R12 Accrual Reconciliation Upgrade Challenges and Resolutions

8/17/2019 R12 Accrual Reconciliation Upgrade Challenges and Resolutions

http://slidepdf.com/reader/full/r12-accrual-reconciliation-upgrade-challenges-and-resolutions 1/22

R12 Upgrade AccrualReconciliation

Challenges

Veeresha Javli (VJ)www.bworld360.com [email protected]

Former Applications Architect, racle !ost "ana#ement, $lobali%ation and

&ocali%ation ' *rod+cts!o-o+nder o- &anded !ost "ana#ement (&!")

!ons+ltin# "ana#er, racle !ons+ltin# ervices (!*$, etail, "an+-act+rin#)

www.lin/edin.cominvjavli



11i10 Challenges• F+nctional !hallen#es

• Accr+al econciliation across b+siness -+nctions were 1+ite comple2

•ard to -ind the speci-ic * distrib+tions that ca+sed accr+al discrepancies

• Accr+al acco+nts were +sed in other acco+nts (vice versa) d+e to +ser errorsres+lted in wron# accr+al balances and reconciliation iss+es that carried overto the -+t+re periods.

•

oth ecoverable and 4onecoverable 5a2es incl+ded in Accr+als• "an+al process -or Accr+alrite --s

• 5echnical !hallen#es

• erio+s *er-ormance iss+e res+lted in dela7ed -inancial period close process.

8



11i VS R12 Accrual Reconciliation Approach11i Accrual Reconciliation Approach

• econciliation reb+ild retrieved data b7transaction date and accr+al acco+nt 9:

• All * transactions (-+ll7 invoiced, partiall7invoiced, +n invoiced *s, writteno-- t2ns inthe transaction date ran#e retrieved

• econciliation eport b7 * lines, reportedman7 seemin#l7 sel-balanced lines ma/in#

the report di--ic+lt to anal7%e

• Foc+s was on reconcilin# the a##re#ate 4etbalance to $&

• "an+al Jo+rnal entries -or Accr+al riteo--s

R12 Accrual Reconciliation Approach

• econciliation reb+ild by lowest common

denominator – PO Distribution ID with net

accr+al discrepancies• 9ncremental b+ild with todate (c+to-- date)

• * distrib+tions with net balance %ero areeliminated in the process, red+cin# thevol+me and improvin# the per-ormance

• A+tomatic Accr+al rite-- s+bmissions

• ne place Accr+al Acco+nt de-initions

3



11i issues and R12 EnhancementsR12 Enhancements

• 'nhanced *er-ormance

– 9ncremental data load +sin# -rom and to dateto load data with o+tstandin# accr+al balances

onl7

– +pport writin# o-- balances

• 9ncreased ;sabilit7

– eaders and lines separation

– +mmari%ation displa7

– A* * data onl7

– "iscellaneo+s data onl7

– "ass writeo--

• A+tomatic Acco+ntin# !reation

– riteo-- will post to &A as an7 other

distrib+tions

11i issues

• *oor *er-ormance

•F+ll data load ca+sin# 7ears o- accr+aldistrib+tions bein# loaded and reloaded

a#ain

• 9n-le2ibilit7 and Ambi#+it7

Forms and eports are data d+mps. :i--ic+lt

to identi-7 the * :istrib+tions to write o--

:ata can not be e2ported in e2cel -ormat.

• *ossibilit7 -or 'rrors

"an+al writeo-- to $& can lead to errors and

mista/es

• 4o +mmar7 eportin#

<



11i10 Accrual accounting Flow

*

$eneral &ed#er

($&)

A*

94V

$& 945'FA!'

9*

6



R12 Accrual accounting Flow

*

+b &ed#erAcco+ntin# (&A)

$eneral &ed#er($&)

A*

94V

$& 945'FA!'

9*

>



Before R12 Upgrade e! Considerations• ??i Accr+al balance mismatch between prod+ct s+b led#ers and

$&•

Veri-7 and compare the Accr+al balances in *, A*, 94V, 9* prod+ct s+bled#ers b7 each accr+al acco+nt to the accr+al balance in $&

• 9- the Accr+al alance in $& is not matchin# with that o- prod+ct s+b led#ers(*, A*, 94V, 9*) with si#ni-icant di--erence, it is o- serio+s concern

• Veri-7 that accr+al acco+nts +sed in m+ltiple b+siness -+nctions and nonaccr+al p+rpose (vice versa).

• +ite li/el7 that there ma7 be a c+stom lo#ic in *, A*, 94V, 9* process,chec/ -or c+stom tri##ers that was placed on core racle ' tables with a

possible serio+s violation o- racle standards.• !+stom pro#rams acco+nted to accr+al acco+nts with wron# process.

• :+plicate rite-- 52ns in ??i *A!!;A&95'FFA&&B



Before R12 Upgrade e! considerations• cenario at a 5elecom client with serio+s accr+al discrepancies

• 9nsert database tri##er in "5&"A5'9A&5A4A!594 ca+sedm+ltimillion dollar discrepancies between 9nventor7 s+b led#er and $&.

• racle *rojects c+stomi%ation acco+nted to wron# accr+al acco+nts.• 'ver7 month, accr+al load r+n -rom the ver7 -irst historical period with

bac/ dated transactions res+lted in improper accr+als.

• ??i?0 Accr+al econciliation with racle core code c+stomi%ed to

improve the per-ormance -or ever7 month -resh reb+ild -rom historicalhi#h vol+me data, res+lted in wron# accr+al reconciliation lo#ic carriedacross periods.

• i#h vol+me o- accr+al writeo-- transactions d+e to ine--icient process.

•atch o+t -or the bac/ dated transactions

• :irectl7 inserted +pdated to core racle tables, a serio+s violation o-oracle standards b7 several top tier cons+ltin# -irms in the priorimplementations that ca+sed ?8 ;p#rade challen#es.

C



R12 Upgrade e! considerations• Accr+al econciliation in ?8 onl7 consider data -rom &A posted to

$&.

•

"an+al Jo+rnals and Adj+stments made in $& are not considered.• 'ndin# balance -rom Acco+nt Anal7sis eport +sed to reconcile the

econciliation +mmar7 eport

• nl7 valid so+rces -rom Acco+nt Anal7sis eport -or Accr+aleconciliation areD

Source Cateory

!ost "ana#ement eceivin#

!ost "ana#ement 9nventor7

!ost "ana#ement 9*

*a7ables *+rchase 9nvoices

?0



R12 Upgrade e! considerations• Followin# so+rces in the Acco+nt Anal7sis penin# alances sho+ld

be eliminated or removedD

Source Cateory!ost "ana#ement Accr+al

*+rchasin#

"A4;A&*'A:''5

'459'rite --s

??



R12 Upgrade e! considerations• ?8 &A ;p#rade *atch o- historical data and impact on Accr+al &oad

• 7 de-a+lt, onl7 6 months o- acco+ntin# data are mi#rated to &A. nl7 6months o- ?8 Accr+al reb+ild occ+rs.

• A separate patch e2ists to brin# acco+ntin# data -or 3 7ears.

• !are m+st be ta/e i- c+stomer is +sin# racle *rojects (*A), since the &A;p#rade patch process is di--erent.

• 9- c+stomer is loadin# more than 3 7ears o- &A acco+ntin# data, then chec/-or the #en+ine rationale beca+se it is 1+ite li/el7 that c+stomer had messed+p ??i?0 Accr+als and ever7 time the Accr+al &oad r+n is bein# e2ec+ted -romthe ver7 be#innin# o- an historical period in order to reprocess all the bac/dated transactions.

• For more than 3 7ears, ;p#rade patch has to applied repetitivel7 withobserved per-ormance iss+es.

?8



R12 Accrual Accounts• :e-ine all the accr+al acco+nts witho+t -ail in the screen Select Accrual Accounts

*athD *+rchasin# Acco+ntin# Accr+al rite o--s

• !+stomers o-ten -or#et to enter some accr+al acco+nts res+lted in incomplete

Accr+al econciliation since Accr+al &oad +n e2ec+tes onl7 on the de-inedaccr+al acco+nts.

?<



Accrual Reconciliation DataAccrual Reconciliation Data

Removed

Deleted

User Write Off the balance

Written Off Transaction DataWritten Off Transaction Data

Created

Inserted

Reversed

Inserted the

opposite

Write Off

User Reverse the Write

Off transaction

Created

Inserted

Trigger the creation of the Write

Off transaction to represent the

amount being written off

Recreate the Accrual Reconciliation data being

previously written off

Incremental

Load

Load of Accrual DataWith outstanding

balance

R12 Accrual Reconciliation and "rite#$ff

CS"#RECO$CI%IA"IO$#S&''AR(

CS"#AP#PO#RECO$CI%IA"IO$CS"#'ISC#RECO$CI%IA"IO$

CS"#)RI"E#O**S

CS"#)RI"E#O**#DE"AI%S

CS"#RECO$CI%IA"IO$#+&I%D

?=



R12 Accrual Reconciliation and "rite#$ff

?6



R12 Accrual Reconciliation %oad Run

?>



R12 Accrual Reconciliation %oad Run• !5A!!&.pls D $et latest version with all the per-ormance -i2es.

• 'ns+re &A *er-ormance *atch applied, $enerate tats e2ec+ted

• First 5ime +ild• :ate FromD "in 5ransaction :ate -rom &A is pic/ed as the tart :ate• &A ;p#rade G ow -ar one wants to #o in historical data -or Accr+al

&oad• :ate 5oD ;ser entered :ate +p to which Accr+al econciliation is loaded• "wo Step Process

a) ??i?0 Accr+al writeo-- mi#rated to ?8 Accr+al write o-- tablesb) ??i?0 Accr+al data mi#rated to ?8 Accr+al econciliation tables

• !onsec+tive +n (9ncremental +ild)• Accr+al &oad +n e2ec+tes nl7 -or delta transactions -rom prior r+n

end date to the +ser entered date

?B



Accrual "rite $ff and Reconciliation &a'les??i Accr+al 5ables

• *A!!;A&95'FFA&&

• *A!!;A&'!4!9&'5'"*

A&&

?8 Accr+al 5ables

• !595'FF

• !595'FF:'5A9&

• !5'!4!9&9A594;""AH

• !5A**'!4!9&9A594

• !5"9!'!4!9&9A594

• !5'!4!9&9A594;9&:(control table)

?C



References and (etalin) *ocs• FA ?8 'ssentials - Accr+al Acco+ntin# (:oc 9: B8>?8=.?)

• ?8D :iscrepancies with Accr+al econciliation eport

5ro+bleshootin# (:oc 9: ???>3=3.?)• Accr+al econciliation &oad +n as low *er-ormance (:oc 9:

?<C0=>B.?)

• :oc 9: ?<>B8C8.? ?8 Accr+al econciliation :ia#nostics And

5ro+bleshootin# $+ide

• :oc 9: ??0>C=3.? ?8 Accr+al alance "ismatch etween Accr+aleconciliation eport

• :oc 9: B66>33.? ow 5o :ia#nose 9nventor7 Accr+als And Accr+alrite -- 9ss+es

• 9mpact o- ?8 :esi#n in *roc+re 5o *a7 Acco+ntin# Flow (:oc 9:<8C?0=.?) 80



References and (etalin) *ocs• :oc 9: ??8608=.? ?8D :iscrepancies ith Accr+al econciliation

eport For !onsi#ned

•

:oc 9: BB3==>.? ?8D ow 5o Avoid and Fi2 !orr+ption in :ata5rans-er -rom &A

• :oc 9: 60<BC3.? ?8.0 and ?8.?D FA -or the &A ;p#radeD &A*re;p#rade, *ost;p#rade, and ot *atch

• :oc 9: ?<>80CC.? "issin# Acco+ntin# 'ntries 9n &A For 5ransactions9n ;p#raded *eriods

• :oc 9: ?<>B8C8.? ?8 Accr+al econciliation :ia#nostics And

5ro+bleshootin# $+ide• ?8 Acco+nt e1+irements For 9nventor7 Accr+al econciliation (:oc

9: B8<3BB.?)

8?



Q& A

Thank You!

88

R12 Accrual Reconciliation Upgrade Challenges and Resolutions

Documents

Transcript of R12 Accrual Reconciliation Upgrade Challenges and Resolutions