Oracle Release 12 of the E-Business Suite is also called the Global Business Release , as it has numerous enhancements designed

to make it easier to do business on a global basis. A more flexible, centralized global accounting structure has been introduced which makes it easier to operate between and across operating units and legal entities. Overall, R12 contains 18 new modules and 2443 enhancements to existing functionality. Note: This Document is compiled from Various Sources [Basically a Cut Copy Paste]

Accounting Setup Manager
The ledger is a basic concept in Release 12. The ledger replaces the 11i concept of a set of books. It represents an accounting representation for one or more legal entities or for a business need such as consolidation or management reporting. Companies can now clearly and efficiently model its legal entities and their accounting representations in Release 12. This seems to be a major area in getting success of the shared service center and single instance initiatives where many or all legal entities of an enterprise are accounted for in a single instance, and data, setup, and processing must be effectively secured but also possibly shared. Now, legal Entities can be mapped to entire Ledgers or if you account for more than one legal entity within a ledger, you can map a legal entity to balancing segments within a ledger. While a set of books is defined by 3‘s 1. chart of accounts 2. functional currency 3. accounting calendar, The addition in this list the ledger is defined by a 4th C: the accounting method, This 4th C allows you to assign and manage a specific accounting method for each ledger. Therefore, when a legal entity is subject to multiple reporting requirements, separate ledgers can be used to record the accounting information. Accounting Setup Manager is a new feature that allows you to set up your common financial setup components from a central location. What is Accounting Setup Manager Accounting Setup Manager is a new feature that streamlines the setup and implementation of Oracle Financial Applications. The Accounting Setup Manager will facilitate the setup required for simultaneous accounting for multiple reporting requirements. With the Accounting Setup Manager, you can perform and maintain the following common setup components from a central location:
 

Legal Entities Ledgers, primary and secondary

which is a Rule-based accounting engine. Sub ledger journal reports. which oracle does offer for European reporting Needs So what is Sub ledger accounting?    SLA is an intermediate step between sub ledger products and the Oracle General Ledger Journal entries are created in Sub ledger Accounting and then transferred to Oracle General Ledger Each sub ledger transaction that requires accounting is represented by a complete and balanced sub ledger journal entry stored in a common data model Is this Module or what? It is good to know. and to provide a consistent view when drilling down from GL to sub ledger transactions. As we know driver for introduction this is to have an option of allowing multiple accounting representations for a single business event.      Operating Units. third party control account balances) Sub ledger accounting entries Sub ledger reporting (e. which is an enhanced feature Sub ledger Accounting Options. Sub ledger Accounting (SLA) has been introduced. Intercompany Accounts and Balancing Rules Accounting and Reporting Sequencing Both Intercompany and Sequencing Sub ledger Accounting (SLA) GL is integrated with SLA to enable a unified process to account for sub ledger transactions and post data to GL. resolving conflicts between corporate and local fiscal accounting requirements. Most of us are well aware that in Release 12 of Oracle Applications. The high points of SLA would be:          There are no SLA responsibilities Users do not login to SLA SLA is a service provided to Oracle Applications SLA forms and programs are embedded within standard Oracle Application responsibilities SLA provides the following services to Oracle Applications Generation and storage of detailed accounting entries Storage of sub ledger balances (e. .g. This is where you define the accounting methods for each legal entity sub ledger transaction and associate them to the ledger where the accounting will be stored. sub ledger Accounting is a Service. The Functionality is somehow very similar to Global accounting engine. toolset & repository which is supporting most of Oracle business Suite modules. open account balances listing) What oracle application Module taking services for SLA? Most of modules which need accounting entry with finance use service of SLA Modules.g. which are assigned to primary ledgers Reporting Currencies. not an Application.

This new Product has many new functionality such as:              Journal Entry Setup and sequencing Date Effective Application accounting Definitions Multiple Accounting Representation Multi-period Accounting Summarization Options Draft and online accounting Replacement for disabled accounts Process category Accounting Transaction account Builder Accrual Reversal Accounting Accounted and Gain/Loss Amount calculations Application Accounting Definition Loader Enhanced Reporting Currency Functionality The overall advantage of SLA can be summarized by oracle as below: GL Flow with Sub ledger-Level Secondary Ledger Let’s take a case. with a scenario with basic Finance module. . you can find how tightly accounting model is separated with transaction model in release 12.

This is the typical flow within one product with SLA can be best described as: .

and another in 500 British Pounds that gets converted to 1200 US Dollars. The $2200 is the sum of the $1000 entered in USD and the $1200 converted from the 500 British Pounds. However.000 US Dollars. both the entered as well and the converted.Enhanced Foreign Currency Processing by Reporting made easy GL has added new features and enhanced existing features to support foreign currency processing. This is particularly useful if you need to create foreign currency journals that are recurring in nature. assume a subsidiary that uses a different currency from its parent borrows money from the parent. and Oracle General Ledger journals and balances. Oracle or non-Oracle sub ledgers. . Now in Release 12. you could define recurring journals using the functional currency or STAT currency. The amounts entered in foreign currencies that were converted to the ledger currency will not be included in the balance. I enter and post two journals. The second one is in reporting to view balances view balances that were entered in your ledger currency separate from those balances that were entered and converted to the ledger currency. I can view the 1000 USD by performing an account inquiry on the Cash account for balances entered only in the ledger currency. including external systems. The subsidiary can now generate a recurring entry to record monthly interest payable to the parent company in the parent’s currency. In Release 11i. Assume we have a ledger and the ledger currency is USD. MRC feature is enhanced with a feature call Reporting Currencies. In Release 12. if I want to retrieve all balances in USD. they are mainly as:   In R12. Of course. one in 1. you can create recurring journals using foreign currencies. The change in R12 is that balances entered in the ledger currency are maintained separately from balances converted to the ledger currency for use in Reporting and Analysis. Creating foreign currency recurring journals In Release 11i. For example. I can still do that in Release 12. That mean it will now support multiple currency representations of data from any source. Here’s an example. I view that a 1000 USD were entered directly in USD. I can review the 500 GBP and the 1200 USD that results from converting the 500 GBP. and the total 2200 USD which is the USD balance in the Cash Account.

Journal Copy Now we can now copy entire journal batches. You may also change the batch name. You can access multiple ledgers from a single responsibility as long as all ledgers share the same chart of accounts and calendar. After copying the journal batch. This is useful if you manage multiple ledgers and want to run a balance sheet or income statement report for all of your ledgers at the same time. Financial Reporting for Multiple Ledgers Now with this feature you can run Financial Statement Generator (FSG) reports for multiple ledgers simultaneously. This is enhanced by integrated Web-based Spreadsheet Interface. if you are managing multiple ledgers. Cross-Ledger and Foreign Currency Allocations You are able to allocate financial data from one or more ledgers to a different target ledger. . and/or effective date while copying the journal batch. Streamlined Auto Reversal Criteria Setup Integrated Web-based Auto Reversal Criteria Sets can also be shared across ledgers to reverse journals across multiple ledgers. which is useful for purposes such as allocating corporate or regional expenses to local subsidiaries when each entity has its own ledger Streamlined Automatic Posting You can now share Auto Post Criteria sets across multiple ledgers that share the same chart of accounts and calendar and use the Auto Post Criteria sets to post journals across multiple ledgers simultaneously. Simultaneous Opening and Closing of Periods for Multiple Ledgers You no longer have to open and close periods for each ledger separately. This enables you to perform cross-ledger allocations. you may modify the un posted journals in the same manner as any manually created journals. The system will create a new journal batch containing the same journal entries. Simultaneous Currency Translation of Multiple Ledgers You can run the Translation program for multiple ledgers simultaneously. period. You can now open and close periods across multiple ledgers simultaneously by submitting Open and Close Periods programs from the Submit Request form. You can copy journal batches with any status.Data Access to Multiple Legal Entities and Ledgers You no longer have to constantly switch responsibilities in order to access the data in a different ledger.

or whether they can also enter and modify data for a legal entity. balancing segment value or management segment value. you can prevent transactions that include the account from erroring during journal import by defining a replacement account for the disabled account. You are able to control whether a user can only view data. This improves processing efficiency by preventing the journal import process from erroring and enabling the successful creation of the journal with minimal user intervention when an account has been disabled. Prevent Reversal of Journals with Frozen Sources You can no longer reverse journals from frozen sources defined in the journal sources form. This allows you to secure which users can view. ledger. Therefore. Therefore. and their mapping rules are the same. Journal import replaces the disabled account with the replacement account and continue the journal import process if the replacement account is valid. and/or use chart of account mappings in consolidation definitions. and their mapping rules are the same.Streamlined Consolidation Mappings You are able to define Chart of Accounts Mappings (formerly known as Consolidation Mappings) between two charts of accounts. modify. if you have multiple Consolidation Definitions for parent and subsidiary ledgers that share the same chart of accounts pair. You can also secure access to chart of accounts mappings using definition access set security. Data Access Security for Legal Entities and Ledgers In R12. Oracle General Ledger provides you with flexible ways to secure your data by legal entity. . if you have multiple Consolidation Definitions for parent and subsidiary ledgers that share the same chart of accounts pair. since you can access multiple legal entities and ledgers when you log into Oracle General Ledger using a single responsibility. The enhancement in R12 allows you to define mappings between charts of accounts instead of between sets of books. Replacement for Disabled Accounts Normally when an account is disabled. so that they can be shared across multiple Consolidation Definitions. or even balancing segment values or management segment values. you only have to define a single Chart of Accounts Mapping. Management Reporting and Security This can be best understood as: You can designate any segment (except the natural account segment) of your chart of accounts to be your management segment and use Oracle GL security model to secure the management segment for reporting and entry of management adjustments. ledger. you only have to define a single Chart of Accounts Mapping.

Budget Wizard also allows you to plot graphs and do a graphical comparison on the amounts. This ensures data integrity and better auditability. or encumbrance journals. You can add descriptions to accounts and amounts in your budget and explain your budget within the budget worksheet. or even using formulas to calculate journal line amounts. Budget Wizard also provides budget notes. and then upload them back. We can also import data from text files into spreadsheets. budget. You can also choose to download the actual amounts to compare it with the budget amount. there was a risk that the original journal could be deleted so you could end up reversing something that didn't exist.If the journal is created from a frozen source. where it can be further modified before uploading to Oracle. then you should do so in Sub ledger Accounting or the sub ledger application. we can leverage spreadsheet functionality to create actual. Integrated Web-based Spreadsheet Interface Through the integration with Web ADI. users can now leverage spreadsheet functionality in Oracle General Ledger via a web-based interface. In the past when we allowed you to reverse unposted journals. You can then upload your journals to Oracle General Ledger. You can take advantage of spreadsheet data entry shortcuts such as copying and pasting or dragging and dropping ranges of cells. Using the Journal Wizard. Using the Budget Wizard. modify the amounts. Before uploading. This functionality is useful when migrating data from legacy systems. you can download budget amounts to a spreadsheet. all reversals can be tied back to the original posted journal. This provides streamlined data reconciliation with subsystems. Not being able to reverse journals that originated in sub ledgers will ensure that the account balances will always tie out with General Ledger. The spreadsheet interface can be conveniently launched from a GL responsibility. or from any source that can produce delimited files. Now. Control Accounts You are able to control data entry to an account by ensuring it only contains data from a specified journal source and to prevent users from entering data for the account either in other journal sources or manually within general ledger. you can save and distribute your journal worksheets for approval. . If you need to reverse a sub ledger journal. Prevent Reversal of Unposted Journals You also can no longer reverse unposted journals. avoiding the clutter of external documentation. the journal cannot be modified even if the source is subsequently unfrozen in the future.

) Figures the difference between the current cumulative functional balance of these foreign transactions and the revalued functional currency balance calculated using the Revaluation Rate. or execute a definition without modifying it. Revaluation. 4.) Takes the foreign currency portion of the account balance and revalues it using the Revaluation Rate from the Period Rates Table.) Finds accounts within the range of accounts specified that have all or a portion of their balance derived from foreign currency transactions. 14. 3. what & why? Revaluation is used if. Mass Allocation and Mass Budget Formulas FSG Reports and Components Accounting Calendars Transaction Calendars Auto Post Criteria Sets Auto Reversal Criteria Sets Budget Organizations Chart of Accounts Mappings Consolidation Definitions Consolidation Sets Elimination Sets Ledger Sets Recurring Journals and Budget Formulas Rate Types Revaluation Revaluation in detail: Let’s take some thoughts on Oracle GL Foreign Currency exposure. 2.when. 15. Following is a list of definitions that have this security available for: 1. They are Conversion. The Revaluation Process: 1. This enables you to control which of your users can view a definition. 11. 6. The Revaluation Rate is simply 1/Period End Rate. 12. 2. Conversion of foreign currency transactions). . and only if. and Translation. 10. 5. 7. but not modify or execute it.Security for Definitions You can secure your setup and definitions by granting specific privileges to users to view. Revaluation uses the Period Rates Table. 13. or vice versa. 9. Here we review Revaluation in detail: Revaluation . 8.e. 3. and/or execute a definition. you have foreign currency transactions (i. modify. As we know three key terminologies most wildly used in GL that pertain to foreign currency.

usually at a month-end. The purposes of Revaluation is to "true-up" liability or asset accounts that may be materially understated or overstated at month-end using an exchange rate at month.the invoice is still unpaid or the receivable uncollected). The Realized Gain/Loss will be recorded at the time the obligation is settled. whose balance is made up of open transactions (ie. The offsetting account is an Unrealized Gain/Loss account specified when running the Revaluation process. the journal entries produced as a result should be reversed in the following period. therefore. but typically. Revaluation is only necessary while the obligation remains unsettled (example . this is done for balance sheet accounts. When you select PTD. Revaluation is used to revalue all these transaction at the same rate the foreign subsidiary used to translate their intercompany balance.4. Although Revaluation is intended to be used when transacting in currencies because of fluctuating Forex rate in the unstable economies.. . Revaluation is typically done for reporting purposes only. Accounts Receivable).end. The idea being that they are getting translated balances from their subsidiaries that do not balance to their intercompany due to using different rates throughout the month to record intercompany transactions.) Creates an unposted journal batch to adjust the account balance to the new revalued balance calculated using the Revaluation Rate. Take a note revaluation can be done on any account. the Revaluation program only revalues the PTD balances of your income statement accounts but continues to revalue YTD balances for balance sheet accounts. more and more company who is operating in Multinational environment . Don’t be confused by the fact that the Revaluation process revalues transactions entered using Daily Rates with rates from the Period Rate table. This understatement or overstatement is caused by an unacceptable fluctuation in the exchange rate between the time the transaction was entered into and the period of interest for reporting. normally using this functionality by creating Journal Entries to reconcile their foreign subsidiary intercompany account. How to specifying PTD or YTD Revaluation We can use the setting in the profile option 'GL: Income Statement Accounts Revaluation Rule'. The following values are available: PTD: Only PTD balances will be revalued for income statement accounts. the rate it is using is simply the "Daily Rate" on the last day of the month stored in the Period Rate Table. Accounts Payable.

These two Sequences can be assign mutually exclusive sequences based on:     Ledgers or Reporting Currencies Journal sources Journal categories Balance types . What we have seen in Release 11i. Formula Used By Revaluation Calculation YTD: REVALUATION ACCOUNT AMOUNT= ((begin_balance_dr + period_net_dr . then the revaluation program behaves as it did before.begin_balance_cr period_net_cr) * revaluation_rate) LESS (begin_balance_dr_beq + period_net_dr_beq . Latin America. Sequence sub ledger Journals when you complete the accounting in SLA .YTD: Only YTD balances will be revalued for income statement accounts. in reality there is bit difference in these two terms.period_net_cr) * revaluation_rate)) LESS (period_net_dr_beq . revaluing YTD balances for both your income statement and balance sheet accounts. Sequence sub ledger journals when completed in Sub ledger Accounting. There's also an option to sequence sub ledger journals when they are completed in SLA Accounting. accounting and reporting sequencing. two Journal Sequencing options have been provided. and Europe. When you select YTD. In R12. These are accounting and reporting sequence. Accounting Sequencing will automatically assign a sequence number to GL journal entries that are posted in GL. Accounting Sequence This is sequence used in GL journals when posted in GL. Reporting Sequence This sequence is used in GL Journals when you close a GL Period. to cater the need for legal compliance some other counties like Asia.period_net_cr_beq) Sequence for Reporting Maintaining two sequences have been introduced. we had document sequencing that sequentially numbered documents upon creation.begin_balance_cr_beq .period_net_cr_beq) PTD REVALUATION ACCOUNT AMOUNT = ((period_net_dr .

Therefore it allows fiscal authorities to verify the completeness of a company's accounting records. such as Europe & Asia. such as by ledgers. reporting currencies.The benefits of using these sequences are summarized: a) Legal Compliance made easy: The one biggest advantage of it will now addresses business requirements in many countries. c) No Localization Required: Somehow related to (a) discussed above. Where to define the sequence: You can define the accounting sequence in the context of a ledger in Accounting Setup Manager. earlier it the local reporting need was catered by localization. . There is another way i. journal sources. which now is part of GL activity. as mention above. these can be based out of these different criteria.e. and balance types. journal categories. b) Flexibility get enhanced: With this it provides greater flexibility in choosing different journal sequencing options. Accounting Sequencing menu function which we can create and manage our sequencing rules.

GL journals and sub ledger journals are sequenced when a GL period is closed. the GL journals are sequenced when they are posted in GL and Sub ledger journals are sequenced when completed in SLA. You can see both can be appear in the Journal screen as below. . For Reporting Sequences (period close event).For Accounting Sequences which is internally a posting event.

Enhanced Intercompany In R12 there are many improvements to intercompany accounting. We also extended intercompany balancing support to include encumbrance journals R12 GIS Module seems some of the old features and functionality have been greatly enhanced with addition of some more new features introduced. R11i Global Intercompany System (GIS) has been replaced with an exciting new product called Advanced Global Intercompany System (AGIS). such as Norway. Here are the candidate features: Ability to create invoices (AR and AP) Oracle Advanced Global Intercompany System can create invoices in payables and receivables sub ledger from intercompany transactions. The difference is the prefix 'A'. R11i GIS get new name commonly known as "Advanced Global Intercompany System" in short 'AGIS'. therefore will take a close microscopic view on feature that makes 11i GIS into Advanced GIS of R12.Journal Line Reconciliation Journal Line Reconciliation enables you to reconcile journal lines that should net to zero. The point which should be noted here is. or France. such as suspense accounts. . or payroll and tax payable accounts for countries. Germany.

These figures describe the options available in both the versions. Proration of transaction distribution amounts When user allocates more than one distribution account in a batch that has multiple recipient transactions. which displays the . This feature is used to create a template that contains only the entry fields that are important for the business. Multiple recipients Support Reversal of batch/transaction This changed feature enables a user to reverse a whole batch or an individual transaction in a batch. The required fields cannot be removed from the template. a new reversal batch is created. When the user reverses a batch or a transaction. Once the templates are generated. Oracle Advanced Global Intercompany System can automatically prorate the distribution amounts based on the recipient transaction amounts. user can save them in their local computer to reuse them in the future. as earlier product does not have capability to use direct upload functionality. The proration of amounts is also used by Oracle Advanced Global Intercompany System to adjust the distribution amounts in the batch when a recipient transaction is deleted or it is rejected.Using Oracle Advanced Global Intercompany System user can enter transactions for multiple recipients within a single batch. rather than interfacing through Open GIS interface. Now flexibility is provided to user that can generate spreadsheet templates that have features of intercompany entry pages and using the templates the user can enter transactions in the spreadsheet and upload them into Oracle Advanced Global Intercompany System. The good thing has found the standard templates can be customized by removing or adding the entry fields from a list of available fields. which is replacement of external integration for AGIS System using by mean of Microsoft based Excel spreadsheet. This allows user to submit intercompany transactions from one initiator to one or more recipients in a single batch. In Release 12 ADI is heavily used in this module. Upload Transaction Batches created in Excel This was a missing link in the earlier version.

Important thing to note is that these DFF can be used by sender. its only users with access to the initiator organization can reverse its batches or transactions. What is different between these two is :   R11i .the user can initiate intercompany transactions for many trading partners without changing responsibility Intercompany Periods The new Intercompany calendar gives the user the option to control intercompany transaction processing by periods status. AGIS very similar to other module. Other security features include minimum transaction amount. Not both the parties (Sender /receiver). For example: Intercompany accountant processes intercompany transactions for many intercompany organizations in the enterprise. Transaction security Intercompany transactions entry pages incorporate various security features.Each responsibility has only one subsidiary assigned. Document attachment The user can attach the documents for the batch as well as for each of the transaction. When user submits the batch.references to the original transaction. . Descriptive flex fields allow user to enter any additional information specific to the nature of business. The rules for approvals and notifications can be customized using Oracle Approval Management Engine (AME). One point to be noticed is that new batch is submitted automatically immediately after it is created. Flexible Approval Rules and Workflow Notifications In R12. therefore a user can initiate intercompany transactions for one subsidiary from each responsibility R12 . The user can enter descriptive flex field information for the recipient in the Recipient Accounting section. the documents are transferred to respective recipients. The set up is there where a user can choose a reversal method determining if the new batch will be created with opposite signs. home page displays notifications about approval or rejection statuses of intercompany transactions. which allows the user to add extra approval rules and hierarchies to suit their business needs. or with switched debits and credits. in the batch and in the transactions. Descriptive flex field support In AGIS descriptive flex fields is supported on the batch and also on individual transactions within the batch. You should note that notifications can be sent to the users via email. control amount and function security. The user can enter transactions only for those intercompany organizations that are assigned to the user.

What is observed in this functionality can be best describe as: If a user wants to control intercompany cut-off dates. When the user tries to close General Ledger accounting period. there so that day-to-day tasks and speeds up period close activities. The new reports offer all of the functionality of the obsolete reports plus additional benefits. . These reports replace reports that were available in the Global Intercompany System (GIS) in Release 11i.    Intercompany: Protect Receiver Natural Account intercompany: Subsidiary Intercompany: Use Automatic Transaction Intercompany Reconciliation and Reporting There are two new reports available in XML Publisher format   Intercompany Transaction Summary report Intercompany Account Details report. Setup Profile Options In AGIS there is no profile option that means these three as below intercompany profile options used in R11i are obsolete in this release. A bit on these 2 reports: 1) Intercompany Transaction Summary report replaces the Intercompany Transaction Detail report and Unapproved Transaction Listing report. The purpose of this report is to give user a clear overview of intercompany transactions and their statuses. This report also provides supporting documentation for intercompany reconciliation and helps keep intercompany in balance by uncovering any potential discrepancies. the warning message can be displayed informing user about the status of intercompany period. 2) Intercompany Account Details report replaces the Transaction Activity Summary report This new report provides a detailed listing of all accounting lines for intercompany batches. Intercompany Calendar prevents users from entering transactions in closed periods and from closing the period if open transactions exist for the period user wants to close. grouped by transaction. or Oracle Payables period or Oracle Receivables period while Intercompany Period is still open. then the user can choose which General Ledger calendar will be used to control transaction entry by intercompany period status.

even if the summary amount represents multiple non-contiguous account ranges. Users can then drill to the underlying details. and then run reports using BI Publisher’s Excel publishing capabilities to generate an Excel file that opens directly in Excel. General Journals and Trial Balance standard reports are now integrated with XML Publisher Enhanced Financial Statement Generator Reporting to Display Content Set Values Users can now publish a Financial Statement Generator (FSG) report with a content set. GL Date range. . leveraging General Ledger’s Account Analysis and Drilldown capability. After running a FSG report. and many more to run the report by. User can select what parameters like initiator. Invoice Number. Some of the GL Standard Reports converted into XML Publisher Oracle General Ledger's Account Analysis. User can run the report by ranges of initiator and recipient accounts to see what transactions make up their balances. Transaction Status. each value in the content set becomes visible as an individual tab in the Microsoft Excel workbook. Enhanced Financial Statement Generator Reporting to Support Drill-down for Non-Contiguous Account Ranges General Ledger provides a streamlined drill path from the monetary amounts in financial statements to the underlying detail balances. It also improves usability by enabling the user to see all the information on a single page. This process allows users to perform the drill down efficiently in one step and eliminates the need to perform multiple searches by selecting one account range at a time. the inbound section shows transactions received by these organizations. or both sections in the report. Recipient. Currency. The outbound section shows transactions initiated by the organizations to which the user has an access. The user can choose whether to include inbound. Users can create presentation templates using Excel. outbound. The user can run the report for one or many organizations to which the user is given the access.The report is divided into two sections:   One section for outbound batches One section inbounds transactions. Streamlined Excel-based Financial Statement Publishing Users can now publish FSG reports natively as Excel files. users can drill from any summarized financial balance in the report directly to the detail account balances that comprise the summary amount. Batch Number range. When the Page Expand option is selected. Batch Type.

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