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Release Twelve
The Global Business Release

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CFO Agenda
Transforming Finance into a Strategic Weapon

GLOBALIZATION

COMPLEXITY AND COSTS

…Today‟s workforce, customers, suppliers, and competitors have all become global

… 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

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Doing Business Globally is Complex
Top Drivers of Complexity

1 2 3 4 5 6 7 8

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
Direct impact on Finance

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

Source: PWC, 9th Annual Global CEO Survey

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Accenture 2005 4 . Source: Shared Services: Enabling Finance Mastery and High Performance.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.

How Financials Release 12 Contributes The Global Business Release WORK GLOBALLY To Be More Competitive THINK GLOBALLY To Make the Right Decisions MANAGE GLOBALLY To Lower Cost & Increase Performance XML Publisher New Reporting Paradigm Global Financial Architecture Centralized Processing + 300 New Financial Features Business Intelligence Financial Consolidation Hub Performance Management Profitability Management 5 .

How Financials Release 12 Contributes The Global Business Release WORK GLOBALLY To Be More Competitive THINK GLOBALLY To Make the Right Decisions MANAGE GLOBALLY To Lower Cost & Increase Performance Global Financial Architecture Centralized Processing + 300 New Financial Features Ledgers and Ledger Sets Multi-Org Access Control 6 .

6.Global Financial Architecture 6 Major Initiatives 1. Ledger and Ledger Sets Multi-Org Access Control Subledger Accounting Tax Engine Intercompany Bank Model Multi-Org Access Control Dr Cr General Ledger Sets Ledger & Ledger Subledger Accounting (SLA) 3. 2. 5. 4. Tax Engine Inter Company Bank Model Inventory Receivables Payables Projects Work in Process Purchasing 7 .

and… • Think Globally • Global Ledger Sets – worldwide insight • Global Reporting Ledger Set manage their subledger data in Operating Units Multi-Org Access Control • Manage Globally • Global Accounting Rules • Global Set-up • Global Integration 8 Inventory Receivables Payables Projects Work in Process Purchasing . Company Company Company …account for themselves in Ledgers.What the Architecture Gets You • Work Globally • • • • Global Order Desk Global Procurement Global Billing Global Dunning Release 12 Subsidiary LEs….

Ledger Sets Global Information At A Glance Ledger Set Share: Chart of Accounts Calendar Ledger C Ledger A French Rules Plan Comptable French Calendar Ledger B US GAAP US COA US Calendar US GAAP US COA US Calendar USD EUR EUR Ledger D US GAAP US COA US Calendar 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 AUD Reporting Currency 9 .

Collections. Billing  Requisition.MOAC: Multi-Org Access Control Role based access to Operating Units Perform multiple tasks across operating units without changing responsibilities Belgium Legal Entity Holland Legal Entity Denmark Legal Entity Functional Tasks  Order Management  Dunning. Disbursement  Customer Data Management  Accounting Setup Belgium Operating Unit Holland Operating Unit Denmark Operating Unit Responsibility SingleResponsibility Responsibility Responsibility 10 . Demand & Purchase Orders  Receiving & Drop Ship  Invoice Receipt.

How Financials Release 12 Contributes The Global Business Release WORK GLOBALLY To Be More Competitive THINK GLOBALLY To Make the Right Decisions MANAGE GLOBALLY To Lower Cost & Increase Performance Global Financial Architecture Centralized Control + 300 New Financial Features Subledger Accounting Tax Engine Intercompany Bank Model 11 .

et cetera Multiple Representations Common Posting to GL Ledgers Real time or Periodic • Faster. inquiries. Common Repository: Global Control Ledger French Rules Plan Comptable French Calendar What it is Some Benefits EUR • Accounting Rules • SarBox & 8th Dir. open items. Easier • • • • • Reconciliation Corporate Rules = Accounting Standardization Local Rules = Improved Local Compliance Automate ―Apples to Apples‖ Adjustments Improved Auditability Improved Internal Control Dr Cr Subledger Accounting • • Payables Invoice 12 . • User Editable • Subledger Daybooks • • • (Journals) Subledger Balancing Reports.Subledger Accounting Centralized Rules.

Multiple Accounting Representations Global Compliance – Statutory and Stock Market Ledger A French Rules Plan Comptable French Calendar Ledger B US GAAP US COA US Calendar EUR EUR or Dr Cr Subledger Accounting Single subledger transaction can create multiple accounting representations and in multiple currencies Chose to us an alternative Ledger or just an Adjustment Ledger or segment Payables Invoice 13 .

Multiple Accounting Representations Management Version in a Management Ledger Set Ledger A French Rules Plan Comptable French Calendar Ledger B US GAAP US COA US Calendar EUR EUR or Dr Cr Subledger Accounting Single subledger transaction can create multiple accounting representations and in multiple currencies Chose to us an alternative Ledger or just an Adjustment Ledger or segment Ledger Set IAS/ IFRS or US GAAP Payables Invoice 14 .

Payments. Invoice Date. Attribute1…20.Accounting Methods Builder Vision Operations (USA) Ledger Standard/GAAP Accrual Subledger Accounting Method Payables Accrual Application Accounting Definition Invoice Journal Line Definition Journal Line Types Account Derivation Rules Journal Entry Descriptions Sources Eg. etc. Invoice Amount. etc 15 . Credit Memos. Supplier name. Transaction Objects Eg: Invoices.

Centralized Set-up Accounting Setup Manager Define Legal Entities & Associated Rules Ensure Complete & Accurate Setup via Online Checklist Define Multiple Ledgers for Rules & Currencies One Place to manage Your Global Accounting Rules. Currencies. And Ledger Sets Set Accounting Rules for All EBS Apps 16 . Ledgers.

trading partner classification. and transactions • Tax registrations and tax reporting codes Local Compliance • Tax lines determine applicable taxes • Configurable tax reporting templates • Single set up for all Oracle applications Information Visibility • Use of E-Business Suite components such as trading partner geography.Centralized Global Tax Less Complex Global Tax Compliance Business Needs • Tax content for certain countries Automation • Vertex and Taxware integration for U. • 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. inventory item categorization.S. rules. and accounting event. Solution 17 . legal entity.

Advanced Global Intercompany System Address the Top Barrier to a Fast Close Advanced Global Intercompany System Web UI Subledger Invoices & Documents Open Interfaces / API  Generate subledger invoices Excel (Web ADI)  Control transaction entry with Intercompany Calendar  Fully Configurable Approval Rules  Flexible Security Model  Centrally defined Intercompany Accounts XML Publisher Reports Online Reconciliation Reporting Dr Cr General Ledger Subledger Accounting Receivables Payables 18 .

Bank Model: Example of what you can do Pay invoices from different OUs with 1 instruction • New Payments Module • New Bank Module • New Bank & Credit Card Features OU B OU A OU C Single Payment Instruction Bank Payments Sub Ledger Accounting Invoices 19 .

Risk & Compliance 20 .How Financials Release 12 Contributes The Global Business Release WORK GLOBALLY To Be More Competitive THINK GLOBALLY To Make the Right Decisions MANAGE GLOBALLY To Lower Cost & Increase Performance Global Financial Architecture Centralized Control + 300 New Financials Features Financial Control & Reporting Credit-to-Cash Procure-to-Pay Treasury & Tax Travel & Expense Asset Management Governance.

approval enhancements • Expense Bar Codes • Self Service receipt matched invoices • Real time contract T&Cs in PO. Dunning.Over 300 New Financial Features Just a sample… Simplify and Standardize • Manage the Margin • Collect Faster • Standardize Payables • Pay more easily • Simplify Employee Expenses • Rationalize Procurement • Bulk Process Assets New Features • Live AR-Inventory. users invoice self service • Straight through processing (STP) at banks • Per diems. Loans • Invoice Lines • Suppliers in TCA: one setup per partner • Supplier. Revenue-COGS Match • Deferred COGS and Revenue Automation • Advanced collection. AP • Asset Automatic Depreciation Rollback 21 .

How Financials Release 12 Contributes The Global Business Release WORK GLOBALLY To Be More Competitive THINK GLOBALLY To Make the Right Decisions MANAGE GLOBALLY To Lower Cost & Increase Performance XML Publisher New Reporting Paradigm Global Financial Architecture Centralized Processing + 300 New Financial Features Business Intelligence Financial Consolidation Hub Performance Management Profitability Management 22 .

1) 54 313 827 12 (DBI v8) > 60 > 370 Intelligence Reports Capabilities/ Roles > 940 • Receivables Mgmt • Receivables Status • Supplier Management • Payables Mgmt • Payables Status • Customer Support Mgmt • Plan Mgmt • Commodity Supplier Mgmt • Commodity Spend Mgmt • Product Mgmt – Engineering • Product Revenue Bookings and Backlog • Product Mgmt • Product Cost Mgmt • Inventory Mgmt • Sales Forecast Mgmt version 7.9 (DBI v6) Dashboards KPIs 33 214 377 11i.10 (DBI v7.1 .0 & 7.0 • Sourcing Management • Manufacturing Mgmt • Customer Fulfillment Mgmt • Shipping Mgmt • Inbound Telephony Mgmt • Service Renewals Mgmt • Capital Project Cost Mgmt • Contract Project Cost Mgmt • 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 • Procurement Spend Management Management Management Management • Employee Absence • Sales Agreement • Web Store 23 CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract version 7.Evolution of Operational Reporting 11i.

Receivables DBI Keep the money flowing in… 24 .

Global Visibility and Integration Financial Consolidation Hub Oracle EBS PeopleSoft E JD Edwards E1 SAP Legacy Apps Data Transformation & Validation One-Touch Consolidation Results Auditing Operating Balances Financial Consolidation Report Generation Multi-Dimensional Analysis Compliance Certification *Common data model for Oracle’s CPM solution 26 .

Unified Financial Reporting and Compliance Management* • Drill back to source transactions • Monitor consolidation process and certification status • Compliant access provisioning • Profile option automated monitoring • Supplier site control change monitoring • Control change history report • Dynamic spreadsheet-based statutory and mgmt reporting * Available Pre-R12 Manage Consolidation Process & Auditability 27 .

Currency.Entity Hierarchy. Minorities… Financial Consolidation Hub 28 .

Multi-Dimensional Analysis & Reporting In product row/column UI or: within a Spreadsheet! • Create reports & graphs • Historical • current • projected data • Analyze performance • Detect trends • Define • variance • thresholds • Receive autoalerts 29 .

Financial Consolidation Hub Spreadsheet Reporting with Live Drill Interactive spreadsheet with live drill to transactions 30 .

Supply Chain. Projects.Global View of Profitability Profitability Manager Increase Customer Retention Customers Resources Activities Understand Sources of Profitability Top-Down & Bottom-Up Allocations N-Dimensional Profitability Transaction Processing Financials. CRM. customer • Achieve enterprise-wide view of profitability from multiple data sources (EBS & other applications) 31 . channel. Procurement. HCM • Calculate profitability via rules-based algorithms  By: organization. PLM. product. LOB.

Enterprise Planning and Budgeting Financial Operational Statistical External New Capabilities 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 Flexibility • Enhanced dimension handling Perform Multi-Dimensional Analysis within Existing Relational Database 33 .

How Financials Release 12 Contributes The Global Business Release WORK GLOBALLY To Be More Competitive THINK GLOBALLY To Make the Right Decisions MANAGE GLOBALLY To Lower Cost & Increase Performance XML Publisher New Reporting Paradigm BPEL Integration and RETEK Data Management with TCA Global Financial Architecture Centralized Processing + 300 New Financial Features Business Intelligence Financial Consolidation Hub Performance Management Profitability Management 34 .

XML Publisher Business Users Format and Deliver Documents Data Sources Oracle Applications CRM Projects FMS HCM SCM XML XML Publisher Publishing Engine Output Formats PDF RTF HTML XML EDI Excel Destination • Email • Printer • Fax Templates Letters Fund Transfers Order Confirmations Online Paychecks Government Grant Forms Any XML Data Source Business User Bills Integrate Out-of-the-Box with Oracle Applications 36 .

publish to the web.The New Standard Reports Paradigm XML Publisher and Templates What‟s Happening • About 80% Standard Reports replaced by Extracts and XML Templates • Designed. comprehensive ―fat‖ extracts • Not the old standard reports recycled Why you‟ll love it • Your users easily modify reports to their specification • Using desktop tools like Microsoft Word • Publish in any format. source of truth • Templates provided for all reports • Other 20% Reports supported as before 37 . distribute electronically • Centralize Reporting – management consistency.

Data Management Leveraging centralized data model Payables Purchasing Global Tax Payments Geographies Suppliers Party Information Cash Management Banks and Branches Trading Community Architecture Oracle Fusion Middleware ERP CRM 3rd Party 38 .

FCH General Ledger $ Corp. Compliance US GAAP / IAS-IFRS Corp COA Corp Calendar Joint Compliance US GAAP / IAS-IFRS Corp COA Corp Calendar Parent Compliance US GAAP / IAS-IFRS Corp COA Corp Calendar National Compliance Local Regulation National COA Local Calendar A$+$ OICM Ledger Sets. Bank. to lower cost and increase performance XML Publisher Reporting DBI.Release 12: The Global Business Release Work Globally. +300 Features TCA 40 . Payments MOAC. to be more competitive Think Globally. Tax €+$ Profitability Mgr. EPB + € Subledger Transactions Intercompany. Ledgers SLA. to make the right decisions Manage Globally.

Release 12 Field Readiness Workshop Oracle General Ledger Session 1: Ledger Architecture .

Oracle General Ledger Ledger Architecture Functional Deep Dive .

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 43 .

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 44 .

The Challenge for Global Companies Multiple Databases Scattered Across the Globe US COA US Calendar US GAAP US COA US Calendar US GAAP US COA US Calendar US GAAP $ € French Comptable French Calendar French GAAP £ US COA US Calendar German GAAP € € • Costly to Maintain • Inconsistent Business Practices • Fragmented Information 45 .

and processing? Autonomy • How to keep independence between ledgers? Flexibility and Sharing • How to achieve processing efficiencies? 46 .The Issue for Global Single Instance Security • How to secure data. setup.

Modeling Entities with Sets of Books SOBs SOB East ($) SOB West ($) SOB ATS (€) SOB DM ( €) Legal Entities US East US West Austria Germany OUs OU East OU West OU ATS OU DM 47 .

such as FSG reports • • • Cons 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 • • • 48 .Modeling Entities with Sets of Books Pros • • • Each legal entity is a separate set of books Data is secure Easy to secure definitions.

… with Balancing Segment Values SOBs SOB US ($) US East (01) US West (02) SOB Europe ( €) Austria (03) Germany (04) LEs (BSVs) OUs OU East OU West OU ATS OU DM 49 .

… with Balancing Segment Values Pros • • • • • • Fewer books to maintain No changing responsibilities Share setup information Perform processes across legal entities Easy reporting Consolidated information • • • • Cons 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 50 .

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 51 .

secure data and allow certain processes to be performed independently • Management Reporting Efficiency Eliminate the 11i Cons of Modeling Legal Entities! 52 . and Flexibility • 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.Ledger Architecture Objectives Provides Security. Autonomy.

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 53 .

New and Changed Features for Oracle General Ledger R12 Ledger Architecture Features 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. Balancing and Management Segment Values Multi-Ledger (Ledger Set) Processing • Overview of features that support ledger sets Definition and Setup Security • Security for Setup and Definitions w/ Definition Access Sets 54 . Ledgers.

Accounting Setup Manager .

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) 56 .

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 • 57 . record-keeping ledger Defined by 4Cs: • Chart of accounts • Accounting calendar • Primary currency • Subledger Accounting Method Secondary Ledgers • Optional.Accounting Setup Manager Concepts Primary Ledgers Main.

Accounting Setup Manager Concepts Maintaining Multiple Accounting Representations with Secondary Ledgers Legal Entity Accounting Corporate Ledger (Primary Ledger) Local Statutory Ledger (Secondary Ledger) SLA SLA Subledger Transactions Transaction AP AR FA Other Subledgers 58 .

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 • • Benefits 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 • • • 59 .Secondary Ledgers Business Reasons • For global companies that must comply with different countries‟ legal requirements Useful for supplementary purposes.

Secondary Ledger Conversion Levels Level of Detail Desired Balances Level Path to Secondary Ledger Use GL Consolidation to Transfer Balances Use Posting for Automatic Journals Replication Use SLA for Automatic Maintenance Manual Adjustments in GL or Automated Adjustments from SLA GL Journals Level AP AR FA Subledger Journals Level Adjustments Only 60 .

If difference is only currency.Reporting Currencies 4Cs of a of Primary Ledger If one or more the following are different. US GAAP Accrual Corporate Chart of accounts Monthly Calendar Accounting Method Currency Use a Secondary Ledger Use Reporting Currencies 61 .

Reporting Currency (RC) Conversion Levels Level of Detail Desired Path to ALC Balance Level Use GL Translation Journal Level Use GL Posting (Similar to Thin-MRC) AP AR FA Subledger Level Use SLA for Automatic Maintenance (Similar to Full-MRC) Note: Subledger Level RCs not available for Secondary Ledgers 62 .

Upgrade Considerations Terminology Changes Release 11i • 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 Release 12 • Ledgers • Subledger Accounting • Secondary Ledgers • Advanced Global Intercompany System (AGIS) • Intracompany Balancing • Balance level RCs • Reporting Currencies (RCs) • Primary Ledger • Reporting Currency 63 .

Upgrade Considerations Legal Entity Upgrade • 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 Note: More Details covered in Upgrade Planning Session 64 .

Upgrade Considerations Before Upgrade (R11i) • Run the Accounting Setup Manager PreUpdate Diagnosis Report to identify any issues After Upgrade (in R12) • Run the Accounting Setup Manager PostUpdate Diagnosis Report Compare both reports before and after upgrade 65 .

Upgrade Considerations
Reporting Currency Upgrade Thin MRC Reporting Book Journal level RC Full MRC Reporting Book Subledger Level RC Unassigned 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.
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Upgrade Considerations
Secondary Ledger Upgrade
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.

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Management Reporting

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 Co Balancing CC Cost Center Management Acct Natural Account I/C Intercompany 69 .

for their area of responsibility .Management Reporting and Security LE Primary Ledger Co CC Acct I/C • OU97 OS69 OX53 70 • Managers enter adjustments using their management segment value Data access set security ensures managers only update/view info.

Data Access Sets .

you can specify all values.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. parent values that include children. or child values individually • iSetup API for Data Access Sets available 72 .k.a Legal Entities if BSVs assigned to Legal Entities) – Specific Management Segment Values • When you assign specific balancing or management segment values.

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 73 .

Data Access Sets Description Ledgers must share same COA/Calendar combination Assign ledgers and/or ledger sets COA must have management segment to use Specify Read Only or Read/Write Access 74 .

– If you set the GL: Data Access Set profile option. then the GL Ledger Name profile option is ignored 75 . – If you choose to use the GL Ledger Name profile option.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. – R11i responsibilities will be upgraded with DAS to the ledger and all of its reporting currencies. the system will automatically assign the same ledger to the GL: Data Access Set profile option.

Ledger Sets .

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 77 .

Ledger Set Perform the Following Across Ledgers: Open/Close Periods • Open/Close Periods Independently or Simultaneously Ledger 1 Create Journals • Allocations Across Ledgers Ledger 2 • Recurring Journals for All Ledgers Translate Balances Ledger 3 • Translate Balances for All Ledgers View Information Ledger 4 • No Changing Responsibilities • View Journals and Account Balances Ledger Set Create Reports • Report on One or All Ledgers in a Ledger Set 78 .

Definition Access Sets .

— — — For FSG reports. – Use Access: Allows you to use a definition. use access allows you to run the report. use access allows you to generate a MassAllocation. 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. For FSG row and column sets. For MassAllocations. 80 . use access allows you to use the row and column set when defining a report.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.

Definition Access Sets Control Access to Definitions GL Clerk Privileges Use View Modify Controller Rent Allocation Recurring Rent Rent Allocation Recurring Rent Balance Sheet Income Stmt 81 .

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 82 .

Upgrade Considerations • All setup objects and definitions are upgraded as is with no security 83 .

SUMMARY .

Reports and Mass Allocations Cons Many ledgers to maintain Changing responsibilities Difficult to share data and setup information Cannot perform processes across ledgers Time-consuming open/close process Difficult reporting 85 .Modeling Entities with Ledgers Pros Each legal entity is a separate ledger Data is secure Easy to secure definitions.

… with Balancing Segment Values Pros Cons 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 Fewer ledgers to maintain No changing responsibilities Share setup information Perform processes across legal entities Easy reporting Consolidated information 86 .

New Architecture Summary Issue • Entity Autonomy • Independent Open/Close • Read/Write Access Solution Data Access Set • Reporting Across Entities • Efficient Processing Ledger & Ledger Set • Setup & Maintenance • Definition Security Definition Access Set 87 .

Thank You Thank You .

Release 12 Field Readiness Workshop
Oracle General Ledger Session 2

Oracle General Ledger

Functional Deep Dive

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 92 .

Reporting. Mass Allocations and Recurring Journals Data 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 93 .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.

Accounting Sequencing and Reporting Sequencing .

Accounting and Reporting Sequencing Accounting Sequencing • Sequence GL journals when posted in GL – Validate Sequence (Select Which Sequence to Use) — By Journal Effective Date By Journal Effective Date – Assign Sequence (Sort) — • Replaces Global Accounting Engine (AX) legal sequencing 95 .

to be enabled Replaces Global Accounting Engine (AX) Libro Giornale (Italian Journal Book) feature . Period Close and Period Reopen. the sequences are removed to ensure gapless sequence • • • 96 For Reporting Sequencing. only fiscal journal entries are sequenced. When GL period is closed. if you assign specific BSV.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) By Journal Effective Date or Posting Date – Assign Sequence (Sort) — – When period is re-opened. you can indicate which BSVs are categorized as fiscal. Reporting Sequencing requires Business Events.

budget.Accounting and Reporting Sequencing • Assign mutually exclusive sequences based on: – Ledgers or Reporting Currencies – Journal Sources or Journal Categories – Balance types (actual. encumbrance) Assigned during posting Assigned during period close 97 .

Upgrade Considerations • • If you used the Legal Sequencing feature or Libro Giornale (Italian Journal Book) feature in Global Accounting Engine (AX) in R11i. You need to reimplement sequencing using the accounting/reporting sequencing feature. the setup will not be upgraded to accounting/reporting sequence. 98 .

Journal Line Reconciliation .

or – matching balancing segment. 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. • Run the automatic reconciliation program to get preliminary report on the lines that will be reconciled 100 . natural account and blank reference.Journal Line Reconciliation Journal Line Reconciliation • Reconcile journal lines that should net to zero. and reference.

Journal Line Reconciliation Enter Reconciliation Reference 101 .

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 102 .

Web-based Spreadsheet Interface .

or encumbrance journals from a webbased spreadsheet interface Import data from text files to create journals 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! 104 Budget Wizard . budget.Journal and Budget Wizard Journal Wizard • • • • • • • Previously called Web-ADI Journal Integrator Create actual.

Journal Copy

Journal Copy
Journal Copy

• Copy an existing journal batch to create a new journal batch with the same journals and journal lines.

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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

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Streamlined Processes AutoReversal Criteria AutoPost Criteria Consolidation Mapping .

• Assign Journal Reversal Criteria Set to the ledger in Accounting Setup Manager 109 .Streamlined Processes Streamlined AutoReversal Criteria • Reversal Criteria Sets can be shared across any ledger.

110 .Streamlined Processes Streamlined Automatic Posting • AutoPost Criteria Sets can be shared across ledgers and used to automatically post journals across multiple ledgers simultaneously.

Streamlined Processes Streamlined Consolidation Mapping • Define mapping rules between COA • Use for Consolidations and for SL mapping 111 .

Streamlined Processes Release 11i Release 12 Reversal Criteria Set Within a Set of Books Across Ledgers AutoPost Within a Set of Books Across Ledgers Consolidation Mapping • Between two SOBs • Between two COA • Used by consolidation • Used by Consolidation & PL to SL Mapping 112 .

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 113 .

Replacement for Disabled Accounts .

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. not the original account 115 . suspense account will be used – Reconciliation is based on the setup for the alternate account.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.

Replacement for Disabled Accounts 116 .

Enhanced Foreign Currency Processing .

200 Converted Ledger Currency Balances • Now supported for QTD and PJTD balances.000 1.200 2.200 USD) Journal 2 – 1. not just PTD and YTD balances 118 .000 USD Entered Debit Credit Total (USD) Debit Credit Entered USD Acct Currency Total USD R11i R12 Cash Cash GBP USD 500 1.Entered Currency Reporting and Analysis Entered Ledger Currency • Track balances for amounts entered in the ledger currency separately from amounts converted to the ledger currency Ledger Currency: USD Journal 1 – 500 GBP (1.

R12 Changes to Currency .

Entered Currency – Required if Currency Type “Entered” selected 120 . Total. 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. 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. Ledger Currency – Acts as a filter for Ledger Sets to select the ledgers that match the Ledger Currency specified 2. Currency Type (Entered.R12 Changes to Currency 3 New Currency Fields 1.

R12 Changes to Currency Example Operations Ledger Set Ledger or RC Name Ledger Currency Vision Operations USD $ Vision Ops (EUR) Journal level RC Vision Ops (JPY) Balance level RC EUR JPY 121 .

translated balances) Translated balance for Vision Ops (JPY) JPY Entered Currency balance for Vision Ops (EUR) JPY Entered Currency balance for all Ledgers/RCs STAT balance for all except Vision Ops (JPY) USD Operations Set All JPY EUR All All Total Total Total Entered Entered Statistical N/A N/A N/A JPY JPY STAT 122 .Ledger Set Query Example Ledger Set Ledger Currency Currency Type Vision Operations Primary USD Vision Ops (EUR) JE Level RC Vision Ops (JPY) Balance Level RC Entered Currency Query Results Total balance for Vision Operations Total balance for all Ledgers/RCs (incl.

Vision Operations to retrieve entered currency or stat balance Vision Ops (JPY) (Balance level RC) JPY Entered Statistical CAD STAT 123 .Vision Operations Primary USD Single Ledger Query Example Ledger Ledger Currency Currency Type Vision Ops (EUR) JE Level RC Vision Ops (JPY) Balance Level RC Entered Currency Query Results Vision Operations Vision Ops (EUR) USD EUR JPY Total Entered Total N/A JPY N/A Vision Ops (JPY) (Balance level RC) Total balance for Vision Operations JPY Entered Currency balance for Journal level RC Translated balance for Vision Ops (JPY) Looks to the primary ledger.

000 500 7000 Credit R12: Converted Credit Debit too! 1.200 300 Query Criteria and Results: Currency Type Entered Currency Converted JPY Query Results $300 (Retrieves converted ledger currency Balances that were entered in JPY) $1.000 (Same as choosing Entered USD balances) Converted 124 USD .Converted Currency Type Example The following balances exist for a Ledger with Ledger Currency USD: R11i: Foreign Entered Only Acct Cash Cash Cash Currency USD GBP JPY Entered Converted (USD) Debit 1.

Recurring Journals Enhancements .

Data Access Set and Definition Access Set security enforced 126 .Recurring Journals Foreign Currency Recurring Journals • Create foreign currency recurring journal • Cannot create foreign currency budget formulas Other Enhancements to Recurring Journals • Recurring batch can contain journals from multiple ledgers • Budget formulas can only use single ledger batch types • Of course.

Recurring Journals R11i R12 Single or Multiple Ledgers Any Currency 127 .

Upgrade Considerations • Recurring Journals upgraded as “single ledger” Recurring Batch Type 128 .

Data Security • Control Accounts • Prevent Reversal of Frozen Journal Sources • Prevent Reversal of Unposted Journals .

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 130 .

Control Accounts Qualifying Accounts to be Third Party Control Accounts Specify • Customer • Supplier or • Yes 131 .

Journal Reversal Enhancements Description and Benefits Description • Prevent Reversal of Journals with Frozen Sources • Prevent Reversal of Unposted Journals Benefits • Consistency enforced between subledger and GL account balance • Improved data integrity • All reversals can be tied back to the originating journal 132 .

Other Journal Enhancements • Enhanced Intercompany • Intercompany Balancing Support for Encumbrances • Enhanced Tax Solution .

Enhanced Intercompany and Intracompany Balancing Advanced Global Intercompany System (AGIS) • Global Intercompany System (GIS) replaced by AGIS. a separate product with many enhancements Balancing 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 134 .

bye! 135 .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 EBusiness Tax No changes from a Journal Entry perspective Bye.

Thank You .

Other Journal Enhancements • Enhanced Intercompany • Intercompany Balancing Support for Encumbrances • Enhanced Tax Solution .

Enhanced Intercompany and Intracompany Balancing Advanced Global Intercompany System (AGIS) • Global Intercompany System (GIS) replaced by AGIS. a separate product with many enhancements Balancing 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 134 .

bye! 135 .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 EBusiness Tax No changes from a Journal Entry perspective Bye.

Thank You .

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