Kolbe_Multi-Org-Setup_R12_Norcal-2011

8/7/2019 Kolbe_Multi-Org-Setup_R12_Norcal-2011

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Overcoming Uncertainty inOvercoming Uncertainty inCommon R12 Setups: COA,Common R12 Setups: COA,

Ledger, Legal Entity, OperatingLedger, Legal Entity, Operating

UnitUnit

Options, Considerations and Lessons LearnedOptions, Considerations and Lessons Learned

Hans Kolbe, Celantra Systems Inc.

Stafford Warren, Consultant

NorCal GEO Training Day January 2011 - Copyright Celantra Systems


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Celantra Systems:Celantra Systems:Celantra Systems provides international program management services with a strong focus on multi-org, inter-

company, global compliance and implementation issues. The key element in our approach is the alignment of

operational efficiency, legal/tax compliance and management reporting. Our goals are:

- Single global structure across country, currency, language, accounting and tax regime

- Variations are transparent to operator and business user community

- Flexibility for business growth, acquisitions, or other changes in business or legal model

- Ease of support and upgrade

Former and current clients include Trident Microsystems, Terex, UPS, Xerox, Tektronix, British Telecom, Assa Abloy,

Yahoo, Texas Instruments, PPG, State Street Bank, Xilinx, Dionex and others.

Hans Kolbe has managed and advised software implementation projects for over 15, global projects for over 12

years. His extensive knowledge on Oracle applications is combined with a formal background as a German attorney,

trained in international and comparative law.

E-mail: [email protected]

Ph: + 1 (415) 730 - 1131



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Stafford Warren:Stafford Warren:Oracle Financials Consultant/Project Manager

EXPERIENCE

15+ years Analyzing and Implementing Information Technology Solutions, in High-Tech

Industries, through roles as Lead Business Analyst, Software Implementation Consultant

and Project Manager

We partner with Silicon Valley High-Tech Companies:

Visa Cisco Franklin Templeton

Yahoo! Agilent Oracle Consulting

Verisign Electronic Arts Symantec

BMC Software Calpine Intuit

Information Management Group

[email protected]

408-568-3182


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1. R12 Multi1. R12 Multi--Org Structure, highOrg Structure, high--level setup steps andlevel setup steps and

configuration optionsconfiguration options

2. Setup Steps2. Setup Stepsa) Business Group and Legal Entitya) Business Group and Legal Entity

b) Ledgerb) Ledger

c) Op Units and Balancing segmentsc) Op Units and Balancing segments

3. R12 Gotcha: Addresses, Locations, Organizations3. R12 Gotcha: Addresses, Locations, Organizations4. R12 Flexibility and Restrictions: Multiple values balancing4. R12 Flexibility and Restrictions: Multiple values balancing

segments, Legal Entity, Op Unitssegments, Legal Entity, Op Units

Agenda



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Starting Point, Process and AssumptionsStarting Point, Process and Assumptions

- We are presenting results from a R12 Greenfieldimplementation, Application Version 12.1.3

-This is not an upgrade

- We are comparing multi-org setups between R12 and 11I and

are sharing our learning, pointing out remaining questions,surprises etc.

-Version 12.1.3 has some significant differences to earlier R12versions impacting the behavior of the HR Locations records(which are important for the multi-org setup)

-We have not completed this specific implementation cycle.However, CRP testing has successfully been done confirmingthat our multi-org structure supports correct sub-ledgertransactions, intercompany scenarios and tax application. Weknow this setup works.



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Section 1Section 1

MultiMulti--Org DecisionsOrg Decisions



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R12 MultiR12 Multi--Org Structure and DecisionsOrg Structure and Decisions Business Group (used for employees and HR functions, no difference to 11I

Chart of Accounts basis for all other operational and financial setups) nodifference in setup and structure

Legal Entity New Legal Entity Configurator Responsibility in Web-Form) - Lots of different setup and decisions to be made (very different from 11I)

Create Ledger -New Accounting Setup Manager Responsibility in Web-Form

Lots of different setup and decisions to be made (very different from 11I). Formerly GLSet of Books.

Create Operating Unit and assign to LedgerNew Accounting Setup Manager

Responsibility in Web-Form Additional restrictions and impacts, differences between R12 and 11I. Upgrade and conversion limitations

NEEDS another slide with options and business impact



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MultiMulti--OrgOrg LE Configuration OptionsLE Configuration Options View AView A Multi-Org Comparing Implementation Guide 12.1: Comparing 11I to R12: Options look

very similar, only terminology has changed: Set of Books Ledger

NorCal GEO Training Day January 2011 - Copyright Celantra SystemsNorCal GEO Training Day January 2011 - Copyright Celantra Systems


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MultiMulti--OrgOrg LE Configuration OptionsLE Configuration Options View BView B

Financial Implementation Guide 12.1: Variety of Options and

Configurations is discussed in detail, 2-13 (worthwhile reading!)

Accounting Setups with One Legal Entity

Accounting Setups with Multiple Legal Entities Accounting Setups with No Legal Entities

Using Accounting Setups with No Legal Entities for

Management Purposes

Using Accounting Setups with No Legal Entities forConsolidation Purposes

Note: There is no general Oracle standard solution to accommodate a requirementsingle Operating Unit operating in two Legal Entities in R12. Options to resolvethese challenges are being discussed within the Multi-National and other SIGGroups.



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MultiMulti--OrgOrg LE Configuration OptionsLE Configuration Options View BView B



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Section 2Section 2

Setup StepsSetup Steps



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Steps and RelationshipsSteps and Relationships

Business Group

Legal Entity

Ledger (needs chart of accounts)

Associate Balancing Segment

Associate Operating Unit



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R12: Business Group, Legal Entity and Ledger areR12: Business Group, Legal Entity and Ledger are

independent entitiesindependent entities


Is there a business function in using one without the other?Is there a business function in using one without the other?


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Step 1: R12 COA SetupStep 1: R12 COA Setup

Chart of Accounts to be created (not

covered in this presentation) Fundamentally the same as in R11.5.10 and

previous versions (additional functions on sub-ledgercontrol accounts see later slides)

All in Java Forms



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Step 2: Create Business Group (Global)Step 2: Create Business Group (Global)

-- same setup as R11Isame setup as R11I

We create a single global business group. We prefer this

because otherwise you create additional complexity for

approval hierarchies. Each approval hierarchy is limited to1 business group. For international companies approvals

of expenses, assets purchases, etc. often are routed from

subsidiaries to headquarters for larger amounts. This

would force duplication of employees. Multiple Business Group are used only for payroll

localizations (localizations are assigned by business group).



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Screen ShotScreen Shot (in Java Form)(in Java Form)



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Step 3: Legal EntityStep 3: Legal Entity SetupSetup

Use Legal Entity Configurator Responsibility (WebUse Legal Entity Configurator Responsibility (Web--Form) to define:Form) to define:

-- Location /Address (WebLocation /Address (Web--Form)Form)

-- Tax Profile (not required at LE level)Tax Profile (not required at LE level)

-- RegistrationRegistration

-- Create Jurisdiction (skip if existing)Create Jurisdiction (skip if existing)

-- Territory (skip if existing)Territory (skip if existing) potential Gotchapotential Gotcha

-- Create Location with Address (required)Create Location with Address (required) see later slides for Gotchassee later slides for Gotchas

-- Create Organization (JavaCreate Organization (Java Form)Form)

-- Establishments (usable for tax): Legal Entity setup automatically creates oneEstablishments (usable for tax): Legal Entity setup automatically creates one

establishment at legal entity level.establishment at legal entity level.

-- Contact Information (not required at LE level)Contact Information (not required at LE level)

-- Intercompany Exceptions (not required at LE level)Intercompany Exceptions (not required at LE level)

-- History (not required at LE level)History (not required at LE level)



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Step 4: Assign Balancing Segment to Legal Entity or LedgerStep 4: Assign Balancing Segment to Legal Entity or Ledger

Use WebUse Web--Form: GL ResponsibilityForm: GL Responsibility

A balancing segment can be associated either to the Legal Entity or to theA balancing segment can be associated either to the Legal Entity or to the

Ledger. However, you any balancing segment value tied to Ledger cannot beLedger. However, you any balancing segment value tied to Ledger cannot be

used in OU dependant transaction (AR, AP, etc.)used in OU dependant transaction (AR, AP, etc.)

DONT Assign the company value to the Ledger if you want to use it for the OUDONT Assign the company value to the Ledger if you want to use it for the OU

transactions. See next screen.transactions. See next screen.

-- You can assign multiple Balancing Segment values per legal entity. ThenYou can assign multiple Balancing Segment values per legal entity. Then

security rules are needed to restrict access (if required).security rules are needed to restrict access (if required).

-- You cannot associate the balancing segment value to the LE and then again toYou cannot associate the balancing segment value to the LE and then again to

any ledger. This is assignment is done automatically through the LE.any ledger. This is assignment is done automatically through the LE.



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Step 4: continuedStep 4: continued

Assign Multiple Legal Entities to single LedgerAssign Multiple Legal Entities to single Ledger,,

The operating unit option is hidden in the ledger setup menu. The operating unit option is hidden in the ledger setup menu.



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Create and Assign Operating Units assigned to a Legal EntityCreate and Assign Operating Units assigned to a Legal Entity

Click Add Operating Unit on the previous screen. Here you add the OU and assign it to aClick Add Operating Unit on the previous screen. Here you add the OU and assign it to a

business group. This the first time that Business Group is connected to Ledger and Legalbusiness group. This the first time that Business Group is connected to Ledger and Legal

Entity. In 11I Business Group is assigned at the Legal Entity level.Entity. In 11I Business Group is assigned at the Legal Entity level.

You choose the Legal Entity by choosing the Legal Context field.You choose the Legal Entity by choosing the Legal Context field.



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Assign Operating Units assigned to a Legal EntityAssign Operating Units assigned to a Legal Entity

You choose the Legal Entity by choosing the Legal Context field. You can see the legalYou choose the Legal Entity by choosing the Legal Context field. You can see the legal

entity name when searching by.entity name when searching by.



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View the resultView the result Operating Unit and Legal Entity are associatedOperating Unit and Legal Entity are associated



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Multiple Balancing Segment values at Ledger LevelMultiple Balancing Segment values at Ledger Level



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Section 3Section 3

GotchasGotchas



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Gotcha 1: Location Addresses or LocationsGotcha 1: Location Addresses or Locations TerminologyTerminologyand challenges in visibility of data from both angles Javaand challenges in visibility of data from both angles Java

and Weband Web--FormForm

Addresses orLocations Terminology

Visibility of data from both angles

Java and Web-Form



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R12 Gotcha LocationsR12 Gotcha Locations AddressesAddresses

Topic 1Topic 1 visibility from both angles Java and Webvisibility from both angles Java and Web--FormForm

We entered 12 locations into R12; From the Java form we can see all 12, from WebWe entered 12 locations into R12; From the Java form we can see all 12, from Web--Form we can seeForm we can seeonly 4only 4

Big problem and confusionBig problem and confusion

Java Form = 12 LocationsJava Form = 12 Locations



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Web Form = 4 LocationsWeb Form = 4 Locations



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Other Observations on Locations and AddressesOther Observations on Locations and Addresses

No easy way to see table used in WebNo easy way to see table used in Web--FormForm

-- No easy way to see total number of records in WebNo easy way to see total number of records in Web--FormForm

-- Locations are not consistently visible across Java and Web Forms. WeLocations are not consistently visible across Java and Web Forms. Weare not sure what it depends on. Possibly I can see in Web form onlyare not sure what it depends on. Possibly I can see in Web form only

those that have been entered in Webthose that have been entered in Web--Form. In Java I can see all. Form. In Java I can see all.

Possible strategy is to enter what you can in WebPossible strategy is to enter what you can in Web--Form, especiallyForm, especially

locations, organizations. locations, organizations.

-- Locations in Java and 11I are called Addresses in WebLocations in Java and 11I are called Addresses in Web--Form of12Form of12



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Gotcha 2: Location with Address ValidationGotcha 2: Location with Address Validation

Business Group Needs Location (HR_Location):

Address Validation

Data entry through Java form or Web-form?

Address default United States will cause

validation (if site profile option is set for HR

purpose)



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Address ValidationAddress Validation

default Address formatdefault Address format



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Select different Address formatsSelect different Address formats



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Change address style to United States InternationalChange address style to United States International then there is no validation. For each address youthen there is no validation. For each address you

select the address style separately. For locations that are used for tax calculation we may need to changeselect the address style separately. For locations that are used for tax calculation we may need to changethe address style tothe address style to United StatesUnited States. This makes City, County, State mandatory and validates City, County,. This makes City, County, State mandatory and validates City, County,

State relationship with Zip Code. (not sure if it goes not address level). Need to load patch with addressState relationship with Zip Code. (not sure if it goes not address level). Need to load patch with address

validations (maybe we should find the patch no.).validations (maybe we should find the patch no.).

US Validated Format or International Format: yes/no?US Validated Format or International Format: yes/no?


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International FormatInternational Format

No validationNo validation



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Thank you !Thank you !

Hans Kolbe, Celantra [email protected]

+ 1 (415) 730 1131

Stafford [email protected]

(408) 568-3182


Kolbe_Multi-Org-Setup_R12_Norcal-2011

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