New Features in General Ledger R 12

Agenda

1. Defining SOB, Legal entity in 11i 2. Accounting Set Up Manager 3. New Security Features

Defining Set of Books 11i

General Ledger Set Up in 11i

Defining Legal Entity in 11i

Accounting Setup Limitations in 11i

No Single place for defining the Accounting Set up Set of Books Legal Entities Operating Units MRC Sequencing Intercompany Accounting Setups are product centric. No guided process to create setups

Accounting Set Up Manager

Agenda

1. Accounting Set Up Manager 2. Reporting Currencies 3. Secondary Ledgers 4. Sequencing

Accounting Set Up Manager

Accounting Set Up Manager provides a central point of control meeting the objective of maintaining complex accounting and reporting requirements while adhering to statutory, corporate requirements and business needs.

Accounting Set Up Manager in R 12

Create and Manage Legal entities, Ledgers, Accounting Representations

Set up common components for Oracle Financial Applications from one location

Set up Transaction Processing controls for Sub ledger modules.

Accounting Set Up Manager

Accounting Setups in R 12

Steps for Accounting Setup

Create Accounting Structure

Define Accounting Options

Complete Accounting Set Up

Detailed Accounting Setup Steps

Accounting Structure Accounting Options Accounting Options

1. Creating & Assigning Legal Entities

6. Define & Assign OU to Ledger

7. Inter company accounts & Intra company Rules

2. Ledger Attributes Primary & Secondary

5. Sub ledger Accounting Options

8.Sequencing options

3. Assign Reporting currencies Primary & Secondary,

4. Ledger Options Completion, Balancing Segment values to Legal Entity and Ledgers

9. Complete set ups Secondary Ledgers

Creating Legal Entity

Assigning Legal Entities

Assigning Legal Entities

Assigning the 4Cs to ledger. 4 Cs comprise of COA, Currency, Calendar, Accounting Convention (Sub ledger Accounting Method)

Accounting Representation Primary & Secondary

Assign a reporting currency to primary ledger

Assigning 4cs to the secondary ledger. The 4Cs being assigned to secondary ledger could be different from the Primary Ledger.

Reporting Currencies for Primary & Secondary

Currency conversion levels for reporting currency assigned to a primary ledger

Currency conversion levels for reporting currency assigned to a Secondary ledger

Review of Accounting Structure

Accounting Options Prior to completion

Updating Ledger Options

Updating Ledger Options

Updating Ledger Options

Review of Ledger Options

Assigned Reporting Currency prior to Update

Updating Reporting Currency Options

Value picked from Primary Ledger

Mandatory Conversion Options

Journal Conversion Options Reporting Currency

Assigned Reporting Currency after Update

Balancing Segment Options to Legal Entity

Balancing Segment values to Ledger

Sub ledger Options Primary Ledger

Sub ledger Accounting Options

Sub ledger System Options

Defining and Assigning Operating Unit

Two ways of creating Operating Unit

Completing Operating Unit Option

Updating Sequence Options

Status of Accounting Options Primary Ledger

Status of Secondary Ledger- Accounting Options

Primary to Secondary Mapping

Assigned Reporting Currency prior to Update

Reporting Currency Options

Sub ledger Options Secondary ledger

Sub ledger Accounting Options Secondary ledger

Status of Accounting Options Secondary Ledger

Review Accounting Options for primary & secondary ledger before completing them by clicking on Complete button

Confirmation Messages

Primary & Secondary ledger

2. Reporting Currencies

Reporting Currency Ledgers

Features of Reporting Currency Ledgers
Differ only in respect of Currency
Currency of Primary Ledger- USD Currency of Reporting Ledger- AED

Share COA, Calendar , Accounting Method , Ledger processing Options

Primary Ledger options default to Reporting Currency of Primary Ledger Secondary ledger options default to Reporting Currency of Secondary Ledger

Distinct Currency Conversion Levels

Sub ledger, Journal, Balance level Primary Ledger Journal, Balance Secondary Ledger

Reporting Currency Conversion levels

Sub Ledger Level : Currency representation of Sub Ledger Journals, GL Journal Entries and also balances.

Journal Level : Currency Representation of GL Journal Entries and balances

Balance level: Currency Representation of Balances

Reporting Currency Conversion Levels

Conversion Levels
Data Converted

Sub ledger
Sub ledger Journals, GL Journal Entries, Balances
Enabling SLA is Mandatory to use this conversion level Sub ledger and Journal conversion Rules Yes Not available for enabling

Journal
GL Journal Entries, Balances
Not Mandatory

Balance
Balances

SLA Enabled for Primary Ledger Conversion Rules Definition Usage of Historical Data Conversion Reporting Currency for Secondary Ledger

Not Mandatory

Journal Conversion Rules Yes Available , Dependent on Secondary Ledger Conversion Level. Yes (To Enter Journals) Applies to Manual Journal Entries

Currency Translation Options No Available, Dependent on Secondary Ledger Conversion Level. able(Default Level) Not Applicable Not Applicable

Open or Close Periods Journal Approval

Yes (To Enter Journals) Applies to Manual Journal Entries

Considerations for Currency Conversions

Options Default Conversion Rates Impact Would be used only when the rate at Retain transaction type is set to NO .

Retain Transaction Rate

If set to YES , this would override the default conversion type . Reported as error or the default conversion rate type for number of days mentioned is picked.

Missing Conversion Rates

Journal Source & category

Journal Source & Category Rules selected are converted to Reporting Currency

Reporting Currencies- Secondary Ledger

Available Currency Conversion Methods Journal , Balance.

For balance level conversion, balance level reporting currency for primary ledger is automatically enabled

Reporting Currency Conversion depends on the data conversion level for Secondary Ledger. Data Conversion Level Balance Journal Sub ledger Adjustments Only

Currency Conversion Level Balance only Balance or Journal Balance or Journal Balance only

Impact of Disabling Reporting Currencies

Sub Ledger Level : 1. Conversion of data form primary can be disabled 2. Historical data can be viewed and manual entries can be made. Journal Level : 1.Conversion of data from primary can only be disabled. 2.Historical data can be viewed and manual entries made. Balance level: 1.Balancing currencies cannot be disabled.

2.Alternatively conversion can be stopped .

Case Scenario Reporting Currency

1. Normal Journal import from Sub ledger

Sub ledger Journal Entry

Scenario 1 Normal Journal Import

Currency Conversion Options

Scenario 1 Normal Journal Import

Journal In Primary Ledger

Scenario 1 Normal Journal Import

Journal in Reporting Currency

Scenario 1 Normal Journal Import

3. Secondary Ledgers

Secondary Ledger
Secondary Ledger is used for maintaining data of primary ledger with respect to different Accounting Representations in one or more following aspects:

1
2

Chart of Accounts Currency Calendar/ period Type SLA or Ledger options

3
4

Secondary Ledgers
Steps 1. Name for Ledger
2. Chart of Accounts 3. Calendar 4. Currency 5. SLA

Primary Ledger Flex

Operations Fiscal USD Accrual

Secondary Ledger Riyadh

Flex Accounting Calendar AED Cash

Impact of Difference ----------------COA Mapping Calendar Conversion Currency Conversion Rules *Enables usage of Sub ledger level for Data conversion + Journal Conversion rules

*SLA enabled for Primary

* SLA enabled for Secondary

* Sub ledger Level Data conversion

Data Conversion Levels

Sub Ledger Level : Additional accounting representation of the sub ledger journals, journal entries, and balances.

Journal Level : Additional accounting representation of the primary ledger journal entries and balances Balance level: Additional accounting representation of the primary ledger balances Adjustments Only : Accounting representation that holds manual adjustments or automatic adjustments

Sub Ledger Data Conversion Levels

Conversion Levels
Data Converted

Sub ledger
Sub ledger Journals, GL Journal Entries, Balances

Journal
GL Journal Entries, Balances

Balance
Balances

Adjustments
Manual Adjustments, Automatic Adjustments created using SLA. Secondary Ledger should use the same COA, Calendar, Currency Can be used

Prerequisites

SLA enabled for Primary and Secondary Can be used

No Pre- requisites

No Pre- requisites

SLA enabled for Primary & secondary Ledger

Can be used

Can be used

Reporting Currency for Secondary Ledger

Open or Close Periods

Not Available for use

Can be used subject to data conversion level for secondary ledger

Can be used subject to data conversion level for secondary ledger

Not Available for use

Yes

Yes

No

Yes

Types of Currency Conversions Levels

1. One step conversion Primary Ledger to Secondary Ledger

2. Two step conversion Reporting currency of Primary Ledger to Secondary Ledger

One Step Conversion

Primary Ledger Currency : INR Transaction Currency : AED Conversion Rate type used for transaction : DAILY Secondary Ledger Currency : USD Default Conversion Rate type used :CORP Source Representation : Primary Ledger

Retain Transaction Type

Yes

No

Journal is converted from AED to USD using DAILY

Journal is converted from AED to USD using CORP

Two Step Conversion

Primary Ledger Retain Transaction Type Currency : INR Pre- requisites for Two way conversion Step 1 Transaction Currency : AED Conversion Rate type used for Data Conversion level for Secondary Ledger is Journal. transaction: DAILY Currency Conversion Level for Reporting Currency of Primary Ledger is Journal. Yes Currency of Journal Level Reporting Currency must match with Currency of No Secondary Ledger Reporting Ledger Currency : GBP Journal is converted from Journal is converted from Conversion Rate type used :CORP AED to GBP using DAILY AED to GBP using CORP

Step 2 Secondary Ledger Currency : GBP Conversion Rate type used :CORP Source Representation : Reporting Currency of Primary Ledger

GBP Journal is copied from Reporting Ledger

GBP Journal is copied from Reporting Ledger

Impact of Disabling Secondary ledger Conversions

Sub Ledger Level : 1. Conversion of data from primary ledger is disabled 2. Historical data can be viewed and manual entries can be made. Journal Level : 1.Conversion of data from primary can only be disabled. 2.Historical data can be viewed and manual entries made. Balance level: 1.Balancing currencies cannot be disabled. 2.Alternatively consolidation can be stopped . Adjustments Only :

1. Cannot be disabled as adjustment entries are entered manually.

4. Sequencing

Steps for Sequencing

Defining Sequence and Sequence Versions

Defining the Sequences

Sequence Versions

Sequencing Context

Sequence Assignment

Accounting & Reporting Sequences -Advantages

Sequentially number Sub ledger journal entries Sequentially number General journal entries

Gapless Sequence Numbers

Sequencing Journals

Sequentially number deferred expense accounting Separate sequences for Reporting Currency ledger

Sequencing Rules in the context of Ledger & Ledger Currency Combination

Reports based on Sequences

Security Features in GL

Data Access Sets

Data access sets control which ledgers can be accessed by different responsibilities. Data access sets can also limit a user from accessing certain balancing segment values or management segment values or grant readonly or read and write access to data in a ledger. The ledgers and ledger sets assigned to a data access set must share the same chart of accounts, calendar, and period type.

Data Access Sets

Ledgers must share same COA/Calendar combination

Assign ledgers and/or ledger sets

Specify Read Only or Read/Write Access

Assigning Data Access Set to Profile

Assign Data Access Set name to the Profile Option: GL: Data Access Set against the Responsibility

Example: Using Ledger Sets in Applications

Select the Ledger Set in all the forms through which, multiple process execution happens in a single screen for all the Ledgers in the Ledger set

Perform the Following Across Ledgers

Open/Close Periods Create Journals
1. Allocations Across Ledgers 2. Recurring Journals for All Ledgers 3. Elimination Sets for All Ledgers

Translate and Revalue Balances View Information without Changing Responsibilities View Journals and Account Balances Across Ledgers Submit Standard Reports Create Financial Statements that Include Data for Multiple Ledgers

Ledger Set Benefits

1. Shorter Close Process
Run month-end close processes across multiple ledgers simultaneously

2. Greater flexibility to decentralize/centralize accounting functions

The corporate office can control the period status for multiple subsidiaries at once

3. Real-Time Enterprise-Wide Visibility

Quickly report across the entire enterprise in real-time because no transfer of data is required Reported results are accurate and timely because they are based on the transactional system, not a data warehouse

Definition Access Sets

Definition Access Sets allows you to secure shared General Ledger definitions such as MassAllocations, Recurring Journal Formulas, and Financial Statement Generator (FSG) components.

Definition Access Sets allow you to: Assign a user or group of users access to specific

definitions. Specify what actions can be performed on secured definitions for a user or group of users.

Definition Access Sets Features

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. Using Definition Access Sets you could limit users from using, viewing, and modifying definitions basing on their role

Define a Definition Access Set

Assign Definition Access Sets to Responsibility

Assign Definition Access Set to the Required Object Definition

Role Based Access

Responsibility GL Budget User GL Report User GL Manager

Definition Access Set Report Viewers Report Users Reporting All

Report Definition Secured Balance Sheet Balance Sheet Balance Sheet

Privilege View Use Modify

Basing on the Role, responsibilities will be assigned to the Personnel to ensure Secured Definition Access.

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

New Architecture Summary

Issue
Entity Autonomy

Solution
Data Access Set

Independent Open/Close
Read/Write Access Access to Multiple Ledgers Reporting Across Entities Efficient Processing Access to Multiple Ledgers Setup & Maintenance Definition Security

Ledger & Ledger Set

Definition Access Set

Q&A

Thank You