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1Confidential. All trademarks appearing herein belong to their respective owners.

R12 General Ledger SessionFinance Track

Date: June 3rd 2008

Location:Hyderabad

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Agenda

R12 : New Financial Architecture:

Ledger & Ledger Sets

Oracle Legal Entity Configurator

Accounting Set Up

Multi Org Access Control - MOAC

Multi Currency Support

Sub Ledger Accounting - SLA

Oracle E-Business Tax (EB Tax)

Centralized Business Functions

Centralized Bank Model

Intercompany Processing using Advanced GlobalIntercompany(AGIS)

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Ledger

Legal Entity Configuration

Ledger & Ledger Sets

Accounting Options Setup

Reporting Currencies Setup

Data Access Set

Multi Leger Processing

Replacement for Disabled Accounts

Management Reporting and Security

Journal Reversal Enhancements and Benefits

Control Account Benefits

Security Definitions

Journal Reconciliation Benefits

Enhanced Intercompany Functionality (AGIS)

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SOB USA($)

SOB BEL()

SOB ATS()

SOB DM()

SOBs

R11i Pain Points

USA Belgium Austria GermanyLegalEntities

OU USA OU ATSOU BEL OU DMOUs

Model ing Ent i t ies w i th Sets of B ook s

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R11i Pain Points (continued)

Pros Cons

Each legal entity is a separateset of books

Data is secure

Easy to secure definitions, suchas FSG reports

Many books to maintain

Changing responsibilities

Difficult to share data andsetup information

Cannot perform processesacross books

Time-consuming open/closeprocess

Difficult reporting

Modeling Ent i t ies w i th Sets o f Books

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SOBNorth America

($)

SOBEurope

()

SOBs

OU USA OU ATSOU BEL OU DMOUs

LEs(BSVs) US(01)Austria

(03)Germany

(04)Belgium

(02)

with Balancing Segment Values

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Confidential. All trademarks appearing herein belong to their respective owners.


Pros Cons

Fewer books to maintain

No changing responsibilities

Share setup information

Perform processes across legalentities

Easy reporting

Consolidated information

Cannot share setup and dataacross currency boundary

No data security Cannot secure definitions, such

as FSG Reports and MassAllocations

with Balancing Segment Values

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R12 Objectives

Support for multiple reporting requirements for global companies

Explicit Legal Entity Accounting and Modeling

Legal Entity and Ledger Level Security and Autonomy

Cross/Multiple-Ledger Operations and Reporting

Share data and perform operations across multiple legalentities/ledgers

When security and independence is preferred, secure data andallow certain processes to be performed independently

Management Reporting Efficiency

Provides Security, Autonomy, and Flexibility

Elimin ate the Challeng es of Model ing Legal Enti t ies in 11i!

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Ledger

One Repository of Financial Truth

Implements the 4 Cs:

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)

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Customer Impact/Upgrade Considerations

Sets of Books

Global Accounting Engine

AX Posting Sets of Books

Global Intercompany System

(GIS)

GL Intercompany Accounts Translated Currency

Multiple Reporting Currencies

MRC Primary Set of Books

MRC Reporting Set of Books

Thin MRC Reporting Book

Full MRC Reporting Book

Translated Balance

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

Terminology ChangesRelease 11i Release 12

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Ledger Sets

Ledger A

French Rules

Plan Comptable

French Calendar

EUR

Ledger B

US GAAP

US COA

US Calendar

EUR

Ledger C

US GAAP

US COA

US Calendar

USD

Ledger D

US GAAP

US COA

US Calendar

AUD

Reporting Currency

Ledger Set

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Operating UnitsOperating Units

Ledger Architecture

Legal

Entities

Primary Ledger

(local statutory)

option: reportingcurrency

SecondaryLedger

(corporate)

SLAs SLAs

Operating Units

Legal

Entities

Legal

Entities

Primary Ledger

(local statutory)


Primary Ledger

(local statutory)


SecondaryLedger

(corporate)

Secondary

Ledger(corporate)

Ledger Set

Transactions

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Key Concepts and Terminology

Main, record-keeping ledger Optional, additionalaccounting representation ofPrimary Ledger

Primary Ledger (PL) Secondary Ledger

Defined by 4Cs:

Chart of accounts

Accounting calendar

Primary currency

Subledger aCountingMethod

Can differ in one or all 4Cs:

Chart of accounts

Accounting calendar

Primary currency

Subledger

aCcounting Method

Optional, currencyrepresentation ofPrimary or SecondaryLedger

Reporting Currency

Only differs in:

Currency

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Multiple Currency Support For General Ledger Data From AllSources

Currency

If difference is

only currency,

use ReportingCurrencies

Chart ofaccounts

Calendar

AccountingMethod

US GAAPAccrual

If one or more of the following aredifferent, use a Secondary Ledger

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Currencies

1.Currency of the Ledger (Ledger Currency)- The currency youuse to record transactions and maintain your accounting data within OracleApplications. The ledger currency is generally the currency in which youtransact most of your business transactions.

2.Currency of the Reporting Currency: A currency other than your

ledger currency for which you need to report accounting data .A reportingcurrency is a financial reporting entity that is associated with a ledger. Thereporting currency has the same chart of accounts and accounting calendaras the ledger, but usually has a different currency.

3. Transaction Currency: The currency in which a transaction

originates. For example, if you are In US organization and you trade withorganizations located in Canada, you must enable the Canadian Dollar ifyou will be issuing purchase orders, generating invoices, paying bills, andreceiving payments in Canadian Dollar.

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Multiple Currency Enhancement

In Release 11i Multiple Reporting Currencies (MRC) were usedto maintain subledger transactions and General LedgerJournal in a different reporting currency.

In Release 12 this has been renamed the feature toReportingCurrencies.

Reporting currencies are integrated with Ledger. Instead ofcreating an additional ledger for each reporting currency, you

specify the reporting currency as a part of the ledger setup.

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Currency representation at different levels

Balance Level: Maintains translated balances. Whenrunning translation in GL, balances stored in a balance levelreporting currency.

Journal Level: It is a currency representation of onlyyour General Ledger Journals and balances. When posting a

journal in GL, the journal will be converted to one or morejournal level reporting currencies.

Subledger Level: It is a complete currencyrepresentation of your subledger transactions, GeneralLedger journals entries and balances. A transaction enteredin Subledger or enter and post a journal directly in GL, thesame transaction and journal are converted to one or moreassociated subledger level reporting currencies.

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Automated process

Multiple Currency Support For General Ledger DataFrom All Sources Process

Post Journal inthe Primary or

Secondary Ledger

JOURNAL LEVELREPORTING CURRENCY

Journal isReplicated to the

ReportingCurrency

PROCESS

Run Translation inthe Primary or

Secondary Ledger

BALANCE LEVELREPORTING CURRENCY

PROCESS

BalancesConverted to the

Balance LevelReportingCurrency

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Multiple Currency Support For General Ledger DataFrom All Sources Benefits

Increased Visibility

Have complete currency representations of your accounting data in any reporting

currency at any level you choose

Addresses Multiple Currency Reporting Requirements

Meet statutory and local reporting requirements in addition to corporate reporting

requirements

Simplifies Setup

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Supports an unlimited number of additional accountingrepresentations to meet the following reporting requirements:

Legal reporting to comply with different countries legalrequirements

Regulatory reporting to meet industry-specific requirements,

such as the banking and insurance industry Management reporting

Consolidation

Secondary Ledger Benefits

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Supports an unlimited number of additional currency representations

to meet the following reporting requirements:

Statutory Reporting

Corporate Reporting and Consolidation

Supports changing business needs by allowing you to add reporting

currencies at anytime with automated conversion programs to

convert historical data

For example, as companies get acquired, they may need to take

advantage of reporting currencies for corporate reporting to the new

parent entity

Reporting Currency Benefits

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Impacted Applications

Data Access Set is only used by GL and SLA

11iGL: Set of Books Name profile option renamed to GL

Ledger Name

GL: Data Access Set is now used to control access to

ledgers. For SLA, set the profile option SLA: Enable Data Access Set

Security in Subledgers

If set to Yes, it will respect the profile options:

GL: Data Access Set

SLA: Additional Data Access Set

SLA allows users to have two Data Access Sets

Data Access Sets

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Data Access Sets

In 11i : One responsibility per set of books and could notrestrict read or write access.

In R12: 1SOB/Legal entity or Multiple Legal entities in aSet of Books model is excelled by using data security.

Data Access Sets: Provide new access and securityfeatures that allows users to grant and secure access toledger, or portions of the ledger, by its balancing segmentvalue or management segment values.

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Data Access Security for Legal Entities and LedgersDescription

Data Access Sets

Provide read-only and/or write access to data by ledger,balancing segment values (BSVs), or managementsegment values (MSVs)

Full Ledger Access Access to all data in a ledger

Specific BSV Access

Access to only some of the BSVs in a ledger

Specific MSV Access

Access to only some of the MSVs in a ledger

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Ledgers must sharesame COA/Calendar

combination

Assign ledgers and/orledger sets

Specify Read Only orRead/Write Access

COA must havemanagement segmen

to use

Data Access Sets

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Multi-Ledger Processing

Automated process

Select a Programfrom the

Concurrent Manager

PROCESS

Programs

submitted foreach ledger inthe ledger set

Do you havesufficient access to

all ledgers in theledger set?

Yes

No

Select the LedgerSet from the LOV

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Multi-Ledger Processing Process SimultaneousOpening and Closing of Periods

Programs available for multiple ledgers:

Open Period

Close Period

Gapless Close Period

Permanently Close Period

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Multi-Ledger Processing Process SimultaneousYear-End Closing Journals

Generate the following Closing Journals programs for multipleledgers in a single submission

Create Balance Sheet Closing Journals

Create Income Statement Closing Journals

Run the Income Statement Closing Journals program to transfer year-end revenue and expense accounts to the Retained Earnings accountfor multiple ledgers in a single submission.

Run the Balance Sheet Closing Journals program to close out the YTD

balances of balance sheet accounts across multiple ledgers at once.Data Access Set security ensures that only users with full read andwrite access to ledgers can successfully submit the programs.

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Multi-Ledger ProcessingProcess Simultaneous Currency Translation

Translation:

Translate balances across multiple ledgers simultaneously

Access:

From the Translate balances form

By submitting the Translation program from the Submit Request form

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Multi-Ledger Processing

Process Financial Reporting Across Ledgers

Use the Run Individual Reports form to specify a single ledger or a

ledger set at runtime when generating FSG reports.

To leverage the use of ledger sets with FSG reports, you must define a

ledger set with a default ledger assigned.

Running standard reports with ledger sets does not require a default

ledger be assigned to the ledger set.

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Financial Reports Across LedgersDescription

Financial Reports

Aggregate data for all ledgers in a ledger set

Defined with ledgersDefined with ledger

set

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Financial Reporting Across LedgersDescription

Ledger Sets allow you to aggregate data across multipleledgers in the ledger set.

Here is an example of the output from an FSG report. The totalcolumn represents the aggregated or summarized balancesacross multiple ledgers.

This report is generated with the rows representing theaccounts and the columns representing the ledgers; the total

column represents the total across the ledgers using a ledgerset.

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Financial Reports Across LedgersBenefits

Instant Summarization

Report on aggregate data for the ledger set

Greater Control on Visibility

Control view data across one or more ledgers regardless ofaccounting setup

Increased Efficiency No need to consolidate ledger data before reporting

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Financial Reports Across LedgersProcess

Automated process

PROCESS

Generate Report

Select

Ledger Set

Runs anAggregate

Report

Financial Reporting Across Ledgers Process

When you submit your FSG report, specify theledger set and the report will aggregate the datafor the ledger set.

The difference between running individual reportsand an aggregate report using a ledger set lies inthe FSG report definition. When the column orrow of the report definition includes a ledger set,the system automatically aggregates the dataacross ledgers in that ledger set for you

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Financial Reports Across LedgersSetup

Automated process

Assign theData Access

Set to theGL: Data AccessSet profile option

Define a Ledger Set

SETUP

Data Access

Set IsAutomatically

Generated

Define FSGReport Across

Ledgers

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Cross-Ledger and Foreign Currency AllocationsDescription

Cross-Ledger Allocations

Perform allocation in one ledger based on amounts from anotherledger

Perform allocations in multiple ledgers based on a single formula

Foreign Currency Allocations

Create allocations in foreign currencies Select treatment of converted amounts

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Cross-Ledger and Foreign Currency

Allocations - DescriptionThere have been several enhancements to Mass Allocations.

As mentioned earlier, a single responsibility can now access data

for multiple ledgers. Therefore Mass Allocations has been enhanced

to allow you to create cross-ledger allocations where the data from

one or more source ledgers can be allocated to one or more targetledgers.

One example of this is allocating corporate or regional expenses to

local subsidiaries when each subsidiary has its own ledger.

Support for foreign currency allocations is also expanded. You can

now create allocations in foreign currencies. When specifying thecalculation lines, you can also choose different currency options.

One currency option is to allocate existing converted amounts for

the foreign currency balance. The second option is to calculate the

converted amount for allocation based on a rate type provided.

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Cross-Ledger and Foreign Currency AllocationsBenefits

Better Operational Efficiency

Reduce operational time by creating a single allocation definitionspanning multiple ledgers instead of creating separate allocationdefinitions for each ledger

More Flexibility

Manage your allocations process across your entire enterprise ratherthan according to your accounting setup

Create allocations in foreign currencies

More flexibility when defining Mass Allocations. You can allocate

amounts across different ledgers. You also have more flexibility inallocating foreign currency amounts, because you can select thetreatment for converted amounts.

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Cross-Ledger and Foreign Currency AllocationsSetup and Process

Define MassAllocation

SETUP PROCESS

Generate

MassAllocation

MassAllocationJournal is

Created

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Streamlined Automatic Posting/Reversal Description

Streamlined Automatic Posting

Share AutoPost Criteria sets across multiple ledgers that share thesame chart of accounts and calendar

Automatically post journals for multiple ledgers simultaneously

Streamlined AutoReversal Criteria Setup

Share Journal Reversal Criteria definition across ledgers

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Streamlined Automatic Posting and Reversal

Automatic Posting has been streamlined to allow you to shareAutoPost Criteria Sets across multiple ledgers that share the samechart of accounts, calendar, and period type.

This allows you to reuse a single AutoPost definition to post journals

for multiple ledgers.

In the same manner, AutoReversal has been streamlined to allow youto share AutoReversal Criteria Sets across multiple ledgers. Thisallows you to reuse a single AutoReversal definition to reverse or toreverse and post journals for multiple ledgers.

Note: Autoreversal Criteria sets can be shared across ledgersregardless of the COA and calendar.

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Streamlined Automatic Posting/ReversalBenefits

Streamlined Setup and Maintenance

Define AutoPost criteria once and post journals across multipleledgers simultaneously

Share AutoReversal criteria sets across multiple ledgers

Streamlined Automatic Posting and Reversal - BenefitsThe benefits of streamlined automatic posting/reversal includeless setup and maintenance.

Instead of defining a different AutoPost or AutoReversal Criteria

Set for each ledger, you can just define one and reuse it formultiple ledgers.

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Streamlined Automatic Posting/ReversalSetup and Process

Automated process

DefineAutoPost

Criteria Set

SETUP PROCESS

Run AutoPostProgram

JournalsAre

Reversed

RunAutoReverse

Program

Define JournalReversal

Criteria Set

Assign JournalReversalCriteria

Set to Ledger

JournalsAre

Posted

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Integrated Web-based Spreadsheet Interface

Description

Journal Wizard

Launch spreadsheet web-interface from GL responsibility to createactual, budget, or encumbrance journals

Import data from text files to create journals

Budget Wizard

Launch spreadsheet web-interface from GL responsibility todownload, modify, and upload budget amounts

Compare budget amounts and actual amounts

Create Graphs

Add Budget Notes to add descriptions

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Integrated Web-based Spreadsheet InterfaceBenefits

Increased Flexibility

Access spreadsheet directly from the web-interface

Leverage familiar spreadsheet functionality

Customize spreadsheets

Work offline

Enter recurring journals from saved spreadsheets Reduced Costs

Reduce Training Costs

Reduce IT Costs

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Integrated Web-based Spreadsheet InterfaceSetup and Process

SETUP

Define profileoption: DefaultDesktop Viewer

PROCESS

Select Layout

Select Data toImport (optional)

Create Exceldocument

Enter journals

Upload

LaunchJournal Wizard

Select Layout

Select Budget toDownload

Create Exceldocument

Enter budgetamounts

Upload

LaunchBudget Wizard

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Journal CopyDescription

AutoCopy Batch

Copy an existing journal batch to create a new journal batch with thesame journals

Easily change the following for the journal batch:

Batch Name

Period

Effective date

Journal batch with any status can be copied

Automatic Journal Copy: You can now copy:Entire journal batchesJournal batches with any status

The system creates a new journal batch containing the same

journal entries.You may also change the batch name, period, and/oreffective date while copying the journal batch.

After copying the journal batch, you may modify the unpostedjournals in the same manner as any manually created journals.

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Journal CopySetup and Process

SETUP PROCESS

Select JournalTo Be Copied in

Enter Journals window

No setup required

Automated process

Enter Batch Name,Period, Effective Date

for the New Batch

Create New

Journal Batchby ConcurrentProgram

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Streamlined Consolidation MappingsNavigation: Setup : Accounts > Chart of Accounts Mapping

Chart of Accounts Mapping replaced the Release 11i ConsolidationMappings feature. A chart of accounts mapping is a set of instructions formapping accounts or entire account segments from one chart of accounts toanother chart of accounts. You can use chart of accounts mapping forconsolidation purposes and for secondary ledgers.

The enhancement in R12 allows you to define mappings between charts ofaccounts instead of between sets of books, so that they can be sharedacross multiple Consolidation Definitions.

Therefore, if you have multiple Consolidation Definitions for parent andsubsidiary ledgers that share the same chart of accounts pair, and theirmapping rules are the same, you only have to define a single Chart of

Accounts Mapping.

You can also secure access to chart of accounts mappings using definitionaccess set security. This allows you to secure which users can view, modify,and/or use chart of account mappings in consolidation definitions.

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Streamlined Consolidation MappingsDescription

Usage

Transfer journals and balances from a subsidiary ledger to aconsolidation ledger

Propagate journals from the primary ledger to secondary ledger(s)

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Maps any two charts of accounts

Co

Dept

Acct

I/C

LE

LOB

Acct

Source Chart ofAccounts

Target Chart ofAccounts

Streamlined Consolidation MappingsDescription

Assign single value

Copy value

Use rollup rules

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Streamlined Consolidation MappingsBenefits

Reduced Setup and Maintenance

For same pair of chart of accounts and same mapping rules:

No need to create a mapping per source/target ledger;

Define one mapping and apply it repeatedly to multiple source/targetledger pairs

Fewer mappings to maintain going forward

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Streamlined Consolidation MappingsSetup and Process

SETUP PROCESS

Automated process

Define Chart ofAccounts Mapping

Assign to ConsolidationDefinition or

Accounting Setup

Run ConsolidationTransfer ProgramIn Source Ledger

Data Is MappedAnd TransferredTo Target Ledger

Define ConsolidationDefinition

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Entered Currency Reporting and AnalysisDescription

View balances for amounts entered in the ledger currency separately

from amounts entered and converted to the ledger currency

View amounts entered in a specific currency

FSG Reports

Online Account Inquiry

Create journals based on account balancesentered in a specific currency

Recurring Journals

Mass Allocations

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Entered Currency Reporting and AnalysisIn Release 11i, when you performed an account inquiry or ran a reportusing the currency assigned to the ledger, you viewed balances for

amounts entered in the ledger currency as well as foreign currenciesthat were converted to the ledger currency.

Now in Release 12, the entered ledger currency balances are trackedseparately from the foreign entered and converted balances.You can use the entered ledger currency amounts for viewing balances

for the purposes of currency valuation and hedgingFSG reportingNavigation: Reports > Request > Standard, Submit the request calledProgram - Publish FSG ReportOnline account inquiryNavigation: Inquiry > AccountRecurring JournalsNavigation: Journals : Define > RecurringMass AllocationsNavigation: Journals : Define > Allocation

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Entered Currency Reporting and AnalysisDescription

Ledger Currency: USD

Acct Currency Entered Converted

Debit Credit Debit Credit

Cash USD 1,000

Cash GBP 500 1,200

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Entered Currency Reporting and AnalysisExample: Assume a ledger and the ledger currency is USD.

Two journals are entered and posted; one in 1,000 US Dollars, andanother in 500 British Pounds that gets converted to 1200 US Dollars.

In Release 11i, you can review the 500 GBP and the 1200 USD thatresults from converting the 500 GBP, and the total 2200 USD which isthe USD balance in the Cash Account. The $2200 is the sum of the

$1000 entered in USD and the $1200 converted from the 500 BritishPounds. However, you view that a 1000 USD were entered directly inUSD.

In Release 12, you can view the 1000 USD by performing an accountinquiry on the Cash account for balances entered only in the ledger

currency. The amounts entered in foreign currencies that wereconverted to the ledger currency are not included in the balance. Youcan still retrieve all balances in USD, both the entered as well and theconverted.

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Entered Currency Reporting and AnalysisBenefits

Better Information

Perform currency analysis on entered ledger currency amounts forvaluation and analysis

More Flexible Allocations

Create allocations based on amounts entered in a specific currency

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Entered Currency Reporting and AnalysisSetup

No set up required.

General Ledger automatically tracks balances.

Entered ledger currency balances are available once balances areposted.

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Entered Currency Reporting and AnalysisSetup

No set up required.

General Ledger automatically tracks balances.

Entered ledger currency balances are available once balances are

posted.

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F i C R i J l

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Foreign Currency Recurring JournalsBenefits

More Flexibility

You have more currency options for creating recurring journals

Increased Efficiency

Use the system to convert currency amounts instead ofcalculating manually

Foreign Currency Recurring Journals Benefits

With foreign currency recurring journals, you are no longer

restricted to using the ledger currency or stat. You canuse any currency which means more flexibility in definingrecurring journals and generating your allocations andjournals more efficiently.

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Foreign Currency Recurring Journals Process

Automated process

GenerateRecurring Journal

Journal isCreated

PROCESS

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Implementation Considerations

SETUP

DefineRecurring Journal

in any currency

Implementation ConsiderationsNavigation: Journals > Define > Recurring

You must set up foreign currency recurring journals, define arecurring journal, and a foreign currency and conversion rate

type.

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Replacement for Disabled Accounts

Alternate Accounts

-Define an alternate account for an account that is disabledor end-dated.

-Subledger Accounting and GL Journal Import processesreplace disabled accounts with alternate accounts

Benefits:

It increases processing efficiency by reducing processing

errors from disabled/end-dated accounts.

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A new flexfield qualifier added to the chart of accounts i.eManagement segment qualifier.

Typically a segment can be qualify to be the Managementsegment if that segment has management responsibility. Ex:Line of business, cost center or a product line.

Secure Management segment values by using data access sets.You can grant read only or read and write access to specificmanagement segment values to prevent certain managers from

viewing and updating data for cost centers, line of business orproduct lines outside of their management responsibility.

M t R ti d S it

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Management Reporting and SecurityDescription

Optionally qualify a segment as the management segment

Perform management reporting

Secure read and write access to Ledger/Management Segment Value

combinations using Data Access Sets

Co CC Acct I/C

BalancingCost CenterManagement

NaturalAccount Intercompany

M t R ti d S it

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Cost Center Hierarchy

Director A

Read/Write

MSV Access

Create/Post Journals Update Balances Run Reports View Data

Vice President0683

Director AOU97

Director BOS69

Director COX53

No Access

X

X X


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Journal Reversal Enhancements Description andBenefits

Prevents reversal of journals with frozen sources

Benefit: Enforces consistency between source system andGL account balance

Prevents reversal of unposted journals

Benefits:

Improves data integrity

All reversals can be tied back to the originating journal

Improves auditability

No Setups required. These features are automatically

available in GL

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Control Accounts description and Benefits

Ensures control accounts can only contain data from an approvedjournal source

Prevents manual journal entry to control accounts

Provides better control

Specify authorized sources for control accounts

Streamlines reconciliation

Enforce consistency between source system and GL accountbalance

Security for Definitions

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Security for DefinitionsDescription

Definition Access Set

Secure definitions

Grant one or more of the following privileges to responsibilities

Use Access

View Access

Modify Access

S it f D fi iti

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Securable definitions

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 and components

MassAllocations

MassBudgets

Rate Types

Recurring Journals

Revaluations

Transaction Calendars

Security for Definitions -E l

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Use View Modify

GL Clerk Controller

Rent Allocation

Recurring Rent

Rent Allocation

Recurring Rent

Balance Sheet

Income Stmt

Privileges

Example


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Security for DefinitionsBenefits

Greater Control Limits a responsibilitys access from using, viewing, and modifying

definitions

Reduces errors and accidental changes to important definitions

Secures access to definitions independently from data access

Increased Flexibility Selectively choose definitions that you want shared and restrict

access to those you do not want shared

Supports Shared Service Centers

Shared definitions can be restricted toauthorized users


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QueryDefinition

Do you haveView privilege?

ViewDefinition

Security for DefinitionsSetup and Process

SETUP PROCESS

HaveModifyprivilege?

Do you haveUse privilege?

ModifyDefinition

UseDefinition

Assign privilege forthe definition to the

Definition Access Set

System Administrator

GL Accountant

Enable Security

on the Definition

Create a Definition

Assign responsibilityto Definition

Access Set

Define DefinitionAccess Set

Yes

Yes

Yes

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Accounting and Reporting Sequencing Description

New journal sequencing options Accounting Sequence

Sequence GL journals when posted in GL

Sequence subledger journals when completed in SubledgerAccounting

Reporting Sequence Sequence GL Journals when you close a GL Period

Sequence subledger Journals when you complete the accounting inSLA

Replaces Accounting Engine (AX) legal sequencing and LibroGiornale

Assign mutually exclusive sequences

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Accounting and Reporting SequencingDescription

In Release 11i, document sequencing sequentially numbered documentsupon creation.

In Release 12, sequential numbering has been enhanced to bettersupport sequencing requirements in countries, such as Asia, LatinAmerica, and Europe.

There are now two new Journal Sequencing options:

Accoun t ing Sequenc ing:Automatically assigns a sequence numberto General Ledger journal entries that are posted in General Ledger.Theres also an option to sequence subledger journals when they

are completed in Subledger Accounting.

Report ing Sequencing :Use to sequence both General Ledgerjournals and subledger journals when the General Ledger period isclosed. This feature replaces the Accounting Engine (AX) legalsequencing and Libro Giornale features.

You can assign mutually exclusive sequences based on ledgers orreporting currencies, journal sources, journal categories, and balance

types.

Accounting and Reporting Sequencing

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Accounting and Reporting SequencingBenefits

Legal Compliance Addresses business requirements in many countries

Allows fiscal authorities to verify the completeness of a companys

accounting records

Increased Flexibility

Provides greater flexibility in choosing different journal sequencingoptions

Sequence journals based on different criteria

Ledgers

Reporting currencies

Journal sources

Journal categories

Balance types

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Accounting and Reporting Sequencing - BenefitsWith the new journal sequencing options, you can now better meetlegal requirements in different countries, such as Europe, Asia and

Latin America.

Fiscal authorities can now easily verify the completeness of acompanys accounting records.

You have much more flexibility in choosing how they want to

sequence journals based on different criteria.

You no longer need to worry about localizations. The formerAccounting Engine (AX) legal sequencing and Libro Giornalefeatures have now been included in the base product. This allowsmore customers to take advantage of this new feature.

Accounting and Reporting Sequencing

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Post Journalor Close Period

Shouldthe journal besequenced?

Yes

Automated process

Accounting and Reporting SequencingSetup and Process

SETUP PROCESS

Define Sequence(Optional)

Journalis sequenced

Define SequencingContext for Ledger

Is sequencedefined?

DefineSequence

Yes No

Assign SequenceTo Ledger

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Journal Line Reconciliation

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Journal Line ReconciliationBenefits

Automated Reconciliation

Provides automated way to reconcile journal lines that should net to zero

Reduces close cycle time

No Localization Required

Journal Line Reconciliation

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Enable

ReconciliationQualifier forNatural Account

value

Enter ReconciliationReference in SLA

or GL during manualjournal entry

Journal Line ReconciliationSetup and Process

Enable JournalReconciliation

for Ledger

SETUP PROCESS

Automated process

Query Journal LinesIn Reconcile Journal

Lines Window

Select JournalLines to

Reconcile

ReconciliationID assigned

Run AutomaticReconciliation

AutomaticManual

Enhanced Intercompany

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Enhanced IntercompanyDescription

Advanced Global Intercompany System (AGIS)

Previously Global Intercompany System feature

Now a separate product with many enhancements

Intracompany Balancing Rules

Previously Intercompany Balancing

Used across Subledger Accounting and General Ledger to balancejournals within a legal entity or ledger

Intercompany Accounts

Used across Subledger Accounting and General Ledger to balance cross

legal-entity journals

Support for encumbrance journals

Enhanced Intercompany

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Enhanced IntercompanyBenefits

Improved User Interface Improved user interface makes defining rules more intuitive

Better Control

Consistent application of Intercompany Accounts and Intracompany

Balancing Rules in Subledger Accounting and General Ledger

Increased Efficiency Support for encumbrance journals

Enhanced Intercompany Accounting

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Enhanced Intercompany Accountingand Balancing Rules Process

PROCESS

UnbalancedJournal is posted

Unbalancedjournalis for multiple

BSV?

Yes

No

No

YesMultipleBSV assigned

to different legalentities?

Suspense Accountis used for

balancing journals(if suspense acct

is defined)

IntracompanyBalancing Rules

are used forbalancingjournals

IntercompanyAccounts

are used forbalancingjournals

Enhanced Balancing

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Enhanced BalancingProcess Intracompany Journals

Creation:

Journal Mode

1 to 1

1 to Many

Many to 1

Many to Many

If Intercompany and Intracompany lines are mixed

Balancing API handles all situations

Intercompany accounts are balanced first

before intracompany balancing

Enhanced Intercompany Accounting

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Enhanced Intercompany Accountingand Balancing Rules Setup

Define LegalEntity and

Ledger Setup

SETUP

EnableIntracompanyBalancingfor Ledger

DefineIntercompany

Accounts

DefineIntracompany

Balancing Rules

Implementation Considerations

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p

IntercompanyAccounts

IntracompanyBalancing Rules

AGISBalancing API

Balancing Entries Created

General LedgerPosting Program

Subledger Accounting CreateAccounting Program

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Documents

GL-R12.pptx