Why Accounting Method as 4th C in R12

In 11i the sub ledger accounting method (cash/accrual) was used to be defined at the sub ledger setup (AP/AR). However in R12 things have changed. You define the sub ledger accounting method at the ledger level. All sub ledgers tied to that ledger will use that particular accounting convention. So there is a difference in 11i and R12. The accounting "Convention" is now married to the ledger and hence the term 4Cs.

If you are not planning to use sub ledgers then you do not have to choose a value in the accounting method field. You can leave it blank. Your GL functionality will remain unaffected. However you will have to specify an accounting method at the ledger setup, before you could use a subledger.

R12 Financials Overview and new features at a glance (PART 1)

Why R12:

Release 12 is defined as “The Global Business Release.” Global is not just a geographic perspective, but also a comprehensive perspective; release 12 functionality spans across both industries and business functions.•Flexible, centralized, global accounting structure•300+ enhancements to best practice business processes•Comprehensive governance, risk and compliance platform•Truly integrated performance management•Real-time profitability analysis•Unified financial and operational analytic applications•Integration with core industry applications•Self-service report formats and publication Superior ownership experience

New architecture and benefits:The major components of the new architecture include:•Multi-Org Access Control•Ledger and Ledger Sets•Subledger Accounting•Tax Engine•Intercompany•Bank Model

Benefits of the new architecture include:•Maintain 1 Ledger with 1 OU for each Company (LE)-Get privacy for each company’s data-Manage each company’s national and local compliance•Combine many companies’ ledgers in a set

-Share GL services and workload-Get combined data•Use MOAC to enable access to many OUs-Process in and report across many Companies’ Operating Units

MOAC: Multi-Org Access Control:MOAC provides role based access to Operating Units, and allows you to perform multiple tasks across operating units without changing responsibilities.

Subledger Accounting:Subledger accounting provides centralized rules and a common repository, and global control of your accounts. Features include:•Accounting Rules-SarBox & 8th Dir.-User Editable•Subledger Daybooks (Journals)•Subledger Balancing•Reports, inquiries, open items, et cetera•Multiple Representations•Common Posting to GL Ledgers•Real time or Periodic

Benefits of subledger accounting are:•Faster, Easier Reconciliation•Corporate Rules = Accounting Standardization•Local Rules = Improved Local Compliance•Automate “Apples to Apples” Adjustments•Improved Audit- ability•Improved Internal ControlLedger:•One Repository of Financial Truth•Implements the 4 C’s:

–Chart of Accounts–Currency–Calendar–Accounting Convention

•Example:–The balance on Creditors (COA) is 4.2M Eur (Currency) on March 31, 2006 (Calendar) according to IAS/IFRS definitions (Accounting Convention)

Ledger Sets:Ledger sets provide global information at a glance. Ledger sets share a chart of accounts and a calendar. The key benefits to many Ledgers in one set are:•Decision-driving business information always available•Simpler processing and General Ledger management•Data and definitions that can be shared and securedLedger Architecture:Typical Ledger Sets:•All IAS/IFRS or US GAAP ledgers•26 Subs in 1 country•35 countries in 1 regionLegal Organization:Legal Entities (Les) such as Parent companies, own or control subsidiaries. There are no group entities•LEs pay the taxes and therefore need tax registrations•Trade between LEs needs intercompany•LEs own the money and bank accounts•LEs file the accounts and take care of accounting•LEs comply with whatever needs compliance: “legal” in LE

Enhanced Legal Support:•Did not replace GRE/LE - employer•Added TCA parties for the Authorities•Added a Legal Entity Configurator•Introduced the following new terms:-Jurisdiction: A legislative category and territory, has legal rules-Legal Authority: Legal body who enforces legislation, collects fees / taxes, etc-Legal Function: Functions that companies are required to perform (e.g. produce yearly report, pay taxes, etc.)-Legal Associations: Mapping companies to Ledgers, BSVs, OUs and other system entities

Examples of using Legal Entities:•Accounting Setup Manager: Assign books, bookkeeping rules and currency management to your registered companies•EBusiness Tax: Have your registered companies calculate, file, and pay the transaction taxes they owe•Intercompany: Do business between and across your registered companies with full legal documentation•Bank Model: Have your registered companies use their money to pay their bills, etc.

Difference between Oracle 11i and R12 Can anyone of you give me some points on what are the major differences between Oracle 11i and R12 on the below modules 1. iProcurement 2. Purchasing 3. iStores

1) Oracle Purchasing Release 12.0 speeds up daily purchasing tasks with an enhanced Professional Buyers Work Center. Based on the latest web-based user interface models, the Work Center is a central Launch Pad from which buyers can efficiently perform their daily tasks:

View and Act upon Requisition Demand Create and Manage Orders and Agreements Run Negotiation Events including Auctions and RFxs (requires Oracle Sourcing) Manage Supplier Information

2) In Release 12.0, Oracle Purchasing will leverage the new Multi-Org Access Control capabilities to support more streamlined operation of Shared Procurement Service Centers. Without changing Responsibility, and without closing windows, buyers will now be able to view consolidated requisition demand spanning multiple operating units. Using a single Responsibility, they will be able to manage demand (i.e. requisitions), conduct sourcing events, enter into agreements and issue purchase orders on behalf of any of the operating units that they serve. The operating units that they can transact on behalf of will be controlled by the security profile associated with their responsibilities.

3) In Release 11i10, generation of purchasing documents in Adobe PDF format required organizations to create layout templates in the form of XSL-FO style sheets. With Release 12.0, organizations can also use RTF or PDF layout templates which require little training to configure and maintain.4) Oracle Purchasing supports various types of file attachments (MS Word, Excel, PDF etc.) that can be appended to purchasing documents in addition to long and short text attachments. In previous releases, only text attachments were communicated to suppliers. With Release 12.0, buyers can communicate all necessary attachments to suppliers, including file attachments via email.5) Release 12.0 allows finer control of how blanket agreements are enabled for automatic document sourcing. Buyers can now choose to enable them only in specific inventory organizations. Thus, buyers can negotiate a blanket agreement to fulfill requisition demand for a subset of inventory organizations and enable the agreement for autosourcing only in those inventory organizations.