User-defined Accounting Rules
• A single transaction can be represented in
multiple ledgers
• Drilldown capability from GL



GENERAL LEDGER
Primary Ledger

Secondary Ledger(s)

Drilldown to Subledger
Accounting
Accounting Details
Subledger Accounting (SLA)

Drilldown to
Transaction Details

Subledgers



• Standardization in
– Navigation
– Accounting
– Inquiry
– Reporting
• Setup
– Accounting Setup Manager
– Accounting Methods Builder


Accounting Methods Builder

Journal
Header
GL Description
Date

Account
Derivation
Rules
Journal
Journal Lines Lines



Use Validate Application Accounting Definition
Concurrent Program if Oracle owned AAD not
validated
Continue to use Account Generators on upgrade
Transition account generation to Subledger
Accounting Engine post-upgrade
User-defined AADs retained in upgrade


Create Accounting


Create Accounting Output


Journal Import


Create Accounting

Run Create Accounting Process DAILY
Utilize Draft Mode Accounting if continual issues
with accounting
Resolve issues reported in Subledger
Accounting Program Report DAILY
When closing period run Transfer to GL program
an additional time, to verify all accounting entries
have transferred


Accounting Entry Inquiry

Draft Mode
Entries Can Be
Deleted
Create Manual
Drilldown Journal Entries

Journal
Entry Status


Users can view both
the Journal Entry
and the Transaction
Information together



Drilldown from General Ledger to Subledger
Transaction goes through Subledger Accounting
Repository
Learn to utilize the Subledger Journal Entry
forms
Personalization



• Web ADI and Manual Journal Entries
– NOT processed by Subledger Accounting Engine
– Posted to Secondary Ledger(s) by General Ledger Posting
Program
– Are included in Account Analysis Report
• Journals can be corrected at the Transaction, SLA, or
GL Journal Entry level
Choose a method and make that the standard for all corrections
Since detail is retained in Subledger Accounting posting
to GL in Summary instead of Detail can be performed


Subledger Period Close Exception Report

• Invalid – Accounting errors exist; Fix Errors and re-run Create Accounting program
• Incomplete – Transactions can’t be accounted yet; Run Validation Program
• Unprocessed – Transaction hasn’t been accounted; Run Create Accounting Program
• Final – Accounted in SLA but not transferred to GL; Run Transfer Journal Entries to
GL

Report
Summary

Detail of
Primary and Exceptions
Secondary Ledgers


Reconciliation Reports

Changes in standard Oracle reports – might
affect customizations
Transactional Reports
– R11i based on Transactions and Distributions
– R12 based on Transactions ONLY
Accounting Reports
– R11i based on Balancing Lines, GL Journals, GL
Balances
– R12 based on SLA Journals, GL Journals, GL
Balances


Reconciliation Reports

• Payables
– Open Account Balance Listing
– Third Party Balance Report
– GL Account Inquiry
• Receivables
– AR Reconciliation Report (other reports if discrepancies)
– Potential Reconciling Items Report
– Run Aging and compare with Reconciliation Report
– Run Journal Entries report and compare with Reconciliation
– Run AR to GL Reconciliation Report


WebADI and Report Manager

• Release 12 must use WebADI and Report
Manager
– Two separate applications
• MetaLink Doc ID: 458589.1, “Which Customers
Need to Migrate From Client/Server ADI to
WebADI and Report Manager?”
• Report Manager customized templates have to
be formatted in BI Publisher


General Ledger
New Features


General Ledger

• Setup previously
required 5 tabs
and multiple steps
• Streamlined Setup
Process
• Used to setup
legal entity,
primary ledgers,
secondary
ledgers, and SLA
setups


General Ledger
Alternate Accounts

Define alternate accounts if account is Note:
scrollbar
disabled
• Increased efficiency

General Ledger
Definition Access Sets

• Used in General Ledger only to secure access to
definitions and setup components
• One or more privileges can be given to a
responsibility
– Use
– Modify
– View
• Secures Definitions separate from Data
• More Flexibility, Reduction of Errors, Greater
Control

General Ledger

• Definitions secured with Definition Access Sets
– Accounting Calendars – Elimination Sets
– AutoAllocations – FSG Reports and
– AutoPost Criteria Sets components
– Budget Formulas – Mass Allocations
– Budget Organizations – Mass Budgets
– Chart of Account Mappings – Rate Types
– Consolidation Definitions – Recurring Journals
– Consolidation Sets – Revaluations
– Transaction Calendars

General Ledger

Responsiblities: Controller Accountant
Privileges
USE MODIFY VIEW

Revaluations

Allocations

Rate Types

Elimination
Sets

General Ledger – Journal Copy

Journal Entry Form Journal Form
• Assign new batch name, period, and effective date
• Copy Journals with any status
• Increased efficiency, data integrity

Integration Repository

• Describes all Oracle interface endpoints
Search
All types of Functionality
interfaces
Browse
through tree
structure

Drilldown to
interface
details


BI Publisher


BI Publisher

• Utilized across entire E-Business Suite
• Over 850 templates across 55 products
• Remaining Standard reports migrated to BI
Publisher in 12.1
BI Publisher report development is a new skill
set which should be mastered as soon as
possible


BI Publisher – Sample Templates

• Payment
File
• Standard
Check



• Electronic
Format
• Positive
Pay File



• Standard
Oracle
Report
• Asset
Transfer



• Dunning
Letter


More Information

• Release 12 Online Documentation
– Oracle Financials Concepts Guide (B28873-01)
– Oracle Applications Upgrade Guide: Release 11i to Release 12
(B31566-01)
– Oracle Financials and Oracle Procurement Functional Upgrade
Guide: Release 11i to Release 12 (B31543-01)
• Metalink Doc ID 580299.1 – Best Practices for Adopting
Oracle E-Business Suite Release 12
• Release 12 Information Center
– Knowledge Tab of My Oracle Support

Copyright 2009 Solution Beacon, LLC All Rights73Reserved Any other commercial product names herein

Release Update Packs

• 6 RUPs since Release in January 2007
• Metalink Note 743368.1 – Oracle E-Business Suite
Release Update Pack Readme, Release 12.0.6
Apply Financials Critical Patch Collections (CPC)
MetaLink Doc ID: 557869.1
– If Your Current Patch Level is
• RUP3 or earlier
– At a minimum apply November 2008 CPCs. Ideally, apply
12.0.6 (Patch 6728000) and November 2008 CPCs
• RUP4, 5 or 6
– Apply November 2008 CPCs
(AP Patch 7456652 and AR Patch 7387254)


Extended Support Schedule

• Release 11.5.10
– Premier Support extended to November 2010
– Extended Support extended to November 2013
• Release 12
– Premier Support extended to November 2012
– Extended Support extended to November 2015


Available at
Got Oracle?
www.solutionbeacon.com
Get the Books!
Order or Reserve Your
Copy Today!

Installing, Upgrading and
Maintaining Oracle E-Business The Release 12 Primer –
Suite Applications 11.5.10.2+ Shining a Light on the
Release 12 World

The ABCs of Workflow for Oracle
Copyright 2009 Solution Beacon, LLC All Suite Release 11i product names herein
E-Business Rights Reserved Any other commercial and
Release 12

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• FREE online training every Tuesday, Wednesday and Thursday for
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Questions and Answers

Thank You!

Alyssa Johnson
ajohnson@solutionbeacon.com

www.solutionbeacon.com
Real Solutions for the Real World ®


R12 subledgeraccountingandgl

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