R 12 Sub Ledger Accounting and GL

Release 12 Financials Best Practices Subledger Accounting and the General Ledger
Alyssa Johnson Solution Beacon
Agenda
Global Financial Management E-Business Tax Intercompany Setting up the General Ledger Subledger Accounting Reporting General Ledger New Features More Information
Copyright 2009 Solution Beacon, LLC All Rights Reserved Any other commercial product names herein are trademark, registered trademarks or service marks of their respective owners.
Global Financial Management
Global Financial Management
E-Business Tax
E-Business Tax
Global Tax Solution for the Order-to-Cash and Procureto-Pay processes Utilizes centrally defined rules, rates, and jurisdictions which are stored in a Tax Content Repository Manages Transaction Taxes and Calculates Tax at Line Level Provides for Integration with third party vendors Tax Record Repository stores all tax lines for more efficient reporting and to provide strong auditability Tax Simulator
E-Business Tax
Home Setup Page
Specifies if setup is required
Setups in one location
Ease of navigation
E-Business Tax
Use the pencil for updates
Click on links to drilldown
View additional information
E-Business Tax
While setups can be accessed from one form there are many levels of setup Allow for additional time to test this application with all transaction scenarios E-Business Tax section (p32-35) of Best Practices for Adopting Oracle E-Business Suite, Release 12(MetaLink Doc. ID: 580299.1) provides excellent troubleshooting tips
Advanced Global Intercompany System
Advanced Global Intercompany System
Automatic Intercompany Invoicing Entry manual or upload Batches of transactions can be applied across different ledgers Proration of distribution amounts Reconciliation Tool
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AGIS
Setup Tab
Easy to Update Evaluation of rules listed Setups
Periods Accounting Security Organization Invoicing Options Transaction Types System Options
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AGIS
AGIS replaced 11i Global Intercompany System (GIS) The Intercompany accounts in GIS are upgraded to AGIS Intracompany Balancing rules Auto-Accounting rules in GIS are not upgraded and should be set up as Account Derivation Rules and compiled with the Transaction Account Builder in Subledger Accounting
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AGIS
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Setting up the General Ledger
Setting up the General Ledger
Best Practices
Make every effort to model your business processes to take full advantage of the new R12 architecture and flow
Requires review of business processes Familiarize yourself with the new R12 features
Design of Accounting Structure is Key
Run the Accounting Setup Manager Pre-Update Diagnosis Report to identify setups that are potentially problematic
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Setting up General Ledger
Set of Books is now referred to as Ledger Accounting Structure

Chart of Accounts Calendar Currency Subledger Accounting Convention (New in R12)
Legal Entity
Reflects legal corporate structure Utilized by Accounting Functions, E-Business Tax, Intercompany, and Bank Account
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Primary Ledgers
Legal Entities are associated with Primary Ledgers Primary Ledgers typically reflect your transactional accounting Primary Ledgers not associated with a Legal Entity can be used for consolidation
Secondary Ledgers
Secondary Ledgers can be utilized for statutory, management, and/or consolidation reporting Mapping from Primary to Secondary Ledger(s) is defined in General Ledger and is assigned in the Accounting Setup Manager
When accounting is created, journal entries are generated for the Primary Ledger and any associated Secondary Ledgers based on the defined mapping rules
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Ledger Sets
All Ledgers in a Ledger Set must have the same Calendar and Chart of Accounts Can Open/Close Periods, Create Journals, Translate Balances, Reporting, and View Information across a Ledger Set Improves Data Security, Reliability, and Consistency
On upgrade, each Set of Books becomes a Ledger and a Ledger Set composed of one Ledger
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All Ledgers in a Ledger Set must have the same

Calendar Chart of Accounts
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Setting up General Ledger Accounting Setup Manager
New Tool to Streamline Accounting Setups Define Accounting-Related Setups in a Central Location Reduce Errors Access Accounting Setup Information More Quickly Navigation: General Ledger Responsibility Setup Financials Accounting Setup Manager Accounting Setups
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Setting up General Ledger Accounting Setup Manager
Create Accounting Structure

Define Legal Entities Assign Legal Entities (optional) Define Primary Ledger Define Secondary Ledgers (optional)
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Setting up General Ledger Legal Entity

Reflects legal corporate structure Consists of: Name, Identification, Address, Establishments, Registrations, Contacts and Intercompany Parties On upgrade, Operating Units become Establishments (remember Operating Unit is tied to Ledger in R12) Utilized by Accounting Functions, E-Business Tax, Intercompany, and Bank Account Resides in TCA as a Party Represent Legal Entity correctly has much bigger impact in R12
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Setting Up General Ledger Legal Entity
Two locations for setup

Accounting Setup Manager
GL Responsibility Efficiency of setup Can assign balancing segment Once a balancing segment is assigned to a Legal Entity it cannot be deleted only end dated
Legal Entity Configurator

Separate Responsibility Exact setup steps as ASM Cannot assign balancing segment
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Setting Up General Ledger Create Accounting Structure
If only Currency is different use Reporting Currency instead of Secondary Ledger
The 4 Cs
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Setting Up General Ledger
Next Step: Define Accounting Options

Complete Ledger Options (required) Assign Balancing Segments Define Operating Units
Complete Reporting Currencies
Define Subledger Accounting Options
Define Sequencing
26
Setting Up General Ledger Define Accounting Options
More Tips Note: Status
Enforces flow
27
Define Secondary Ledgers
Secondary Ledgers
Primary to Secondary Ledger Mapping
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Setting Up General Ledger Define Secondary Ledgers
Any of 4Cs can be different
Data Conversion Level

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Data Conversion Levels

Subledger
Subledger Journal Entries General Ledger Journal Entries Balances
Journal
General Ledger Journal Entries Balances
Balance
Balances
Adjustments Only
Incomplete accounting picture
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Setup of Secondary Ledger is similar to Primary Ledger Mapping setup specifies conversion options to transfer data from Primary Ledger to Secondary Ledger
31

Chart of Accounts Mapping
Currency Conversion Rules
Journal Conversion Rules
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Setting Up General Ledger Examples

Consolidation Ledger Set
Primary Ledgers
Ledger: Orig Co
Global CoA Calendar Year USD
Ledger: Acq Co
Acquisition CoA Acquisition Calendar Acquisition Currency
Ledger: Consolidation
Cons CoA Cons Calendar Cons Currency Entries created by GL Transfer and Elimination Process
Secondary Ledgers
Ledger: Acq CON Global CoA Calendar Year USD
Ledger: Acquisition Use Secondary Ledgers and Ledger Sets for Consolidated Reporting to Statutory Secondary Statutory CoA preventLedger the need to perform balance transfer consolidations every period, and Fiscal Calendar Currency to obtain a cross-company view of your organization Note: This does not replace the consolidation process
33
Setting Up General Ledger Examples

Consolidation Ledger Set
Primary Ledgers
Ledger: US
Global CoA Calendar Year USD
Ledger: UK
UK CoA Calendar Year GBP
Ledger: FR
FR CoA Calendar Year EUR
Secondary Ledgers
Ledger: UK CON Global CoA Calendar Year USD
Ledger: FR CON Global CoA Calendar Year USD
Secondary Ledger
Ledger: FR Statutory Statutory CoA Fiscal Calendar EUR
The FR Statutory Secondary Ledger contains entries which comply with statutory regulations
Copyright 2009 Solution Beacon, LLC All Rights Reserved Any other commercial product names herein are trademark, registered trademarks or service marks of their respective owners. 34
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Time spent on design will not be wasted
35
Subledger Accounting
Rule-based accounting engine with a centralized data model and repository (XLA) Generates and stores detailed accounting entries User-defined Accounting Rules A single transaction can be represented in multiple ledgers Drilldown capability from GL
37
GENERAL LEDGER
Primary Ledger Secondary Ledger(s)
Accounting
Drilldown to Subledger Accounting Details
Subledger Accounting (SLA) Subledger Accounting Subledgers

Drilldown to Transaction Details
38
Standardization in
Navigation Accounting Inquiry Reporting
Setup
Accounting Setup Manager Accounting Methods Builder
39
Subledger Accounting Accounting Methods Builder

Journal Header Description
GL Date Account Derivation Rules

Journal Lines
Journal Lines
40
41
Use Validate Application Accounting Definition Concurrent Program if Oracle owned AAD not validated Continue to use Account Generators on upgrade Transition account generation to Subledger Accounting Engine post-upgrade User-defined AADs retained in upgrade
42
Subledger Accounting Create Accounting
43
Subledger Accounting Create Accounting Output
44
Subledger Accounting Create Accounting Output
45
Subledger Accounting Journal Import
46
Subledger Accounting Create Accounting
Run Create Accounting Process DAILY Utilize Draft Mode Accounting if continual issues with accounting Resolve issues reported in Subledger Accounting Program Report DAILY When closing period run Transfer to GL program an additional time, to verify all accounting entries have transferred
47
Subledger Accounting Accounting Entry Inquiry
Draft Mode Entries Can Be Deleted Drilldown Create Manual Journal Entries
Journal Entry Status

48
Users can view both the Journal Entry and the Transaction Information together
49
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Drilldown from General Ledger to Subledger Transaction goes through Subledger Accounting Repository Learn to utilize the Subledger Journal Entry forms Personalization
51
Web ADI and Manual Journal Entries

NOT processed by Subledger Accounting Engine Posted to Secondary Ledger(s) by General Ledger Posting Program Are included in Account Analysis Report
Journals can be corrected at the Transaction, SLA, or GL Journal Entry level

Choose a method and make that the standard for all corrections
Since detail is retained in Subledger Accounting posting to GL in Summary instead of Detail can be performed
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Subledger Period Close Exception Report

Invalid Accounting errors exist; Fix Errors and re-run Create Accounting program Incomplete Transactions cant be accounted yet; Run Validation Program Unprocessed Transaction hasnt been accounted; Run Create Accounting Program Final Accounted in SLA but not transferred to GL; Run Transfer Journal Entries to GL
Report Summary
Primary and Secondary Ledgers
Detail of Exceptions
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Reconciliation Reports
Changes in standard Oracle reports might affect customizations Transactional Reports

R11i based on Transactions and Distributions R12 based on Transactions ONLY
Accounting Reports
R11i based on Balancing Lines, GL Journals, GL Balances R12 based on SLA Journals, GL Journals, GL Balances
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Reconciliation Reports
Payables
Open Account Balance Listing Third Party Balance Report GL Account Inquiry
Receivables
AR Reconciliation Report (other reports if discrepancies) Potential Reconciling Items Report Run Aging and compare with Reconciliation Report Run Journal Entries report and compare with Reconciliation Run AR to GL Reconciliation Report
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WebADI and Report Manager
Release 12 must use WebADI and Report Manager

Two separate applications
MetaLink Doc ID: 458589.1, Which Customers Need to Migrate From Client/Server ADI to WebADI and Report Manager? Report Manager customized templates have to be formatted in BI Publisher
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General Ledger New Features
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General Ledger Accounting Setup Manager
Setup previously required 5 tabs and multiple steps Streamlined Setup Process Used to setup legal entity, primary ledgers, secondary ledgers, and SLA setups
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General Ledger Alternate Accounts
Define alternate accounts if account is disabled Increased efficiency

Note: scrollbar
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General Ledger Definition Access Sets
Used in General Ledger only to secure access to definitions and setup components One or more privileges can be given to a responsibility
Use Modify View
Secures Definitions separate from Data More Flexibility, Reduction of Errors, Greater Control
60
Definitions secured with Definition Access Sets

Accounting Calendars AutoAllocations AutoPost Criteria Sets Budget Formulas Budget Organizations Chart of Account Mappings Consolidation Definitions Consolidation Sets Elimination Sets FSG Reports and components Mass Allocations Mass Budgets Rate Types Recurring Journals Revaluations Transaction Calendars
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Responsiblities: Controller Accountant
Privileges
USE MODIFY VIEW
Revaluations Allocations Rate Types Elimination Sets

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General Ledger Journal Copy
Journal Entry Form
Journal Form
Assign new batch name, period, and effective date Copy Journals with any status Increased efficiency, data integrity
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Additional Tools
Integration Repository
Describes all Oracle interface endpoints
All types of interfaces Browse through tree structure Search Functionality
Drilldown to interface details
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BI Publisher
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BI Publisher
Utilized across entire E-Business Suite Over 850 templates across 55 products Remaining Standard reports migrated to BI Publisher in 12.1 BI Publisher report development is a new skill set which should be mastered as soon as possible
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BI Publisher Sample Templates
Payment File Standard Check
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Electronic Format Positive Pay File
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Standard Oracle Report Asset Transfer
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Dunning Letter
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More Information
More Information
Release 12 Online Documentation

Oracle Financials Concepts Guide (B28873-01) Oracle Applications Upgrade Guide: Release 11i to Release 12 (B31566-01) Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12 (B31543-01)
Metalink Doc ID 580299.1 Best Practices for Adopting Oracle E-Business Suite Release 12 Release 12 Information Center
Knowledge Tab of My Oracle Support
Copyright 2009 Solution Beacon, LLC All Rights73 Reserved Any other commercial product names herein are trademark, registered trademarks or service marks of their respective owners.
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Release Update Packs
6 RUPs since Release in January 2007 Metalink Note 743368.1 Oracle E-Business Suite Release Update Pack Readme, Release 12.0.6 Apply Financials Critical Patch Collections (CPC) MetaLink Doc ID: 557869.1
If Your Current Patch Level is RUP3 or earlier
At a minimum apply November 2008 CPCs. Ideally, apply 12.0.6 (Patch 6728000) and November 2008 CPCs
RUP4, 5 or 6
Apply November 2008 CPCs (AP Patch 7456652 and AR Patch 7387254)
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Extended Support Schedule
Release 11.5.10
Premier Support extended to November 2010 Extended Support extended to November 2013
Release 12
Premier Support extended to November 2012 Extended Support extended to November 2015
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Available at www.solutionbeacon.com
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Installing, Upgrading and Maintaining Oracle E-Business Suite Applications 11.5.10.2+
The Release 12 Primer Shining a Light on the Release 12 World
The ABCs of Workflow for Oracle Copyright 2009 Solution Beacon, LLC All Suite Rights Reserved Any other commercial names herein E-Business Release 11i product and are trademark, registered trademarks or service marks of their respective owners. Release 12
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THE worlds largest knowledgebase for Oracle Applications users Networking opportunities with over 118,000 members worldwide Access to over 50,000 white papers in the online OAUG Conference Paper Database The Knowledge Factory FREE online training every Tuesday, Wednesday and Thursday for OAUG members
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Questions and Answers
Thank You! Alyssa Johnson ajohnson@solutionbeacon.com

www.solutionbeacon.com
Real Solutions for the Real World
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R 12 Sub Ledger Accounting and GL

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Release 12 Financials Best Practices Subledger Accounting and the General Ledger

Alyssa Johnson Solution Beacon

Global Financial Management

Global Financial Management

Specifies if setup is required

Setups in one location

Use the pencil for updates

Click on links to drilldown

View additional information

Advanced Global Intercompany System

Advanced Global Intercompany System

Setting up the General Ledger

Setting up the General Ledger

Design of Accounting Structure is Key

Setting up General Ledger

Set of Books is now referred to as Ledger Accounting Structure

Setting up General Ledger

Setting up General Ledger

Setting up General Ledger

All Ledgers in a Ledger Set must have the same

Setting up General Ledger Accounting Setup Manager

Setting up General Ledger Accounting Setup Manager

Create Accounting Structure

Setting up General Ledger Legal Entity

Setting Up General Ledger Legal Entity

Two locations for setup

Legal Entity Configurator

Setting Up General Ledger Create Accounting Structure

If only Currency is different use Reporting Currency instead of Secondary Ledger

Setting Up General Ledger

Next Step: Define Accounting Options

Complete Reporting Currencies

Define Subledger Accounting Options

Setting Up General Ledger Define Accounting Options

More Tips Note: Status

Setting Up General Ledger

Define Secondary Ledgers

Primary to Secondary Ledger Mapping

Setting Up General Ledger Define Secondary Ledgers

Any of 4Cs can be different

Data Conversion Level

Setting Up General Ledger Define Secondary Ledgers

Data Conversion Levels

Setting Up General Ledger Define Secondary Ledgers

Setting Up General Ledger Define Secondary Ledgers

Currency Conversion Rules

Journal Conversion Rules

Setting Up General Ledger Examples

Ledger: Acq CON Global CoA Calendar Year USD

Setting Up General Ledger Examples

Ledger: UK CON Global CoA Calendar Year USD

Ledger: FR CON Global CoA Calendar Year USD

Ledger: FR Statutory Statutory CoA Fiscal Calendar EUR

Setting Up General Ledger

Time spent on design will not be wasted

Drilldown to Subledger Accounting Details

Subledger Accounting (SLA) Subledger Accounting Subledgers

Drilldown to Transaction Details

Subledger Accounting Accounting Methods Builder

GL Date Account Derivation Rules

Subledger Accounting Accounting Methods Builder

Subledger Accounting Accounting Methods Builder

Subledger Accounting Create Accounting