Secondary Ledgers…
…Unleashing Its Power!!!

Presented By:

Anshu Anand, Principal Software Engineer, Oracle GCS
Sivaranganath Chittapragada, Principal Software Engineer, Oracle GCS
Sangam’ 2014 : November 07

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted

Agenda
• Global Reporting : Pre-R12 Options
• Secondary Ledgers : The Solution Offered by Release 12.
• Kinds of Secondary Ledger Conversions.
• Adding Secondary Ledger to existing Primary : Balance Initiation.
• Tips for Easy Maintenance.
• Things to Know Before Considering Secondary Ledgers.
• Pointers to Reconcile
• Q&A

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Scope
•Focus on Functionality and Business Usage. Detailed setups are kept out of Scope for
now. The reference documents for setups are available in the Oracle Knowledge Base.
•The examples referred are for indicative purposes only. Their actual usage may
depend on the holistic requirement of an organization.
•Reference to Accounting Conventions. The details and their accounting are kept out
of the scope of this presentation.

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Corporate Global Presence… Varied Statutory Needs…. Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 5 .

| Oracle Confidential – Internal/Restricted/Highly Restricted 6 .Interdepartmental Sales Low priced Asset Purchased Company : ABC Corp Ltd Head Office : United States Currency : USD Asset or Expense ? Depreciation Useful Life of Asset or Fixed Percentage Company : ABC Corp Ltd Company : ABC Corp Ltd Country Office : Singapore Country Office : India Currency : SGD Currency : INR Copyright © 2014 Oracle and/or its affiliates. All rights reserved.

| Oracle Confidential – Internal/Restricted/Highly Restricted 7 . All rights reserved.• Multiple Reporting Currencies (MRC) Reporting Book 1 Chart of Accounts : Acc Currency : AUD Pre R12 Options Primary Book Chart of Accounts : Acc Currency : USD Reporting Book2 Chart of Accounts : Acc Currency : SGD Statutory Global Reporting Reporting Book3 Chart of Accounts : Acc Currency : INR • Consolidation Copyright © 2014 Oracle and/or its affiliates.

All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 8 .Meeting Statutory Requirements for Global Presence! Possible Solutions Offered by R12 Application Copyright © 2014 Oracle and/or its affiliates.

• Optional Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 9 .Secondary Ledgers Defined • Represents Primary Ledger data that differs in one or more of the following  Chart of Accounts  Currency  Sub Ledger Accounting Method(SLAM)  Calendar • Used for supplementary purposes. such as Consolidation. Statutory reporting or Adjustments for one or more legal entities within the same accounting setup.

• SubLedger Level Secondary Ledger. Copyright © 2014 Oracle and/or its affiliates. • Adjustment Level Secondary Ledger. • Balance Level Secondary Ledger. | Oracle Confidential – Internal/Restricted/Highly Restricted 10 .Kinds of Secondary Ledger Conversions • Journal Level Secondary Ledger. All rights reserved.

Journal Level Secondary Ledger Data Flow Sub Ledger Transactions Transfer to General Ledger Journal in Primary Posting Journal Replicated in Secondary Manual Journals Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 11 .

• Comes across as a powerful tool when companies require the transactions/Journal details to be available in secondary ledger. | . • Drilldown facility. Copyright © 2014 Oracle and/or its affiliates. All rights reserved. • Enable the Required Sources for Replication General Ledger Responsibility -> Setup -> Accounting Setup Manager Journal Conversion Rules • Allows Manual ‘Adjustments’ too.

Corporate Consolidated Ledger Primary Ledger Country Office : India India Secondary Ledger (Calendar: Apr –Mar) India Ledger (INR) Statutory Reporting: Apr to Mar Business Case 1: Corporate Head Office : USA (USD) Secondary Ledger Corporate Reporting: Jan to Dec US Ledger(USD) Legal Entity India IndiaLEs LEs Operating Units India OUs US OU Inventory Orgs India Org US Org US LE Different Calendar Needs for Statutory and Corporate Reporting. All rights reserved. one can use the primary ledger to satisfy corporate reporting requirements and then use a secondary ledger to satisfy statutory reporting requirements. Copyright © 2014 Oracle and/or its affiliates. | Oracle Confidential – Internal/Restricted/Highly Restricted 13 . If a legal entity must perform corporate and statutory reporting.

Copyright © 2014 Oracle and/or its affiliates. | Oracle Confidential – Internal/Restricted/Highly Restricted 14 .Kinds of Secondary Ledger Conversions • Journal Level Secondary Ledger. • Adjustment Level Secondary Ledger. • Balance Level Secondary Ledger. • Subledger Level Secondary Ledger. All rights reserved.

Data Flow Manual Journals Sub Module Transactions Transaction Version1 Primary Sub Ledger Ledger Accounting Journal Import Method Secondary (SLAM) Transaction Ledger Version2 Replication Manual on Import Replication On Posting Journals Copyright © 2014 Oracle and/or its affiliates. | Oracle Confidential – Internal/Restricted/ 15 . All rights reserved.

Primary Ledger: Chart of Accounts : A Currency : USD ( SLAM : United States Federal ) SLAM: United States Federal Sub Ledger Entries Secondary Ledger: SLAM: Standard Accrual Chart of Accounts : B Currency : SGD ( SLAM : Standard Accrual) Secondary Ledger: SLAM: Standard Cash Chart of Accounts : B Currency : INR ( SLAM : Standard Cash) Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 16 .

GL Posting also replicates data into Secondary to allow replication of manual journals.• Most transparent form of Conversion. • SubLedger transfers data to both Primary and Secondary at the same time • Virtually allows a Company to live in two different accounting representations. • SubLedger Sources should be disabled for replication Upon Posting to avoid duplicates. | Oracle Confidential – Internal/Restricted/Highly Restricted 17 . Copyright © 2014 Oracle and/or its affiliates. • Complete drilldown available from Secondary Ledger to the Submodule. All rights reserved. • Apart from SubLedger transferred entries.

All rights reserved.Corporate GAAP. | Oracle Confidential – Internal/Restricted/Highly Restricted 18 . Issue a Sales Invoice Country Operations Secondary Ledger Receivables a/c….Debit Deferred Revenue a/c… Credit (For Corporate Reporting) International Accounting Standards (IAS) Revenue is recognized only when the customer accepts the product.Debit Revenue a/c… Credit (For Statutory/Local Reporting) Business Case 2: Corporate Head Office : USA Country Office : Switzerland Different Accounting Treatment needed for same transaction : Sales Account Local tax regulation requires that the “Sales Account" reflects all billing…but.Primary Ledger Receivables a/c…. (for example IAS/IFRS) requires that revenue is recognized only when the customer accepts the product.. Local Laws of Reporting Sales Account reflects all Billing Copyright © 2014 Oracle and/or its affiliates.

All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 19 . •Adjustment Level Secondary Ledger. • Balance Level Secondary Ledger. Copyright © 2014 Oracle and/or its affiliates.Kinds of Secondary Ledger Conversions • Journal Level Secondary Ledger. • Subledger Level Secondary Ledger.

Data Flow SubLedger Transactions Transfer to General Ledger Journal in Primary CONSOLIDATION Only Balances Moved To Secondary Manual Journals Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 20 .

• Does not provide real time data like Journal Level Conversion. | Oracle Confidential – Internal/Restricted/Highly Restricted 21 . • Ideal when no Adjustments are required in Secondary Ledger. • Secondary Ledger maintains only Balances from Primary (and not journals) • Requires ‘Consolidation’ to transfer balances from Primary to Secondary. • Easy to maintain and Reconcile. Copyright © 2014 Oracle and/or its affiliates. • Provides drilldown from ‘Account Inquiry and Drilldown’.Balance Level Secondary Ledger Cont…. All rights reserved.

| Oracle Confidential – Internal/Restricted/Highly Restricted 22 . Copyright © 2014 Oracle and/or its affiliates.Kinds of Secondary Ledger Conversions • Journal Level Secondary Ledger. • Subledger Level Secondary Ledger. • Balance Level Secondary Ledger. •Adjustment Level Secondary Ledger. All rights reserved.

| Oracle Confidential – Internal/Restricted/Highly Restricted 23 .Data Flow Create FSG Report Primary Ledger Adjustments Only Ledger Copyright © 2014 Oracle and/or its affiliates. All rights reserved.

000 Copyright © 2014 Oracle and/or its affiliates.00.Adjustment Level Secondary Ledger Cont….000 24 .000 600 1. Calendar/Period Type combination and Currency associated to the Primary Ledger Account Sales • Suggested to Include the Adjustment leader with the same Ledger Set as the Primary Ledger to get complete picture while running Reports.000 78.000 Other Receivables 76.06.000 1. All rights reserved.00.000 69. Primary Ledger (INR) 5. | Oracle Confidential – Internal/Restricted/Highly Restricted 69.600 CIP Cost Accrued Payroll 10.000 Short Term Investments 10.00.000 Total (INR) 5.000 2. • Adjustment ledger must share same Chart Of Accounts.000 Adjustments (Secondary) (INR) 6.

Data Conversion depends on the Journal Conversion Rules and Currency Translation Options for Secondary Ledger Data Conversion depends on the Journal Conversion Rules and Currency Translation Options for Secondary Ledger The Chart of Accounts. | Oracle Confidential – Internal/Restricted/Highly Restricted 25 .Subledger Summarizing the Concept… Journal Balances Adjustments Only Subledger. Copyright © 2014 Oracle and/or its affiliates. and Currency of a Secondary Ledger are in sync with that of Primary Ledger. • Data Conversion depends on the Journal Conversion Rules and Currency Translation Options for Secondary Ledger . Calendar. All rights reserved. Journals & Balances GL Journals & Balances Balances Only Enter Manual Adjustments directly into Secondary Ledger or set the SLA rules such that it transfers only adjustments • Enable Sub ledger Accounting Method for Primary & Secondary Ledgers is Mandatory.

Adding Secondary Ledger to Existing Primary… Copyright © 2014 Oracle and/or its affiliates. | Oracle Confidential – Internal/Restricted/Highly Restricted 26 . All rights reserved.

Copyright © 2014 Oracle and/or its affiliates. • If the earlier run of the program is incomplete / failed. • If the Secondary Ledger is of a different chart of accounts. • Application Accounting Definition (AAD) of Secondary and Primary Ledgers should be same. | Oracle Confidential – Internal/Restricted/Highly Restricted 27 . All rights reserved. the chart of account mappings should be defined. with the same parameters as the prior run. • Currency conversion rates between Primary Ledger’s entered / accounted currency to Secondary Ledger’s functional currency should be defined.• To Initialize Balances for General Ledger • To Initialize Subledger Events Consolidation Web ADI Concurrent program:”SLA Secondary/ALC Ledger Historic Upgrade”. The program performs the following validations: • Applicable for SubLedger Level Conversion Only. then the present run should be in Recovery mode.

All rights reserved. 28 …Not Really  Copyright © 2014 Oracle and/or its affiliates.But Maintenance of Secondary Ledgers Is Very Difficult…. | Oracle Confidential – Internal/Restricted/Highly Restricted .

All rights reserved. Calendar and Period Type Copyright © 2014 Oracle and/or its affiliates. | Oracle Confidential – Internal/Restricted/Highly Restricted 29 .Secondary Ledgers using same Chart of Accounts.

All rights reserved.1. Document Sequences Profile: GL_COPY_DOC_SEQ_FROM_PRIMARY Available through Patch 8509030:R12. Posts in Secondary2 Journal /Subledger Conversion . Autopost Allows posting all Unposted Journals at one shot.GL. 3. 2. Posting For Journal and Subledger level conversions Setup : ‘Post Journals Automatically from Source Ledger' Requirements : Period Open in Secondary Ledger Posts in Secondary1 Post in Primary For Balance Level Conversion Setup : Check ‘Autopost’ while running Consolidation. | Oracle Confidential – Internal/ 30 .B Copyright © 2014 Oracle and/or its affiliates.

All rights reserved. Ledger Specific Functionalities Budgets Journal Approval Journal Line Reconciliation Copyright © 2014 Oracle and/or its affiliates. Criteria Set based. | Oracle Confidential – Internal/Restricted/Highly Restricted 31 .Journal Reversal • Option 'Synchronize Reversals Between Primary and Secondary‘ • Option 'Replicate Reversals from Primary Ledger' No Manual Yes AutoReversal Allows reversal of Multiple Journals at one shot.

Things to Know while Considering Secondary Ledgers …. | Oracle Confidential – Internal/Restricted/Highly Restricted 32 ..Do It Right! Copyright © 2014 Oracle and/or its affiliates. All rights reserved.

• Selective Assignment of Balancing Segment from Primary to Secondary • 'Chart of Accounts Mapping'. Natural Account 3.• Average Balances • Journal Line Reconciliation. Balancing Segment 2. All rights reserved.Do we need them in Secondary??? • Change in SLAM Allowed ???? Copyright © 2014 Oracle and/or its affiliates. | Oracle Confidential – Internal/Restricted/Highly Restricted 33 . 2. Balancing Segment Cost Center Natural Account Future 1. 3. Future •'Adjustment Segment' Vs 'Adjustment Ledger‘ • Re-enable Secondary Ledger • Budgets . a Balancing Segment Value of one ledger cannot be mapped to Non-BSV segment of the other. 4. 1. • Subledger level Reporting Currency cannot be attached to a Secondary ledger.

| Oracle Confidential – Internal/Restricted/Highly Restricted 34 .Pointers to Reconciliation Copyright © 2014 Oracle and/or its affiliates. All rights reserved.

Manual Journals created in Secondary only can be one of the major causes of mismatch in balances Copyright © 2014 Oracle and/or its affiliates. All rights reserved. Table : GL_JE_HEADERS • Excepting those sources and Categories marked for non-replication explicitly. 2. • Post the ‘Unposted’ journals in primary to allow For replication in Secondary. | Oracle Confidential – Internal/Restricted/Highly Restricted 35 . Upon Posting in Primary • All posted Journals from primary are replicated in Secondary. Identify Sources and Categories excluded for Replication Table : GL_JE_INCLUSION_RULES • Both Primary and Secondary are individual ledgers on their own.Journal Level Technical Assistance Expectations 1.

Duplicate in GL (Doc ID 883557. | Oracle Confidential – Internal/Restricted/Highly Restricted 36 .Negative Ledger_ID. Not Reached GL. • Document Sequences Copyright © 2014 Oracle and/or its affiliates. All rights reserved. • Ensure All journals are posted in Primary and Secondary before reconciliation.1) Any Datafix To be run after confirmation from Oracle Support Only*** • Can be run for both Primary and Secondary. • Query from Journal Reconciliation to be run to identify manual Journals not replicated. How To Avoid and Fix Corruption in Data Transfer from SLA .Subledger Level • Run the ‘SLA Diagnostics’ to identify missing transactions.

Mapping Rules’ Report Consolidation Exception Report: Unmapped Subsidiary Accounts Consolidation Exception Report: Disabled Parent Accounts Copyright © 2014 Oracle and/or its affiliates. suggested to run the ‘Account Analysis (180 chars)’ report to identify any manual journals created in Secondary causing the difference.Balances Level • Post all the journals in Primary before running Consolidation • Suggested to run Consolidation in the ‘Audit’ mode. • Ensure Journals created in Secondary are Posted. • For accounts with difference. • Run Summary Trail Balance (or Translated Trial Balance) for both ledgers to compare the Account balances. | Oracle Confidential – Internal/Restricted/Highly Restricted 37 . All rights reserved. • Reports: ‘Chart of Accounts .

and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.Safe Harbor Statement The above material is intended to outline our general product direction. It is not a commitment to deliver any material. The development. All rights reserved. Copyright © 2014 Oracle and/or its affiliates. or functionality. | Oracle Confidential – Internal/Restricted/Highly Restricted 38 . It is intended for information purposes only. and should not be relied upon in making purchasing decision. release. code. and may not be incorporated into any contract.

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com Copyright © 2014 Oracle and/or its affiliates.Email Contacts: anshu.anand@oracle. | Oracle Confidential – Internal/Restricted/Highly Restricted 40 . All rights reserved.chittapragada@oracle.com sivaranganath.