Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Secondary Ledgers… …Unleashing Its Power!!!
Presented By: Anshu Anand, Principal Software Engineer, Oracle GCS Sivaranganath Chittapragada, Principal Software Engineer, Oracle GCS Sangam’ 2014 : November 07
Oracle Confidential – Internal/Restricted/Highly Restricted
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 3
Agenda
• Global Reporting : Pre-R12 Options • Secondary Ledgers : The Solution Offered by Release 12. • Kinds of Secondary Ledger Conversions. • Adding Secondary Ledger to existing Primary : Balance Initiation. • Tips for Easy Maintenance. • Things to Know Before Considering Secondary Ledgers. • Pointers to Reconcile • Q&A
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Scope
Oracle Confidential – Internal/Restricted/Highly Restricted 4
•Focus on Functionality and Business Usage. Detailed setups are kept out of Scope for now. The reference documents for setups are available in the Oracle Knowledge Base.
•The examples referred are for indicative purposes only. Their actual usage may depend on the holistic requirement of an organization.
•Reference to Accounting Conventions. The details and their accounting are kept out of the scope of this presentation.
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 5
Corporate Global Presence… Varied Statutory Needs….
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 6
Low priced Asset Purchased Asset or
Expense ?
Interdepartmental Sales
Depreciation Useful Life of Asset or
Fixed Percentage
Company : ABC Corp Ltd Head Office : United States Currency : USD
Company : ABC Corp Ltd Country Office : Singapore Currency : SGD
Company : ABC Corp Ltd Country Office : India Currency : INR
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Pre R12 Options Statutory Global Reporting
Oracle Confidential – Internal/Restricted/Highly Restricted 7
Primary Book Chart of Accounts : Acc
Currency : USD
Reporting Book 1 Chart of Accounts : Acc
Currency : AUD
Reporting Book2 Chart of Accounts : Acc
Currency : SGD
Reporting Book3 Chart of Accounts : Acc
Currency : INR
• Multiple Reporting Currencies (MRC)
• Consolidation
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Possible Solutions Offered by R12 Application Meeting Statutory Requirements for Global Presence!
Oracle Confidential – Internal/Restricted/Highly Restricted 8
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Secondary Ledgers Defined
• Represents Primary Ledger data that differs in one or more of the following Chart of Accounts Currency Sub Ledger Accounting Method(SLAM) Calendar
• Used for supplementary purposes, such as Consolidation, Statutory reporting or Adjustments for one or more legal entities within the same accounting setup.
• Optional
Oracle Confidential – Internal/Restricted/Highly Restricted 9
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Kinds of Secondary Ledger Conversions • Journal Level Secondary Ledger. • SubLedger Level Secondary Ledger. • Balance Level Secondary Ledger. • Adjustment Level Secondary Ledger.
Oracle Confidential – Internal/Restricted/Highly Restricted 10
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Journal Level Secondary Ledger
Oracle Confidential – Internal/Restricted/Highly Restricted 11
Journal in Primary
Journal Replicated in Secondary Posting
Sub Ledger Transactions Transfer to
General Ledger
Manual Journals
Data Flow
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
• Comes across as a powerful tool when companies require the transactions/Journal details to be available in secondary ledger.
• Drilldown facility. • Enable the Required Sources for Replication
General Ledger Responsibility -> Setup -> Accounting Setup Manager Journal Conversion Rules
• Allows Manual ‘Adjustments’ too.
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Business Case 1:
Corporate Head Office : USA
Country Office : India
Different Calendar Needs for Statutory and Corporate Reporting.
If a legal entity must perform corporate and statutory reporting, one can use the primary ledger to satisfy corporate reporting requirements and then use a secondary ledger to satisfy statutory reporting requirements.
Oracle Confidential – Internal/Restricted/Highly Restricted 13
Secondary Ledger
Primary Ledger
Legal Entity
Operating Units
Inventory Orgs
India Ledger (INR)
India Org
India OUs
India LEs India LEs
US Org
US OU
US LE
US Ledger(USD)
Corporate Consolidated Ledger (USD)
Corporate Reporting: Jan to Dec
Statutory Reporting: Apr to Mar
India Secondary Ledger (Calendar:
Apr –Mar)
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Kinds of Secondary Ledger Conversions
• Journal Level Secondary Ledger. • Subledger Level Secondary Ledger. • Balance Level Secondary Ledger. • Adjustment Level Secondary Ledger.
Oracle Confidential – Internal/Restricted/Highly Restricted 14
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/ 15
Sub Module Transactions
Journal Import
Manual Journals
Primary Ledger
Secondary Ledger
Manual Journals
Sub Ledger Accounting
Method (SLAM)
Transaction Version1
Transaction Version2
Replication on Import
Data Flow
Replication On Posting
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 16
Sub Ledger Entries
Primary Ledger: Chart of Accounts : A Currency : USD ( SLAM : United States Federal )
SLAM: Standard Accrual
SLAM: Standard Cash
SLAM: United States Federal
Secondary Ledger: Chart of Accounts : B Currency : SGD ( SLAM : Standard Accrual)
Secondary Ledger: Chart of Accounts : B Currency : INR ( SLAM : Standard Cash)
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
• Most transparent form of Conversion.
• SubLedger transfers data to both Primary and Secondary at the same time
• Virtually allows a Company to live in two different accounting representations.
• Complete drilldown available from Secondary Ledger to the Submodule.
• Apart from SubLedger transferred entries, GL Posting also replicates data into Secondary to allow replication of manual journals.
• SubLedger Sources should be disabled for replication Upon Posting to avoid duplicates.
Oracle Confidential – Internal/Restricted/Highly Restricted 17
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Business Case 2:
Corporate Head Office : USA
Country Office : Switzerland
Different Accounting Treatment needed for same transaction : Sales Account
Local tax regulation requires that the “Sales Account" reflects all billing…but..Corporate GAAP, (for example IAS/IFRS) requires that revenue is recognized only when the customer accepts the product.
Oracle Confidential – Internal/Restricted/Highly Restricted 18
Primary Ledger (For Corporate
Reporting)
Country Operations Secondary Ledger (For Statutory/Local
Reporting)
Issue a Sales
Invoice
International Accounting Standards (IAS) Revenue is recognized only when the customer accepts the product.
Local Laws of Reporting Sales Account reflects all Billing
Receivables a/c….Debit Deferred Revenue a/c… Credit
Receivables a/c….Debit Revenue a/c… Credit
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Kinds of Secondary Ledger Conversions • Journal Level Secondary Ledger. • Subledger Level Secondary Ledger. • Balance Level Secondary Ledger. •Adjustment Level Secondary Ledger.
Oracle Confidential – Internal/Restricted/Highly Restricted 19
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 20
Journal in Primary
Only Balances Moved To Secondary CONSOLIDATION
SubLedger Transactions Transfer to
General Ledger
Manual Journals
Data Flow
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Balance Level Secondary Ledger Cont….
• Secondary Ledger maintains only Balances from Primary (and not journals)
• Requires ‘Consolidation’ to transfer balances from Primary to Secondary.
• Ideal when no Adjustments are required in Secondary Ledger.
• Provides drilldown from ‘Account Inquiry and Drilldown’.
• Does not provide real time data like Journal Level Conversion.
• Easy to maintain and Reconcile.
Oracle Confidential – Internal/Restricted/Highly Restricted 21
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Kinds of Secondary Ledger Conversions • Journal Level Secondary Ledger. • Subledger Level Secondary Ledger. • Balance Level Secondary Ledger. •Adjustment Level Secondary Ledger.
Oracle Confidential – Internal/Restricted/Highly Restricted 22
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 23
Primary Ledger
Adjustments Only Ledger
Create FSG Report
Data Flow
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 24
• Adjustment ledger must share same Chart Of Accounts, Calendar/Period Type combination and Currency associated to the Primary Ledger
• Suggested to Include the Adjustment leader with the same Ledger Set as the Primary Ledger to get complete picture while running Reports.
Adjustment Level Secondary Ledger Cont….
Account Primary Ledger (INR)
Adjustments (Secondary) (INR)
Total (INR)
Sales 5,00,000 6,000 5,06,000
Short Term Investments
10,000 10,000
Other Receivables 76,000 2,000 78,000
CIP Cost 1,00,000 600 1,00,600
Accrued Payroll 69,000 69,000
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 25
Subledger Subledger, Journals & Balances
• Enable Sub ledger Accounting Method for Primary & Secondary Ledgers is Mandatory. • Data Conversion depends on the Journal Conversion Rules and Currency Translation Options for Secondary Ledger .
Journal GL Journals & Balances
Data Conversion depends on the Journal Conversion Rules and Currency Translation Options for Secondary Ledger
Balances Balances Only
Data Conversion depends on the Journal Conversion Rules and Currency Translation Options for Secondary Ledger
Adjustments Only
Enter Manual Adjustments directly into Secondary Ledger or set the SLA rules such that it transfers only adjustments
The Chart of Accounts, Calendar, and Currency of a Secondary Ledger are in sync with that of Primary Ledger.
Summarizing the Concept…
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Adding Secondary Ledger to Existing Primary…
Oracle Confidential – Internal/Restricted/Highly Restricted 26
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 27
• To Initialize Balances for General Ledger Consolidation Web ADI
• To Initialize Subledger Events Concurrent program:”SLA Secondary/ALC Ledger Historic Upgrade”.
The program performs the following validations: • Applicable for SubLedger Level Conversion Only. • Application Accounting Definition (AAD) of Secondary and Primary Ledgers should be same. • If the earlier run of the program is incomplete / failed, then the present run should be in Recovery mode, with the same parameters as the prior run. • Currency conversion rates between Primary Ledger’s entered / accounted currency to Secondary Ledger’s functional currency should be defined. • If the Secondary Ledger is of a different chart of accounts, the chart of account mappings should be defined.
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
28
But Maintenance of Secondary Ledgers Is Very Difficult…. …Not Really
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 29
Secondary Ledgers using same Chart of Accounts, Calendar and Period Type
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/ 30
1. Posting For Journal and Subledger level conversions
Setup : ‘Post Journals Automatically from Source Ledger' Requirements : Period Open in Secondary Ledger For Balance Level Conversion
Setup : Check ‘Autopost’ while running Consolidation.
Posts in Secondary2
Journal /Subledger Conversion
Post in Primary
Posts in Secondary1
2. Autopost Allows posting all Unposted Journals at one shot.
. 3. Document Sequences
Profile: GL_COPY_DOC_SEQ_FROM_PRIMARY Available through Patch 8509030:R12.GL.B
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 31
Journal Reversal
• Option 'Synchronize Reversals Between Primary and Secondary‘
• Option 'Replicate Reversals from Primary Ledger' No Manual Yes
AutoReversal
Allows reversal of Multiple Journals at one shot. Criteria Set based.
Budgets Journal Approval Journal Line Reconciliation
Ledger Specific Functionalities
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 32
Things to Know while Considering Secondary Ledgers …..Do It Right!
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 33
• Average Balances • Journal Line Reconciliation. • Subledger level Reporting Currency cannot be attached to a Secondary ledger. • Selective Assignment of Balancing Segment from Primary to Secondary • 'Chart of Accounts Mapping', a Balancing Segment Value of one ledger cannot be mapped to Non-BSV segment of the other.
•'Adjustment Segment' Vs 'Adjustment Ledger‘ • Re-enable Secondary Ledger • Budgets - Do we need them in Secondary??? • Change in SLAM Allowed ????
1. Balancing Segment 2. Cost Center 3. Natural Account 4. Future
1. Balancing Segment 2. Natural Account 3. Future
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Pointers to Reconciliation
Oracle Confidential – Internal/Restricted/Highly Restricted 34
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Journal Level Expectations
• All posted Journals from primary are replicated in Secondary.
• Excepting those sources and Categories marked for non-replication explicitly.
Oracle Confidential – Internal/Restricted/Highly Restricted 35
• Post the ‘Unposted’ journals in primary to allow For replication in Secondary. • Both Primary and Secondary are individual ledgers on their own. Manual Journals created in Secondary only can be one of the major causes of mismatch in balances
Technical Assistance
1. Upon Posting in Primary Table : GL_JE_HEADERS
2. Identify Sources and Categories excluded for Replication
Table : GL_JE_INCLUSION_RULES
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Subledger Level • Run the ‘SLA Diagnostics’ to identify missing transactions. How To Avoid and Fix Corruption in Data Transfer from SLA - Negative Ledger_ID, Not Reached GL, Duplicate in GL (Doc ID 883557.1) Any Datafix To be run after confirmation from Oracle Support Only*** • Can be run for both Primary and Secondary. • Query from Journal Reconciliation to be run to identify manual Journals not replicated.
• Ensure All journals are posted in Primary and Secondary before reconciliation. • Document Sequences
Oracle Confidential – Internal/Restricted/Highly Restricted 36
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Balances Level • Post all the journals in Primary before running Consolidation
• Suggested to run Consolidation in the ‘Audit’ mode.
• Ensure Journals created in Secondary are Posted.
• Run Summary Trail Balance (or Translated Trial Balance) for both ledgers to compare the Account balances.
• For accounts with difference, suggested to run the ‘Account Analysis (180 chars)’ report to identify any manual journals created in Secondary causing the difference.
• Reports: ‘Chart of Accounts - Mapping Rules’ Report Consolidation Exception Report: Unmapped Subsidiary Accounts Consolidation Exception Report: Disabled Parent Accounts
Oracle Confidential – Internal/Restricted/Highly Restricted 37
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Safe Harbor Statement
Oracle Confidential – Internal/Restricted/Highly Restricted 38
The above material 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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 39
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 40
Email Contacts:
Top Related