Bean Counting Gets an Overhaul: Oracle E-Business...
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Transcript of Bean Counting Gets an Overhaul: Oracle E-Business...
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Bean Counting Gets an Overhaul: Oracle E-Business Suite
Accounting Architecture in Release 12
HelleHennings
Product Strategy Director, E-Business Suite Financials Strategy
The following 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 decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
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Agenda
•Overview of R12 accounting architecture
•Demo of accounting flow
•Discussion of changes and enhancements
–Subledger Accounting
–General Ledger
–Intercompany
•Summary
•For more information…
•Q&A
Many care about the destination…
Only accountants care about the journey
Who Cares About Accounting?
Release 11i Accounting M
odel
Purchasing
General
Ledger
General
Ledger
Cash Mgmt
Receivables
Inventory
Assets
Projects
Payables
Other
General
Ledger
General
Ledger
Other
Purchasing
Cash Mgmt
Receivables
Inventory
Assets
Payables
Projects
Intercompany
Intercompany
Subledger
Accounting
Subledger
Accounting
Release 12 Accounting Model
D E M O N S T R A T I O N
Centralized
Accounting Solution
Fasten Your Seatbelts…
General
Ledger
General
Ledger
Other
Purchasing
Cash Mgmt
Receivables
Inventory
Assets
Payables
Projects
Intercompany
Intercompany
Subledger
Accounting
Subledger
Accounting
But There’s Even M
ore…
Manage
Complexity
Manage
Complexity
Standardize and enforce accounting policy to
manage complexity and lower costs
Meet Diverse
Accounting
Requirements
Meet Diverse
Accounting
Requirements
Comply with m
ultiple accounting requirements and
maintain internal controls
Close Books
Faster
Close Books
Faster
Streamline period close & reconciliation and
gain visibility to better inform
ation
Why Did You Change It?
The challenges we’re hearing…
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Subledger Accounting
Subledger Accounting
Subledger Accounting
Centralized Subledger Accounting
•Consistent user experience
•Flexible accounting rules
•Standard accounting engine
•Centralized accounting data repository
Rules
Engine
Data
Configurable Accounting Rules
Journal:
Accounts:
Debit Receivables
Credit Revenue
Derive Receivables from
Customer Setup
Derive Revenue from
Invoice Distribution
Receivables
1–00–1111 Revenue
1–00–4020
100
100
Debit
Credit
Customer Invoice
Customer Invoice
Defining Conditions
Journal:
Accounts:
Debit Receivables
Credit Revenue
Derive Receivables from
Debit
Credit
Receivables
1–00–1111 Revenue
1–00–4020
100
100
Customer Invoice
Customer Invoice
1000
Average
1222
Bad
1111
Good
Account
Credit Rating
Lookup
Derive Revenue from
Invoice Distribution
Customer Setup
Customer Setup
Lookup Table
1000
Building Accounts
Journal:
Accounts:
Debit Receivables
Credit Revenue
Debit
Credit
Receivables Revenue
1–22–KEYB
100
100
Customer Invoice
Customer Invoice
1000
Average
1222
Bad
1111
Good
Account
Credit Rating
1–00–1000
Invoice Distribution
Item
Lookup
Derive Receivables
from
Revenue
1–33–MOMB
05
05
Receivables
1–00–1000
05
05
1–00–4020
22 33
Customer Setup
Lookup Table
Revenue Rule
22 33
Derive Revenue from
Enterprise-W
ide Integration with SLA
•Payables
•Receivables
•Projects
•Assets
•Cost Management
•Process Manufacturing
•Public Sector/Federal
•Purchasing
•Payroll
•Property Manager
•Loans
•Lease Management
•Intercompany
•Cash Management
•Globalizations
•Intercompany
Full Audit Trail Between Transactions
and Accounting
Justify accounting balances with transaction details
•Transparent SLA accounting rules
•Date effective changes
•Separate, Balanced, Detailed journals with
contextual transaction information
•Bidirectional drilldown between transactions,
account balances, and journal entries
•Minimize need for error-prone manual
adjustments
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Subledger Accounting
Integration with
General Ledger and
Intercompany
SLA Integration with GL
US GAAP SLA Rules
French Fiscal SLA Rules
Payables rules
Receivables rules
Projects rules
Assets rules
Etc.
Payables rules
Receivables rules
Projects rules
Assets rules
Etc.
Prim
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Ledg
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Lega
l Ent
ity:
Lega
l Ent
ity:
Lega
l Ent
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Lega
l Ent
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Fran
ceFr
ance
Fran
ceFr
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Lega
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Lega
l Ent
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Fran
ceFr
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Fran
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cond
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Ledg
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EUR
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Same Subledger
Transaction can
Create M
ultiple
Accounting
Representations
Subledger
Accounting
Subledger
Accounting
Dr
Cr
Enable Compliance with Multiple Legislative, Industry, or
Geographic Requirements
�French Fiscal
�French COA
�Corp Calendar
�US GAAP
�Corp COA
�Corp Calendar
Subledger
Accounting
Subledger
Accounting
Dr
Cr
Ledger Sets
Corporate
Ledger Set
US.300.10000
US.300.20000
US.300.30000
US.300.40000
US.300.50000
US.350.10000
US.350.20000
US.350.30000
US.350.40000
US.350.50000
Prevent Accounting Errors
Alternate Accounts
Proj
ects
Proj
ects
Proj
ects
Proj
ects
Proj
ects
Proj
ects
Proj
ects
Proj
ects
Proj
ects
Proj
ects
Proj
ects
Proj
ects
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Rec
eiva
bles
Paya
bles
Paya
bles
Paya
bles
Paya
bles
Paya
bles
Paya
bles
Paya
bles
Paya
bles
Paya
bles
Paya
bles
Paya
bles
Paya
bles
Inve
ntor
yIn
vent
ory
Inve
ntor
yIn
vent
ory
Inve
ntor
yIn
vent
ory
Inve
ntor
yIn
vent
ory
Inve
ntor
yIn
vent
ory
Inve
ntor
yIn
vent
ory
Man
ual J
ourn
alM
anua
l Jou
rnal
Man
ual J
ourn
alM
anua
l Jou
rnal
Man
ual J
ourn
alM
anua
l Jou
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Man
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ourn
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Man
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ourn
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Man
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ourn
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anua
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Purc
hasi
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sing
Purc
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Purc
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sing
Purc
hasi
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sing
Purc
hasi
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sing
Purc
hasi
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rcha
sing
Ensure Accurate Data
Control Accounts
Receivable Account
Intercompany Balancing
BSV
01
Company A
BSV
02
Company B
200
02.Expense
100
01.Expense
300
01.Liability
200
02.Intercompany
Payable
200
01.Intercompany
Receivable
Now that we’ve gone through the journey, let’s explore
our destination…
Reaching Our Destination
Non-Oracle
Non-Oracle
General
Ledger
General
Ledger
Other
Purchasing
Cash Mgmt
Receivables
Inventory
Assets
Payables
Projects
Intercompany
Intercompany
Subledger
Accounting
Subledger
Accounting
Better Foundation
For Reporting, Analysis & Reconciliation
Flexible Account Balance Analysis
Supporting References
Subledger Journal Entry
Event Class:
Bonds
Event:
Trade Inception
Ledger:
Brazilian Local (BRL)
GL Date:
10-Jan-2004
Description:
CUSIP ISN: 123451234, Client
Type
Account
Description
Debit
Credit
Principle-Trading
01.9100010.000
Rio
10,000
Location
Code: West
Contract
Reference: 12423
Dated:
15-Jun-2004
Channel
Name: Branch J-4376
Supporting References
$2,398,103
$3,932,932
$494,398
$3,384,080
$2,333.892
Apple
Walmart
Burger King
Dell
Starbucks
Customer
…any combination of transaction attributes
I want to see Revenue by…
$343,480
$595,284
$389,235
$619,239
$798,203
Cables
Laptops
CPUs
Monitors
Keyboards
Item
$298,103
$932,932
$494,398
$384,080
$583,892
New York
Georgia
Florida
California
Arizona
Location
Flexible Account Balance Analysis
Track Balances by Transaction Attributes
Robust Reporting
BI Publisher Reports
•Manage complexity
•Meet diverse accounting
requirements
•Maintain internal controls
•Streamline period close
•Get better information
CHALLENGES
•Centralized accounting
setup and processing
•Configurable accounting
rules
•Full accounting audit trail
•Prevention of accounting
errors and out-of-balance
accounts
•Balances striped by
transaction attributes
•Lower costs with
streamlined accounting
processes
•Satisfy diverse
accounting and reporting
requirements
•Reduce time and effort
during period close
•Access better
information for better
decision making
CAPABILITIES
VALUE
Summary
For More Inform
ation
•The Business Benefits of Oracle’s Subledger
Accounting whitepaper
–www.oracle.com/applications/financials
For More Inform
ation
search.oracle.com
SubledgerAccounting
or
oracle.com
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