R12 subledgeraccountingandgl

Release 12 Financials Best Practices

Subledger Accounting and

the General Ledger

Alyssa Johnson

Solution Beacon

2Copyright 2009 Solution Beacon, LLC All Rights Reserved Any other commercial product names herein

are trademark, registered trademarks or service marks of their respective owners.

Agenda

• Global Financial Management

• E-Business Tax

• Intercompany

• Setting up the General Ledger

• Subledger Accounting

• Reporting

• General Ledger New Features

• More Information

Global Financial Management



Global Financial Management

E-Business Tax



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



View additional information

E-Business Tax

Use the pencil

for updates

Click on links

to drilldown



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



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



Setting up General Ledger 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



Setting up General Ledger Accounting Setup Manager

Assign

Legal

Entities

(optional)

Define

Primary

Ledger

Define

Secondary

Ledgers

(optional)

Define

Legal

Entities

• Create Accounting Structure



Setting up General LedgerLegal 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 LedgerLegal 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



Setting Up General LedgerCreate Accounting Structure

�If only Currency is different

use Reporting Currency

instead of Secondary Ledger

The 4 Cs



Setting Up General Ledger

• Next Step: Define Accounting Options

Assign

Balancing

Segments

Define

Subledger

Accounting

Options

Define

Operating

Units

Define

Sequencing

Complete

Ledger

Options

(required)

Complete

Reporting

Currencies



Setting Up General LedgerDefine Accounting Options

Note:

Status

More

Tips

Enforces

flow




• Define Secondary Ledgers

Secondary

Ledgers

Primary to

Secondary

Ledger

Mapping



Setting Up General LedgerDefine Secondary Ledgers

Any of 4Cs can be

differentData Conversion Level




• 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



Setting Up General LedgerExamples

Ledger: Orig CoGlobal CoA

Calendar Year

USD

Ledger: Acq CoAcquisition CoA

Acquisition Calendar

Acquisition Currency

Ledger: Acq CON

Global CoA

Calendar Year

USD

Ledger: Acquisition

Statutory

Statutory CoA

Fiscal Calendar

Currency

Primary

Ledgers

Secondary

Ledgers

Secondary

Ledger

Consolidation Ledger Set

Ledger:

ConsolidationCons CoA

Cons Calendar

Cons Currency

Entries created by GL

Transfer and Elimination

Process

Use Secondary Ledgers and Ledger Sets for Consolidated Reporting to

prevent the need to perform balance transfer consolidations every period, and

to obtain a cross-company view of your organization

Note: This does not replace the consolidation process


are trademark, registered trademarks or service marks of their respective owners.34

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

Ledger: USGlobal CoA

Calendar Year

USD

Ledger: UKUK CoA

Calendar Year

GBP

Ledger: FRFR CoA

Calendar Year

EUR

Ledger: UK CON

Global CoA

Calendar Year

USD

Ledger: FR CON

Global CoA

Calendar Year

USD

Ledger: FR Statutory

Statutory CoA

Fiscal Calendar

EUR

Primary

Ledgers

Secondary

Ledgers

Secondary

Ledger

Consolidation Ledger Set


Examples




�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)

Subledger Accounting (SLA)

Subledgers

Accounting


Drilldown to SubledgerAccounting Details

Drilldown to Transaction Details




• Standardization in

– Navigation

– Accounting

– Inquiry

– Reporting

• Setup

– Accounting Setup Manager

– Accounting Methods Builder



Subledger AccountingAccounting Methods Builder

Journal LinesJournal Lines

GL

Date

Account

Derivation

Rules

Journal

Header

Description

Journal

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



Subledger AccountingCreate Accounting



Subledger AccountingCreate Accounting Output



Subledger AccountingCreate Accounting Output



Subledger AccountingJournal Import



Subledger AccountingCreate 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



Subledger AccountingAccounting Entry Inquiry

Journal

Entry Status

Drilldown

Draft Mode

Entries Can Be

Deleted

Create Manual

Journal Entries




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

Primary and Secondary Ledgers

Detail of Exceptions



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 LedgerNew Features



General LedgerAccounting Setup Manager

• Setup previously required 5 tabs and multiple steps

• Streamlined Setup Process

• Used to setup legal entity, primary ledgers, secondary ledgers, and SLA setups



General LedgerAlternate Accounts

Note:

scrollbar

�Define alternate accounts if account is

disabled

• Increased efficiency



General LedgerDefinition 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




• Definitions secured with Definition Access Sets

– Accounting Calendars

– AutoAllocations

– AutoPost Criteria Sets

– Budget Formulas

– Budget Organizations

– Chart of Account Mappings

– Consolidation Definitions

– Consolidation Sets

– Elimination Sets

– FSG Reports and

components

– Mass Allocations

– Mass Budgets

– Rate Types

– Recurring Journals

– Revaluations

– Transaction Calendars




Privileges

Responsiblities: Controller Accountant

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

Additional Tools



Integration Repository

Browse

through tree

structure

Search

FunctionalityAll types of

interfaces

Drilldown to

interface

details

• Describes all Oracle interface endpoints



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



73

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



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



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Questions and Answers

Thank You!

Alyssa Johnson

[email protected]

www.solutionbeacon.com

Real Solutions for the Real World ®