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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
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•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
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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
Oracle Confidential – In
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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
Oracle Confidential – In
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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
Oracle Confidential – In
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
Oracle Confidential – In
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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Kinds of SecondaryLedger Conversions
• Journal Level Secondary Ledger.
• Subledger Level Secondary Ledger.• Balance Level Secondary Ledger.• Adjustment Level Secondary Ledger.
Oracle Confidential – In
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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
Oracle Confidential – In
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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Kinds of SecondaryLedger Conversions
• Journal Level Secondary Ledger.
• Subledger Level Secondary Ledger.• Balance Level Secondary Ledger.•Adjustment Level Secondary Ledger.
Oracle Confidential – In
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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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Kinds of SecondaryLedger Conversions
• Journal Level Secondary Ledger.
• 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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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.
Oracle Confidential – In
• 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
Oracle Confidential – In
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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Email Contacts:
[email protected] [email protected]
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