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Release Twelve
The Global Business Release
2
GLOBALIZATION…Today’s workforce, customers, suppliers, and competitors have all become global
COMPLEXITY AND COSTS… Globalization brings complexity with it, and unnecessary complexity drives up costs
INNOVATION AND GROWTH… Not just any growth, but growth that creates value
GOVERNANCE, RISK & COMPLIANCE…Companies are under pressure to do more than just meet the letter of the law
CFO AgendaTransforming Finance into a Strategic Weapon
3
National and International Laws & Regulations
Actions by Competitors
Changing Customer Requirements
Industry Standards and Regulations
Tax Codes
Changing Workforce Attitudes
International Reporting Standards
Language and Cultural Differences
11
Doing Business Globally is ComplexTop Drivers of Complexity
22
33
44
55
66
77
88
Direct impact on Finance
Source: PWC, 9th Annual Global CEO Survey
Globalization is unstoppable. Regardless of geography, industry or income, companies are globalizing to gain new customers and access new markets. Is this a good thing? Nearly two-thirds of the CEOs we surveyed
are positive about the impact that globalization will have on their
organizations over the next three years.
Source: 9th Annual Global CEO Survey – Globalization and Complexity; PwC 2006
4
Sharing Services is Strategic
Shared Services provide a proven way for governments and businesses to gain better control of their finance operations and streamline redundant processing and systems.
Source: Shared Services: Enabling Finance Mastery and High Performance, Accenture 2005
5
WORK GLOBALLYTo Be More Competitive
THINK GLOBALLYTo Make the Right Decisions
MANAGE GLOBALLYTo Lower Cost & Increase
Performance
How Financials Release 12 ContributesThe Global Business Release
Global Financial Architecture
Centralized Processing
+ 300 New Financial Features
Performance Management
Profitability Management
Business Intelligence XML Publisher
New Reporting ParadigmFinancial Consolidation
Hub
6
WORK GLOBALLYTo Be More Competitive
THINK GLOBALLYTo Make the Right Decisions
MANAGE GLOBALLYTo Lower Cost & Increase
Performance
How Financials Release 12 ContributesThe Global Business Release
Global Financial Architecture
Centralized Processing
+ 300 New Financial Features
Ledgers and Ledger Sets
Multi-Org Access Control
7
Global Financial Architecture
BankBankModModelel
Tax Tax EngineEngine
InterInterCompanyCompany
General Ledger General Ledger Ledger & Ledger Ledger & Ledger Sets Sets
General Ledger General Ledger Ledger & Ledger Ledger & Ledger Sets Sets
Subledger Accounting (SLA) Subledger Accounting (SLA) DrDr CrCr
ProjectsReceivablesInventory
Work in Process
Purchasing Payables
Multi-Multi-OrgOrg
AccessAccessControlControl
6 Major Initiatives1. Ledger and
Ledger Sets2. Multi-Org
Access Control
3. Subledger Accounting
4. Tax Engine5. Intercompany6. Bank Model
8
• Work Globally• Global Order Desk• Global Procurement• Global Billing• Global Dunning
• Think Globally• Global Ledger Sets –
worldwide insight• Global Reporting
• Manage Globally• Global Accounting
Rules• Global Set-up• Global Integration
What the Architecture Gets You
Release 12 Subsidiary LEs….
…account for themselves in Ledgers, and…Ledger Set
Company CompanyCompany
ProjectsReceivablesInventory
Work in Process
Purchasing Payables
Multi-Multi-OrgOrg
AccessAccessControlControl
manage their subledger data in Operating Units
9
Ledger Sets Global Information At A Glance
Ledger Ledger SetSet
Key benefits to many Ledgers in one set
•Decision-driving business information always available
•Simpler processing and General Ledger management
•Data and definitions that can be shared and secured
US GAAPUS COAUS CalendarUSD
Ledger CLedger C
US GAAPUS COAUS CalendarEUR
Ledger BLedger BFrench RulesPlan ComptableFrench CalendarEUR
Ledger ALedger A
Share:Share:CChart of hart of AccountsAccounts
CCalendaralendar
Ledger DLedger D
Reporting Currency
US GAAPUS COAUS CalendarAUD
10
ResponsibilityResponsibility ResponsibilityResponsibility ResponsibilityResponsibility
HollandLegal Entity
DenmarkLegal Entity
BelgiumLegal Entity
Functional Tasks Order Management Dunning, Collections,
Billing Requisition, Demand &
Purchase Orders Receiving & Drop Ship Invoice Receipt,
Disbursement Customer Data
Management Accounting Setup
Single Responsibility
BelgiumOperating
Unit
HollandOperating
Unit
DenmarkOperating
Unit
Perform multiple tasks across operating units without changing
responsibilities
MOAC: Multi-Org Access ControlRole based access to Operating Units
11
WORK GLOBALLYTo Be More Competitive
THINK GLOBALLYTo Make the Right Decisions
MANAGE GLOBALLYTo Lower Cost & Increase
Performance
How Financials Release 12 ContributesThe Global Business Release
Global Financial Architecture
Centralized Control
+ 300 New Financial Features
Subledger Accounting
Tax Engine
Intercompany
Bank Model
12
Subledger AccountingCentralized Rules, Common Repository: Global Control
Payables InvoicePayables Invoice
French RulesFrench RulesPlan Plan ComptableComptableFrench French CalendarCalendarEUREUR
LedgerLedger
SubledgeSubledgerr
AccountiAccountingng
DrDr CrCr
• Faster, Easier Reconciliation
• Corporate Rules = Accounting Standardization
• Local Rules = Improved Local Compliance
• Automate “Apples to Apples” Adjustments
• Improved Audit- ability
• Improved Internal Control
Some Benefits• Accounting Rules
• SarBox & 8th Dir.• User Editable
• Subledger Daybooks (Journals)
• Subledger Balancing• Reports, inquiries, open
items, et cetera• Multiple
Representations• Common Posting to GL
Ledgers • Real time or Periodic
What it is
13
US GAAPUS GAAPUS COAUS COAUS US CalendarCalendarEUREUR
Ledger BLedger BFrench RulesFrench RulesPlan Plan ComptableComptableFrench French CalendarCalendarEUREUR
Ledger ALedger A
Multiple Accounting RepresentationsGlobal Compliance – Statutory and Stock Market
SubledgeSubledger r
AccountiAccountingng
Single Single subledger subledger
transactiontransactioncan create can create multiplemultiple
accounting accounting representationsrepresentationsand in multiple and in multiple
currenciescurrencies
DrDr CrCr
Payables InvoicePayables Invoice
Chose to us an Chose to us an alternative alternative
Ledger -Ledger -or just an or just an
AdjustmentAdjustmentLedger or Ledger or segmentsegment
or
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US GAAPUS GAAPUS COAUS COAUS US CalendarCalendarEUREUR
Ledger BLedger BFrench RulesFrench RulesPlan Plan ComptableComptableFrench French CalendarCalendarEUREUR
Ledger ALedger A
Multiple Accounting RepresentationsManagement Version in a Management Ledger Set
SubledgeSubledger r
AccountiAccountingng
Single Single subledger subledger
transactiontransactioncan create can create multiplemultiple
accounting accounting representationsrepresentationsand in multiple and in multiple
currenciescurrencies
DrDr CrCr
Payables InvoicePayables Invoice
Chose to us an Chose to us an alternative alternative
Ledger -Ledger -or just an or just an
AdjustmentAdjustmentLedger or Ledger or segmentsegment
IAS/IFRSor USGAAP
Ledger Set
or
15
Accounting Methods Builder
Vision Operations (USA) Ledger
Standard/GAAP Accrual Subledger Accounting Method
Payables Accrual Application Accounting Definition
Journal Line Types
Account Derivation Rules
Journal Entry Descriptions
Invoice Journal Line Definition
Transaction Objects Eg: Invoices, Credit Memos, Payments, etc
Sources Eg. Invoice Date, Invoice Amount, Attribute1…20, Supplier name, etc.
16
Define Multiple Ledgers for Rules & Currencies
Define Legal Entities& Associated Rules
One Place to manageYour Global Accounting
Rules, Currencies,Ledgers,
And Ledger Sets Set Accounting Rules
for All EBS Apps
Ensure Complete & Accurate
Setup via Online Checklist
Centralized Set-upAccounting Setup Manager
17
Automation• Tax content for certain countries• Vertex and Taxware integration for U.S. • Integrity checks during setup process
Constant Changes in Tax Laws and Regulations
• Date effective setup • Tax rules flow for change or creating rules • Tax simulator for setup, rules, and transactions
Business NeedsBusiness Needs SolutionSolution
Local Compliance• Tax registrations and tax reporting codes• Tax lines determine applicable taxes• Configurable tax reporting templates
Centralized Global TaxLess Complex Global Tax Compliance
Information Visibility
• Single set up for all Oracle applications• Use of E-Business Suite components such as trading partner geography,
trading partner classification, legal entity, inventory item categorization, and accounting event.
18
Web UIWeb UI
Open Open Interfaces / Interfaces /
APIAPI
Excel Excel (Web ADI)(Web ADI)
Advanced GlobalIntercompany
System SubledgerSubledgerInvoices &Invoices &DocumentsDocuments
Generate subledger invoicesGenerate subledger invoices Control transaction entry with Control transaction entry with
Intercompany CalendarIntercompany Calendar Fully Configurable Approval RulesFully Configurable Approval Rules Flexible Security ModelFlexible Security Model Centrally defined Intercompany Centrally defined Intercompany
AccountsAccounts
Online Online Reconciliation Reconciliation
ReportingReporting
XML XML Publisher Publisher ReportsReports
Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close
Subledger Subledger AccountingAccounting
DrDr CrCr
General General Ledger Ledger ReceivableReceivable
ssPayablePayable
ss
19
Bank Model: Example of what you can doPay invoices from different OUs with 1 instruction
OU A
OU B
OU CBank
Single Payment
Instruction
Invoices
Payments
Sub Ledger Sub Ledger AccountingAccounting
• New Payments Module• New Bank Module• New Bank & Credit Card
Features
20
WORK GLOBALLYTo Be More Competitive
THINK GLOBALLYTo Make the Right Decisions
MANAGE GLOBALLYTo Lower Cost & Increase
Performance
How Financials Release 12 ContributesThe Global Business Release
Global Financial Architecture
Centralized Control
+ 300 New Financials Features
Financial Control & Reporting
Credit-to-Cash
Procure-to-Pay
Treasury & Tax
Governance, Risk & Compliance
Asset Management
Travel & Expense
21
Over 300 New Financial FeaturesJust a sample…
• Manage the Margin
• Collect Faster
• Standardize Payables
• Pay more easily
• Simplify Employee Expenses
• Rationalize Procurement
• Bulk Process Assets
Simplify and StandardizeSimplify and Standardize New FeaturesNew Features
• Live AR-Inventory. Revenue-COGS Match
• Deferred COGS and Revenue Automation
• Advanced collection, Dunning, Loans
• Invoice Lines
• Suppliers in TCA: one setup per partner
• Supplier, users invoice self service
• Straight through processing (STP) at banks
• Per diems, approval enhancements
• Expense Bar Codes
• Self Service receipt matched invoices
• Real time contract T&Cs in PO, AP
• Asset Automatic Depreciation Rollback
22
WORK GLOBALLYTo Be More Competitive
THINK GLOBALLYTo Make the Right Decisions
MANAGE GLOBALLYTo Lower Cost & Increase
Performance
How Financials Release 12 ContributesThe Global Business Release
Global Financial Architecture
Centralized Processing
+ 300 New Financial Features
Performance Management
Profitability Management
Business Intelligence XML Publisher
New Reporting ParadigmFinancial Consolidation
Hub
23
Evolution of Operational Reporting
•Payables Mgmt•Payables Status •Customer Support Mgmt•Plan Mgmt•Commodity Supplier
Mgmt•Commodity Spend Mgmt•Product Mgmt –
Engineering •Manufacturing Mgmt•Customer Fulfillment
Mgmt•Shipping Mgmt•Inbound Telephony
Mgmt•Service Renewals Mgmt•Capital Project Cost
Mgmt•Contract Project Cost
Mgmt
• Receivables Mgmt• Receivables
Status• Supplier
Management• Sourcing
Management• Procurement
Spend Management
• Employee Absence Management
• Sales Agreement Management
• Web Store Management
11i.9 (DBI v6) 11i.10 (DBI v7.0 & 7.1) 12 (DBI v8)
IntelligenceReports
33
214
377
54
313
827
> 60
> 370
> 940Capabilities/ Roles
•Purchasing Performance
•Purchasing Status•Warehouse Mgmt•Transportation Mgmt•Maintenance Mgmt•Depot Repair Mgmt•Field Service Mgmt•Funds Mgmt•Salary & Turnover
Mgmt•Workforce Budget
Mgmt•Open Enrollment Status•Contingent Worker
Mgmt•Compliance
Certification
•Product Revenue Bookingsand Backlog
•Product Mgmt•Product Cost Mgmt•Inventory Mgmt•Sales Forecast Mgmt
vers
ion
7.0
vers
ion
7.1
DashboardsKPIs
CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
24
Receivables DBIKeep the money flowing in…
26
FinancialConsolidation
OperatingBalances
*Common data model for Oracle’s CPM solution
SAP
PeopleSoft E
JD Edwards E1
Oracle EBS
Legacy Apps
One-TouchConsolidation
ReportGeneration
Multi-DimensionalAnalysis
ResultsAuditing
DataTransformation
& Validation
ComplianceCertification
Global Visibility and IntegrationFinancial Consolidation Hub
27
Unified Financial Reporting and Compliance Management*
• Drill back to source transactions
• Monitor consolidation process and certification status
• Dynamic spreadsheet-based statutory and mgmt reporting
Manage Consolidation Process & Auditability* AvailablePre-R12
• Compliant access provisioning • Profile option automated monitoring• Supplier site control change
monitoring• Control change history report
28
Entity Hierarchy, Currency, Minorities…Financial Consolidation Hub
29
Multi-Dimensional Analysis & ReportingIn product row/column UI or: within a Spreadsheet!
•Create reports & graphs• Historical• current• projected data
•Analyze performance
• Detect trends• Define
• variance• thresholds
•Receive auto-alerts
30
Interactive Interactive spreadsheet spreadsheet
with with live drill to live drill to
transactionstransactions
Financial Consolidation Hub Spreadsheet Reporting with Live Drill
31
ResourcesCustomers Activities
Financials, Supply Chain, Projects, Procurement, PLM, CRM, HCM
Transaction Processing
N-DimensionalProfitabilityTop-Down
& Bottom-UpAllocations
Increase Customer Retention
Understand Sources of Profitability
• Calculate profitability via rules-based algorithms By: organization, LOB, channel, product, customer
• Achieve enterprise-wide view of profitability from multiple data sources (EBS & other applications)
Global View of ProfitabilityProfitability Manager
33
Perform Multi-Dimensional Analysis within Existing Relational Database
Flexibility• Enhanced dimension handling
Ease and efficiency of Use• Business Process definition
duplication• Improved Analyst calculation
maintenance
Integration• Able to report FCH data in EPB• Able to report PFT data in EPB
New CapabilitiesFinancial
Operational External
Statistical
Enterprise Planning and Budgeting
34
WORK GLOBALLYTo Be More Competitive
THINK GLOBALLYTo Make the Right Decisions
MANAGE GLOBALLYTo Lower Cost & Increase
Performance
How Financials Release 12 ContributesThe Global Business Release
Global Financial Architecture
Centralized Processing
+ 300 New Financial Features
Performance Management
Profitability Management
Business Intelligence XML Publisher
New Reporting ParadigmFinancial Consolidation
Hub
BPEL Integration and RETEK
Data Management with TCA
36
Integrate Out-of-the-Box with Oracle Applications
Templates
XML PublisherOracle
Applications
CRM
Projects
FMS
HCM
SCM
Output FormatsData Sources
Any XMLData Source
PDFRTF
Business User
PublishingEngine
XML
• Email• Printer• Fax
HTMLXML
Letters
FundTransfers
OnlinePaychecks
OrderConfirmations
Bills GovernmentGrant Forms
Destination
EDIExcel
XML PublisherBusiness Users Format and Deliver Documents
37
The New Standard Reports ParadigmXML Publisher and Templates
• Your users easily modify reports to their specification
• Using desktop tools like Microsoft Word
• Publish in any format; publish to the web; distribute electronically
• Centralize Reporting – management consistency, source of truth
Why you’ll love it
• About 80% Standard Reports replaced by Extracts and XML Templates
• Designed, comprehensive “fat” extracts
• Not the old standard reports recycled
• Templates provided for all reports
• Other 20% Reports supported as before
What’s Happening
38
Data ManagementLeveraging centralized data model
Oracle Fusion MiddlewareOracle Fusion Middleware
Trading Community Architecture
ERP CRM 3rd Party
PayablePayablessPurchasiPurchasi
ngng
Global Global TaxTax
PaymentPaymentss
SuppliersGeographies Party
Information
Cash Cash ManagemeManageme
ntntBanks and
Branches
40
MOAC, +300 Features
SLA,Tax
Ledger Sets,Ledgers
XML Publisher Reporting
Profitability Mgr,EPB
Subledger
Release 12: The Global Business Release
Work Globally, to be more competitive
Think Globally, to make the right decisions
Manage Globally, to lower cost and increase performance
DBI, FCH
Intercompany, Bank, Payments
General Ledger
Transactions
OICM
TCA
National ComplianceLocal RegulationNational COALocal Calendar
Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar$
Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$
€
Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar
€+$+
Release 12 Field Readiness Workshop
Oracle General LedgerSession 1: Ledger Architecture
Oracle General LedgerLedger Architecture
Functional Deep Dive
43
Functional Deep Dive Agenda
• Product Review– Customer Pain Points with Release 11i– Release 12 Value Proposition– Release 12 Concepts and Terminology
• Summary of Ledger Architecture Features • Detailed Description of Each Feature
– Feature and Benefits– Upgrade Considerations
44
Functional Deep Dive Agenda
• Product Review– Customer Pain Points with Release 11i– Release 12 Value Proposition
• Summary of Ledger Architecture Features • Detailed Description of Each Feature
– Feature and Benefits– Upgrade Considerations
45
The Challenge for Global CompaniesMultiple Databases Scattered Across the Globe
US COAUS COAUS CalendarUS Calendar
US GAAPUS GAAP€€
US COAUS COAUS CalendarUS Calendar
US GAAPUS GAAP$$
US COAUS COAUS CalendarUS Calendar
US GAAPUS GAAP££
US COAUS COAUS CalendarUS Calendar
German GAAPGerman GAAP€€
French ComptableFrench ComptableFrench CalendarFrench Calendar
French GAAPFrench GAAP€€
• Costly to Maintain • Inconsistent Business Practices • Fragmented Information
46
The Issue for Global Single Instance
Security• How to secure data, setup, and processing?
Autonomy• How to keep independence between ledgers?
Flexibility and Sharing• How to achieve processing efficiencies?
47
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
48
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
49
… 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)
50
… with Balancing Segment Values
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 open/close security by legal entity
51
Functional Deep Dive Agenda
• Product Review– Customer Pain Points with Release 11i– Ledger Architecture Objectives
• Summary of Ledger Architecture Features • Detailed Description of Each Feature
– Feature and Benefits– Upgrade Considerations
52
Ledger Architecture Objectives
• Support for multiple reporting requirements for global companies
• Explicit Legal Entity Accounting and Modeling• Legal Entity and Ledger Level Security and Autonomy• Cross/Multiple-Ledger Operations and Reporting
– Share data and perform operations across multiple legal entities/ledgers
– When security and independence is preferred, secure data and allow certain processes to be performed independently
• Management Reporting Efficiency
Provides Security, Autonomy, and Flexibility
Eliminate the 11i Cons of Modeling Legal Entities!
53
Functional Deep Dive Agenda
• Product Review– Customer Pain Points with Release 11i– Ledger Architecture Objectives
• Summary of Ledger Architecture Features • Detailed Description of Each Feature
– Feature and Benefits– Upgrade Considerations
54
New and Changed Features for Oracle General Ledger R12
Accounting Setup Manager• Simultaneous Accounting For Multiple Reporting Requirements• Multiple Currency Support For All Data From All Sources • Management Reporting Data Access and Data Security using Data Access Sets• Access to Legal Entities and Ledgers• Security for Legal Entities, Ledgers, Balancing and Management
Segment ValuesMulti-Ledger (Ledger Set) Processing• Overview of features that support ledger setsDefinition and Setup Security• Security for Setup and Definitions w/ Definition Access Sets
Ledger Architecture Features
Accounting Setup Manager
56
Accounting Setup Manager
• Central place for defining and maintaining accounting setup for the following:– Legal Entities– Operating Units– Ledgers (primary and secondary ledgers)– Reporting Currencies– Subledger Accounting– Inter- and Intra-company Balancing– Sequencing (Accounting and Reporting Sequencing)
57
Accounting Setup Manager Concepts
Main, record-keeping ledgerDefined by 4Cs:• Chart of accounts• Accounting calendar• Primary currency• Subledger Accounting
Method
• Optional, additional accounting representations of your primary ledger
• Can differ in one or more of the following from the primary ledger: – Chart of accounts– Accounting calendar– Primary currency– Subledger Accounting
Method
Primary Ledgers Secondary Ledgers
58
Accounting Setup Manager Concepts
SLA
Transaction
Accounting
Subledger Transactions
SLA
Corporate Ledger(Primary Ledger)
Local Statutory Ledger(Secondary Ledger)
AP AR FA Other Subledgers
Legal Entity
Maintaining Multiple Accounting Representations with Secondary Ledgers
59
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
Business Reasons Benefits
60
Level of Detail Desired
Secondary Ledger Conversion Levels
Path to Secondary Ledger
Balances Level Use GL Consolidation to Transfer Balances
GL Journals Level Use Posting for Automatic Journals
Replication
AP AR FASubledger Journals Level
Use SLA for Automatic Maintenance
Adjustments OnlyManual Adjustments in
GL or Automated Adjustments from SLA
61
Currency
If difference is only currency,
Reporting Currencies
CorporateChart of accounts
Monthly Calendar
Accounting Method
US GAAPAccrual
Use a Secondary Ledger Use Reporting Currencies
4Cs of a Primary Ledger If one or more of the following are different,
62
Level of Detail Desired
Reporting Currency (RC) Conversion Levels
Path to ALC
Note: Subledger Level RCs not available for Secondary Ledgers
Use SLA for Automatic Maintenance(Similar to Full-MRC)
AP AR FASubledger Level
Use GL Posting (Similar to Thin-MRC)
Journal Level
Use GL TranslationBalance Level
63
Upgrade Considerations
• 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
• Ledgers• Subledger Accounting• Secondary Ledgers• Advanced Global Intercompany System (AGIS)• Intracompany Balancing• Balance level RCs• Reporting Currencies (RCs)• Primary Ledger• Reporting Currency
Terminology Changes
Release 11i Release 12
64
Upgrade Considerations
• All GRE/LEs will be upgraded to one or more accounting setups and be assigned to the correct primary ledger
• All Balancing Segment Values (BSVs) will be available for data entry for the legal entity and ledger (same as R11i)
• You do not have to assign BSVs unless you want to use Advanced Global Intercompany System
Legal Entity Upgrade
Note: More Details covered in Upgrade Planning Session
65
Upgrade Considerations
Before Upgrade (R11i)• Run the Accounting
Setup Manager Pre-Update Diagnosis Report to identify any issues
After Upgrade (in R12)• Run the Accounting
Setup Manager Post-Update Diagnosis Report
Compare both reports before and after upgrade
66
Upgrade Considerations
Thin MRC Reporting Book Journal level RCFull MRC Reporting Book Subledger Level RCUnassigned Reporting Books Primary Ledgers Translated Balances Balance Level RCs
– If ADB is enabled for the RC but not the PL, posting will fail. You must disable the conversion.
– If translation was run in 11i for Reporting Books, you can continue to run translation after upgrade. You will not be able to translate using NEW currencies.
Reporting Currency Upgrade
67
Upgrade Considerations
The following will be upgraded to Secondary Ledgers:• Global Accounting Engine (AX) Posting Set of Books• Secondary Set of Books defined in Accounts Payable
(AP) if you use Combined Accrual & Cash Basis Accounting
• For a Fixed Asset corporate book that is linked to a different set of books than its tax book(s), the set of books linked to the Assets corporate book will be a primary ledger and the set of books linked to a tax book will be a secondary ledger.
Secondary Ledger Upgrade
Management Reporting
69
Management Reporting and Security
Management Segment• Optionally qualify a segment as the management
segment to perform management reporting• Secure read and write access to Ledger/Management
Segment Value combinations using Data Access Sets
Management
Co CC Acct I/C
Balancing Cost Center Natural Account
Intercompany
70
OU97
OS69
OX53
Co CC Acct I/C
Primary Ledger
LE
Management Reporting and Security
• Managers enter adjustments using their management segment value
• Data access set security ensures managers only update/view info. for their area of responsibility
Data Access Sets
72
Data Access Sets Description
• Access multiple legal entities and ledgers from a single GL responsibility using the GL: Data Access Set profile option
• Assign Ledgers and Ledger Sets to Data Access Sets• Optionally specify read and write privileges to:
– Entire Ledgers– Specific Balancing Segment Values (a.k.a Legal Entities if
BSVs assigned to Legal Entities)– Specific Management Segment Values
• When you assign specific balancing or management segment values, you can specify all values, parent values that include children, or child values individually
• iSetup API for Data Access Sets available
73
Data Access Sets Description
• Full Ledger Access means:– You have full read and write access to the ledger– You have full read and write access to all balancing segment
values or management segment values• The Full Ledger access set type provides better system
performance than balancing or management segment type• Full Ledger Access is required for the following processes:
– Opening and closing periods– Creating summary accounts– Creating budgets– Performing Mass Maintenance
74
Data Access Sets Description
Ledgers must share same COA/Calendar
combination
Assign ledgers and/or ledger sets
Specify Read Only or Read/Write Access
COA must have management
segment to use
75
Upgrade Considerations
• Data Access Set– GL: Set of Books profile option now renamed to GL
Ledger Name– GL Ledger name profile option allows access to only one
ledger and its reporting currencies.– If you choose to use the GL Ledger Name profile option,
the system will automatically assign the same ledger to the GL: Data Access Set profile option.
– R11i responsibilities will be upgraded with DAS to the ledger and all of its reporting currencies.
– If you set the GL: Data Access Set profile option, then the GL Ledger Name profile option is ignored
Ledger Sets
77
Ledger Sets
• Grouping of ledgers with the same chart of accounts and calendar/period type combination
• Essentially treats multiple ledgers as one
• iSetup API for Ledger Sets available too
78
Ledger Set
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
Definition Access Sets
80
Definition Access Sets
• Grant one or more of the following privileges to responsibilities– View Access: Allows you to view or query a definition in the
Define form, but you cannot modify the definition– Modify Access: Allows you to view and modify a definition in
the Define form. You can also change the definition access set security for that definition.
– Use Access: Allows you to use a definition. — For FSG reports, use access allows you to run the report. — For FSG row and column sets, use access allows you to use
the row and column set when defining a report. — For MassAllocations, use access allows you to generate a
MassAllocation.
81
Definition Access SetsControl Access to Definitions
UseUse ViewView ModifyModifyGL Clerk Controller
Rent Allocation
Recurring Rent
Rent Allocation
Recurring Rent
Balance Sheet
Income Stmt
PrivilegesPrivileges
82
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
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Upgrade Considerations
• All setup objects and definitions are upgraded as is with no security
SUMMARY
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Many ledgers to maintainChanging responsibilitiesDifficult to share data and setup informationCannot perform processes across ledgers Time-consuming open/close processDifficult reporting
Modeling Entities with Ledgers
Pros Cons
Each legal entity is a separate ledgerData is secureEasy to secure definitions; Reports and Mass Allocations
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Cannot share setup and data across currency boundaryNo data securityCannot secure definitions, such as FSG Reports and Mass AllocationsNo open/close security by legal entity
… with Balancing Segment Values
Pros Cons
Fewer ledgers to maintainNo changing responsibilitiesShare setup informationPerform processes across legal entitiesEasy reportingConsolidated information
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Ledger & Ledger Set
Definition Access Set
Solution
Data Access Set
New Architecture Summary
• Reporting Across Entities• Efficient Processing
• Setup & Maintenance• Definition Security
• Entity Autonomy• Independent Open/Close• Read/Write Access
Issue
Thank You
Thank You
Release 12 Field Readiness Workshop
Oracle General LedgerSession 2
Oracle General Ledger
Functional Deep Dive
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Functional Deep Dive Agenda
• Summary of New/Changed GL Features • Detailed Description of Each Feature
– Feature and Benefits– Demonstration– Implementation Considerations– Customization and Extensibility Options– Integration Considerations– Upgrade Considerations– Global Considerations
• Wrap Up/Q&A
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New and Changed Features for Oracle General Ledger R12
Auditability• Accounting and Reporting Sequencing • Journal Line Reconciliation
General Processing Efficiency• Web-based spreadsheet interface• Journal Copy• Streamlined Automatic Posting• Streamlined AutoReversal Criteria Setup • Streamlined Consolidation Mappings• Replacement for Disabled Accounts
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New and Changed Features for Oracle General Ledger R12 (continued)
Enhanced Foreign Currency Processing• Entered Currency Reporting and Analysis• R12 Currency Changes that impact Inquiry, Reporting,
Mass Allocations and Recurring JournalsData Security• Control Accounts• Prevent Reversal of Journals with Frozen Sources• Prevent Reversal of Unposted Journals
Others• Enhanced Intercompany• Intercompany Balancing Support for Encumbrances• Enhanced Tax Solution
Accounting Sequencing andReporting Sequencing
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Accounting and Reporting Sequencing
Accounting Sequencing• Sequence GL journals when posted in GL
– Validate Sequence (Select Which Sequence to Use) — By Journal Effective Date
– Assign Sequence (Sort) — By Journal Effective Date
• Replaces Global Accounting Engine (AX) legal sequencing
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Accounting and Reporting Sequencing
Reporting Sequencing• Sequence GL Journals when you close a GL Period
– Validate Sequence (Select Which Sequence to Use) — By Journal Effective Date or Reference Date (Libro Giornale)
– Assign Sequence (Sort) — By Journal Effective Date or Posting Date
– When period is re-opened, the sequences are removed to ensure gapless sequence
• For Reporting Sequencing, if you assign specific BSV, you can indicate which BSVs are categorized as fiscal. When GL period is closed, only fiscal journal entries are sequenced.
• Reporting Sequencing requires Business Events, Period Close and Period Reopen, to be enabled
• Replaces Global Accounting Engine (AX) Libro Giornale (Italian Journal Book) feature
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Accounting and Reporting Sequencing
• Assign mutually exclusive sequences based on: – Ledgers or Reporting Currencies– Journal Sources or Journal Categories– Balance types (actual, budget, encumbrance)
Assigned during
period close
Assigned during posting
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Upgrade Considerations
• If you used the Legal Sequencing feature or Libro Giornale (Italian Journal Book) feature in Global Accounting Engine (AX) in R11i, the setup will not be upgraded to accounting/reporting sequence.
• You need to reimplement sequencing using the accounting/reporting sequencing feature.
Journal Line Reconciliation
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Journal Line Reconciliation
Journal Line Reconciliation• Reconcile journal lines that should net to zero, such as
suspense accounts, or payroll and tax payable accounts• Reconcile manually
– any combination of journals lines that net to zero• Reconcile automatically for journal lines that net to zero and
– matching account combination and reference – matching balancing segment and reference– matching balancing segment, natural account and blank
reference, or – matching balancing segment, natural account, and reference.
• Run the automatic reconciliation program to get preliminary report on the lines that will be reconciled
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Journal Line Reconciliation
EnterReconciliation Reference
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Global and Upgrade Considerations
Global Considerations• Formerly known as the GL Entry Reconciliation feature
within Oracle Financials Common Country Features• No country-specific localizations are needed; journal
reconciliation is now included in the base General Ledger product
Upgrade Considerations• If you used GL Entry Reconciliation feature within Oracle
Financials Common Country Features, you need to run ‘Upgrade Journal Lines for Reconciliation’ to populate historical data
Web-based Spreadsheet Interface
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Journal and Budget Wizard
Journal Wizard• Previously called Web-ADI Journal Integrator• Create actual, budget, or encumbrance journals from a web-
based spreadsheet interface• Import data from text files to create journalsBudget Wizard• Replaces Budget Wizard in Client-Server ADI• Compare budget amounts and actual amounts in Excel• Create Graphs• Add Budget Notes to add descriptions
Launch both directly from the GL menu!
Journal Copy
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Journal Copy
• Copy an existing journal batch to create a new journal batch with the same journals and journal lines.
Journal Copy
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Journal Copy
• You can only copy actual journal batches, not budgets or encumbrances
• The copied batches will have the journal source “Manual”• The journal lines generated by tax, tax codes and other tax
information will not be copied into the new batch• Copied foreign currency journals may display different
accounted amounts from the original journal based on the conversion rate for the specified effective date
• All of the journals in the batch will be copied
Streamlined Processes
AutoReversal Criteria AutoPost CriteriaConsolidation Mapping
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Streamlined Processes
Streamlined AutoReversal Criteria• Reversal Criteria Sets can be shared across any ledger.• Assign Journal Reversal Criteria Set to the ledger in
Accounting Setup Manager
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Streamlined Processes
Streamlined Automatic Posting• AutoPost Criteria Sets can be shared across ledgers
and used to automatically post journals across multiple ledgers simultaneously.
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Streamlined Processes
Streamlined Consolidation Mapping• Define mapping rules between COA • Use for Consolidations and for SL mapping
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Streamlined Processes
Release 11i Release 12
Within a Set of Books Across LedgersReversalCriteria Set
Within a Set of Books Across LedgersAutoPost
• Between two SOBs • Used by consolidation
• Between two COA• Used by Consolidation & PL to SL Mapping
Consolidation Mapping
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Upgrade Considerations
• Journal Reversal– Journal Reversal Criteria Set for every Set of Books(SOB)
in R11i is upgraded and named according to the Ledger Name
• AutoPost– AutoPost criteria set in R11i is upgraded and the ledger
fields are populated with the SOB it was created for• Chart of Accounts Mapping
– Consolidation definition in R11i is upgraded in two parts:— Consolidation Definition: Upgraded with the source and target
ledger assigned— Chart of Accounts Mapping: Upgraded with the same name
and assigned to the Consolidation Definition
Replacement for Disabled Accounts
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Replacement for Disabled Accounts
Alternate accounts– Used to replace accounts during Journal Import if accounts are
disabled/end-dated– Alternate accounts will not be used for accounts that have
posting or budgeting disabled– Journal Import writes the original account in the journal line
description if it uses the alternate account– Alternate accounts are only used by Import, not Posting– Alternate accounts are used in preference to importing errors to
suspense account – If no alternate account is available and error to suspense
account is enabled during Journal Import, suspense account will be used
– Reconciliation is based on the setup for the alternate account, not the original account
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Replacement for Disabled Accounts
Enhanced Foreign Currency Processing
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Entered Currency Reporting and Analysis
Entered Ledger Currency• Track balances for amounts entered in the ledger currency
separately from amounts converted to the ledger currencyLedger Currency: USD Journal 1 – 500 GBP (1,200 USD)
Journal 2 – 1,000 USD
Total (USD)Entered
Credit
2,200 1,200
DebitCredit
500
Debit
USDCashGBPCash
CurrencyAcct
R11i
Total USDEntered USD
1,000R12
Converted Ledger Currency Balances • Now supported for QTD and PJTD balances, not just PTD
and YTD balances
R12 Changes to Currency
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R12 Changes to Currency
1. Ledger Currency– Acts as a filter for Ledger Sets to select the ledgers that
match the Ledger Currency specified2. Currency Type (Entered, Total, or Statistical)
– “Entered” requires selecting an Entered Currency– STAT currency is now a Currency Type “Statistical”– “Total” means you want to grab total converted balances,
such as foreign entered balances converted to the ledger currency
– “Total” for a Balance level RC means translated balances– FSG also has “Converted” Currency Type
3. Entered Currency– Required if Currency Type “Entered” selected
3 New Currency Fields
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R12 Changes to Currency Example
Vision Operations USD
Vision Ops (EUR) Journal level RC
EUR
Operations Ledger Set
Vision Ops (JPY) Balance level RC
JPY
Ledger or RC Name Ledger Currency
$$
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Ledger Set Query Example
Ledger Currency
Currency Type
Entered Currency
USD Total N/A Total balance for Vision Operations
All Total N/ATotal balance for all
Ledgers/RCs (incl. translated balances)
EUR Entered JPY JPY Entered Currency balance for Vision Ops
(EUR)
Query Results
JPY Total N/A Translated balance for Vision Ops (JPY)
All Statistical STAT STAT balance for all except Vision Ops (JPY)
Ledger Set
Operations Set
All Entered JPY JPY Entered Currency balance for all Ledgers/RCs
Vision Operations Primary USD
Vision Ops (EUR) JE Level RC
Vision Ops (JPY) Balance Level RC
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Single Ledger Query Example
Ledger Ledger Currency
Currency Type
Entered Currency
Vision Operations Total N/A Total balance for Vision Operations
Vision Ops (EUR) EUR Entered JPY JPY Entered Currency balance for
Journal level RC
Query Results
Vision Ops (JPY)(Balance level RC)
JPY Total N/A Translated balance for Vision Ops (JPY)
USD
Vision Ops (JPY)(Balance level RC)
JPYEntered CAD Looks to the primary
ledger, Vision Operations to retrieve entered
currency or stat balanceStatistical STAT
Vision Operations Primary USD
Vision Ops (EUR) JE Level RC
Vision Ops (JPY) Balance Level RC
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Converted Currency Type Example
The following balances exist for a Ledger with Ledger Currency USD:
Converted (USD)EnteredCredit
1,200
DebitCredit
500
1,000
Debit
GBPCash
USDCash
CurrencyAcct
3007000JPYCash
Currency Type Entered Currency Query Results
JPYConverted $300 (Retrieves converted ledger currency Balances that were entered in JPY)
USDConverted $1,000 (Same as choosing Entered USD balances)
Query Criteria and Results:
R11i: Foreign Entered Only
R12: Converted too!
Recurring Journals Enhancements
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Recurring Journals
Foreign Currency Recurring Journals• Create foreign currency recurring journal• Cannot create foreign currency budget
formulasOther Enhancements to Recurring Journals• Recurring batch can contain journals from
multiple ledgers• Budget formulas can only use single ledger
batch types• Of course, Data Access Set and Definition
Access Set security enforced
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Recurring JournalsR11i
R12
Single or Multiple Ledgers
Any Currency
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Upgrade Considerations
• Recurring Journals upgraded as “single ledger” Recurring Batch Type
Data Security
• Control Accounts• Prevent Reversal of Frozen Journal Sources• Prevent Reversal of Unposted Journals
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Control Accounts
• Qualify accounts and entire account combinations to be Third Party Control Accounts to: – Restrict its use by subledgers (not just AP and AR as in
11i)– Prevent manual journal entry to control accounts– Prevent modifying journal entries that contain control
accounts, even if the journal entry is from a subledger source
Benefit• Balances in sync between subledgers and GL• Easier Reconciliation
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Control AccountsQualifying Accounts to be Third Party Control Accounts
Specify • Customer• Supplier or • Yes
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Journal Reversal Enhancements Description and Benefits
• Prevent Reversal of Journals with Frozen Sources
• Prevent Reversal of Unposted Journals
• Consistency enforced between subledger and GL account balance
• Improved data integrity • All reversals can be tied
back to the originating journal
Description Benefits
Other Journal Enhancements
• Enhanced Intercompany• Intercompany Balancing Support for
Encumbrances• Enhanced Tax Solution
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Enhanced Intercompany and Intracompany Balancing
Advanced Global Intercompany System (AGIS)• Global Intercompany System (GIS) replaced by AGIS, a
separate product with many enhancementsBalancing Rules• R11i Intercompany Balancing replaced by
Intracompany Balancing Rules– Used across Subledger Accounting and General Ledger
to balance journals within a legal entity or ledger• Intercompany Accounts
– Used across Subledger Accounting and General Ledger to balance cross legal-entity journals
• Intercompany balancing support for encumbrance journals
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Enhanced Tax
• Input and Output Tax Codes are obsolete
• Input and Output Tax Codes have been merged into Tax Options
• Tax Options now owned by E-Business Tax
• No changes from a Journal Entry perspective
Bye, bye!
Thank You