r12 general ledger management fundamentals
DESCRIPTION
- 2 Objectives After completing this lesson, you should be able to: Identify how the consolidation process is positioned within the Oracle General Ledger business flow Identify the key implementation issues regarding consolidations Identify the features and functionality of Global Consolidation System (GCS) Describe the elements of the Consolidation Workbench Create eliminating entries Identify reports and inquiry options available for consolidations - 2TRANSCRIPT
Consolidations
R12 General Ledger Management Fundamentals
Objectives
After completing this lesson, you should be able to:• Identify how the consolidation process is positioned
within the Oracle General Ledger business flow• Identify the key implementation issues regarding
consolidations• Identify the features and functionality of Global
Consolidation System (GCS)• Describe the elements of the Consolidation Workbench• Create eliminating entries• Identify reports and inquiry options available for
consolidations
Overview of Consolidations
With Oracle General Ledger, you can consolidate any number of subsidiaries that use different ledgers, even those with different charts of accounts, currencies, and calendars
Subsidiary 1 Subsidiary 2 Subsidiary 3
ParentRun Consolidation
Consolidation Tools
You can use the method that best suits your needs to consolidate financial information.• Financial Statement Generator (FSG)• Global Consolidation System (GCS)
FSGGCS
Consolidating Multiple CompaniesSharing a Single Ledger
Parent company
Subsidiary 1 Subsidiary 2 Subsidiary 3Co-CC-AcctMonthlyUSD
Co-CC-Acct Monthly USD
Co-CC-Acct Monthly USD
Structure: Co - CC - Acct Calendar: MonthlyCurrency: USD
Use FSG to consolidate data
Use FSG to consolidate subsidiaries that share the same ledger
Consolidating Multiple Companieswith Multiple Ledgers
Parent company
Subsidiary 1 Subsidiary 2 Subsidiary 3Co-CC-AcctQuarterlyUSD
Co-Acct-Prd Monthly Euro
Co-Acct-CC-Prd Weekly AUD
Structure: Co - CC - Acct - PrdCalendar: MonthlyCurrency: USD
Use GCS to map and consolidate
Global Consolidation System (GCS) Features and Benefits
Global Consolidation System provides:• A workbench to view the consolidation status of your
subsidiaries• Sophisticated consolidation mapping rules to map
accounts and specify transfer rules from the subsidiary to the parent
• A color-coded consolidation monitor that guides you through the consolidation steps
• A Consolidation Hierarchy Viewer to graphically display your consolidation structure
• The Interface Data Transformer makes importing data from external feeder systems easier
Global Consolidation System (GCS) Features and Benefits (continued)
Global Consolidation System provides:• Automatic generation of eliminating entries• Multilevel drilldown capabilities to subsidiary balances
and subledgers• Interface Data Transformer (IDT)• Powerful report publishing capabilities using FSG and
Web ADI• Integrated multidimensional analysis using Oracle
Enterprise Planning and Budgeting
Consolidating Data in Multiple Instances
Parent company
ledger
Use Web ADI or IDT to copy data from another instance to another
Web ADI Journal Entry Spreadsheet
"Subsidiary 1"
Subsidiary 1 Ledger
Oracle Instance A
Oracle Instance B
Web ADIExtract
Consolidate
GL_INTERFACE TableExternal Data
IDT Rules Transform Data
External Data loaded into GL_Interface
GL Journals
Reformatted Data Imported to GL
Interface Data Transformer (IDT) Description
User-friendly tool that facilitates the importing of data from external feeder systems into Oracle General Ledger and Global Consolidation System
Interface Data Transformer (IDT)Benefits
Easier Integration with Non-Oracle Systems:• Automatic data conversion that converts disparate data
formats into an Oracle format• Reapplication of the same rules each time you transfer• Automatic data validation on imported data provides
greater flexibility!• Conditions allow you to control when Transformation
Rules should be applied
Interface Data Transformer (IDT) Rule Set Description
Rule Sets provide instructions to transform data in the GL_INTERFACE table: • Use String Functions to parse and concatenate
substrings• Call PL/SQL Functions to perform sophisticated
transformations • Reference Lookup Tables to convert one value into
another
100C B 540 20%
100CB Budget 108 20%
Column1 and Column2 are concatenated, placing the results in Column1.
Column1 Column2 Column3 Column4Parses and concatenates substrings
Source
Target
Interface Data TransformerString Function Example
Column3 is multiplied by Column4, placing the results in Column3
540 X 20% = 108
Performs sophisticated transformations
100C B 540 20%Column1 Column2 Column3 Column4
100CB Budget 108 20%
Source
Target
Interface Data Transformer PL/SQL Function Example
A lookup table maps "B" to "Budget," placing the results in Column2
Converts one value into another
100C B 540 20%Column1 Column2 Column3 Column4
100CB Budget 108 20%
Source
Target
Interface Data Transformer Lookup Table Example
Interface Data Transformer Steps
• Define Rule Set• Load Interface Table
– Load the external data into the GL_INTERFACE table using SQL Loader or another program
– Specify a Source and Group ID in the flat file• Run Transformer Program
SQL
Other Uses forGlobal Consolidation System
Use Global Consolidation System (GCS) to transfer balances if you make changes to your chart of accounts or accounting calendar
Consolidation Workbench
The Consolidation Workbench and State Controller provide a central point of control for consolidating an unlimited number of subsidiaries to your parent ledger
Access all consolidation steps
Monitor consolidationprocess
View mappings and hierarchies
Consolidation Workbench (continued)
Find Consolidation Processes
Consolidation Workbench
Preparation/Transfer
Elimination
State Controller
MappingMapping Set
Translation StatusTransfer
Transfer SetReview Journal
PostElimination Set
EliminationReport
Using the State Controller
Button Name Consolidation Step
MappingMapping Set
Translation Status
TransferTransfer SetReview JournalPost
Report
Map consolidation data
Prepare consolidation data
Transfer consolidation data
Create eliminating entries
Report on consolidated balances
Review and post to consolidate data and update consolidated balances
Elimination SetEliminate
State Controller Button Colors
Blue
Gray
Red
Recommended
Not Recommended
Warning
Mapping
Mapping Set
Translation Status
Transfer
Review Journal
Post
Eliminate
Report
Transfer Set
Elimination Set
Defining a Consolidation Mapping
• A consolidation mapping is a set of instructions for mapping accounts or entire account segments from a subsidiary ledger to the parent ledger
• Define a consolidation mapping for each subsidiary you want to consolidate
Mapping Rules
Parent Ledger
SubsidiaryLedgers
Mapping Rules
• You can define segment rules, account rules or a combination of both
• If you use segment rules you must define a segment rule action for each segment in the parent's chart of accounts, but you cannot define more than one action
• Account rules override segment rules, if there is a conflict. Suggestion:– Use segment rules to define the default mapping– Use account rules to define exceptions
Using Account Mapping Rules
Account rules map a specific subsidiary account or range of accounts to a specific account in the parent ledger
02.300.5410.100 01.5000.100
maps toSubsidiary Parent
Low 02.400.5400.100
High 02.400.6999.10001.5200.100
Using Segment Mapping Rules
Segment rules map subsidiary account segments to parent account segments
Maps to
DepartmentAccountProduct
Cost CenterAccountLocation
Subsidiary Parent
Using Segment Rollup Rules
A rollup rule consists of the following:
Parent SegmentDetail Value
Transfer Level
Using
SubsidiarySegment ParentValue or Segment Ranges
Subsidiary values rollup into the specifiedparent detail segment value.
Specifies whether to rollup detail or summary data.
Specifies whether Parent, Detail Ranges, orParent Ranges from subsidiary are mapped.Dependent on Transfer Level selected.
• If you specify Parent in the Using field, enter the parent account value for the subsidiary.• If you specify Detail Ranges or Parent Ranges, enter the account ranges for the subsidiary.
Rule Description
Defining a Consolidation Mapping Set
Create a mapping set to transfer data for multiple subsidiaries simultaneously
Mapping Set
Subsidiary 1 Mapping
Rules
Subsidiary 2 Mapping
Rules
Subsidiary 3 Mapping
Rules
Transfer to Parent Company Ledger
Consolidation Hierarchy Viewer
-Vision Corporation (UK) (Vision Corporate Mapping)• Currency: GBP• Calendar: Fiscal• Chart of Accounts: Co-Dept-Acct
Vision Operations (USA) (Vision Operations Mapping)• Currency: USD• Calendar: Accounting• Chart of Accounts: Co-Dept-Acct-Sub-Acct-Prod
Vision Services (USA) (Services to Corporate)• Currency: USD• Calendar: Weekly• Chart of Accounts: Co-Serv Dept-Serv Acct-Prod
Vision Services (SNG) (Distribution to Corporate)• Currency: SGD• Calendar: Accounting• Chart of Accounts: Co-Dept-Acct-Prod
+
Preparing Subsidiary Data
Before you transfer balances from a subsidiary ledger:• Revalue balances• Translate to functional currency• Run trial balance reports
Run reports
Revalue balances
Translate balancesSubsidiary
Ledger
Revaluation Process
Revaluation is the process that:• Reviews a foreign currency balance• Reconverts the functional currency using the
Revaluation Rate• Creates a journal entry to adjust the functional balance
to the reconverted amount
Foreign currencies
Functionalcurrency
Translation
Foreign currency translation is the process that restates the functional currency account balances into another currency
Subsidiary functionalcurrency
Parentfunctional currency
Transferring Subsidiary Datato Parent Ledger
You can transfer data from your
subsidiary ledgers by:
Consolidating balances
Consolidating transactions
Transferring consolidation
sets
Consolidation Tracking and Reversals
Posting Consolidation Journal Entries
Run Journal Import Review
PostRun Reports
Global Consolidation SystemCross Instance Data Transfer
Transfer Subsidiary
DataRemote Parent Instance
Cross Instance Data Transfer enables you to transfer subsidiary data to your remote parent instance over your corporate intranet
Cross Instance Data Transfer Security
• Using Cross Instance Data Transfer Security:• You create a specific username for the central
consolidation database instance with limited access to specific objects in the database
• Subsidiaries use this username to define database links for cross instance data transfers
Global Consolidation SystemParallel Consolidation
Parallel Consolidation enables organizations to:• Run multiple concurrent consolidation processes
in parallel for different subsidiaries– Uses separate GL_INTERFACE tables to increase
processing speed– Must select the Run Journal Import option in the
Transfer Consolidation Data or Transfer Consolidation Data Set forms
Creating Eliminating Entries
Company A Company B
Formula-Based Eliminations
Use recurring journal entries set up with specific formulas or partial eliminating entries, such as those for:• Intercompany profit eliminations• Minority interest eliminations• Cross-ownerships• Intercompany transactions with partially owned
subsidiariesYou cannot use the Automatic Intercompany Eliminations program to eliminate formula–based eliminations or average balances
Automatic IntercompanyEliminations Program
Source Account from Subsidiary
Run EliminationDefine Elimination Set
Source Account from Subsidiary
Target Account in Parent or Elimination Company
Target Account in Parent or Elimination Company
Defining an Elimination Set
Required Components:Batch nameDescriptionElimination journalsCurrency Amount typeSource AccountType Account
Optional Components:Elimination companyTrack Elimination StatusEffective From and To datesBalancing options
Source and Target Account Examples
Parent Cost Center 999
100
Child Accounts
200 300 400
If SourceAccount
Is mapped toTarget Account
The outcome is
Null Null Source accounts 100, 200, 300, and 400 eliminate into individual target accounts 100, 200, 300, and 400
Null 100 Source accounts 100, 200, 300, and 400 eliminate into target account 100
200 Null Source account 200 eliminates into target account 200
999 Null Source accounts 100, 200, and 300 (children of 999) eliminate into individual target accounts 100, 200, and 300
200 100 Source account 200 eliminates into target account 100
999 100 Source accounts 100, 200, and 300 (children of 999) eliminate into target account 100
Balancing Options for Eliminations
Balancing Option OutcomeAllow out of BalanceJournal
Balance with NetDifferences Account
Balance with NetDifferences Accountwith threshold rules
Allows out of balance journal entries to be created. Journal review required.
• If the difference < threshold, a balanced journal entry is created with the difference posted to the net difference account.• If difference > threshold, an out of balance journal entry is produced for your review.
Difference in out of balance journals are posted to net difference accounts you specify for debits and credits. Threshold rules can be applied.
_
Allow Out of Balance Journal
Elimination Journal Entry
DR CR
I/C AR 100
I/C Sales 87
Out of Balance 13
Review and analyze difference
Balance with Net DifferenceElimination Journal EntryBalance with Net Difference Account Threshold = 5
DR CR
I/C AR 205
I/C Sales 199
Out of Balance 6
Elimination Journal EntryBalance with Net Difference Account Threshold = 15
DR CR
I/C AR 205
I/C Sales 199
Net Difference Account 6
Review and analyze difference
Consolidated Balances Inquiry
From your consolidated parent ledger, you can view consolidated balances, journals, subsidiary details, and subledger details
Total Consolidated Sales
Total Sales – Company A
A/R Subledger
Sales Account 2Sales Account 1
A/R Subledger
Performing Consolidated Balances Inquiry
Balances
Consolidation
SubsidiarySource Account
Display original
currency
Displaytranslated currency
Switch amount
type
Running Consolidation Reports
You can generate standard consolidation reports from the State Controller or Submit Request window• Consolidation Audit Report• Consolidation Exceptions Reports:
– Unmapped Subsidiary Report– Disabled Parent Accounts Report
• Consolidations Rules Report• Consolidations Journals Report
Creating Custom Consolidation Reports
To define customized consolidation reports, use Web Applications Desktop Integrator (Web ADI), or Financial Statement Generator (FSG)
Summary
In this lesson, you should have learned how to:• Identify how the consolidation process is positioned
within the Oracle General Ledger business flow• Identify the key implementation issues regarding
consolidations• Identify the features and functionality of Global
Consolidation System (GCS)• Describe the elements of the Consolidation Workbench• Create eliminating entries• Identify reports and inquiry options available for
consolidations