<Insert Picture Here>

Release Twelve
The Global Business Release

1
 CFO Agenda
Transforming Finance into a Strategic Weapon
GLOBALIZATION
…Today‟s workforce,
customers, suppliers, and
competitors have all
become global
INNOVATION AND GROWTH
… Not just any growth, but
growth that creates value
2
COMPLEXITY AND COSTS
… Globalization brings
complexity with it, and
unnecessary complexity
drives up costs
GOVERNANCE, RISK &
COMPLIANCE
…Companies are under
pressure to do more than
just meet the letter of the
law
 Doing Business Globally is Complex
Top Drivers of Complexity
1 National and International Laws & Regulations
2 Actions by Competitors
3 Changing Customer Requirements
4 Industry Standards and Regulations
5 Tax Codes
6 Changing Workforce Attitudes
7 International Reporting Standards
8 Language and Cultural Differences
Direct impact on Finance
Source: PWC, 9th Annual Global CEO Survey
3
Globalization is unstoppable.
Regardless of geography, industry or
income, companies are globalizing to
gain new customers and access new
markets. Is this a good thing? Nearly
two-thirds of the CEOs we surveyed
are positive about the impact that
globalization will have on their
organizations over the next three
years.
Source: 9th Annual Global CEO Survey –
Globalization and Complexity; PwC 2006
 Sharing Services is Strategic

Shared Services provide

a proven way for
governments and
businesses to gain better
control of their finance
operations and
streamline redundant
processing and systems.

Source: Shared Services: Enabling

Finance Mastery and High
Performance, Accenture 2005

4
 How Financials Release 12 Contributes
The Global Business Release

WORK GLOBALLY THINK GLOBALLY MANAGE GLOBALLY

To Be More Competitive To Make the Right Decisions To Lower Cost & Increase
Performance

Global Financial Business Intelligence XML Publisher

Architecture
Financial Consolidation
Centralized Processing Hub New Reporting Paradigm

+ 300 New Financial Performance Management

Features

Profitability Management

5
 How Financials Release 12 Contributes
The Global Business Release

WORK GLOBALLY THINK GLOBALLY MANAGE GLOBALLY

To Be More Competitive To Make the Right Decisions To Lower Cost & Increase
Performance

Global Financial
Architecture

Centralized Processing Ledgers and Ledger Sets

+ 300 New Financial

Multi-Org Access Control
Features

6
 Global Financial Architecture

6 Major Initiatives
1. Ledger and General
Ledger Ledger Sets
& Ledger
Ledger Sets
2. Multi-Org
Dr Cr
Access Subledger Accounting (SLA)
Control
3. Subledger Tax Inter Bank
Accounting Engine Company
Model

4. Tax Engine
5. Intercompany
Multi-Org
6. Bank Model Access
Control
Inventory Receivables Projects

Work in Process Purchasing Payables

7
 What the Architecture Gets You

• Work Globally Release 12 Subsidiary LEs….

• Global Order Desk Company Company Company
• Global Procurement
• Global Billing …account for themselves in Ledgers,
• Global Dunning and…
• Think Globally Ledger Set
• Global Ledger Sets –
worldwide insight
manage their subledger data in Operating Units
• Global Reporting
• Manage Globally Multi-Org
• Global Accounting Access
Control
Rules Inventory Receivables Projects

• Global Set-up
Work in Process Purchasing Payables
• Global Integration

8
 Ledger Sets
Global Information At A Glance
Share:
Ledger Set Chart of Accounts
Calendar

Ledger C

US GAAP
US COA
Ledger A Ledger B US Calendar
French Rules US GAAP USD
Plan Comptable US COA
French Calendar US Calendar
EUR EUR Ledger D
US GAAP
US COA
US Calendar
AUD
Key benefits to many Ledgers in one set
• Decision-driving business information always available
• Simpler processing and General Ledger management
• Data and definitions that can be shared and secured Reporting Currency

9
 MOAC: Multi-Org Access Control
Role based access to Operating Units

Perform multiple tasks across operating units

without changing responsibilities

Belgium Holland Denmark

Functional Tasks
Legal Entity Legal Entity Legal Entity  Order Management
 Dunning, Collections,
Billing
Belgium Holland Denmark  Requisition, Demand &
Operating Unit Operating Unit Operating Unit Purchase Orders
 Receiving & Drop Ship
Responsibility
SingleResponsibility
Responsibility Responsibility  Invoice Receipt,
Disbursement
 Customer Data
Management
 Accounting Setup

10
 How Financials Release 12 Contributes
The Global Business Release

WORK GLOBALLY THINK GLOBALLY MANAGE GLOBALLY

To Be More Competitive To Make the Right Decisions To Lower Cost & Increase
Performance

Global Financial
Architecture

Centralized Control Subledger Accounting

+ 300 New Financial

Features Tax Engine

Intercompany

Bank Model

11
 Subledger Accounting
Centralized Rules, Common Repository: Global Control

Ledger What it is Some Benefits

French Rules
Plan Comptable • Accounting Rules • Faster, Easier
French Calendar • SarBox & 8th Dir. Reconciliation
EUR • User Editable • Corporate Rules =
• Subledger Daybooks Accounting
(Journals) Standardization
Dr Cr • Subledger Balancing • Local Rules =
• Reports, inquiries, open Improved Local
Subledger items, et cetera Compliance
Accounting • Multiple • Automate ―Apples to
Representations Apples‖ Adjustments
• Common Posting to GL • Improved Audit-
Ledgers ability
• Real time or Periodic • Improved Internal
Control
Payables Invoice

12
 Multiple Accounting Representations
Global Compliance – Statutory and Stock Market

Ledger A Ledger B
French Rules US GAAP
Plan Comptable US COA
French Calendar US Calendar
EUR EUR
or

Dr Cr Single subledger
transaction Chose to us an
can create multiple alternative Ledger -
Subledger
accounting or just an Adjustment
Accounting
representations Ledger or segment
and in multiple
currencies

Payables Invoice
13
 Multiple Accounting Representations
Management Version in a Management Ledger Set

Ledger A Ledger B
French Rules US GAAP
Plan Comptable US COA
French Calendar US Calendar
EUR EUR
or

Dr Cr Single subledger
transaction Chose to us an
can create multiple alternative Ledger -
Subledger
accounting or just an Adjustment
Accounting
representations Ledger or segment
and in multiple
currencies Ledger Set
IAS/
IFRS
or US
GAAP
Payables Invoice
14
 Accounting Methods Builder

Vision Operations (USA) Ledger

Standard/GAAP Accrual Subledger Accounting Method

Payables Accrual Application Accounting Definition

Invoice Journal Line Definition

Journal Line Account Derivation Journal Entry

Types Rules Descriptions

Sources Eg. Invoice Date, Invoice Amount, Attribute1…20, Supplier name, etc.

Transaction Objects Eg: Invoices, Credit Memos, Payments, etc

15
 Centralized Set-up
Accounting Setup Manager

Define Legal Entities

& Associated Rules
Ensure Complete
& Accurate
Setup via Online Checklist

Define Multiple Ledgers One Place to manage

for Rules & Currencies Your Global Accounting
Rules, Currencies,
Ledgers,
Set Accounting Rules And Ledger Sets
for All EBS Apps

16
 Centralized Global Tax
Less Complex Global Tax Compliance
Business Needs Solution

• Tax content for certain countries

Automation • Vertex and Taxware integration for U.S.
• Integrity checks during setup process

Constant Changes in • Date effective setup

Tax Laws and • Tax rules flow for change or creating rules
Regulations • Tax simulator for setup, rules, and transactions

• Tax registrations and tax reporting codes

Local Compliance • Tax lines determine applicable taxes
• Configurable tax reporting templates

• Single set up for all Oracle applications

Information Visibility • Use of E-Business Suite components such as trading partner geography,
trading partner classification, legal entity, inventory item categorization,
and accounting event.

17
 Advanced Global Intercompany System
Address the Top Barrier to a Fast Close

Advanced Global
Intercompany
System Subledger
Web UI
Invoices &
Documents

Open
Interfaces /
API
 Generate subledger invoices Online
 Control transaction entry with Reconciliation
Excel Reporting
Intercompany Calendar
(Web ADI)
 Fully Configurable Approval Rules
 Flexible Security Model
 Centrally defined Intercompany XML
Accounts Publisher
Reports

Dr Cr

General Subledger
Ledger Accounting Receivables Payables

18
 Bank Model: Example of what you can do
Pay invoices from different OUs with 1 instruction

• New Payments Module

OU A
• New Bank Module
• New Bank & Credit Card
Features
OU B

OU C Single
Payment Bank Payments
Instruction

Sub Ledger
Accounting
Invoices

19
 How Financials Release 12 Contributes
The Global Business Release

WORK GLOBALLY THINK GLOBALLY MANAGE GLOBALLY

To Be More Competitive To Make the Right Decisions To Lower Cost & Increase
Performance

Global Financial
Architecture Financial Control &
Reporting
Centralized Control
Credit-to-Cash
+ 300 New Financials
Features
Procure-to-Pay

Treasury & Tax

Travel & Expense

Asset Management

Governance, Risk &

Compliance
20
 Over 300 New Financial Features
Just a sample…

Simplify and Standardize New Features

• Live AR-Inventory. Revenue-COGS Match

• Manage the Margin
• Deferred COGS and Revenue Automation

• Advanced collection, Dunning, Loans

• Collect Faster
• Invoice Lines

• Standardize Payables • Suppliers in TCA: one setup per partner

• Supplier, users invoice self service

• Pay more easily
• Straight through processing (STP) at banks

• Per diems, approval enhancements

• Simplify Employee Expenses
• Expense Bar Codes

• Rationalize Procurement • Self Service receipt matched invoices

• Real time contract T&Cs in PO, AP

• Bulk Process Assets • Asset Automatic Depreciation Rollback

21
 How Financials Release 12 Contributes
The Global Business Release

WORK GLOBALLY THINK GLOBALLY MANAGE GLOBALLY

To Be More Competitive To Make the Right Decisions To Lower Cost & Increase
Performance

Global Financial Business Intelligence XML Publisher

Architecture
Financial Consolidation
Centralized Processing Hub New Reporting Paradigm

+ 300 New Financial Performance Management

Features

Profitability Management

22
 Evolution of Operational Reporting
11i.9 (DBI v6) 11i.10 (DBI v7.0 & 7.1) 12 (DBI v8)
Dashboards 33 54 > 60

KPIs 214 313 > 370

Intelligence
Reports 377 827 > 940
Capabilities/ • Payables Mgmt • Product Revenue Bookings • Receivables Mgmt
Roles and Backlog
• Payables Status

version 7.0
• Product Mgmt • Receivables Status
• Customer Support Mgmt • Product Cost Mgmt
• Supplier Management
• Plan Mgmt • Inventory Mgmt
• Commodity Supplier Mgmt • Sales Forecast Mgmt • Sourcing Management
• Commodity Spend Mgmt • Purchasing Performance • Procurement Spend
• Product Mgmt – • Purchasing Status Management
• Warehouse Mgmt
Engineering • Employee Absence
• Transportation Mgmt
• Manufacturing Mgmt • Maintenance Mgmt Management
• Customer Fulfillment Mgmt
version 7.1

• Depot Repair Mgmt • Sales Agreement

• Shipping Mgmt • Field Service Mgmt Management
• Inbound Telephony Mgmt • Funds Mgmt
• Salary & Turnover Mgmt • Web Store
• Service Renewals Mgmt • Workforce Budget Mgmt Management
• Capital Project Cost Mgmt • Open Enrollment Status
• Contract Project Cost Mgmt • Contingent Worker Mgmt
• Compliance Certification

23 CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract
 Receivables DBI
Keep the money flowing in…

24
 Global Visibility and Integration
Financial Consolidation Hub

One-Touch
Consolidation
Data
Transformation
& Validation
Oracle EBS Results
Auditing
PeopleSoft E
Operating
Balances Financial Report
JD Edwards E1 Generation
Consolidation
SAP
Multi-Dimensional
Legacy Apps Analysis

Compliance
Certification

*Common data model for Oracle’s CPM solution

26
 Unified Financial Reporting and Compliance
Management*

• Drill back to source transactions • Compliant access provisioning

• Monitor consolidation process • Profile option automated monitoring
and certification status • Supplier site control change
• Dynamic spreadsheet-based monitoring
statutory and mgmt reporting • Control change history report
* Available
Pre-R12 Manage Consolidation Process & Auditability

27
 Entity Hierarchy, Currency, Minorities…
Financial Consolidation Hub

28
 Multi-Dimensional Analysis & Reporting
In product row/column UI or: within a Spreadsheet!

• Create reports &

graphs
• Historical
• current
• projected data
• Analyze
performance
• Detect trends
• Define
• variance
• thresholds
• Receive auto-
alerts

29
 Financial Consolidation Hub
Spreadsheet Reporting with Live Drill

Interactive
spreadsheet
with
live drill to
transactions

30
 Global View of Profitability
Profitability Manager

Increase Understand
Customer Sources of
Retention Profitability

Customers Resources Activities Top-Down N-Dimensional

Profitability
& Bottom-Up
Allocations

Transaction Processing • Calculate profitability via rules-based algorithms

Financials, Supply Chain, Projects,
Procurement, PLM, CRM, HCM
 By: organization, LOB, channel, product, customer
• Achieve enterprise-wide view of profitability from
multiple data sources (EBS & other applications)

31
 Enterprise Planning and Budgeting

Financial Statistical New Capabilities

Operational External Ease and efficiency of Use
• Business Process definition
duplication
• Improved Analyst calculation
maintenance

Integration
• Able to report FCH data in EPB
• Able to report PFT data in EPB

Flexibility
• Enhanced dimension handling

Perform Multi-Dimensional Analysis

within Existing Relational Database

33
 How Financials Release 12 Contributes
The Global Business Release

WORK GLOBALLY THINK GLOBALLY MANAGE GLOBALLY

To Be More Competitive To Make the Right Decisions To Lower Cost & Increase
Performance

Global Financial Business Intelligence XML Publisher

Architecture
Financial Consolidation
Centralized Processing Hub New Reporting Paradigm

+ 300 New Financial Performance Management BPEL Integration and

Features RETEK
Data Management with
Profitability Management
TCA

34
 XML Publisher
Business Users Format and Deliver Documents

Data Sources XML Publisher Output Formats Destination

Oracle Publishing
PDF HTML EDI • Email
Applications Engine
XML RTF XML Excel • Printer
CRM • Fax
Projects

FMS Order
Templates Letters
Confirmations
HCM
Fund Online
SCM Transfers Paychecks
Government
Bills
Business Grant Forms
Any XML
Data Source
User

Integrate Out-of-the-Box with Oracle Applications

36
 The New Standard Reports Paradigm
XML Publisher and Templates

What‟s Happening Why you‟ll love it

• About 80% Standard • Your users easily modify

Reports replaced by Extracts
and XML Templates
• Designed, comprehensive
―fat‖ extracts
• Not the old standard reports
recycled
• Templates provided for all
reports
• Other 20% Reports
supported as before
reports to their
specification
• Using desktop tools like
Microsoft Word
• Publish in any format;
publish to the web;
distribute electronically
• Centralize Reporting –
management consistency,
source of truth

37
 Data Management
Leveraging centralized data model

Global Tax Payments

Payables Cash
Purchasing Geographies Party Management
Information Banks and
Suppliers
Branches

Trading
Community
Architecture

Oracle Fusion Middleware

ERP CRM 3rd Party

38
 Release 12: The Global Business Release

Work Globally, Corp. Compliance

to be more competitive US GAAP / IAS-IFRS
Corp COA
$
Think Globally, Corp Calendar
to make the right decisions
Joint Compliance
Manage Globally, US GAAP / IAS-IFRS
Corp COA
to lower cost and increase performance A$+$ Corp Calendar

XML Publisher Parent Compliance

Reporting US GAAP / IAS-IFRS
OICM DBI, FCH
€+$ Corp COA
Corp Calendar
Ledger Sets, Profitability Mgr,
Ledgers General EPB
+ National Compliance
Ledger
Subledger
Local Regulation
SLA, € National COA
Transactions
Tax Local Calendar

MOAC,
Intercompany,
+300 Features
Bank, Payments
TCA

40
Release 12 Field Readiness Workshop

Oracle General Ledger

Session 1: Ledger Architecture
 Oracle General Ledger
Ledger Architecture

Functional Deep Dive

 Functional Deep Dive Agenda
• Product Review
– Customer Pain Points with Release 11i
– Release 12 Value Proposition
– Release 12 Concepts and Terminology
• Summary of Ledger Architecture Features
• Detailed Description of Each Feature
– Feature and Benefits
– Upgrade Considerations

43
 Functional Deep Dive Agenda
• Product Review
– Customer Pain Points with Release 11i
– Release 12 Value Proposition
• Summary of Ledger Architecture Features
• Detailed Description of Each Feature
– Feature and Benefits
– Upgrade Considerations

44
 The Challenge for Global Companies
Multiple Databases Scattered Across the Globe
US COA US COA US COA
US Calendar US Calendar US Calendar
US GAAP US GAAP US GAAP
$ € £

French Comptable US COA

French Calendar US Calendar
French GAAP German GAAP
€ €

• Costly to Maintain
• Inconsistent Business Practices
• Fragmented Information

45
 The Issue for Global Single Instance

Security
• How to secure data, setup, and processing?
Autonomy
• How to keep independence between ledgers?
Flexibility and Sharing
• How to achieve processing efficiencies?

46
 Modeling Entities with Sets of Books

SOB East SOB West SOB ATS SOB DM

SOBs
($) ($) (€) (€)

Legal
US East US West Austria Germany
Entities

OUs OU East OU West OU ATS OU DM

47
 Modeling Entities with Sets of Books
Pros
• Each legal entity is a
separate set of books
• Data is secure
• Easy to secure definitions,
such as FSG reports
48
Cons
• Many books to maintain
• Changing responsibilities
• Difficult to share data and
setup information
• Cannot perform processes
across books
• Time-consuming
open/close process
• Difficult reporting
 … with Balancing Segment Values

SOB US SOB Europe

SOBs
($) (€)

LEs US East US West Austria Germany

(BSVs) (01) (02) (03) (04)

OUs OU East OU West OU ATS OU DM

49
 … with Balancing Segment Values
Pros
• Fewer books to maintain
• No changing
responsibilities
• Share setup information
• Perform processes across
legal entities
• Easy reporting
• Consolidated information
50
Cons
• Cannot share setup and
data across currency
boundary
• No data security
• Cannot secure definitions,
such as FSG Reports and
Mass Allocations
• No open/close security by
legal entity
 Functional Deep Dive Agenda
• Product Review
– Customer Pain Points with Release 11i
– Ledger Architecture Objectives
• Summary of Ledger Architecture Features
• Detailed Description of Each Feature
– Feature and Benefits
– Upgrade Considerations

51
 Ledger Architecture Objectives
Provides Security, Autonomy, and Flexibility

• 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
legal entities/ledgers
– When security and independence is preferred,
secure data and allow certain processes to be
performed independently
• Management Reporting Efficiency

Eliminate the 11i Cons of Modeling Legal Entities!

52
 Functional Deep Dive Agenda
• Product Review
– Customer Pain Points with Release 11i
– Ledger Architecture Objectives
• Summary of Ledger Architecture Features
• Detailed Description of Each Feature
– Feature and Benefits
– Upgrade Considerations

53
 New and Changed Features for
Oracle General Ledger R12
Ledger Architecture Features
Accounting Setup Manager
• Simultaneous Accounting For Multiple Reporting Requirements
• Multiple Currency Support For All Data From All Sources
• Management Reporting
Data Access and Data Security using Data Access Sets
• Access to Legal Entities and Ledgers
• Security for Legal Entities, Ledgers, Balancing and
Management Segment Values
Multi-Ledger (Ledger Set) Processing
• Overview of features that support ledger sets
Definition and Setup Security
• Security for Setup and Definitions w/ Definition Access Sets

54
Accounting Setup Manager
 Accounting Setup Manager

• Central place for defining and maintaining accounting

setup for the following:
– Legal Entities
– Operating Units
– Ledgers (primary and secondary ledgers)
– Reporting Currencies
– Subledger Accounting
– Inter- and Intra-company Balancing
– Sequencing (Accounting and Reporting Sequencing)

56
 Accounting Setup Manager Concepts

Primary Ledgers Secondary Ledgers

Main, record-keeping ledger • Optional, additional
Defined by 4Cs: accounting representations
• Chart of accounts of your primary ledger
• Accounting calendar • Can differ in one or more of
the following from the
• Primary currency primary ledger:
• Subledger Accounting – Chart of accounts
Method – Accounting calendar
– Primary currency
– Subledger Accounting
Method

57
 Accounting Setup Manager Concepts
Maintaining Multiple Accounting Representations with
Secondary Ledgers
Legal Entity

Corporate Ledger Local Statutory Ledger

Accounting (Primary Ledger) (Secondary Ledger)

SLA SLA

Subledger Transactions

Other
Transaction AP AR FA
Subledgers

58
 Secondary Ledgers
Business Reasons
• For global companies that
must comply with different
countries‟ legal
requirements
• Useful for supplementary
purposes, such as
consolidation or
management reporting
• Provides a complete
accounting picture within
itself or a partial picture to
be grouped with other
ledgers to provide a
complete picture
59
Benefits
• More flexibility!
• Represent legal entity(s)
accounting information in a
different:
– Accounting method
– Chart of Accounts
– Calendar
– Subledger Accounting
Method
• Maintain at 4 Different
Levels
 Secondary Ledger Conversion Levels

Level of Detail Desired Path to Secondary Ledger

Use GL Consolidation
Balances Level
to Transfer Balances

Use Posting for

GL Journals Level
Automatic Journals
Replication

Subledger Journals Use SLA for Automatic

AP AR FA Level Maintenance

Manual Adjustments in
Adjustments Only GL or Automated
Adjustments from SLA

60
 Reporting Currencies

4Cs
If one of a of
or more Primary Ledger
the following are different, If difference is
only currency,

US GAAP
Accrual

Corporate Monthly Accounting Currency

Chart of accounts Calendar Method

Use Reporting
Use a Secondary Ledger
Currencies

61
 Reporting Currency (RC) Conversion Levels

Level of Detail Desired Path to ALC

Balance Level Use GL Translation

Use GL Posting
Journal Level
(Similar to Thin-MRC)

Subledger Level Use SLA for

AP AR FA Automatic Maintenance
(Similar to Full-MRC)

Note: Subledger Level RCs not available for Secondary Ledgers

62
 Upgrade Considerations
Terminology Changes
Release 11i
• 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
63
Release 12
• Ledgers
• Subledger Accounting
• Secondary Ledgers
• Advanced Global
Intercompany System (AGIS)
• Intracompany Balancing
• Balance level RCs
• Reporting Currencies (RCs)
• Primary Ledger
• Reporting Currency
 Upgrade Considerations
Legal Entity Upgrade

• All GRE/LEs will be upgraded to one or more

accounting setups and be assigned to the correct
primary ledger
• All Balancing Segment Values (BSVs) will be available
for data entry for the legal entity and ledger (same as
R11i)
• You do not have to assign BSVs unless you want to
use Advanced Global Intercompany System

Note: More Details covered in Upgrade Planning Session

64
 Upgrade Considerations

Before Upgrade (R11i) After Upgrade (in R12)

• Run the Accounting • Run the Accounting
Setup Manager Pre- Setup Manager Post-
Update Diagnosis Update Diagnosis
Report to identify any Report
issues

Compare both reports before and after upgrade

65
 Upgrade Considerations
Reporting Currency Upgrade
Thin MRC Reporting Book Journal level RC
Full MRC Reporting Book Subledger Level RC
Unassigned Reporting Books Primary Ledgers
Translated Balances Balance Level RCs

– If ADB is enabled for the RC but not the PL, posting

will fail. You must disable the conversion.
– If translation was run in 11i for Reporting Books,
you can continue to run translation after upgrade.
You will not be able to translate using NEW
currencies.

66
 Upgrade Considerations
Secondary Ledger Upgrade
The following will be upgraded to Secondary Ledgers:
• Global Accounting Engine (AX) Posting Set of Books
• Secondary Set of Books defined in Accounts Payable
(AP) if you use Combined Accrual & Cash Basis
Accounting
• For a Fixed Asset corporate book that is linked to a
different set of books than its tax book(s), the set of
books linked to the Assets corporate book will be a
primary ledger and the set of books linked to a tax
book will be a secondary ledger.

67
Management Reporting
 Management Reporting and Security

Management Segment
• Optionally qualify a segment as the management
segment to perform management reporting
• Secure read and write access to Ledger/Management
Segment Value combinations using Data Access Sets

Co CC Acct I/C

Balancing Cost Center Natural Intercompany

Management Account

69
 Management Reporting and Security

LE

Primary Ledger

Co CC Acct I/C

• Managers enter adjustments using

their management segment value
OU97
• Data access set security ensures
managers only update/view info. for
OS69 their area of responsibility
OX53

70
Data Access Sets
 Data Access Sets Description

• Access multiple legal entities and ledgers from a single

GL responsibility using the GL: Data Access Set profile
option
• Assign Ledgers and Ledger Sets to Data Access Sets
• Optionally specify read and write privileges to:
– Entire Ledgers
– Specific Balancing Segment Values (a.k.a Legal Entities if
BSVs assigned to Legal Entities)
– Specific Management Segment Values
• When you assign specific balancing or management
segment values, you can specify all values, parent
values that include children, or child values individually
• iSetup API for Data Access Sets available

72
 Data Access Sets Description

• Full Ledger Access means:

– You have full read and write access to the ledger
– You have full read and write access to all balancing segment
values or management segment values
• The Full Ledger access set type provides better system
performance than balancing or management segment type
• Full Ledger Access is required for the following processes:
– Opening and closing periods
– Creating summary accounts
– Creating budgets
– Performing Mass Maintenance

73
 Data Access Sets Description

Ledgers must share

same COA/Calendar
combination
COA must have
management segment
Assign ledgers and/or to use
ledger sets

Specify Read Only or

Read/Write Access

74
 Upgrade Considerations

• Data Access Set

– GL: Set of Books profile option now renamed to GL
Ledger Name
– GL Ledger name profile option allows access to only one
ledger and its reporting currencies.
– If you choose to use the GL Ledger Name profile option,
the system will automatically assign the same ledger to
the GL: Data Access Set profile option.
– R11i responsibilities will be upgraded with DAS to the
ledger and all of its reporting currencies.
– If you set the GL: Data Access Set profile option, then the
GL Ledger Name profile option is ignored

75
Ledger Sets
 Ledger Sets

• Grouping of ledgers with the same chart of accounts

and calendar/period type combination
• Essentially treats multiple ledgers as one

• iSetup API for Ledger Sets available too

77
 Ledger Set

Perform the Following Across Ledgers:

Open/Close Periods
• Open/Close Periods Independently or
Simultaneously Ledger 1
Create Journals
• Allocations Across Ledgers Ledger 2
• Recurring Journals for All Ledgers
Translate Balances Ledger 3
• Translate Balances for All Ledgers
View Information Ledger 4
• No Changing Responsibilities
• View Journals and Account Balances Ledger Set
Create Reports
• Report on One or All Ledgers in a Ledger Set

78
Definition Access Sets
 Definition Access Sets

• Grant one or more of the following privileges to

responsibilities
– View Access: Allows you to view or query a definition in the
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 the definition access
set security for that definition.
– Use Access: Allows you to use a definition.
— For FSG reports, use access allows you to run the report.
— For FSG row and column sets, use access allows you to use
the row and column set when defining a report.
— For MassAllocations, use access allows you to generate a
MassAllocation.

80
 Definition Access Sets
Control Access to Definitions

GL Clerk Privileges Controller

Use View Modify
Rent Allocation Rent Allocation

Recurring Rent Recurring Rent

Balance Sheet

Income Stmt

81
 Definition Access Sets

Securable Definitions using Definition Access Sets

• Accounting Calendars • Elimination Sets

• AutoAllocations
• AutoPost Criteria Sets
• AutoReversal Criteria Sets
• Budget Formulas
• Budget Organizations
• Chart of Accounts
Mappings
• Consolidation Definitions
• Consolidation Sets
• FSG Reports and
components
• MassAllocations
• MassBudgets
• Rate Types
• Recurring Journals
• Revaluations
• Transaction Calendars

82
 Upgrade Considerations

• All setup objects and definitions are upgraded as is

with no security

83
SUMMARY
 Modeling Entities with Ledgers

Pros Cons

Each legal entity is a separate Many ledgers to maintain

ledger
Data is secure
Easy to secure definitions;
Reports and Mass Allocations
Changing responsibilities
Difficult to share data and setup
information
Cannot perform processes
across ledgers
Time-consuming open/close
process
Difficult reporting

85
 … with Balancing Segment Values
Pros
Fewer ledgers to maintain
No changing responsibilities
Share setup information
Perform processes across legal
entities
Easy reporting
Consolidated information
86
Cons
Cannot share setup and data
across currency boundary
No data security
Cannot secure definitions,
such as FSG Reports and
Mass Allocations
No open/close security by
legal entity
 New Architecture Summary

Issue Solution
• Entity Autonomy
• Independent Open/Close Data Access Set
• Read/Write Access

• Reporting Across Entities

Ledger & Ledger Set
• Efficient Processing

• Setup & Maintenance

Definition Access Set
• Definition Security

87
Thank You

Thank You
Release 12 Field Readiness Workshop

Oracle General Ledger

Session 2
Oracle General Ledger

Functional Deep Dive

 Functional Deep Dive Agenda
• Summary of New/Changed GL Features
• Detailed Description of Each Feature
– Feature and Benefits
– Demonstration
– Implementation Considerations
– Customization and Extensibility Options
– Integration Considerations
– Upgrade Considerations
– Global Considerations
• Wrap Up/Q&A

91
 New and Changed Features for
Oracle General Ledger R12

Auditability
• Accounting and Reporting Sequencing
• Journal Line Reconciliation
General Processing Efficiency
• Web-based spreadsheet interface
• Journal Copy
• Streamlined Automatic Posting
• Streamlined AutoReversal Criteria Setup
• Streamlined Consolidation Mappings
• Replacement for Disabled Accounts

92
 New and Changed Features for
Oracle General Ledger R12 (continued)

Enhanced Foreign Currency Processing

• Entered Currency Reporting and Analysis
• R12 Currency Changes that impact Inquiry, Reporting,
Mass Allocations and Recurring Journals
Data Security
• Control Accounts
• Prevent Reversal of Journals with Frozen Sources
• Prevent Reversal of Unposted Journals
Others
• Enhanced Intercompany
• Intercompany Balancing Support for Encumbrances
• Enhanced Tax Solution

93
Accounting Sequencing and
Reporting Sequencing
 Accounting and Reporting Sequencing

Accounting Sequencing
• Sequence GL journals when posted in GL
– Validate Sequence (Select Which Sequence to Use)
— By Journal Effective Date
– Assign Sequence (Sort)
— By Journal Effective Date
• Replaces Global Accounting Engine (AX) legal sequencing

95
 Accounting and Reporting Sequencing

Reporting Sequencing
• Sequence GL Journals when you close a GL Period
– Validate Sequence (Select Which Sequence to Use)
— By Journal Effective Date or Reference Date (Libro Giornale)
– Assign Sequence (Sort)
— By Journal Effective Date or Posting Date
– When period is re-opened, the sequences are removed to
ensure gapless sequence
• For Reporting Sequencing, if you assign specific BSV, you
can indicate which BSVs are categorized as fiscal. When GL
period is closed, only fiscal journal entries are sequenced.
• Reporting Sequencing requires Business Events, Period
Close and Period Reopen, to be enabled
• Replaces Global Accounting Engine (AX) Libro Giornale
(Italian Journal Book) feature
96
 Accounting and Reporting Sequencing

• Assign mutually exclusive sequences based on:

– Ledgers or Reporting Currencies
– Journal Sources or Journal Categories
– Balance types (actual, budget, encumbrance)

Assigned Assigned
during during
posting period close

97
 Upgrade Considerations

• If you used the Legal Sequencing feature or Libro Giornale

(Italian Journal Book) feature in Global Accounting Engine
(AX) in R11i, the setup will not be upgraded to
accounting/reporting sequence.
• You need to reimplement sequencing using the
accounting/reporting sequencing feature.

98
Journal Line Reconciliation
 Journal Line Reconciliation

Journal Line Reconciliation

• Reconcile journal lines that should net to zero, such as
suspense accounts, or payroll and tax payable accounts
• Reconcile manually
– any combination of journals lines that net to zero
• Reconcile automatically for journal lines that net to zero and
– matching account combination and reference
– matching balancing segment and reference
– matching balancing segment, natural account and blank
reference, or
– matching balancing segment, natural account, and reference.
• Run the automatic reconciliation program to get preliminary
report on the lines that will be reconciled

100
 Journal Line Reconciliation

Enter
Reconciliation Reference

101
 Global and Upgrade Considerations

Global Considerations
• Formerly known as the GL Entry Reconciliation feature within
Oracle Financials Common Country Features
• No country-specific localizations are needed; journal
reconciliation is now included in the base General Ledger
product
Upgrade Considerations
• If you used GL Entry Reconciliation feature within Oracle
Financials Common Country Features, you need to run
„Upgrade Journal Lines for Reconciliation‟ to populate
historical data

102
Web-based Spreadsheet Interface
 Journal and Budget Wizard

Journal Wizard
• Previously called Web-ADI Journal Integrator
• Create actual, budget, or encumbrance journals from a web-
based spreadsheet interface
• Import data from text files to create journals
Budget Wizard
• Replaces Budget Wizard in Client-Server ADI
• Compare budget amounts and actual amounts in Excel
• Create Graphs
• Add Budget Notes to add descriptions

Launch both directly from the GL menu!

104
Journal Copy
 Journal Copy

Journal Copy

• Copy an existing journal batch to create a new journal

batch with the same journals and journal lines.

106
 Journal Copy

• You can only copy actual journal batches, not budgets or

encumbrances
• The copied batches will have the journal source “Manual”
• The journal lines generated by tax, tax codes and other tax
information will not be copied into the new batch
• Copied foreign currency journals may display different
accounted amounts from the original journal based on the
conversion rate for the specified effective date
• All of the journals in the batch will be copied

107
Streamlined Processes
AutoReversal Criteria
AutoPost Criteria
Consolidation Mapping
 Streamlined Processes

Streamlined AutoReversal Criteria

• Reversal Criteria Sets can be shared across any ledger.
• Assign Journal Reversal Criteria Set to the ledger in
Accounting Setup Manager

109
 Streamlined Processes

Streamlined Automatic Posting

• AutoPost Criteria Sets can be shared across ledgers
and used to automatically post journals across multiple
ledgers simultaneously.

110
 Streamlined Processes

Streamlined Consolidation Mapping

• Define mapping rules between COA
• Use for Consolidations and for SL mapping

111
 Streamlined Processes

Release 11i Release 12

Reversal
Within a Set of Books Across Ledgers
Criteria Set

AutoPost Within a Set of Books Across Ledgers

Consolidation • Between two SOBs • Between two COA

Mapping • Used by consolidation • Used by Consolidation
& PL to SL Mapping

112
 Upgrade Considerations

• Journal Reversal
– Journal Reversal Criteria Set for every Set of Books(SOB)
in R11i is upgraded and named according to the Ledger
Name
• AutoPost
– AutoPost criteria set in R11i is upgraded and the ledger
fields are populated with the SOB it was created for
• Chart of Accounts Mapping
– Consolidation definition in R11i is upgraded in two parts:
— Consolidation Definition: Upgraded with the source and
target ledger assigned
— Chart of Accounts Mapping: Upgraded with the same name
and assigned to the Consolidation Definition

113
Replacement for Disabled Accounts
 Replacement for Disabled Accounts

Alternate accounts
– Used to replace accounts during Journal Import if accounts are
disabled/end-dated
– Alternate accounts will not be used for accounts that have
posting or budgeting disabled
– Journal Import writes the original account in the journal line
description if it uses the alternate account
– Alternate accounts are only used by Import, not Posting
– Alternate accounts are used in preference to importing errors to
suspense account
– If no alternate account is available and error to suspense
account is enabled during Journal Import, suspense account
will be used
– Reconciliation is based on the setup for the alternate account,
not the original account

115
 Replacement for Disabled Accounts

116
 Enhanced Foreign
Currency Processing
 Entered Currency Reporting and Analysis

Entered Ledger Currency

• Track balances for amounts entered in the ledger currency
separately from amounts converted to the ledger currency
Ledger Currency: USD Journal 1 – 500 GBP (1,200 USD)
Journal 2 – 1,000 USD

Entered USD Entered Total (USD) Total USD

Acct Currency
Debit Credit Debit Credit
Cash GBP 500 1,200
1,000 R11i
Cash USD 2,200
R12

Converted Ledger Currency Balances

• Now supported for QTD and PJTD balances, not just PTD and
YTD balances

118
R12 Changes to Currency
 R12 Changes to Currency

3 New Currency Fields

1. Ledger Currency
– Acts as a filter for Ledger Sets to select the ledgers that
match the Ledger Currency specified
2. Currency Type (Entered, Total, or Statistical)
– “Entered” requires selecting an Entered Currency
– STAT currency is now a Currency Type “Statistical”
– “Total” means you want to grab total converted
balances, such as foreign entered balances converted to
the ledger currency
– “Total” for a Balance level RC means translated balances
– FSG also has “Converted” Currency Type
3. Entered Currency
– Required if Currency Type “Entered” selected

120
 R12 Changes to Currency Example
Operations Ledger Set

Ledger or RC Name Ledger Currency

Vision Operations USD $

Vision Ops (EUR) EUR
Journal level RC

Vision Ops (JPY) JPY

Balance level RC

121
 Vision Operations
Primary USD
Ledger Set Query Example Vision Ops (EUR) Vision Ops (JPY)
JE Level RC Balance Level RC

Ledger Currency Entered

Ledger Set Query Results
Currency Type Currency

USD Total N/A Total balance for

Vision Operations
Total balance for all
Operations Set All Total N/A Ledgers/RCs
(incl. translated balances)
JPY Total N/A Translated balance for
Vision Ops (JPY)
EUR Entered JPY JPY Entered Currency
balance for Vision Ops
(EUR)
All Entered JPY JPY Entered Currency
balance for all
Ledgers/RCs
All Statistical STAT STAT balance for all
except Vision Ops (JPY)

122
 Vision Operations
Primary USD

Single Ledger Query Example Vision Ops (EUR)

JE Level RC
Vision Ops (JPY)
Balance Level RC

Ledger Currency Entered

Ledger Query Results
Currency Type Currency
Vision Operations USD Total N/A Total balance for
Vision Operations
JPY Entered
Vision Ops (EUR) EUR Entered JPY
Currency balance for
Journal level RC
Vision Ops (JPY) JPY Total N/A Translated balance
(Balance level RC) for Vision Ops (JPY)

Entered CAD Looks to the primary

Vision Ops (JPY) JPY ledger, Vision Operations
(Balance level RC) Statistical STAT to retrieve entered
currency or stat balance

123
 Converted Currency Type Example

The following balances exist for a Ledger with Ledger Currency USD:
R11i: Foreign
Entered Only
Entered Converted (USD)
Acct Currency
Debit Credit R12: Converted
Debit Credit
too!
Cash USD 1,000

Cash GBP 500 1,200

Cash JPY 7000 300

Query Criteria and Results:

Currency Type Entered Currency Query Results

Converted JPY $300 (Retrieves converted

ledger currency Balances that
were entered in JPY)

Converted USD $1,000 (Same as choosing

Entered USD balances)
124
Recurring Journals Enhancements
 Recurring Journals

Foreign Currency Recurring Journals

• Create foreign currency recurring journal
• Cannot create foreign currency budget
formulas
Other Enhancements to Recurring Journals
• Recurring batch can contain journals from
multiple ledgers
• Budget formulas can only use single ledger
batch types
• Of course, Data Access Set and Definition
Access Set security enforced

126
 Recurring Journals
R11i

R12

Single or Multiple
Ledgers

Any Currency

127
 Upgrade Considerations

• Recurring Journals upgraded as “single ledger”

Recurring Batch Type

128
 Data Security

• Control Accounts
• Prevent Reversal of Frozen Journal Sources
• Prevent Reversal of Unposted Journals
 Control Accounts

• Qualify accounts and entire account combinations to

be Third Party Control Accounts to:
– Restrict its use by subledgers (not just AP and AR as in
11i)
– Prevent manual journal entry to control accounts
– Prevent modifying journal entries that contain control
accounts, even if the journal entry is from a subledger
source

• Balances in sync between subledgers and GL

Benefit
• Easier Reconciliation

130
 Control Accounts
Qualifying Accounts to be Third Party Control Accounts

Specify
• Customer
• Supplier or
• Yes

131
 Journal Reversal Enhancements
Description and Benefits

Description Benefits
• Prevent Reversal of • Consistency enforced
Journals with Frozen between subledger and GL
Sources account balance

• Prevent Reversal of • Improved data integrity

Unposted Journals • All reversals can be tied
back to the originating
journal

132
Other Journal Enhancements

• Enhanced Intercompany
• Intercompany Balancing Support for
Encumbrances
• Enhanced Tax Solution
 Enhanced Intercompany and Intracompany Balancing

Advanced Global Intercompany System (AGIS)

• Global Intercompany System (GIS) replaced by AGIS, a
separate product with many enhancements
Balancing Rules
• R11i Intercompany Balancing replaced by
Intracompany Balancing Rules
– Used across Subledger Accounting and General Ledger
to balance journals within a legal entity or ledger
• Intercompany Accounts
– Used across Subledger Accounting and General Ledger
to balance cross legal-entity journals
• Intercompany balancing support for encumbrance
journals
134
 Enhanced Tax

• Input and Output Tax Codes

are obsolete
• Input and Output Tax Codes
have been merged into Tax
Options
• Tax Options now owned by E- Bye, bye!
Business Tax
• No changes from a Journal
Entry perspective

135
Thank You