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Release 12 : Ledger Architecture

Milan Parikh

Principal Product Manager

Agenda

• Set of Books Architecture

• Market Drivers

• Key Features

• Business Benefits

• Upgrade

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Set of Books Architecture

� Set of books

• Holds the accounting for 1 or more legal entities

• Defined by 3C’s

• Chart of accounts, functional currency, accounting calendar

� Each GL responsibility tied to 1 set of books

� Managing Multiple Accounting Representations

• Multiple Reporting Currencies (MRC)

• Use GL Consolidation functionality to consolidate

Set of Books Architecture

SOB East($)

SOB West($)

SOB ATS(€)

SOB DM(€)

SOBs

Modeling Entities with Sets of Books

US East US West Austria GermanyLegal Entities

OU East OU ATSOU West OU DMOUs

Modeling Entities with Sets of Books

Pros Cons

• Each legal entity is a separate set of books

• Data is secure

• Easy to secure definitions, such as FSG reports

• 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

… with Balancing Segment Values

SOB US($)

SOB Europe(€)

SOBs

OU East OU ATSOU West OU DMOUs

LEs(BSVs)

US East(01)

Austria(03)

Germany(04)

US West(02)

Pros Cons

• Fewer books to maintain

• No changing responsibilities

• Share setup information

• Perform processes across

legal entities

• Easy reporting

• Consolidated information

• Cannot share setup and data

across currency boundary

• No data security

• Cannot secure definitions,

such as FSG Reports and

Mass Allocations

• No explicit mapping of LE’s

with BSV’s

… with Balancing Segment Values

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Market Drivers

�Cross/Multiple-Set of Books Operations and Reporting

�Data and Definitions that can be shared and secured

�Support for Multiple Accounting Representations

Market Drivers

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Key Features

Key Features

• Ledger - Primary, Secondary and Reporting Currencies

• Ledger Sets

• Data Access Sets

• Definition Access Sets

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Ledger

� Defined by 4C’s

i. Chart of accounts

ii. Functional currency iii. Accounting calendariv. Accounting method

� Set of books is converted to a ledger

� Explicit modeling of legal entities via ledgers or

balancing segment values

� The transaction entries are done in Primary Ledger

Ledger

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Secondary Ledger

Business Scenario

US GAAPUS GAAP

US COAUS COA

US CalendarUS Calendar

$$

US GAAPUS GAAP

US COAUS COA

US CalendarUS Calendar

££

French IASFrench IAS

Plan Plan ComptableComptable

French CalendarFrench Calendar

€€

Operations in US, UK, France

US GAAPUS GAAP

US COAUS COA

US CalendarUS Calendar

$$

US GAAPUS GAAP

US COAUS COA

US CalendarUS Calendar

$$

US GAAPUS GAAP

US COAUS COA

US CalendarUS Calendar

$$

Business Scenario

US GAAPUS GAAP

US COAUS COA

US CalendarUS Calendar

££

French IASFrench IAS

Plan Plan ComptableComptable

French CalendarFrench Calendar

€€

Reporting ledger

Secondary Ledger

Secondary Ledgers

• For global companies that must

comply with different countries’

legal requirements

• Useful for supplementary

purposes, such as consolidation

or management reporting

• Provides a complete accounting

picture within itself or a partial

picture to be grouped with other

ledgers to provide a complete

picture

• More flexibility!

• Represent legal entity(s) accounting information in a different:

• Accounting method

• Chart of Accounts

• Calendar

• Subledger Accounting Method

• Maintain at 4 Different Levels

• When security and independence is preferred, secure data and allow certain processes to be performed independently

• Management Reporting Efficiency

Business Reasons Benefits

Secondary Ledger

SLA

Transaction

Accounting

Subledger Transactions

SLA

Corporate Ledger(Primary Ledger)

Local Statutory Ledger(Secondary Ledger)

AP AR FAOther

Subledgers

Legal Entity

Maintaining Multiple Accounting Representations with Secondary Ledgers

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Reporting Currencies

Reporting Currencies

• Useful for consolidation reporting

and analysis

• No need to physically move

balances to create views of

consolidation data

• Beneficial for parent consolidation

entities that share the same chart

of accounts and calendar with

their subsidiaries

• For accounting and reporting in

another currency (in addition to

the ledger’s primary currency)

• Can be used with Primary or

Secondary ledgers

Business Reasons Benefits

Use Reporting Currencies

Currency

If difference is only currency,

Conclusion

CorporateChart of accounts

Monthly Calendar

Accounting Method

US GAAPAccrual

Use a Secondary Ledger

4Cs of a Primary Ledger

If one or more of the following are different,

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Ledger Sets

Ledger Sets

• Grouping of ledgers with the same chart of accounts and

calendar/period type combination

• Essentially treats multiple ledgers as one

Ledger Sets

Open/Close Periods• Open/Close Periods Independently or Simultaneously

Create Journals• Allocations Across Ledgers

• Recurring Journals for All Ledgers

Translate Balances• Translate Balances for All Ledgers

View Information• No Changing Responsibilities

• View Journals and Account Balances

Create Reports• Report on One or All Ledgers in a Ledger Set

Perform the Following Across Ledgers:

Ledger 2

Ledger SetLedger Set

Ledger 1

Ledger 4

Ledger 3

Ledger Sets

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Data Access Sets

Data Access Sets

� Enable responsibilities to access multiple ledgers

� Achieve granular control for accessing balancing

segment values

� Setup read/write privileges

Data Access Sets

Ledger

Legal Entities(BSVs)

US Corporate Ledger ($)

US East(01)

US West(02)

US South(03)

Access Level Read Only

• View Journals• View Balances• View Reports

Read/Write

• Create/Post Journals• Update Balances• Run Reports

Data Access Sets

Ledger

Legal Entities(BSVs)

Access Level

US Corporate Ledger ($)

US East(01)

US West(02)

US South(03)

Read/Write to Full Ledger

• Create/Post Journals• Update Balances• Run Reports

• View Journals• View Balances• View Reports

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Define Data Access Set

Setup : Financials : Data Access Sets

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Definition Access Sets

� Control access to setup/reference independently of data

security

� Enable setup sharing across ledgers

and ledger sets

� Enable setup autonomy within multi-legal entity ledgers

� Set up view, modify, and usage privileges

Definition Access Sets

Definition Access Sets

Securable Definitions using Definition Access Sets

• Accounting Calendars

• AutoAllocations

• AutoPost Criteria Sets

• AutoReversal Criteria Sets

• Budget Formulas

• Budget Organizations

• Chart of Accounts Mappings

• Consolidation Definitions

• Consolidation Sets

• Elimination Sets

• FSG Reports and

components

• MassAllocations

• MassBudgets

• Rate Types

• Recurring Journals

• Revaluations

• Transaction Calendars

Definition Access Sets

Control Access to Definitions

UseUse ViewView ModifyModify

GL Clerk Controller

Rent Allocation

Recurring Rent

Rent Allocation

Recurring Rent

Balance Sheet

Income Stmt

PrivilegesPrivileges

Setup Definition Access Set

Setup Definition Access Set

Setup Definition Access Set

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Business Benefits

Business Benefits

� Support for multiple accounting representations

� Primary Ledger, Secondary Ledgers

� Cross/multiple-ledger operations and reporting

� Ledger Set

� Data and definitions that can be shared and secured

� Data Access Set

� Definition Access Set

Many ledgers to maintain

Changing responsibilities

Difficult to share data and setup information

Cannot perform processes across ledgers

Time-consuming open/close process

Difficult reporting

Modeling Entities with Ledgers

Pros Cons

Each legal entity is a separate

ledger

Data is secure

Easy to secure definitions;

Reports and Mass Allocations

Cannot share setup and data across currency boundary

No data security

Cannot secure definitions, such as FSG Reports and Mass Allocations

Implicit mapping of LE’s with BSV

… with Balancing Segment Values

Pros Cons

Fewer ledgers to maintain

No changing responsibilities

Share setup information

Perform processes across legal

entities

Easy reporting

Consolidated information

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Upgrade

Upgrade

• 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

• 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

Release 11i Release 12

Thank You