201533 Anand Final Sec Ledgers

8/17/2019 201533 Anand Final Sec Ledgers

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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Secondary Ledgers……Unleashing Its Power!!!

Presented By: Anshu Anand, Principal Software Engineer, Oracle GCSSivaranganath Chittapragada, Principal Software Engineer, Oracle GCS

Sangam’ 2014 : November 07

Oracle Confidential – In


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Agenda

• Global Reporting : Pre-R12 Options

• Secondary Ledgers : The Solution Offered by Release 12.

• Kinds of Secondary Ledger Conversions.

• Adding Secondary Ledger to existing Primary : Balance Initiation

• Tips for Easy Maintenance.

• Things to Know Before Considering Secondary Ledgers.

• Pointers to Reconcile

• Q&A


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Scope


•Focus on Functionality and Business Usage. Detailed setups are kept ou

now. The reference documents for setups are available in the Oracle Kno

•The examples referred are for indicative purposes only. Their actu

depend on the holistic requirement of an organization.

•Reference to Accounting Conventions. The details and their accounting

of the scope of this presentation.


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Corporate Global Presence…Varied Statutory Needs….


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Low priced AssetPurchased

Asset orExpense ?

InterdepartmentalSales

Depreciation

Useful Life of Asset orFixed Percentage

CompanyHead OffCurrency

Company : ABC Corp LtdCountry Office : SingaporeCurrency : SGD

CoCoC


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Pre R12 OptionsStatutory Global Reporting


Primary BookChart of Accounts : Acc

Currency : USD

ReportiChart of Ac

Currenc

ReportiChart of Ac

Curren

ReportChart of ACurre

• Multiple Reporting Currencies (MRC)

• Consolidation


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Possible Solutions Offered by R12 Applicatio

Meeting Statutory Requirements for Global P



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Secondary Ledgers Defined

• Represents Primary Ledger data that differs in one or more of the following

Chart of Accounts Currency

Sub Ledger Accounting Method(SLAM)

Calendar

• Used for supplementary purposes, such as Consolidation, Statutory reporting for one or more legal entities within the same accounting setup.

• Optional



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Kinds of SecondaryLedger Conversions

• Journal Level Secondary Ledger.

• SubLedger Level Secondary Ledger.• Balance Level Secondary Ledger.• Adjustment Level Secondary Ledger.



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Journal Level Secondary Ledger


Journal in

Primary

Journal Replicated

in SecondaryPosting

Sub Ledger

Transactions Transfer toGeneral Ledger

Manual

Journals

Data Flow


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• Comes across as a powerful tool when companies require the transactions/Joavailable in secondary ledger.

• Drilldown facility.

• Enable the Required Sources for Replication

General Ledger Responsibility -> Setup -> Accounting Setup Manager

Journal Conversion Rules

• Allows Manual ‘Adjustments’ too.


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Busin

Corporate Head

Country Office

Different CalenStatutory and C

If a legal entity corporate and s

one can use thesatisfy corporatrequirements asecondary ledgestatutory report


SecondaryLedger

Primary

Ledger

Legal

Entity

Operating

Units

Inventory

Orgs

India Ledger

(INR)

India Org

India OUs

India LEsIndia LEs

US Org

US OU

US LE

US

Ledger(USD)

Corporate Consolidated Ledger(USD)

CorporateReporting:Jan to Dec

StatutoryReporting:Apr to Mar

India SecondaryLedger (Calendar:

Apr –Mar)


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• Subledger Level Secondary Ledger.• Balance Level Secondary Ledger.• Adjustment Level Secondary Ledger.



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Sub Module

TransactionsJournal Import

Manual

Journals

Primary

Ledger

Secondary

Ledger

Manual

Journals

Sub LedgerAccounting

Method(SLAM)

Transaction

Version1

Transaction

Version2

Replicationon Import

Data Flow


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Sub Ledger

Entries

Primary Ledger:Chart of Accounts : A

Currency : USD

( SLAM : United States

Federal )

SLAM:

Standard Accrual

SLAM:

Standard Cash

SLAM:

United States

Federal

Secondary Ledger:Chart of Accounts : B

Currency : SGD

( SLAM : Standard Accrua

Secondary Ledger:Chart of Accounts : B

Currency : INR

( SLAM : Standard Cash)


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• Most transparent form of Conversion.

• SubLedger transfers data to both Primary and Secondary at the same time

• Virtually allows a Company to live in two different accounting representations.

• Complete drilldown available from Secondary Ledger to the Submodule.

• Apart from SubLedger transferred entries, GL Posting also replicates data into replication of manual journals.

• SubLedger Sources should be disabled for replication Upon Posting to avoid dup



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Busi

Corporate H

Country Offi

Different ATreatment ntransaction :

Local tax reguthe “Sales Accbilling…but..Co

example IAS/Irevenue is recthe customer


Primary Ledger(For Corporate

Reporting)

Country OperationsSecondary Ledger(For Statutory/Local

Reporting)

Issue aSales

Invoice

International Accounting Standards(IAS)Revenue is recogni zed only when

the customer accepts the product.

Local Laws of ReportingSales Account r eflects all Billing

Receivables a/c….DebitDeferred Revenue a/c… Credit

Receivables a/c….DebitRevenue a/c… Credit


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• Subledger Level Secondary Ledger.• Balance Level Secondary Ledger.•Adjustment Level Secondary Ledger.



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Journal in

Primary

Only Balance

Moved To

SecondaryCONSOLIDATION

SubLedger

Transactions Transfer toGeneral Ledger

Manual

Journals

Data Flow


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Balance Level Secondary Ledger Cont….

• Secondary Ledger maintains only Balances from Primary (and not journals)

• Requires ‘Consolidation’ to transfer balances from Primary to Secondary.• Ideal when no Adjustments are required in Secondary Ledger.

• Provides drilldown from ‘Account Inquiry and Drilldown’.

• Does not provide real time data like Journal Level Conversion.

• Easy to maintain and Reconcile.



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• Subledger Level Secondary Ledger.• Balance Level Secondary Ledger.•Adjustment Level Secondary Ledger.



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Primary

Ledger

Adjustments

Only Ledger

Create FSG Report

Data Flow


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• Adjustment ledger must share same Chart OfAccounts, Calendar/Period Type combinationand Currency associated to the PrimaryLedger

• Suggested to Include the Adjustment leaderwith the same Ledger Set as the PrimaryLedger to get complete picture while runningReports.

Adjustment Level Secondary Ledger Cont….

Account

Primary

Ledger

(INR)

Sales 5,00,000

Short Term

Investments

10,000

Other Receivables 76,000

CIP Cost 1,00,000

Accrued Payroll 69,000


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SubledgerSubledger, Journals &

Balances

• Enable Sub le

Method for Prim

Ledgers is Man

• Data Conver

Journal Conver

Translation O

Ledger

.

Journal GL Journals & Balances

Data Convers

Journal Conver

Translation O

Ledger

Balances Balances Only

Data Convers

Journal Conver

Translation O

Ledger

Adjustments

Only

Enter Manual

Adjustments directly into

Secondary Ledger or set

the SLA rules such that it

transfers only

adjustments

The Chart of

Currency of a

sync with that o

Summarizingthe Concept…


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Adding Secondary

Ledger to ExistingPrimary…



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• To Initialize Balances for General LedgerConsolidationWeb ADI

• To Initialize Subledger Events

Concurrent program:”SLA Secondary/ALC Ledger Historic Upgrade”.The program performs the following validations:

• Applicable for SubLedger Level Conversion Only.

• Application Accounting Definition (AAD) of Secondary and Primary Ledgers sh

same.

• If the earlier run of the program is incomplete / failed, then the present run s

Recovery mode, with the same parameters as the prior run.• Currency conversion rates between Primary Ledger’s entered / accounted cur

Secondary Ledger’s functional currency should be defined.

• If the Secondary Ledger is of a different chart of accounts, the chart of accoun

mappings should be defined.


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But Maintenance ofSecondary Ledgers Is

Very Difficult….

…Not Really


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Secondary Ledgers using same Chart of AccountCalendar and Period Type


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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle C

1. PostingFor Journal and Subledger level conversions

Setup : ‘Post Journals Automatically from Source Ledger'Requirements : Period Open in Secondary Ledger

For Balance Level ConversionSetup : Check ‘Autopost’ while running Consolidation.

Journal /SConvers

Post inPrimary

2. AutopostAllows posting all Unposted Journals at one shot.

. 3. Document Sequences

Profile: GL_COPY_DOC_SEQ_FROM_PRIMARYAvailable through Patch 8509030:R12.GL.B


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Journal Reversal

• Option 'Synchronize Reversals Between Primary and Secondary‘

• Option 'Replicate Reversals from Primary Ledger'

NoManualYes

AutoReversal

Allows reversal of Multiple Journals at one shot.Criteria Set based.

Budgets

Journal Approval

Journal Line Reconciliation

Ledger

Functio


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Things to Know while

Considering Secondary

Ledgers

…..Do It Right!


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• Average Balances

• Journal Line Reconciliation.

• Subledger level Reporting Currency cannot be attached to a Secondary ledger.

• Selective Assignment of Balancing Segment from Primary to Secondary

• 'Chart of Accounts Mapping', a Balancing Segment Value of one ledger cannot be

Non-BSV segment of the other.

•'Adjustment Segment' Vs 'Adjustment Ledger‘

• Re-enable Secondary Ledger

• Budgets - Do we need them in Secondary???

• Change in SLAM Allowed ????

1. Balancing Segment2. Cost Center3. Natural Account4. Future

1. Balancing Segment2. Natural Account3. Future


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Pointers to

Reconciliation



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Journal Level

Expectations

• All posted Journals from primary are replicated in

Secondary.

• Excepting those sources and Categories markedfor non-replication explicitly.


• Post the ‘Unposted’ journals in primary to allow

For replication in Secondary.

• Both Primary and Secondary are individual ledgerson their own. Manual Journals created in Secondary only

can be one of the major causes of mismatch in

balances

Technical Ass

1. Upon Posting in Primary

Table : GL_JE_HEADERS

2. Identify Sources and CategorieReplication

Table : GL_JE_INCLUSIO


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Subledger Level

• Run the ‘SLA Diagnostics’ to identify missing transactions.

How To Avoid and Fix Corruption in Data Transfer from SLA - Negative LReached GL, Duplicate in GL (Doc ID 883557.1)

Any Datafix To be run after confirmation from Oracle Support Only***

• Can be run for both Primary and Secondary.

• Query from Journal Reconciliation to be run to identify manual Journals not re

• Ensure All journals are posted in Primary and Secondary before reconciliation.

• Document Sequences



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Balances Level

• Post all the journals in Primary before running Consolidation

• Suggested to run Consolidation in the ‘Audit’ mode.

• Ensure Journals created in Secondary are Posted.

• Run Summary Trail Balance (or Translated Trial Balance) for both ledgethe Account balances.

• For accounts with difference, suggested to run the ‘Account Analysis (1report to identify any manual journals created in Secondary causing the

• Reports:‘Chart of Accounts - Mapping Rules’ ReportConsolidation Exception Report: Unmapped Subsidiary AccountsConsolidation Exception Report: Disabled Parent Accounts



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Safe Harbor Statement


The above material is intended to outline our general product directionis intended for information purposes only, and may not be incorporat

into any contract. It is not a commitment to deliver any material, code,

functionality, and should not be relied upon in making purchasing decisio

The development, release, and timing of any features or functional

described for Oracle’s products remains at the sole discretion of Oracle.


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201533 Anand Final Sec Ledgers