R12_New Features in GL

7/31/2019 R12_New Features in GL

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New Features in General

Ledger R 12


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Agenda

1. Defining SOB, Legal entity in 11i

2. Accounting Set Up Manager

3. New Security Features


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Defining Set of Books 11i


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General Ledger Set Up in 11i


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Defining Legal Entity in 11i


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Accounting Setup Limitations in 11i

No Single place for defining the Accounting Set up

Set of Books

Legal Entities

Operating Units

MRC

Sequencing Intercompany Accounting

Setups are product centric.

No guided process to create setups


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Accounting Set Up Manager


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Agenda

1. Accounting Set Up Manager

2. Reporting Currencies

3. Secondary Ledgers

4. Sequencing


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Accounting Set Up Manager provides a central point ofcontrol meeting the objective of maintaining complexaccounting and reporting requirements while adhering tostatutory, corporate requirements and business needs.


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Accounting Set Up Manager in R 12

Create and Manage Legal entities, Ledgers,Accounting Representations

Set up common components for Oracle FinancialApplications from one location

Set up Transaction Processing controls for Subledger modules.


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Accounting Setups in R 12


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Steps for Accounting Setup

1 Create Accounting Structure

2 Define Accounting Options

3 Complete Accounting Set Up


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Detailed Accounting Setup Steps

1. Creating &Assigning Legal

Entities

2. LedgerAttributes Primary &Secondary

3. AssignReporting

currencies Primary &Secondary,

4. Ledger OptionsCompletion,

Balancing Segmentvalues to Legal

Entity and Ledgers

5. Sub ledgerAccounting

Options

6. Define & AssignOU to Ledger

7. Inter companyaccounts & Intracompany Rules

8.Sequencingoptions

9. Complete set ups Secondary

Ledgers

Accounting Structure Accounting Options Accounting Options


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Creating Legal Entity


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Assigning Legal Entities

Assigning Legal Entities

Assigning the 4Cs to ledger.4 Cs comprise of COA, Currency,Calendar, Accounting Convention(Sub ledger Accounting Method)


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Accounting Representation Primary & Secondary

Assigning 4cs to the secondary ledger. The 4Csbeing assigned to secondary ledger could bedifferent from the Primary Ledger.

Assign a reportingcurrency to

primary ledger


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Review of Accounting Structure


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Accounting Options Prior to completion


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Updating Ledger Options


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Review of Ledger Options


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Assigned Reporting Currency prior to Update


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Updating Reporting Currency Options

Value picked fromPrimary Ledger

Mandatory Conversion Options


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Journal Conversion Options Reporting Currency


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Assigned Reporting Currency after Update


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Balancing Segment Options to Legal Entity


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Balancing Segment values to Ledger


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Sub ledger Options Primary Ledger


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Sub ledger Accounting Options


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Sub ledger System Options


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Defining and Assigning Operating Unit

Two ways of creatingOperating Unit


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Completing Operating Unit Option


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Updating Sequence Options


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Status of Accounting Options Primary Ledger


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Status of Secondary Ledger- Accounting Options


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Primary to Secondary Mapping


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Assigned Reporting Currency prior to Update


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Reporting Currency Options


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Sub ledger Options Secondary ledger


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Sub ledger Accounting Options Secondary ledger


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Status of Accounting Options Secondary Ledger

Review Accounting Options for primary &secondary ledger before completing them byclicking on Complete button


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Confirmation Messages


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Primary & Secondary ledger


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2. Reporting Currencies


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Reporting Currency Ledgers

Distinct Currency Conversion Levels

Sub ledger, Journal, Balance level PrimaryLedger

Journal, Balance Secondary Ledger

Share COA, Calendar , Accounting Method , Ledger processing Options

Primary Ledger options default toReporting Currency of Primary Ledger

Secondary ledger options default toReporting Currency of Secondary Ledger

Differ only in respect of Currency

Currency of Primary Ledger- USD Currency of Reporting Ledger- AED

Features of Reporting Currency Ledgers


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Reporting Currency Conversion levels

Sub Ledger Level : Currency representation of Sub Ledger Journals,GL Journal Entries and also balances.

Journal Level : Currency Representation of GL Journal Entries andbalances

Balance level: Currency Representation of Balances


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Reporting Currency Conversion Levels

Conversion Levels Sub ledger Journal Balance

Data Converted Sub ledger Journals,GL Journal Entries,

Balances

GL Journal Entries,Balances

Balances

SLA Enabled forPrimary Ledger

Enabling SLA isMandatory to use this

conversion level

Not Mandatory Not Mandatory

Conversion RulesDefinition

Sub ledger and Journalconversion Rules

Journal ConversionRules

Currency TranslationOptions

Usage of HistoricalData Conversion

Yes Yes No

Reporting Currencyfor Secondary Ledger

Not available forenabling

Available , Dependenton Secondary Ledger

Conversion Level.

Available, Dependenton Secondary Ledger

Conversion Level.able(Default Level)

Open or Close Periods Yes (To Enter Journals) Yes (To Enter Journals) Not Applicable

Journal Approval Applies to Manual

Journal Entries

Applies to Manual

Journal Entries

Not Applicable


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Considerations for Currency Conversions

Options Impact

Default Conversion Rates Would be used only when the rate atRetain transaction type is set to NO .

Retain Transaction Rate If set to YES , this would override the

default conversion type .

Missing Conversion Rates Reported as error or the defaultconversion rate type for number ofdays mentioned is picked.

Journal Source & category Journal Source & Category Rulesselected are converted to ReportingCurrency


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Reporting Currencies- Secondary Ledger

Available Currency ConversionMethods Journal , Balance.

For balance level conversion, balance

level reporting currency for primaryledger is automatically enabled

Reporting Currency Conversiondepends on the data conversion level

for Secondary Ledger.Data Conversion Level Currency Conversion Level

Balance Balance only

Journal Balance or Journal

Sub ledger Balance or Journal

Adjustments Only Balance only


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Impact of Disabling Reporting Currencies

Sub Ledger Level :

1. Conversion of data form primary can be disabled

2. Historical data can be viewed and manual entries can be made.

Journal Level :

1.Conversion of data from primary can only be disabled.

2.Historical data can be viewed and manual entries made.

Balance level:

1.Balancing currencies cannot be disabled.

2.Alternatively conversion can be stopped .


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Case Scenario Reporting Currency

1. Normal Journal import from Sub ledger


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Sub ledger Journal EntryScenario 1 Normal Journal Import


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Currency Conversion OptionsScenario 1 Normal Journal Import


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Journal In Primary LedgerScenario 1 Normal Journal Import


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Journal in Reporting CurrencyScenario 1 Normal Journal Import


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3. Secondary Ledgers


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Secondary LedgerSecondary Ledger is used for maintaining data of primary ledger withrespect to different Accounting Representations in one or more followingaspects:

1 Chart of Accounts

2 Currency

3 Calendar/ period Type

4 SLA or Ledger options


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Secondary LedgersSteps Primary Ledger Secondary Ledger Impact of

Difference

1. Name for Ledger Flex Riyadh -----------------

2. Chart of Accounts Operations Flex Accounting COA Mapping

3. Calendar Fiscal Calendar Calendar

Conversion

4. Currency USD AED Currency

Conversion Rules

5. SLA Accrual Cash *Enables usage of

Sub ledger level for

Data conversion +

Journal Conversion

rules

*SLA

enabled forPrimary

* SLA enabled

for Secondary

* Sub ledger

Level Dataconversion


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Data Conversion Levels

Sub Ledger Level : Additional accounting representation of the subledger journals, journal entries, and balances.

Journal Level : Additional accounting representation of the

primary ledger journal entries and balances

Balance level: Additional accounting representation of the

primary ledger balances

Adjustments Only : Accounting representation that holds manualadjustments or automatic adjustments


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Sub Ledger Data Conversion Levels

Conversion

Levels

Sub ledger Journal Balance Adjustments

Data Converted Sub ledger Journals, GLJournal Entries,

Balances

GL Journal Entries,

Balances

Balances Manual Adjustments,

Automatic Adjustments

created using SLA.

Prerequisites SLA enabled for Primary

and Secondary

No Pre- requisites No Pre- requisites Secondary Ledger

should use the sameCOA, Calendar, Currency

SLA enabled for

Primary &

secondary Ledger

Can be used Can be used Can be used Can be used

Reporting Currencyfor Secondary

Ledger

Not Available for use Can be used subject todata conversion level

for secondary ledger

Can be used subject todata conversion level

for secondary ledger

Not Available for use

Open or Close

Periods

Yes Yes No Yes


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Types of Currency Conversions Levels

1. One step conversion Primary Ledger to SecondaryLedger

2. Two step conversion Reporting currency of PrimaryLedger to Secondary Ledger


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One Step Conversion

Primary LedgerCurrency : INRTransaction Currency : AEDConversion Rate type used fortransaction : DAILY

Secondary LedgerCurrency : USDDefault Conversion Rate type used:CORPSource Representation : Primary Ledger

Retain Transaction Type

YesNo

Journal is converted fromAED to USD using DAILY

Journal is converted from

AED to USD using CORP


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Two Step ConversionPrimary Ledger

Currency : INR

Transaction Currency : AED

Conversion Rate type used for

transaction: DAILY

Reporting Ledger

Currency : GBPConversion Rate type used :CORP

Yes No

Journal is converted fromAED to GBP using DAILY

Journal is converted fromAED to GBP using CORP

Retain Transaction Type

Secondary Ledger

Currency : GBPConversion Rate type used :CORP

Source Representation : Reporting

Currency of Primary Ledger

GBP Journal is copied from

Reporting Ledger

GBP Journal is copied from

Reporting Ledger

Step 1

Step 2

Pre- requisites for Two way conversion

Data Conversion level for Secondary Ledger is Journal.

Currency Conversion Level for Reporting Currency of Primary Ledger isJournal.

Currency of Journal Level Reporting Currency must match with Currency ofSecondary Ledger


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Impact of Disabling Secondary ledger Conversions

Sub Ledger Level :

1. Conversion of data from primary ledger is disabled

2. Historical data can be viewed and manual entries can be made.

Journal Level :

1.Conversion of data from primary can only be disabled.

2.Historical data can be viewed and manual entries made.

Balance level:

1.Balancing currencies cannot be disabled.

2.Alternatively consolidation can be stopped .

Adjustments Only :

1. Cannot be disabled as adjustment entries are entered manually.


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4. Sequencing


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Steps for Sequencing


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Defining Sequence and Sequence Versions

Defining the Sequences

Sequence Versions


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Sequencing Context


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Sequence Assignment

Accounting & Reporting Sequences -Advantages


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Gapless SequenceNumbers

Sequentially

numberSub ledger

journal entries

Sequentially

numberGeneral

journal entries

Separatesequences forReporting

Currency ledger

Sequentially number

deferred

expense accounting

Sequencing Rulesin the context ofLedger &

Ledger CurrencyCombination

Reports basedon Sequences

Sequencing Journals


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Security Features in GL

Data Access Sets


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Data access sets control which ledgers can beaccessed by different responsibilities. Data accesssets can also limit a user from accessing certainbalancing segment values or managementsegment values or grant readonly or read andwrite access to data in a ledger. The ledgers andledger sets assigned to a data access set must sharethe same chart of accounts, calendar, and periodtype.

Data Access Sets


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Ledgers must share sameCOA/Calendar combination

Assign ledgers and/or ledgersets

Specify Read Only orRead/Write Access

Assigning Data Access Set to Profile


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g g f

Assign Data Access Setname to the Profile Option:GL: Data Access Setagainst the Responsibility

Example: Using Ledger Sets in Applications


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p g g pp

Select the LedgerSet in all the formsthrough which,multiple processexecution happensin a single screenfor all the Ledgersin the Ledger set

Perform the Following Across Ledgers


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Open/Close Periods

Create Journals

1. Allocations Across Ledgers2. Recurring Journals for All Ledgers3. 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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Ledger Set Benefits


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g f

1. Shorter Close Process

Run month-end close processes across multiple ledgerssimultaneously

2. Greater flexibility to decentralize/centralize accountingfunctions The corporate office can control the period status for multiple

subsidiaries at once

3. 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 onthe transactional system, not a data warehouse

Definition Access Sets


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Definition Access Sets allows you to secure sharedGeneral Ledger definitions such as MassAllocations,Recurring Journal Formulas, and Financial StatementGenerator (FSG) components.

Definition Access Sets allow you to: Assign a user or group of users access to specificdefinitions.

Specify what actions can be performed on secureddefinitions for a user or group of users.

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Definition Access Sets Features


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Grant one or more of the following privileges toresponsibilities

* View Access: Allows you to view or query a definition inthe 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 thedefinition access set security for that definition.

* Use Access: Allows you to use a definition.

Using Definition Access Sets you could limit users fromusing, viewing, and modifying definitions basing on theirrole

Define a Definition Access Set


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Assign Definition Access Sets to Responsibility


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Assign Definition Access Set to the Required ObjectDefinition


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f

Role Based Access


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Responsibility DefinitionAccess Set

Report DefinitionSecured

Privilege

GL Budget User Report Viewers Balance Sheet View

GL Report User Report Users Balance Sheet Use

GL Manager Reporting All Balance Sheet Modify

Basing on the Role, responsibilities will be assigned to the Personnel

to ensure Secured Definition Access.

Securable Definitions using Definition Access Sets


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Accounting Calendars AutoAllocations AutoPost Criteria Sets AutoReversal Criteria Sets Budget Formulas Budget Organizations Chart of Accounts Mappings Consolidation Definitions Consolidation Sets

Elimination Sets FSG Reports andcomponents

MassAllocations MassBudgets Rate Types Recurring Journals Revaluations Transaction

Calendars

New Architecture Summary


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Ledger & Ledger Set

Definition Access Set

Solution

Data Access Set

Reporting Across Entities Efficient Processing

Access to Multiple Ledgers

Setup & Maintenance

Definition Security

Entity Autonomy

Independent Open/Close

Read/Write Access

Access to Multiple Ledgers

Issue


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Thank You

R12_New Features in GL

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