r12 highlights

Release Twelve

The Global Business Release

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

COMPLEXITY AND COSTS… 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

CFO AgendaTransforming Finance into a Strategic Weapon

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

Doing Business Globally is ComplexTop Drivers of Complexity

Direct impact on Finance

Source: PWC, 9th Annual Global CEO Survey

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

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.

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

WORK GLOBALLYTo Be More Competitive

THINK GLOBALLYTo Make the Right Decisions

MANAGE GLOBALLYTo Lower Cost & Increase

Performance

How Financials Release 12 ContributesThe Global Business Release

Global Financial Architecture

Centralized Processing

+ 300 New Financial Features

Performance Management

Profitability Management

Business Intelligence XML Publisher

New Reporting ParadigmFinancial Consolidation

Performance

Ledgers and Ledger Sets

Multi-Org Access Control

BankBankModModelel

Tax Tax EngineEngine

InterInterCompanyCompany

General Ledger General Ledger Ledger & Ledger Ledger & Ledger Sets Sets

Subledger Accounting (SLA) Subledger Accounting (SLA) DrDr CrCr

ProjectsReceivablesInventory

Work in Process

Purchasing Payables

Multi-Multi-OrgOrg

AccessAccessControlControl

6 Major Initiatives1. Ledger and

Ledger Sets2. Multi-Org

Access Control

3. Subledger Accounting

4. Tax Engine5. Intercompany6. Bank Model

• Work Globally• Global Order Desk• Global Procurement• Global Billing• Global Dunning

• Think Globally• Global Ledger Sets –

worldwide insight• Global Reporting

• Manage Globally• Global Accounting

Rules• Global Set-up• Global Integration

What the Architecture Gets You

Release 12 Subsidiary LEs….

…account for themselves in Ledgers, and…Ledger Set

Company CompanyCompany

ProjectsReceivablesInventory

Work in Process

Purchasing Payables

Multi-Multi-OrgOrg

AccessAccessControlControl

manage their subledger data in Operating Units

Ledger Sets Global Information At A Glance

Ledger Ledger SetSet

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

US GAAPUS COAUS CalendarUSD

Ledger CLedger C

US GAAPUS COAUS CalendarEUR

Ledger BLedger BFrench RulesPlan ComptableFrench CalendarEUR

Ledger ALedger A

Share:Share:CChart of hart of AccountsAccounts

CCalendaralendar

Ledger DLedger D

Reporting Currency

US GAAPUS COAUS CalendarAUD

ResponsibilityResponsibility ResponsibilityResponsibility ResponsibilityResponsibility

HollandLegal Entity

DenmarkLegal Entity

BelgiumLegal Entity

Functional Tasks Order Management Dunning, Collections,

Billing Requisition, Demand &

Purchase Orders Receiving & Drop Ship Invoice Receipt,

Disbursement Customer Data

Management Accounting Setup

Single Responsibility

BelgiumOperating

HollandOperating

DenmarkOperating

Perform multiple tasks across operating units without changing

responsibilities

MOAC: Multi-Org Access ControlRole based access to Operating Units

Performance

Centralized Control

Subledger Accounting

Tax Engine

Intercompany

Bank Model

Subledger AccountingCentralized Rules, Common Repository: Global Control

Payables InvoicePayables Invoice

French RulesFrench RulesPlan Plan ComptableComptableFrench French CalendarCalendarEUREUR

LedgerLedger

SubledgeSubledgerr

AccountiAccountingng

DrDr CrCr

• Faster, Easier Reconciliation

• Corporate Rules = Accounting Standardization

• Local Rules = Improved Local Compliance

• Automate “Apples to Apples” Adjustments

• Improved Audit- ability

• Improved Internal Control

Some Benefits• Accounting Rules

• SarBox & 8th Dir.• User Editable

• Subledger Daybooks (Journals)

• Subledger Balancing• Reports, inquiries, open

items, et cetera• Multiple

Representations• Common Posting to GL

Ledgers • Real time or Periodic

What it is

US GAAPUS GAAPUS COAUS COAUS US CalendarCalendarEUREUR

Ledger BLedger BFrench RulesFrench RulesPlan Plan ComptableComptableFrench French CalendarCalendarEUREUR

Ledger ALedger A

Multiple Accounting RepresentationsGlobal Compliance – Statutory and Stock Market

SubledgeSubledger r

Single Single subledger subledger

transactiontransactioncan create can create multiplemultiple

accounting accounting representationsrepresentationsand in multiple and in multiple

currenciescurrencies

DrDr CrCr

Chose to us an Chose to us an alternative alternative

Ledger -Ledger -or just an or just an

AdjustmentAdjustmentLedger or Ledger or segmentsegment

US GAAPUS GAAPUS COAUS COAUS US CalendarCalendarEUREUR

Ledger BLedger BFrench RulesFrench RulesPlan Plan ComptableComptableFrench French CalendarCalendarEUREUR

Ledger ALedger A

Multiple Accounting RepresentationsManagement Version in a Management Ledger Set

SubledgeSubledger r

Single Single subledger subledger

transactiontransactioncan create can create multiplemultiple

accounting accounting representationsrepresentationsand in multiple and in multiple

currenciescurrencies

DrDr CrCr

Chose to us an Chose to us an alternative alternative

Ledger -Ledger -or just an or just an

AdjustmentAdjustmentLedger or Ledger or segmentsegment

IAS/IFRSor USGAAP

Ledger Set

Accounting Methods Builder

Vision Operations (USA) Ledger

Standard/GAAP Accrual Subledger Accounting Method

Payables Accrual Application Accounting Definition

Journal Line Types

Account Derivation Rules

Journal Entry Descriptions

Invoice Journal Line Definition

Transaction Objects Eg: Invoices, Credit Memos, Payments, etc

Sources Eg. Invoice Date, Invoice Amount, Attribute1…20, Supplier name, etc.

Define Multiple Ledgers for Rules & Currencies

Define Legal Entities& Associated Rules

One Place to manageYour Global Accounting

Rules, Currencies,Ledgers,

And Ledger Sets Set Accounting Rules

for All EBS Apps

Ensure Complete & Accurate

Setup via Online Checklist

Centralized Set-upAccounting Setup Manager

Automation• Tax content for certain countries• Vertex and Taxware integration for U.S. • 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, rules, and transactions

Business NeedsBusiness Needs SolutionSolution

Local Compliance• Tax registrations and tax reporting codes• Tax lines determine applicable taxes• Configurable tax reporting templates

Centralized Global TaxLess Complex Global Tax Compliance

Information Visibility

• Single set up for all Oracle applications• Use of E-Business Suite components such as trading partner geography,

trading partner classification, legal entity, inventory item categorization, and accounting event.

Web UIWeb UI

Open Open Interfaces / Interfaces /

APIAPI

Excel Excel (Web ADI)(Web ADI)

Advanced GlobalIntercompany

System SubledgerSubledgerInvoices &Invoices &DocumentsDocuments

Generate subledger invoicesGenerate subledger invoices Control transaction entry with Control transaction entry with

Intercompany CalendarIntercompany Calendar Fully Configurable Approval RulesFully Configurable Approval Rules Flexible Security ModelFlexible Security Model Centrally defined Intercompany Centrally defined Intercompany

AccountsAccounts

Online Online Reconciliation Reconciliation

ReportingReporting

XML XML Publisher Publisher ReportsReports

Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close

Subledger Subledger AccountingAccounting

DrDr CrCr

General General Ledger Ledger ReceivableReceivable

ssPayablePayable

Bank Model: Example of what you can doPay invoices from different OUs with 1 instruction

OU CBank

Single Payment

Instruction

Invoices

Payments

Sub Ledger Sub Ledger AccountingAccounting

• New Payments Module• New Bank Module• New Bank & Credit Card

Features

Performance

Centralized Control

+ 300 New Financials Features

Financial Control & Reporting

Credit-to-Cash

Procure-to-Pay

Treasury & Tax

Governance, Risk & Compliance

Asset Management

Travel & Expense

Over 300 New Financial FeaturesJust a sample…

• Manage the Margin

• Collect Faster

• Standardize Payables

• Pay more easily

• Simplify Employee Expenses

• Rationalize Procurement

• Bulk Process Assets

Simplify and StandardizeSimplify and Standardize New FeaturesNew Features

• Live AR-Inventory. Revenue-COGS Match

• Deferred COGS and Revenue Automation

• Advanced collection, Dunning, Loans

• Invoice Lines

• Suppliers in TCA: one setup per partner

• Supplier, users invoice self service

• Straight through processing (STP) at banks

• Per diems, approval enhancements

• Expense Bar Codes

• Self Service receipt matched invoices

• Real time contract T&Cs in PO, AP

• Asset Automatic Depreciation Rollback

Performance

Evolution of Operational Reporting

•Payables Mgmt•Payables Status •Customer Support Mgmt•Plan Mgmt•Commodity Supplier

Mgmt•Commodity Spend Mgmt•Product Mgmt –

Engineering •Manufacturing Mgmt•Customer Fulfillment

Mgmt•Shipping Mgmt•Inbound Telephony

Mgmt•Service Renewals Mgmt•Capital Project Cost

Mgmt•Contract Project Cost

• Receivables Mgmt• Receivables

Status• Supplier

Management• Sourcing

Management• Procurement

Spend Management

• Employee Absence Management

• Sales Agreement Management

• Web Store Management

11i.9 (DBI v6) 11i.10 (DBI v7.0 & 7.1) 12 (DBI v8)

IntelligenceReports

> 940Capabilities/ Roles

•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

•Product Revenue Bookingsand Backlog

•Product Mgmt•Product Cost Mgmt•Inventory Mgmt•Sales Forecast Mgmt

DashboardsKPIs

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

Receivables DBIKeep the money flowing in…

FinancialConsolidation

OperatingBalances

*Common data model for Oracle’s CPM solution

PeopleSoft E

JD Edwards E1

Oracle EBS

Legacy Apps

One-TouchConsolidation

ReportGeneration

Multi-DimensionalAnalysis

ResultsAuditing

DataTransformation

& Validation

ComplianceCertification

Global Visibility and IntegrationFinancial Consolidation Hub

Unified Financial Reporting and Compliance Management*

• Drill back to source transactions

• Monitor consolidation process and certification status

• Dynamic spreadsheet-based statutory and mgmt reporting

Manage Consolidation Process & Auditability* AvailablePre-R12

• Compliant access provisioning • Profile option automated monitoring• Supplier site control change

monitoring• Control change history report

Entity Hierarchy, Currency, Minorities…Financial Consolidation Hub

Multi-Dimensional Analysis & ReportingIn product row/column UI or: within a Spreadsheet!

•Create reports & graphs• Historical• current• projected data

•Analyze performance

• Detect trends• Define

• variance• thresholds

•Receive auto-alerts

Interactive Interactive spreadsheet spreadsheet

with with live drill to live drill to

transactionstransactions

Financial Consolidation Hub Spreadsheet Reporting with Live Drill

ResourcesCustomers Activities

Financials, Supply Chain, Projects, Procurement, PLM, CRM, HCM

Transaction Processing

N-DimensionalProfitabilityTop-Down

& Bottom-UpAllocations

Increase Customer Retention

Understand Sources of Profitability

• Calculate profitability via rules-based algorithms By: organization, LOB, channel, product, customer

• Achieve enterprise-wide view of profitability from multiple data sources (EBS & other applications)

Global View of ProfitabilityProfitability Manager

Perform Multi-Dimensional Analysis within Existing Relational Database

Flexibility• Enhanced dimension handling

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

New CapabilitiesFinancial

Operational External

Statistical

Enterprise Planning and Budgeting

Performance

BPEL Integration and RETEK

Data Management with TCA

Integrate Out-of-the-Box with Oracle Applications

Templates

XML PublisherOracle

Applications

Projects

Output FormatsData Sources

Any XMLData Source

PDFRTF

Business User

PublishingEngine

• Email• Printer• Fax

HTMLXML

Letters

FundTransfers

OnlinePaychecks

OrderConfirmations

Bills GovernmentGrant Forms

Destination

EDIExcel

XML PublisherBusiness Users Format and Deliver Documents

The New Standard Reports ParadigmXML Publisher and Templates

• Your users easily modify reports to their specification

• Using desktop tools like Microsoft Word

• Publish in any format; publish to the web; distribute electronically

• Centralize Reporting – management consistency, source of truth

Why you’ll love it

• About 80% Standard Reports replaced by Extracts and XML Templates

• Designed, comprehensive “fat” extracts

• Not the old standard reports recycled

• Templates provided for all reports

• Other 20% Reports supported as before

What’s Happening

Data ManagementLeveraging centralized data model

Oracle Fusion MiddlewareOracle Fusion Middleware

Trading Community Architecture

ERP CRM 3rd Party

PayablePayablessPurchasiPurchasi

Global Global TaxTax

PaymentPaymentss

SuppliersGeographies Party

Information

Cash Cash ManagemeManageme

ntntBanks and

Branches

MOAC, +300 Features

SLA,Tax

Ledger Sets,Ledgers

XML Publisher Reporting

Profitability Mgr,EPB

Subledger

Release 12: The Global Business Release

Work Globally, to be more competitive

Think Globally, to make the right decisions

Manage Globally, to lower cost and increase performance

DBI, FCH

Intercompany, Bank, Payments

General Ledger

Transactions

National ComplianceLocal RegulationNational COALocal Calendar

Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar$

Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$

Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

€+$+

Release 12 Field Readiness Workshop

Oracle General LedgerSession 1: Ledger Architecture

Oracle General LedgerLedger 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

• Product Review– Customer Pain Points with Release 11i– Release 12 Value Proposition

The Challenge for Global CompaniesMultiple Databases Scattered Across the Globe

US COAUS COAUS CalendarUS Calendar

US GAAPUS GAAP€€

US GAAPUS GAAP$$

US GAAPUS GAAP££

German GAAPGerman GAAP€€

French ComptableFrench ComptableFrench CalendarFrench Calendar

French GAAPFrench GAAP€€

• Costly to Maintain • Inconsistent Business Practices • Fragmented Information

The Issue for Global Single Instance

Security• How to secure data, setup, and processing?

Autonomy• How to keep independence between ledgers?

Flexibility and Sharing• How to achieve processing efficiencies?

SOB East($)

SOB West($)

SOB ATS(€)

SOB DM(€)SOBs

Modeling Entities with Sets of Books

US East US West Austria GermanyLegal Entities

OU East OU ATSOU West OU DMOUs

Modeling Entities with Sets of Books

Pros Cons

• Each legal entity is a separate set of books

• Data is secure• Easy to secure definitions,

such as FSG reports

• 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

… with Balancing Segment Values

SOB US($)

SOB Europe(€)SOBs

OU East OU ATSOU West OU DMOUs

LEs(BSVs)

US East(01)

Austria(03)

Germany(04)

US West(02)

Pros Cons

• Fewer books to maintain• No changing

responsibilities• Share setup information• Perform processes across

legal entities• Easy reporting• Consolidated information

• 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

• Product Review– Customer Pain Points with Release 11i– Ledger Architecture Objectives

Ledger Architecture Objectives

• 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, secure data and allow certain processes to be performed independently

• Management Reporting Efficiency

Provides Security, Autonomy, and Flexibility

Eliminate the 11i Cons of Modeling Legal Entities!

• Product Review– Customer Pain Points with Release 11i– Ledger Architecture Objectives

New and Changed Features for Oracle General Ledger R12

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, Ledgers, Balancing and Management

Segment ValuesMulti-Ledger (Ledger Set) Processing• Overview of features that support ledger setsDefinition and Setup Security• Security for Setup and Definitions w/ Definition Access Sets

Ledger Architecture Features

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)

Accounting Setup Manager Concepts

Main, record-keeping ledgerDefined by 4Cs:• Chart of accounts• Accounting calendar• Primary currency• Subledger Accounting

Method

• Optional, 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

Primary Ledgers Secondary Ledgers

Accounting Setup Manager Concepts

Transaction

Accounting

Subledger Transactions

Corporate Ledger(Primary Ledger)

Local Statutory Ledger(Secondary Ledger)

AP AR FA Other Subledgers

Legal Entity

Maintaining Multiple Accounting Representations with Secondary Ledgers

Secondary Ledgers

• For global companies that must comply with different countries’ legal requirements

• Useful for supplementary purposes, 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

• 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

Business Reasons Benefits

Level of Detail Desired

Secondary Ledger Conversion Levels

Path to Secondary Ledger

Balances Level Use GL Consolidation to Transfer Balances

GL Journals Level Use Posting for Automatic Journals

Replication

AP AR FASubledger Journals Level

Use SLA for Automatic Maintenance

Adjustments OnlyManual Adjustments in

GL or Automated Adjustments from SLA

Currency

If difference is only currency,

Reporting Currencies

CorporateChart of accounts

Monthly Calendar

Accounting Method

US GAAPAccrual

Use a Secondary Ledger Use Reporting Currencies

4Cs of a Primary Ledger If one or more of the following are different,

Level of Detail Desired

Reporting Currency (RC) Conversion Levels

Path to ALC

Note: Subledger Level RCs not available for Secondary Ledgers

Use SLA for Automatic Maintenance(Similar to Full-MRC)

AP AR FASubledger Level

Use GL Posting (Similar to Thin-MRC)

Journal Level

Use GL TranslationBalance Level

Upgrade Considerations

• 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

• Ledgers• Subledger Accounting• Secondary Ledgers• Advanced Global Intercompany System (AGIS)• Intracompany Balancing• Balance level RCs• Reporting Currencies (RCs)• Primary Ledger• Reporting Currency

Terminology Changes

Release 11i Release 12

• 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

Legal Entity Upgrade

Note: More Details covered in Upgrade Planning Session

Before Upgrade (R11i)• Run the Accounting

Setup Manager Pre-Update Diagnosis Report to identify any issues

After Upgrade (in R12)• Run the Accounting

Setup Manager Post-Update Diagnosis Report

Compare both reports before and after upgrade

Thin MRC Reporting Book Journal level RCFull MRC Reporting Book Subledger Level RCUnassigned 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.

Reporting Currency 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.

Secondary Ledger Upgrade

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

Management

Co CC Acct I/C

Balancing Cost Center Natural Account

Intercompany

Co CC Acct I/C

Primary Ledger

Management Reporting and Security

• Managers enter adjustments using their management segment value

• Data access set security ensures managers only update/view info. for their area of responsibility

Data Access Sets

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.k.a Legal Entities if

BSVs assigned to Legal Entities)– Specific Management Segment Values

• When you assign specific balancing or management segment values, you can specify all values, parent values that include children, or child values individually

• iSetup API for Data Access Sets available

• 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

Ledgers must share same COA/Calendar

combination

Assign ledgers and/or ledger sets

Specify Read Only or Read/Write Access

COA must have management

segment to use

• 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.– If you choose to use the GL Ledger Name profile option,

the system will automatically assign the same ledger to the GL: Data Access Set profile option.

– R11i responsibilities will be upgraded with DAS to the ledger and all of its reporting currencies.

– If you set the GL: Data Access Set profile option, then the GL Ledger Name profile option is ignored

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

Ledger Set

Open/Close Periods• Open/Close Periods Independently or

Simultaneously Create Journals• Allocations Across Ledgers• Recurring Journals for All Ledgers

Translate Balances• Translate Balances for All Ledgers

View Information• No Changing Responsibilities• View Journals and Account Balances

Create Reports• Report on One or All Ledgers in a Ledger Set

Perform the Following Across Ledgers:

Ledger 2

Ledger SetLedger Set

Ledger 1

Ledger 4

Ledger 3

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, but you cannot modify the definition– Modify Access: Allows you to view and modify a definition in

the Define form. You can also change the definition access set security for that definition.

– Use Access: Allows you to use a definition. — For FSG reports, use access allows you to run the report. — For FSG row and column sets, use access allows you to use

the row and column set when defining a report. — For MassAllocations, use access allows you to generate a

MassAllocation.

Definition Access SetsControl Access to Definitions

UseUse ViewView ModifyModifyGL Clerk Controller

Rent Allocation

Recurring Rent

Rent Allocation

Recurring Rent

Balance Sheet

Income Stmt

PrivilegesPrivileges

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

• All setup objects and definitions are upgraded as is with no security

SUMMARY

Many ledgers to maintainChanging responsibilitiesDifficult to share data and setup informationCannot perform processes across ledgers Time-consuming open/close processDifficult reporting

Modeling Entities with Ledgers

Pros Cons

Each legal entity is a separate ledgerData is secureEasy to secure definitions; Reports and Mass Allocations

Cannot share setup and data across currency boundaryNo data securityCannot secure definitions, such as FSG Reports and Mass AllocationsNo open/close security by legal entity

Pros Cons

Fewer ledgers to maintainNo changing responsibilitiesShare setup informationPerform processes across legal entitiesEasy reportingConsolidated information

Ledger & Ledger Set

Definition Access Set

Solution

Data Access Set

New Architecture Summary

• Reporting Across Entities• Efficient Processing

• Setup & Maintenance• Definition Security

• Entity Autonomy• Independent Open/Close• Read/Write Access

Thank You

Release 12 Field Readiness Workshop

Oracle General LedgerSession 2

Oracle General Ledger

Functional Deep Dive

• 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

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

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, Reporting,

Mass Allocations and Recurring JournalsData 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

Accounting Sequencing andReporting 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

– Assign Sequence (Sort) — By Journal Effective Date

• Replaces Global Accounting Engine (AX) legal 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)

– Assign Sequence (Sort) — By Journal Effective Date or Posting Date

– When period is re-opened, the sequences are removed to ensure gapless sequence

• For Reporting Sequencing, if you assign specific BSV, you can indicate which BSVs are categorized as fiscal. When GL period is closed, only fiscal journal entries are sequenced.

• Reporting Sequencing requires Business Events, Period Close and Period Reopen, to be enabled

• Replaces Global Accounting Engine (AX) Libro Giornale (Italian Journal Book) feature

• Assign mutually exclusive sequences based on: – Ledgers or Reporting Currencies– Journal Sources or Journal Categories– Balance types (actual, budget, encumbrance)

Assigned during

period close

Assigned during posting

• If you used the Legal Sequencing feature or Libro Giornale (Italian Journal Book) feature in Global Accounting Engine (AX) in R11i, the setup will not be upgraded to accounting/reporting sequence.

• You need to reimplement sequencing using the accounting/reporting sequencing feature.

Journal Line Reconciliation

Journal Line Reconciliation• Reconcile journal lines that should net to zero, 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 and blank

reference, or – matching balancing segment, natural account, and reference.

• Run the automatic reconciliation program to get preliminary report on the lines that will be reconciled

Journal Line Reconciliation

EnterReconciliation Reference

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

Web-based Spreadsheet Interface

Journal and Budget Wizard

Journal Wizard• Previously called Web-ADI Journal Integrator• Create actual, budget, or encumbrance journals from a web-

based spreadsheet interface• Import data from text files to create journalsBudget Wizard• 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!

Journal Copy

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

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

Streamlined Processes

AutoReversal Criteria AutoPost CriteriaConsolidation Mapping

Streamlined AutoReversal Criteria• Reversal Criteria Sets can be shared across any ledger.• Assign Journal Reversal Criteria Set to the ledger in

Accounting Setup Manager

Streamlined Automatic Posting• AutoPost Criteria Sets can be shared across ledgers

and used to automatically post journals across multiple ledgers simultaneously.

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

Release 11i Release 12

Within a Set of Books Across LedgersReversalCriteria Set

Within a Set of Books Across LedgersAutoPost

• Between two SOBs • Used by consolidation

• Between two COA• Used by Consolidation & PL to SL Mapping

Consolidation Mapping

• 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

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, 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, suspense account will be used

– Reconciliation is based on the setup for the alternate account, not the original account

Replacement for Disabled Accounts

Enhanced Foreign Currency Processing

Entered Currency Reporting and Analysis

Entered Ledger Currency• Track balances for amounts entered in the ledger currency

separately from amounts converted to the ledger currencyLedger Currency: USD Journal 1 – 500 GBP (1,200 USD)

Journal 2 – 1,000 USD

Total (USD)Entered

Credit

2,200 1,200

DebitCredit

USDCashGBPCash

CurrencyAcct

Total USDEntered USD

1,000R12

Converted Ledger Currency Balances • Now supported for QTD and PJTD balances, not just PTD

and YTD balances

R12 Changes to Currency

1. Ledger Currency– Acts as a filter for Ledger Sets to select the ledgers that

match the Ledger Currency specified2. Currency Type (Entered, Total, 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,

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. Entered Currency– Required if Currency Type “Entered” selected

3 New Currency Fields

R12 Changes to Currency Example

Vision Operations USD

Vision Ops (EUR) Journal level RC

Operations Ledger Set

Vision Ops (JPY) Balance level RC

Ledger or RC Name Ledger Currency

Ledger Set Query Example

Ledger Currency

Currency Type

Entered Currency

USD Total N/A Total balance for Vision Operations

All Total N/ATotal balance for all

Ledgers/RCs (incl. translated balances)

EUR Entered JPY JPY Entered Currency balance for Vision Ops

Query Results

JPY Total N/A Translated balance for Vision Ops (JPY)

All Statistical STAT STAT balance for all except Vision Ops (JPY)

Ledger Set

Operations Set

All Entered JPY JPY Entered Currency balance for all Ledgers/RCs

Vision Operations Primary USD

Vision Ops (EUR) JE Level RC

Vision Ops (JPY) Balance Level RC

Single Ledger Query Example

Ledger Ledger Currency

Currency Type

Entered Currency

Vision Operations Total N/A Total balance for Vision Operations

Vision Ops (EUR) EUR Entered JPY JPY Entered Currency balance for

Journal level RC

Query Results

Vision Ops (JPY)(Balance level RC)

JPY Total N/A Translated balance for Vision Ops (JPY)

Vision Ops (JPY)(Balance level RC)

JPYEntered CAD Looks to the primary

ledger, Vision Operations to retrieve entered

currency or stat balanceStatistical STAT

Vision Operations Primary USD

Vision Ops (EUR) JE Level RC

Vision Ops (JPY) Balance Level RC

Converted Currency Type Example

The following balances exist for a Ledger with Ledger Currency USD:

Converted (USD)EnteredCredit

DebitCredit

GBPCash

USDCash

CurrencyAcct

3007000JPYCash

Currency Type Entered Currency Query Results

JPYConverted $300 (Retrieves converted ledger currency Balances that were entered in JPY)

USDConverted $1,000 (Same as choosing Entered USD balances)

Query Criteria and Results:

R11i: Foreign Entered Only

R12: Converted too!

Recurring Journals Enhancements

Recurring Journals

Foreign Currency Recurring Journals• Create foreign currency recurring journal• Cannot create foreign currency budget

formulasOther Enhancements to Recurring Journals• Recurring batch can contain journals from

multiple ledgers• Budget formulas can only use single ledger

batch types• Of course, Data Access Set and Definition

Access Set security enforced

Recurring JournalsR11i

Single or Multiple Ledgers

Any Currency

• Recurring Journals upgraded as “single ledger” Recurring Batch Type

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

Control AccountsQualifying Accounts to be Third Party Control Accounts

Specify • Customer• Supplier or • Yes

Journal Reversal Enhancements Description and Benefits

• Prevent Reversal of Journals with Frozen Sources

• Prevent Reversal of Unposted Journals

• Consistency enforced between subledger and GL account balance

• Improved data integrity • All reversals can be tied

back to the originating journal

Description Benefits

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 enhancementsBalancing 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

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 E-Business Tax

• No changes from a Journal Entry perspective

Bye, bye!

Thank You

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