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Release 12 Field Readiness Workshop

Sales Track
Financials

Oracle General Ledger

Copyright © 2006, Oracle. All rights reserved.


R12 Financials –
Oracle General Ledger

Theresa Hickman
General Ledger Development

2 Copyright © 2006, Oracle. All rights reserved.


Purpose:
This document provides an overview of features and enhancements included in
Release 12. It is intended solely to help you assess the business benefits of upgrading
to Release 12.

Disclaimer:
This document in any form, software or printed matter, contains proprietary information
that is the exclusive property of Oracle. Your access to and use of this confidential
material is subject to the terms and conditions of your Oracle Software License and
Service Agreement, which has been executed and with which you agree to
comply. This document and information contained herein may not be disclosed, copied,
reproduced or distributed to anyone outside Oracle without prior written consent of
Oracle. This document is not part of your license agreement nor can it be incorporated
into any contractual agreement with Oracle or its subsidiaries or affiliates. This
document is for informational purposes only and is intended solely to assist you in
planning for the implementation and upgrade of the product features described. It is not
a commitment to deliver any material, code, or functionality, and should not be relied
upon in making purchasing decisions. The development, release, and timing of any
features or functionality described in this document remains at the sole discretion of
Oracle. Due to the nature of the product architecture, it may not be possible to safely
include all features described in this document without risking significant destabilization
of the code.

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4 Copyright © 2006, Oracle. All rights reserved.
Agenda

• Introduction to Solution
• History and Business Messages
• Key Concepts and Terminology
• Impacted Applications
• Customer Impact / Upgrade Considerations
• Demo
• ADS Content (ADS)
• Hands-on
• Case Study

5 Copyright © 2006, Oracle. All rights reserved.


Introduction to Solution - Definition

Oracle General Ledger:

Oracle General Ledger is a comprehensive


financial management solution that
dramatically enhances financial controls,
data collection, information access, and
financial reporting throughout your
enterprise.

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History and Business Messages
The Challenge for Global Companies
US COA US COA US COA
US Calendar US Calendar US Calendar
US GAAP US GAAP US GAAP
$ € £

French Comptable US COA


French Calendar US Calendar
French GAAP German GAAP
€ €

• Costly to Maintain
• Inconsistent Business Practices
• Fragmented Information

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History and Business Messages
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?
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R11i Pain Points
Modeling Entities with Sets of Books

SOB USA SOB BEL SOB ATS SOB DM


SOBs
($) (€) (€) (€)

Legal
USA Belgium Austria Germany
Entities

OUs OU USA OU BEL OU ATS OU DM

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R11i Pain Points (continued)
Modeling Entities with Sets of Books
Pros Cons

• Each legal entity is a • Many books to maintain


separate set of books • Changing responsibilities
• Data is secure • Difficult to share data and
• Easy to secure definitions, setup information
such as FSG reports • Cannot perform processes
across books
• Time-consuming
open/close process
• Difficult reporting

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R11i Pain Points (continued)
… with Balancing Segment Values

SOB SOB
SOBs
North America Europe
($) (€)

LEs US Belgium Austria Germany


(BSVs) (01) (02) (03) (04)

OUs OU USA OU BEL OU ATS OU DM

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R11i Pain Points (continued)
… with Balancing Segment Values
Pros Cons

• Fewer books to maintain • Cannot share setup and


data across currency
• No changing boundary
responsibilities • No data security
• Share setup information • Cannot secure definitions,
• Perform processes across such as FSG Reports and
Mass Allocations
legal entities
• Easy reporting
• Consolidated information

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R12 Objectives
Provides Security, Autonomy, 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,
secure data and allow certain processes to be
performed independently
• Management Reporting Efficiency

Eliminate the Challenges of Modeling Legal Entities in 11i!

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Agenda

• Introduction to Solution
• History and Business Messages
• Key Concepts and Terminology
• Impacted Applications
• Customer Impact / Upgrade Considerations
• Demo
• ADS Content (ADS)
• Hands-on
• Case Study

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Key Concepts and Terminology
Maintaining Multiple Accounting Representations with
Secondary Ledgers or Reporting Currencies
Legal Entity

Corporate Ledger (EUR) Statutory Ledger (EUR)


(Primary Ledger) (Secondary Ledger)
Accounting
Reporting Currency (USD)

SLA SLA

Subledger Transactions
Transaction
AP AR FA Others

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Key Concepts and Terminology

Primary Ledger (PL) Secondary Ledger Reporting Currency


Main, record-keeping ledger Optional, additional Optional, currency
accounting representation representation of
of Primary Ledger Primary or Secondary
Ledger

Defined by 4Cs: Can differ in one or all 4Cs: Only differs in:
• Chart of accounts • Chart of accounts • Currency
• Accounting calendar • Accounting calendar
• Primary currency • Primary currency
• Subledger aCounting • Subledger
Method aCcounting Method

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Key Concepts and Terminology
Difference Between Secondary Ledgers and
Reporting Currencies
If one or more of the following are different, If difference is
only currency,

US GAAP
Accrual

Corporate Monthly Accounting Currency


Chart of accounts Calendar Method

Use Reporting
Use a Secondary Ledger
Currencies

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Key Concepts and Terminology

Level of Detail Path to SL Path to RC

Use GL Consolidation
Balance Use GL Translation
to Transfer Balances

Use GL Posting for Use GL Posting


Journal
Automatic Journal (Thin-MRC)
Replication

Subledger Use SLA for Automatic Use SLA


AP AR FA Maintenance (Full-MRC)

Manual Adjustments in
Adjustments GL or Automated
Only Adjustments from SLA

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Key Concepts and Terminology

Use Balance Level Secondary Ledger if:


• You only need to maintain an additional accounting
representation at the balances level
• You do not need the balances to be updated in real-
time; you can wait until they have been transferred to
the secondary ledger

Use Balance Level Reporting Currency if:


• You want an additional currency representation only at
the balance level for consolidation purposes
• You do not need the balances to be updated in real-
time; you can wait until translation is run

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Key Concepts and Terminology

Use Journal Level Secondary Ledger if:


• You want to maintain an additional accounting
representation that is in between the two extremes of a
balance level and subledger level secondary ledger
• You want to actively monitor your business without the
overhead of replicating every subledger journal

AP AR FA
Balance Level Journal Level Subledger Level
Maintained at Maintained When Maintained for every
Month-End Journals are Posted Subledger Journal

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Key Concepts and Terminology

Use Journal Level Reporting Currency if:


• You want a light-weight solution (similar to Thin MRC)
to maintaining an additional currency representation
that is in between currency translation and subledger
level conversions

AP AR FA
Balance Level Journal Level Subledger Level
Maintained at Converts Converts Every
Month-End via GL Journals Only Subledger Journal
Translation

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Key Concepts and Terminology

Use Subledger Level Secondary Ledger if: AP AR FA


• You want to maintain a complete additional accounting
representation in real-time for every subledger journal,
general ledger journal, and balance

Use Subledger Level Reporting Currency if:


• You want to maintain a complete currency
representation in real-time for every subledger journal,
general ledger journal, and balance

Both the Subledger Level Secondary Ledger and Reporting


Currency allow you to actively monitor your business
throughout the accounting cycle at the most detailed level

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Key Concepts and Terminology
Use Adjustments Only Secondary Ledgers if:
• You operate in an industry, such as the insurance
industry or financial services industry, where only a
handful of transactions should be accounted for
differently
• You DO NOT need to maintain a complete accounting
representation in another ledger. You only need a
ledger to hold adjustments, which can be both manual
adjustments, and/or automated adjustments from
Subledger Accounting (SLA)
Ledger Set to Meet Regulatory Requirements
Primary Ledger Adjustments Only
USD Secondary Ledger For
USD adjustments

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Key Concepts and Terminology

Secondary Ledger Benefits


• Supports an unlimited number of additional accounting
representations to meet the following reporting
requirements:
– Legal reporting to comply with different countries’
legal requirements
– Regulatory reporting to meet industry-specific
requirements, such as the banking and insurance
industry
– Management reporting
– Consolidation

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Key Concepts and Terminology

Reporting Currency Benefits


• Supports an unlimited number of additional currency
representations to meet the following reporting
requirements:
– Statutory Reporting
– Corporate Reporting and Consolidation
• Supports changing business needs by allowing you to
add reporting currencies at anytime with automated
conversion programs to convert historical data
– For example, as companies get acquired, they may need
to take advantage of reporting currencies for corporate
reporting to the new parent entity

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SLA – GL Flow

GL Balances

Posting

GL Journal Entry

Journal Import

SLA Journal Entry

Legend
Create Accounting GL
SLA
Transaction Subledger

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SLA – GL Flow with Balance-Level Secondary Ledger

GCS
GL Balances GL Balances

Posting GCS Posting

GL Journal Entry GL Journal Entry

Journal Import

SLA Journal Entry

Create Accounting

Transaction

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SLA – GL Flow with Balance-Level Reporting Currency

GL Balances Translation GL Balances

Posting

GL Journal Entry

Journal Import

SLA Journal Entry

Create Accounting

Transaction

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SLA – GL Flow with Journal-Level Secondary Ledger

GL Balances GL Balances

Posting Posting

GL Journal Entry Posting GL Journal Entry

Journal Import

SLA Journal Entry

Create Accounting

Transaction

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SLA – GL Flow with Journal-Level Reporting Currency

GL Balances GL Balances

Posting Posting

GL Journal Entry Posting GL Journal Entry

Journal Import

SLA Journal Entry

Create Accounting

Transaction

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SLA – GL Flow with Subledger-Level Secondary Ledger

GL Balances GL Balances

Posting Posting

GL Journal Entry GL Journal Entry

Journal Import Journal Import

SLA Journal Entry SLA Journal Entry

Create Accounting

Transaction

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SLA – GL Flow with Subledger-Level Reporting Currency

GL Balances GL Balances

Posting Posting

GL Journal Entry GL Journal Entry

Journal Import Journal Import

SLA Journal Entry SLA Journal Entry

Create Accounting

Transaction Note: Subledger Level Reporting Currencies


can ONLY be assigned to Primary Ledgers

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Ledger Architecture Features

Accounting Setup Manager


• Simultaneous Accounting For Multiple Reporting Requirements
• Multiple Currency Support For All Data From All Sources
Management Reporting
• Specify a segment to be a management segment
• Secure access to management segment
Data Access and Data Security using Data Access Sets
• Access to Legal Entities, Ledgers, Balancing Segment Values
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

33 Copyright © 2006, Oracle. All rights reserved.


Ledger Architecture Features

Accounting Setup Manager


• Simultaneous Accounting For Multiple Reporting Requirements
• Multiple Currency Support For All Data From All Sources
Management Reporting
• Specify a segment to be a management segment
• Secure access to management segment
Data Access and Data Security using Data Access Sets
• Access to Legal Entities, Ledgers, Balancing Segment Values
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

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Impacted Applications
Legal Entity
Configurator Accounting Setup Manager

Ledger
(formerly set of books)

Subledger
Accounting (SLA)

Operating Units (HR


Org Data Model)

Adv. Global Intercompany


System (AGIS)

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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 using Advanced Global
Intercompany System
– Sequencing (Accounting and Reporting Sequencing)

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Accounting Setup Manager
Types of Accounting Setups

No LE Single LE/Ledger Multiple LE/Ledger

Heavily Regulated Normally Regulated


• Management Reporting
Applicability Countries Countries
• GL-only implementation
e.g France, Italy e.g US, Canada

Independent Doc
Statutory Not as Stringent,
Not for Legal Entity Sequencing,
Requirements Multiple LEs Can Share
Legal Reporting VAT Controls,
the Same Ledger
Statutory COA, etc

• No Legal Entity
Context in Subledger N/A N/A
Limitation More Operating Units No Autonomous Doc
Transactions
Need to be Defined; Sequencing and Tax
• Cannot use Advanced
One per Ledger Per Legal Entity
Global Intercompany
System

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Accounting Setup Manager

Accounting Setup Manager Benefits


• Supports Global Companies’ Multiple Reporting
Requirements
– You can more easily meet multiple reporting
requirements, such as statutory, corporate and
management reporting in a more straight forward,
streamlined, and automated fashion
– As you expand your business into new geographies,
Accounting Setup Manager makes it easy to add entities
and ledgers at any time
• Reinforces the EBS message of having an integrated
suite
– Now you can clearly map your business entities to the
setup components that cross multiple products

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Accounting Setup Manager

Accounting Setup Manager Benefits (continued)


• Less setup errors and greater efficiency
– Because the accounting setup is now centralized, you
can obtain a clear view of your implementation, reduce
setup errors, and improve efficiency and consistency
– You can set up and maintain setup data more efficiently
because you do not have to log in and out of different
applications and click as many pages
– For example, setting up reporting currencies is really
only one step as opposed to multiple steps in R11i
– A guided setup approach (wizard-like setup) helps users
set up their legal entities and the accounting for those
legal entities in a more straight-forward and intuitive
manner

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Customer Impact/Upgrade Considerations
Straightforward Upgrade

Today Release 12
Set of
Books Ledger

Individual Same Responsibilities


Product Subledger
Accounting Accounting Same Tables and IDs
e.g AP, AR Customization
Continuity
Operating Operating
Unit Unit (MOAC)

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Customer Impact/Upgrade Considerations
Terminology Changes
Release 11i Release 12
• Sets of Books • Ledgers
• Global Accounting Engine • Subledger Accounting
• AX Posting Sets of Books • Secondary Ledgers
• Global Intercompany System • Advanced Global
(GIS) Intercompany System (AGIS)
• GL Intercompany Accounts • Intracompany Balancing
• Translated Currency • Balance level RCs
• Multiple Reporting Currencies • Reporting Currencies (RCs)
• MRC Primary Set of Books • Primary Ledger
• MRC Reporting Set of Books • Reporting Currency
• Thin MRC Reporting Book • Journal level RC
• Full MRC Reporting Book • Subledger level RC
• Translated Balance • Balance Level RC

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Customer Impact/Upgrade Considerations

Before Upgrade (R11i) After Upgrade (in R12)


• Run the Accounting • Run the Accounting
Setup Manager Pre- Setup Manager Post-
Update Diagnosis Update Diagnosis
Report to identify any Report
issues

Compare both reports before and after upgrade

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Customer Impact/Upgrade Considerations
Legal Entity Upgrade

• All Legal Entities 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 to Legal Entities
unless you want to use Advanced Global Intercompany
System

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Customer Impact/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.

44 Copyright © 2006, Oracle. All rights reserved.


Ledger Architecture Features

Accounting Setup Manager


• Simultaneous Accounting For Multiple Reporting Requirements
• Multiple Currency Support For All Data From All Sources
Management Reporting
• Specify a segment to be a management segment
• Secure access to management segment
Data Access and Data Security using Data Access Sets
• Access to Legal Entities, Ledgers, Balancing Segment Values
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

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Impacted Applications
Management Reporting

• Impacts General Ledger Only

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Key Concepts and Terminology
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 CC Acct I/C

Balancing Cost Center Natural Intercompany


Management Account

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Key Concepts and Terminology
Management Reporting and Security

LE Benefits
• Effective Management
Primary Ledger Reporting
– Enables management
reporting and analysis by
leveraging a management
Co CC Acct I/C
dimension in your chart of
accounts
• Tighter Controls
OU97
– Restrict managers from
accessing data outside
OS69 their area of responsibility

OX53

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Customer Impact/Upgrade Considerations
Adding a Management Segment to an Existing COA:
1. Enable the management segment qualifier for any
segment except balancing, natural account, and
intercompany segment
2. Run the Prepare Journal Batches for Management
Segment Upgrade program
3. Run the Complete Management Segment Upgrade
program
4. Define Data Access Sets to secure read and write
access to management segment values for different
managers
5. Assign data access sets to each manager’s
responsibility
49 Copyright © 2006, Oracle. All rights reserved.
Ledger Architecture Features

Accounting Setup Manager


• Simultaneous Accounting For Multiple Reporting Requirements
• Multiple Currency Support For All Data From All Sources
Management Reporting
• Specify a segment to be a management segment
• Secure access to management segment
Data Access and Data Security using Data Access Sets
• Access to Legal Entities, Ledgers, Balancing Segment Values
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

50 Copyright © 2006, Oracle. All rights reserved.


Impacted Applications
Data Access Sets

• Data Access Set is only used by GL and SLA


• 11i “GL: Set of Books Name” profile option renamed to
“GL Ledger Name”.
• “GL: Data Access Set” is now used to control access to
ledgers.
• For SLA, set the profile option “SLA: Enable Data
Access Set Security in Subledgers ”
– If set to Yes, it will respect the profile options:
— GL: Data Access Set
— SLA: Additional Data Access Set
– SLA allows users to have two Data Access Sets

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Key Concepts and Terminology
Data Access Sets

Ledgers must share


same COA/Calendar
combination
COA must have
management segment
Assign ledgers and/or to use
ledger sets

Specify Read Only or


Read/Write Access

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Key Concepts and Terminology
Data Access Sets
• 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

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Key Concepts and Terminology
Data Access Sets
• Full Ledger Access means:
– You have full read and write access to the ledger and all
balancing segment values or management segment values
for the ledger
• Full Ledger Access is required for the following processes:
– Opening and closing periods
– Creating summary accounts
– Creating budgets
– Performing Mass Maintenance

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Key Concepts and Terminology

Data Access Set Benefits


• Provides Efficient Access to Ledger Data
– Access data in multiple ledgers from one responsibility
• Enables the Implementation of Tighter Internal Controls
– Prevent unauthorized viewing or updating of ledger data.
– If balancing segment values = legal entities (line of business),
then you can prevent viewing or updating balances for one
legal entity (line of business)
– Especially useful if multiple legal entities share the same
ledger
• Enables management reporting and analysis
– Prevent managers from viewing and updating data outside
their management responsibility

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Key Concepts and Terminology

Data Access Set Benefits (continued)


• Supports Shared Service Centers
– If you are running a shared service center or have centralized
your accounting functions, data access sets provide complete
flexibility to secure access to the entire ledger or portions of
the ledger at a more granular level (read only or read and
write)

Legal Entity A

Single Shared Legal Entity B


Global Service
Instance Center
Legal Entity C

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Customer Impact/Upgrade Considerations
Automatic Upgrade
Today Release 12

GL Ledger Name
Profile Option
GL: Set of Books Name
Profile Option
GL: Data Access Set
Profile Option

 R11i responsibilities automatically upgraded with


the set of books assigned to GL: Data Access
Set
 No need to do anything unless you want to
access multiple ledgers
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Customer Impact/Upgrade Considerations
Data Access Sets

Reporting Currencies (formerly MRC)


• System-generated data access sets created upon
upgrade that include:
– Primary Books
– Assigned MRC Reporting Books
• Reporting currencies have a tighter link to source
ledger
– Both ledger journals are combined in the same journal
batch
– To prevent posting errors, both the source ledger and its
reporting currencies must be assigned to the same data
access set

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Customer Impact/Upgrade Considerations
Data Access Set

System-Created Data Access Sets with Full Read/Write Access:


– Displayed in Read Only Mode (cannot update)

User-Defined Data Access Sets


– Not required unless you want to assign ledger sets or secure
read and write access to ledgers, BSVs and MSVs
– Always include Reporting Currencies with their source ledger
to prevent posting errors
Ledger Architecture Features

Accounting Setup Manager


• Simultaneous Accounting For Multiple Reporting Requirements
• Multiple Currency Support For All Data From All Sources
Management Reporting
• Specify a segment to be a management segment
• Secure access to management segment
Data Access and Data Security using Data Access Sets
• Access to Legal Entities, Ledgers, Balancing Segment Values
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

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Impacted Applications
Ledger Sets

• Ledger Sets used by General Ledger


• Some AR and AP reports use Ledger Sets

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Key Concepts and Terminology
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


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Key Concepts and Terminology

Perform the Following Across Ledgers:


• Open/Close Periods
• Create Journals
– Allocations Across Ledgers
– Recurring Journals for All Ledgers
– Elimination Sets for All Ledgers
• Translate and Revalue Balances
• View Information without Changing
Responsibilities
• View Journals and Account Balances Across
Ledgers
• Submit Standard Reports
• Create Financial Statements that Include Data
for Multiple Ledgers

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Key Concepts and Terminology

Ledger Set Benefits


• Shorter Close Process
– Run month-end close processes across multiple ledgers
simultaneously
• Greater flexibility to decentralize/centralize accounting
functions
– The corporate office can control the period status for
multiple subsidiaries at once
• Real-Time Enterprise-Wide Visibility
– Quickly report across the entire enterprise in real-time
because no transfer of data is required
– Reported results are accurate and timely because they are
based on the transactional system, not a data warehouse
(like SAP)

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Key Concepts and Terminology

Ledger Set Benefits (continued)


• More Efficient Access to Ledger Data
– No need to change responsibilities to access data in
different ledgers
• Processing Efficiency
– Essentially treats multiple ledgers as one and eliminates
the overhead of having a high number of ledgers defined
– Reduces the number of repetitive tasks that offer limited
value and allows you to spend more time on value-added
tasks
• Reporting Efficiency
– Obtain “flash” reports throughout the accounting cycle to
proactively manage the business instead of waiting until
the end of the month when the data collected is backward
looking
65 Copyright © 2006, Oracle. All rights reserved.
Customer Impact/Upgrade Considerations
Ledger Sets

• None; All sets of books upgraded to ledgers


• Customers only need to define ledger sets to obtain
processing efficiencies

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Ledger Architecture Features

Accounting Setup Manager


• Simultaneous Accounting For Multiple Reporting Requirements
• Multiple Currency Support For All Data From All Sources
Management Reporting
• Specify a segment to be a management segment
• Secure access to management segment
Data Access and Data Security using Data Access Sets
• Access to Legal Entities, Ledgers, Balancing Segment Values
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

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Impacted Applications
Definition Access Sets

• Optional Security Feature


• Only Impacts General Ledger Setup and Definitions

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Key Concepts and Terminology
Definition Access Sets

• Control Access to Setup and Definitions (Calendar,


MassAllocations, etc.) Independently of Data
Security
• Secure Setup and Definitions that are naturally
shared across ledgers and charts of accounts, such
as FSG Reports and MassAllocations
• Enable Setup Autonomy within Multi-Legal Entity
Ledgers
• Assigned to Responsibility, but access granted to
User

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Key Concepts and Terminology
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.

70 Copyright © 2006, Oracle. All rights reserved.


Key Concepts and Terminology
Definition Access Sets

GL Clerk Privileges Controller


Use View Modify
Rent Allocation Rent Allocation

Recurring Rent Recurring Rent

Balance Sheet

Income Stmt

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Key Concepts and Terminology
Definition Access Sets

Securable Definitions using Definition Access Sets

• Accounting Calendars • Elimination Sets


• AutoAllocations • FSG Reports and
• AutoPost Criteria Sets components
• AutoReversal Criteria Sets • MassAllocations
• Budget Formulas • MassBudgets
• Budget Organizations • Rate Types
• Chart of Accounts • Recurring Journals
Mappings • Revaluations
• Consolidation Definitions • Transaction Calendars
• Consolidation Sets

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Key Concepts and Terminology

Definition Access Sets Benefits


• Efficient sharing of definitions
– Definitions that are not secured can be shared across
organizational boundaries (ledgers, legal entities, etc.)
– Setup and definitions only need to be defined once and
can reused (less redundancy!)
• Enables tighter internal controls
– If multiple legal entities share the same ledger, setup and
definitions can be secured by legal entity– no need to
house a legal entity in its own ledger to force a boundary

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Key Concepts and Terminology

Definition Access Sets Benefits (continued)


• Supports Shared Service Centers
– If running a shared service center or have centralized
your accounting functions, you can prevent certain users
from using, viewing, or modifying setup and definitions
that are specific to a legal entity

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Customer Impact/Upgrade Considerations
Definition Access Sets

• None; All definitions and setup components are


upgraded with no security and will continue to be
sharable at the following levels (depending on the
definition):
– Site level
– Chart of accounts level
– Ledger level
• No need to do anything unless you want to uptake this
new feature

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Oracle General Ledger

Summary

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Modeling Entities with Ledgers

Pros Cons

Each legal entity is a separate Many ledgers to maintain


ledger Changing responsibilities
Data is secure Difficult to share data and setup
information
Easy to secure definitions; Cannot perform processes
Reports and Mass Allocations across ledgers
Time-consuming open/close
process
Difficult reporting

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… with Balancing Segment Values

Pros Cons

Fewer ledgers to maintain Cannot share setup and data


across currency boundary
No changing responsibilities
No data security
Share setup information Cannot secure definitions,
Perform processes across legal such as FSG Reports and
entities Mass Allocations
Easy reporting
Consolidated information

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New Architecture Summary

Issue Solution
• Entity Autonomy
• Independent Open/Close
Data Access Set
• Read/Write Access
• Access to Multiple Ledgers

• Reporting Across Entities


Ledger & Ledger Set
• Efficient Processing
• Access to Multiple Ledgers

• Setup & Maintenance Definition Access Set


• Definition Security

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Oracle General Ledger

Demonstration

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Demonstration – Scenarios

• Create accounting setup for a newly acquired French


subsidiary
• View ledger set to obtain processing efficiency
• Perform processes for a ledger set
– Open Periods
– Enter Journals for Multiple Ledgers
– View Replicated Reporting Currency and Secondary
Ledger Journals
– View Account Balances across Ledgers
• Submit Financial Statement using Ledger Set
• Create Data Access Sets with read and write access

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Demonstration – Scenarios (continued)

• Enter and query journals with different data access


privileges
• Enter/post journals using Data Access Set security
• Define Definition Access Sets
– Secure FSG Definitions

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Scenario 1– Create Accounting Setup
Legal Entity
<Your Initials> SSC France
Balancing Segment Value (BSV) 101

Operating Unit <Your Initials> SSC France OU

Primary Ledger –Name: <Your Initials> France PL (Corp)


–COA: Primary Ledger Flex
–Calendar: Accounting13
–Curr: EUR
–Method: Standard Accrual

Reporting
Subledger Level RC
Currency
(USD)
(Subledger level)

–Name: <Your Initials> France SL


–COA: SSC Secondary France Ledger
Secondary Ledger (Subledger level) –Calendar: Accounting13
–Curr: EUR
–Method: FR Accrual Encumbrance Accounting
Demonstration

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Resources

• General Ledger Functional Bulletin Board


http://ap103fam.us.oracle.com:9999/cgi-bin/finbb/wwwthreads.pl?Cat=21
• Oracle University Recorded TOI
http://ouweb.us.oracle.com/ebus/prod_financials_gen_ledger.html
• General Ledger Portal
http://ap103fam.us.oracle.com:9999/pls/portal30/docs/FOLDER/GL_PM/GEN
ERAL_LEDGER/DOCUMENTATION/TOI/RELEASE12/R12_GL_TOI.HTM
• R12 General Ledger Datasheet
http://ap103fam.us.oracle.com:9999/pls/portal30/docs/FOLDER/GL_PM/GEN
ERAL_LEDGER/MKTG_SALES/DATASHEET/R12_GL_DATASHEET.PDF
• Competitive Intelligence Portal
http://my.oracle.com/portal/page/myo/compete/master_ci/ci_prod_apps_fin

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QUESTIONS
ANSWERS

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Q&A from 1st Sales Training

1. Are legal entities above or below a ledger?


2. Ledger Sets and Security:
• How does this fit in with the OPSFI Subledger Security
which allows data to be secured by departments in AP
and AR?

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Q&A from 1st Sales Training

3. Customers describe the difficulty of managing FSG


reports and FSG components. I do not see any
functionality to manage which reports and components
are ‘in production’ or who owns then, or working
folders for accounts to keep their work personal. Is
there anything in R12 to help with this?
4. Is there any sort of month end close wizard included
with R12 GL? For example a list of all expected
reporting sub ledgers, allocations and recurring entries
to be run and an indication of the status of all this work.

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Q&A from 1st Sales Training

5. Is the new management segment a balancing segment.


Can you create a balanced set of financials for the
management segment?
6. ADS Vision R12 setup is using secondary ledger as the
vehicle to create a ledger set. Is this what we expect
our customers will do? Is this a kludge?
7. Why is Product in the SCC ledger? This is a
management item, not a statutory item, or am I wrong
about this? A useful demonstration would be to show
the SCC ledger with only SCC type segments and then
a management ledger with more segments (such as
product and or customer).

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US Parent Italian Subsidiary French Subsidiary

SSC US SSC US LE2 SSC Italy SSC France


001, 003 004 102 101

Primary SSC US SSC Italy SSC France


Ledger –COA: Primary Ledger Flex –Primary Ledger Flex –Primary Ledger Flex
–Calendar: Accounting13 –Accounting13 –Accounting13
–Curr: USD –EUR –EUR
–Method: Standard Accrual –Standard Accrual –Standard Accrual

SSC Italy ALC SSC France ALC


Reporting Currency
(USD) (USD)

SSC Italy SL (EUR) SSC France SL (EUR)


Secondary Ledger
–COA: SSC Secondary Italy –SSC Secondary France
–Calendar: Accounting13 –Accounting13
–Curr: EUR –EUR
–Method: N/A –FR Accrual Encumbrance
Canadian Subsidiaries

Legal Entity Credit Services Group Canada Investment Corp.


(New Company value #1) (New Company Value #2)

Operating Unit SSC Canada OU

–Name: SSC Canada PL


Primary Ledger
–COA: Primary Ledger Flex
–Calendar: Accounting13
–Currency: CAD
–Accounting Method: Standard Accrual

Conversion Level: Balance


Reporting Currency Currency: USD

–Conversion Level: Adjustments Only


–Name: SSC Canada SL
–COA: Primary Ledger Flex
–Calendar: Accounting13
Secondary Ledger –Currency: CAD
–Accounting Method: N/A