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R12 Financials Delta
R12 Financials Delta
Contents
Oracle Financials
Challenges with 11i The New Architecture of Release 12 (R12)
Legal Entities
USA
Belgium
Austria
Germany
OUs
OU USA
OU BEL
OU ATS
OU DM
Cons
Many books to maintain Changing responsibilities Difficult to share data and setup information Cannot perform processes across books Time-consuming open/close process Difficult reporting
LEs (BSVs)
OUs
OU USA
OU BEL
OU ATS
OU DM
Cons
Cannot share setup and data across currency boundary No data security Cannot secure definitions, such as FSG Reports and Mass Allocations No open/close security by legal entity
Intercompany
Do business between and across your registered companies with full legal documentation
LEs own the money and bank accounts LEs file the accounts
Takes care of accounting
Bank Model
Registered companies use their money to pay their bills, etc.
Accounting
Assign books, bookkeeping rules and currency management to your registered companies
Why Upgrade
Straight Talk from Customers
We have 60 sets of books and see tremendous inefficiencies with running processes across these sets of books. In-ability to issue one payment instruction to the bank for payments of invoices in multiple operating units. Frequent Changing of Responsibilities to access Multiple Operating Units greatly increases work load and brings about control inefficiencies. The existing Intercompany structure does not facilitate automatic reconciliation between transacting entities needing many customizations in this area. Centralization of sub ledger accounting rules would minimize set up and maintenance, providing greater financial control, and enforcing a consistent approach for true global accounting. Banks, taxes, payments, and accounting everything needs to become centralized to bring tremendous efficiencies to our organization.
Accounting
SLA
Others
Secondary Ledger
Optional, additional accounting representation of Primary Ledger Can differ in one or all 4Cs:
Chart of accounts Accounting Calendar Primary Currency Accounting Conventions (i.e. Subledger Accounting Method)
Reporting Currency
Optional, currency representation of Primary or Secondary Ledger Only differs in:
Currency
Defined by 4Cs:
Chart of accounts Accounting Calendar Primary Currency Accounting Conventions (i.e. Subledger Accounting Method)
Journal Level
AP AR FA
Subledger Level
Adjustments Only
Balance Level
Use GL Translation
Journal Level
AP AR FA
Subledger Level
Key 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
Centralized Set-up
Accounting Setup Manager
Define Legal Entities & Associated Rules Ensure Complete & Accurate Setup via Online Checklist Define Multiple Ledgers for Rules & Currencies One Place to manage Your Global Accounting Rules, Currencies, Ledgers, And Ledger Sets
Management Segment
Management Reporting and Security Management Segment
Optionally qualify a segment as the management segment to perform management reporting Secure read and write access to Ledger/Management Segment Value combinations using Data Access Sets
Co
Balancing
CC
Cost Center Management
Acct
Natural Account
I/C
Intercompany
Key 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
Management Segment
Management Reporting and Security LE Primary Ledger
Co
Benefits
Effective Management Reporting
Acct
I/C
Enables management reporting and analysis by leveraging a management dimension in your chart of accounts Tighter Controls Restrict managers from accessing data outside their area of responsibility
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 Setssss
Privileges GL Manager Taj Hotels Ledger IFRS Ledger US Gaap Ledger View Accountant Write
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
Ledger Sets
Global Information At A Glance
Ledger Set Share: Chart of Accounts Calendar
Ledger C US GAAP US COA US Calendar
USD
Ledger D US GAAP US COA US Calendar
EUR
AUD
Reporting Currency
Ledger Sets..
Perform the Following Across Ledgers:
Open/Close Periods Create Journals Translate and Revalue Balances View Information Submit Standard Reports Submit Financial Statements
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
GL Manager View
Misc Expense Report Definition Balance Sheet Report Definition Income Statement Report Definition
Accountant
Is Oracle IFRS compliant? Do we have to wait for Fusion or 12.2 for IFRS features?
Our overseas customers have been complying with IFRS using our IFRS features on Release 10.7 (Emirates, Reuters back in 2000) and Release 11 for years. Our European customer base moved to IFRS on Release 11.5.9 and 11.5.10. Companies like SNCF, Michelen, Carrefour, Hilton PLC, Musgrave PLC, UBS,
Compliance Issue
Revenue Recognition Inventory
Feature
AR and OM Revenue Recognition Actual & Standard Cost (Turn off LIFO?) Parent / Child Assets (components) Impairment flag & unplanned depreciation Project accounting GL and Hyperion Subledger, Journal, Balance or TB level Flexible Chart of Accounts, Hyperion business analytics
Property, Plant & Equipment Useful Lives, Impairment Construction Translation, Remeasurement
IAS 11 IAS 21
IFRS 4
Segment Reporting
25,000
25,000
1,151,000
25,000 2,000,000
2,000,000 2,000,000
Ledger Total
CAD
CAD
Dr
Cr
If you are in a regulated industry And the regulators remain substantially different to IFRS Or at your subsidiaries who must do regulated statutory accounting Consider using EBS Release 12 Multiple Ledgers to comply with both regulations Pros: different accounting for the same transactions Cons: Different results for the same business the reconciliation issue
Subledger Accountin g
Single subledger transaction can create multiple accounting representations (and in multiple currencies)
Payables Invoice
Base Ledger
Adjusting Ledger
Regltd
Dr
Cr
Subledger Accounting
or
An Adjusting Ledger, (or Segment) automatic business reconciliation fewer adjusting entries easier feed to Hyperion
Payables Invoice
Increased personalization
capabilities
Subledger Accounting
Centralized Rules, Common Repository: Global Control
Centralized accounting
Transaction Systems Management Framework
Oracle Receivables
Oracle Projects
rules Predefined Validations Date effective policies Sophisticated error handling Full audit trail Bidirectional drilldowns
Information Delivery
Oracle Payables
Subledger Accounting
Detailed Journal Entries Configurable Reference
Information Consistent Balances OnOn-line inquiries
Analytics
Oracle Payroll
Regulatory Reporting
Multiple Ledgers
Rs
EUR
or
Dr Cr
Subledger Accountin g
Payables Invoice
Single subledger transaction can create multiple accounting representations and in multiple currencies
Compare the parallel entries created Assign different accounting methods to different ledgers
USA Legal Entity Tasks Accounting Setup Collections Requisition Demand & POs Invoices & Payments Customer Data Management Receiving & Drop Ship
Single Responsibility
For Example:
Enter and pay invoices across OUs Receive goods across any OU Define and manage OUs from a central location View and manage customers across OUs Negotiate with suppliers for your enterprise, not just your OU
RESULTS
Streamline and automate processing
Late Charges
View Interest Invoices
Single bank account serves multiple Operating Units Any and all Operating Units associated with a ledger can be permitted to use the bank account
Inventory
Receivables
Projects
Plus
Centralized Credit Card Model Credit Card Encryption
Work in Process
Purchasing Payables
Assets
E-Business Suite
AR Invoices Customer #203 #460 $500 $300 Netting AP Invoices Supplier #699 #982 $400 $400 Payment $800 Receipt $800
XML Publisher
Business Users Format and Deliver Documents
Data Sources
Oracle Applications
CRM Projects FMS HCM SCM Fund Transfers Online Paychecks Government Grant Forms XML
XML Publisher
Publishing Engine
Output Formats
PDF RTF HTML XML EDI Excel
Destination
Email Printer Fax
Templates
Letters
Order Confirmations
Business User
Bills
Formats
22 3 15 10 21 14 92 25
Product
IT Audit Loans Payables Payments Public Sector Receivables Subledger Accounting Tax
Formats
2 6 9 120 6 10 17 23
Release 12
Ledgers Subledger Accounting Secondary Ledgers Advanced Global Intercompany System (AGIS) Intracompany Balancing Balance level RCs Reporting Currencies (RCs) Primary Ledger Reporting Currency Journal level RC Subledger level RC Balance Level RC