Ledgers

Secondary Ledgers…
…Unleashing Its Power!!!
Presented By:
Anshu Anand, Principal Software Engineer, Oracle GCS
Sivaranganath Chittapragada, Principal Software Engineer, Oracle GCS
Sangam’ 2014 : November 07
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
Agenda
• Global Reporting : Pre-R12 Options
• Secondary Ledgers : The Solution Offered by Release 12.
• Kinds of Secondary Ledger Conversions.
• Adding Secondary Ledger to existing Primary : Balance Initiation.
• Tips for Easy Maintenance.
• Things to Know Before Considering Secondary Ledgers.
• Pointers to Reconcile
• Q&A
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 3
Scope
•Focus on Functionality and Business Usage. Detailed setups are kept out of Scope for
now. The reference documents for setups are available in the Oracle Knowledge Base.
•The examples referred are for indicative purposes only. Their actual usage may
depend on the holistic requirement of an organization.
•Reference to Accounting Conventions. The details and their accounting are kept out
of the scope of this presentation.
Corporate Global Presence…
Varied Statutory Needs….
Interdepartmental Company : ABC Corp Ltd
Sales Head Office : United States
Low priced Asset Currency : USD
Purchased
Asset or
Expense ?
Depreciation
Useful Life of Asset or
Fixed Percentage
Company : ABC Corp Ltd Company : ABC Corp Ltd

Country Office : Singapore Country Office : India
Currency : SGD Currency : INR
• Multiple Reporting Currencies (MRC)
Reporting Book 1
Chart of Accounts : Acc
Currency : AUD
Pre R12 Options Primary Book Reporting Book2

Chart of Accounts : Acc Chart of Accounts : Acc
Currency : USD Currency : SGD
Statutory Global Reporting

Reporting Book3
Chart of Accounts : Acc
Currency : INR
• Consolidation
Meeting Statutory Requirements for Global Presence!
Possible Solutions Offered by R12 Application
Secondary Ledgers Defined
• Represents Primary Ledger data that differs in one or more of the following
 Chart of Accounts
 Currency
 Sub Ledger Accounting Method(SLAM)
 Calendar
• Used for supplementary purposes, such as Consolidation, Statutory reporting or Adjustments

for one or more legal entities within the same accounting setup.
• Optional
Kinds of Secondary
Ledger Conversions
• Journal Level Secondary Ledger.
• SubLedger Level Secondary Ledger.
• Balance Level Secondary Ledger.
• Adjustment Level Secondary Ledger.
Journal Level Secondary Ledger
Data Flow
Sub Ledger Journal in Journal Replicated

Transactions Transfer to Primary Posting
in Secondary
General Ledger
Manual
Journals
• Comes across as a powerful tool when companies require the transactions/Journal details to be
available in secondary ledger.
• Drilldown facility.
• Enable the Required Sources for Replication

General Ledger Responsibility -> Setup -> Accounting Setup Manager
Journal Conversion Rules
• Allows Manual ‘Adjustments’ too.
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Corporate
Reporting:
Corporate Consolidated Ledger Jan to Dec Business Case 1:
(USD) Corporate Head Office : USA
Country Office : India
Secondary
India Secondary
Ledger Ledger (Calendar:
Apr –Mar)
Different Calendar Needs for
Primary
India Ledger Statutory and Corporate Reporting.
Ledger US
(INR) Ledger(USD)
Statutory
Legal Reporting: If a legal entity must perform
Entity India
IndiaLEs
LEs Apr to Mar US LE
corporate and statutory reporting,
one can use the primary ledger to
Operating
satisfy corporate reporting
Units India OUs US OU
requirements and then use a
secondary ledger to satisfy
Inventory
Orgs
statutory reporting requirements.
India Org US Org
Kinds of Secondary
Ledger Conversions
• Subledger Level Secondary Ledger.
• Adjustment Level Secondary Ledger.
Data Flow
Manual
Journals
Transaction
Version1 Primary
Sub Ledger Replication
Sub Module Accounting Journal Import
Ledger
On
Transactions Method
Posting
(SLAM) Secondary
Transaction Ledger
Version2
Replication
on Import Manual
Journals
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15
Primary Ledger:
Chart of Accounts : A
SLAM: Currency : USD
United States ( SLAM : United States
Federal Federal )
Sub Ledger Secondary Ledger:

Entries Chart of Accounts : B
SLAM: Currency : SGD
Standard Accrual ( SLAM : Standard Accrual)
Secondary Ledger:
Chart of Accounts : B
SLAM: Currency : INR
Standard Cash ( SLAM : Standard Cash)
• Most transparent form of Conversion.
• SubLedger transfers data to both Primary and Secondary at the same time
• Virtually allows a Company to live in two different accounting representations.
• Complete drilldown available from Secondary Ledger to the Submodule.
• Apart from SubLedger transferred entries, GL Posting also replicates data into Secondary to allow
replication of manual journals.
• SubLedger Sources should be disabled for replication Upon Posting to avoid duplicates.
Primary Ledger
(For Corporate Business Case 2:
Receivables a/c….Debit Reporting)
Deferred Revenue a/c… Credit Corporate Head Office : USA
International Accounting Standards
(IAS) Country Office : Switzerland
Revenue is recognized only when
the customer accepts the product. Different Accounting
Issue a Treatment needed for same
Sales transaction : Sales Account
Invoice
Local tax regulation requires that

the “Sales Account" reflects all
billing…but..Corporate GAAP, (for
Country Operations example IAS/IFRS) requires that
Secondary Ledger revenue is recognized only when
(For Statutory/Local the customer accepts the product.
Receivables a/c….Debit Reporting)
Revenue a/c… Credit Local Laws of Reporting
Sales Account reflects all Billing
Kinds of Secondary
Ledger Conversions
•Adjustment Level Secondary Ledger.
Data Flow
Only Balances
SubLedger Journal in
Moved To
Transactions Transfer to Primary CONSOLIDATION
General Ledger Secondary
Manual
Journals
Balance Level Secondary Ledger Cont….
• Secondary Ledger maintains only Balances from Primary (and not journals)
• Requires ‘Consolidation’ to transfer balances from Primary to Secondary.
• Ideal when no Adjustments are required in Secondary Ledger.
• Provides drilldown from ‘Account Inquiry and Drilldown’.
• Does not provide real time data like Journal Level Conversion.
• Easy to maintain and Reconcile.
Kinds of Secondary
Ledger Conversions
•Adjustment Level Secondary Ledger.
Data Flow
Create FSG Report
Primary Adjustments
Ledger Only Ledger
Adjustment Level Secondary Ledger Cont….
• Adjustment ledger must share same Chart Of Primary Adjustments
Total
Accounts, Calendar/Period Type combination Account Ledger (Secondary)
(INR)
and Currency associated to the Primary (INR) (INR)
Ledger
Sales 5,00,000 6,000 5,06,000
• Suggested to Include the Adjustment leader Short Term 10,000 10,000

with the same Ledger Set as the Primary Investments
Ledger to get complete picture while running
Other Receivables 76,000 2,000 78,000
Reports.
CIP Cost 1,00,000 600 1,00,600
Accrued Payroll 69,000 69,000
• Enable Sub ledger Accounting
Method for Primary & Secondary
Ledgers is Mandatory.
Subledger, Journals & • Data Conversion depends on the
Subledger Journal Conversion Rules and Currency
Balances
Translation Options for Secondary
Ledger
.
Summarizing Data Conversion depends on the

Journal Conversion Rules and Currency
Journal GL Journals & Balances
the Concept… Translation Options for Secondary
Ledger
Data Conversion depends on the
Journal Conversion Rules and Currency
Balances Balances Only Translation Options for Secondary
Ledger
Enter Manual The Chart of Accounts, Calendar, and
Currency of a Secondary Ledger are in
Adjustments directly into
sync with that of Primary Ledger.
Adjustments Secondary Ledger or set
Only the SLA rules such that it
transfers only
adjustments
Adding Secondary
Ledger to Existing
Primary…
• To Initialize Balances for General Ledger
Consolidation
Web ADI
• To Initialize Subledger Events

Concurrent program:”SLA Secondary/ALC Ledger Historic Upgrade”.
The program performs the following validations:
• Applicable for SubLedger Level Conversion Only.
• Application Accounting Definition (AAD) of Secondary and Primary Ledgers should be
same.
• If the earlier run of the program is incomplete / failed, then the present run should be in
Recovery mode, with the same parameters as the prior run.
• Currency conversion rates between Primary Ledger’s entered / accounted currency to
Secondary Ledger’s functional currency should be defined.
• If the Secondary Ledger is of a different chart of accounts, the chart of account
mappings should be defined.
But Maintenance of
Secondary Ledgers Is
Very Difficult….
28
…Not Really 
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
Secondary Ledgers using same Chart of Accounts,
Calendar and Period Type
1. Posting
For Journal and Subledger level conversions
Setup : ‘Post Journals Automatically from Source Ledger' Posts in
Requirements : Period Open in Secondary Ledger Secondary1
Post in
Primary
Posts in
For Balance Level Conversion Secondary2
Setup : Check ‘Autopost’ while running Consolidation.
Journal /Subledger
2. Autopost Conversion
Allows posting all Unposted Journals at one shot.
.
3. Document Sequences
Profile: GL_COPY_DOC_SEQ_FROM_PRIMARY
Available through Patch 8509030:R12.GL.B
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Oracle Confidential – Internal/
30
Journal Reversal
• Option 'Synchronize Reversals Between Primary and Secondary‘
• Option 'Replicate Reversals from Primary Ledger'

No
Manual
Yes
AutoReversal
Allows reversal of Multiple Journals at one shot. Ledger Specific

Criteria Set based. Functionalities
Budgets
Journal Approval
Journal Line Reconciliation
Things to Know while
Considering Secondary
Ledgers
…..Do It Right!
• Average Balances
• Journal Line Reconciliation.
• Subledger level Reporting Currency cannot be attached to a Secondary ledger.
• Selective Assignment of Balancing Segment from Primary to Secondary
• 'Chart of Accounts Mapping', a Balancing Segment Value of one ledger cannot be mapped to
Non-BSV segment of the other.
1. Balancing Segment 1. Balancing Segment

2. Cost Center 2. Natural Account
3. Natural Account 3. Future
4. Future
•'Adjustment Segment' Vs 'Adjustment Ledger‘
• Re-enable Secondary Ledger
• Budgets - Do we need them in Secondary???
• Change in SLAM Allowed ????
Pointers to
Reconciliation
Journal Level Technical Assistance
Expectations 1. Upon Posting in Primary
Table : GL_JE_HEADERS
• All posted Journals from primary are replicated in
Secondary.
• Excepting those sources and Categories marked

for non-replication explicitly.
2. Identify Sources and Categories excluded for

• Post the ‘Unposted’ journals in primary to allow Replication
For replication in Secondary.
Table : GL_JE_INCLUSION_RULES
• Both Primary and Secondary are individual ledgers

on their own. Manual Journals created in Secondary only
can be one of the major causes of mismatch in
balances
Subledger Level
• Run the ‘SLA Diagnostics’ to identify missing transactions.
How To Avoid and Fix Corruption in Data Transfer from SLA - Negative Ledger_ID, Not
Reached GL, Duplicate in GL (Doc ID 883557.1)
Any Datafix To be run after confirmation from Oracle Support Only***
• Can be run for both Primary and Secondary.
• Query from Journal Reconciliation to be run to identify manual Journals not replicated.
• Ensure All journals are posted in Primary and Secondary before reconciliation.
• Document Sequences
Balances Level
• Post all the journals in Primary before running Consolidation
• Suggested to run Consolidation in the ‘Audit’ mode.
• Ensure Journals created in Secondary are Posted.
• Run Summary Trail Balance (or Translated Trial Balance) for both ledgers to compare
the Account balances.
• For accounts with difference, suggested to run the ‘Account Analysis (180 chars)’
report to identify any manual journals created in Secondary causing the difference.
• Reports:
‘Chart of Accounts - Mapping Rules’ Report
Consolidation Exception Report: Unmapped Subsidiary Accounts
Consolidation Exception Report: Disabled Parent Accounts
Safe Harbor Statement
The above material is intended to outline our general product direction. It

is intended for information purposes only, and may not be incorporated
into any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decision.
The development, release, and timing of any features or functionality
described for Oracle’s products remains at the sole discretion of Oracle.
Email Contacts:
anshu.anand@oracle.com
sivaranganath.chittapragada@oracle.com

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Secondary Ledgers…

…Unleashing Its Power!!!

Sangam’ 2014 : November 07

Company : ABC Corp Ltd Company : ABC Corp Ltd

Pre R12 Options Primary Book Reporting Book2

Statutory Global Reporting

• Used for supplementary purposes, such as Consolidation, Statutory reporting or Adjustments

Sub Ledger Journal in Journal Replicated

• Enable the Required Sources for Replication

• Allows Manual ‘Adjustments’ too.

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Sub Ledger Secondary Ledger:

Local tax regulation requires that

• Suggested to Include the Adjustment leader Short Term 10,000 10,000

Accrued Payroll 69,000 69,000

Summarizing Data Conversion depends on the

• To Initialize Subledger Events

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

• Option 'Synchronize Reversals Between Primary and Secondary‘

• Option 'Replicate Reversals from Primary Ledger'

Allows reversal of Multiple Journals at one shot. Ledger Specific

1. Balancing Segment 1. Balancing Segment

Expectations 1. Upon Posting in Primary

• Excepting those sources and Categories marked

2. Identify Sources and Categories excluded for

• Both Primary and Secondary are individual ledgers

Any Datafix To be run after confirmation from Oracle Support Only***

• Can be run for both Primary and Secondary.

The above material is intended to outline our general product direction. It

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