general ledger sathya

8/6/2019 General Ledger Sathya

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General Ledger

A Deep Drive

J. Sathya Kumar


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Definition

Oracle General Ledger:Oracle General Ledger:

Oracle General Ledger is a comprehensive

financial management solution that

dramatically enhances financial controls,

data collection, information access, and

financial reporting throughout yourenterprise.


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Invoices

Payments

Revenues

Receipts

Additions/Retirements

Depreciation

Adjustments

Accrued Receipts

Inventory

COGS

Salary

Deductions

Revenue

LaborCosts

Usage Costs

WIP activity

Other costs

Payables

Inventory

Work inProcess

Receivables

Projects

Purchasing

GeneralLedger

Assets

Payroll

Interface Information: Accounting Entries

HumanResources

Employee

Information


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Oracle

General Ledger *

Oracle

Order Entry

Oracle

Receivables

Oracle

Inventory

Customer InformationCredit InformationSales Reps.Payment Terms

Invoice InformationReturns/CreditsBooked Orders

ShipmentReservationDemands

Units of MeasureItem InformationATP/On Hand

Journal Entries- Invoices- Receipts

Oracle

Assets

Oracle

Purchasing

Units of MeasureItem InformationATP/On Hand

InventoryTransactions(Receipts)

Oracle

Payables

Invoice Information

(from POs)

Vendors

Information

Journal Entries- Invoices- Payments

Journal Entries- Additions- Retirements- Depreciation- Adjustments

Assets Information(from Invoices)

Oracle

Work in Process

Oracle

Bill of Material

Model Structure

Items Info/Units of Measure

Model Structure

Internal Requisitions

Purchase Orders(Outside Processing)

Final AssemblyOrders

Reservations

Demand

Oracle

Master

Scheduling

Item InformationUnits of Measure

Item InformationUnits of Measure

PlannedOrders

Sales Orders

RequisitionsPurchase Orders

External

Systems**

Oracle

Project

Accounting

RevenueAdjustments

Invoice Information

Accrued Receipts

Customer Data

Vendor DataVendorInvoices

Expense Reports

Journal Entries(inventory and workin process activity)

Oracle

Human

Resources

Journal Entries

Employee Data

E-Business Suite Integration


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Shared General Ledger Data Many elements of an Oracle General Ledger

are shared with otherOracle applications.

Account Structure

Value sets

Segment values

Security rules

Cross-validation

rules

Shorthand Aliases

GeneralLedger

Accounting Calendar

Periods

Period Types

Currencies

Daily rates

Rate types

Journal Entries

Sources

Categories


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SOB USA($)

SOB BEL()

SOB ATS()

SOB DM()

SOBs

R11i

Pain

Points

USA Belgium Austria Ger manyLegalEntities

OU USA OU ATSOU BEL OU DMOUs

Modeling Entities with Sets of Books


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R11i

Pain

Points (continued) Pros Cons

Each legal entity is a

separate set of books

Data is secure Easy to secure

definitions, such as FSG

reports

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


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Reporting Currency (USD)

KeyC

oncepts and Terminology

SLA

Transaction

Accounting

Subledger Transactions

SLA

Corporate Ledger (EUR)(Primary Ledger)

Statutory Ledger (EUR)(Secondary Ledger)

AP AR FA Others

Legal Entity

Maintaining Multiple Accounting Representations with

Secondary Ledgers or Reporting Currencies


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Configuring PL/RC & SL


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Key Concepts and Terminology

Main, record-keepingledger

Optional, additional

accounting representation of

Primary Ledger

Primary Ledger (PL) Secondary Ledger

Defined by 4Cs:

Chart of accounts

Accounting calendar

Primary currency

Subledger aCcounting

Method

Can differ in one or all

4Cs:

Chart of accounts

Accounting calendar

Primary currency

Subledger

aCcounting Method

Optional, currency

representation of

Primary or Secondary

Ledger

Reporting Currency

Only differs

in:

Currency


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Currency

Difference Between Secondary Ledgers and

Reporting Currencies

Corporate

Chart of accounts

Monthly

Calendar

Accounting

Method

US GAAPAccrual

Use a Secondary Ledger

If difference isonlycurrency,

Use ReportingCurrencies

If one ormore of the following are different,


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SL Vs RC

COA Calendar Currency SLAM

(Convention)

?

Sathya (LE) SATHYA_ COA Accounting -

12

USD US GAAP

Sathya OU1

(INDIA)

SATHYA_COA Accounting -

12

INR US GAAP

SATHYA OU2

(FRANCE)

SATHYA_COA Accounting

12

EUR FR S

SATHYA OU3

(USA)

SATHYA_COA Accounting 9 USD US GAAP

SATHYA OU4

(Japan)

SATHYA_JAPAN

_COA

Accounting

12

JPY US_GAAP


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AccountingC

onfiguration Process ofConfiguring PL/SL and RC in

ASM.

Used ASM as a tool.

Used in case of Accounting for Multiple

companies.


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Accounting Configuration classification

Business Requirement

Multiple Companies

share the same ledgerMultiple Companies

using Diff LedgerMultiple companies

using special purpose

Ledger

Other Accounting

Configuration

Exclusive Accounting

ConfigurationShared Accounting

Configuration


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Why Multiple companies share the same Ledger?

Country in which companies operate do not have strict

statutory requirement such as unique COA for LE.

You do not need to open and close periods independently

between LE and companies.

Multiple LE can maintain same accounting representation

such as same corporate and statutory requirement.

Multiple LE share the same COA,Calendar,Currency and

SLAM. Shared Accounting Configuration is the only solution

for the above business requirements.


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Shared Accounting Configuration

Allows accounting for multiple LEs in same PL.

Assign Unique Balancing Segment Value to represent each

LE.

Easy identification of transaction per LE.

If LE is subject to multiple set of legislations, SL can be

attached to PL.

RC can be attached if a different currency representation is

required.


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Shared Accounting Configuration


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Legal Entities Modeled as Ledgers(Exclusive)

Sathya Enterprise

Legal Entity France

BSV20BSV10

UK Ledger (GBP) French Ledger(EUR)

Legal EntityU

K

BSV30


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Legal Entities Modeled as BSV(Shared setup)

Sathya Enterprise

Legal Entity USA Legal Entity CAD

US Ledger(USD)

BSV10 BSV20BSV30


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Multiple Companies using different Ledgers

Strict Legal requirement for LE to have their data separate.

Diff Accounting structures(eg one company requires 20 segment and

other may require 5)

One require a weekly calendar and other requires monthly.

One may use Accrual method and other cash basis. Strict Tax requirement.

Facility to open/close periods independently for each LE.

Diff accounting representation for diff LEs.

Using multiple Oracle Applications Instance.

Exclusive Accounting configuration is the only solution whichallows one LE to be assigned to one PL.


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Multiple Companies user Special Purpose Ledger

Name says it all.

Used when one of following is true:

No requirement to maintain transactions using LE context.

GL is used as a standalone application. Used for consolidation adjustments which are separate from your day

to day transactions.

Ledger used to enter consolidation adjustments across multiple LEs.


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Accounting Configuration comparision

LE Attributes Shared Exclusive Others

Number of LEs

allowed per

Ledger

Multiple LE can

be represented

Only one LE No LE concept

Level of Statutory

compliance

LOW:

Countries not

highly regulated

HIGH:

Strict legislative

compliance

NONE

Ledger Attributes:

COA

CURRENCY

Calendar

SLAM

All LEs must

share the same

attributes.

LEs use different

attributes.

Any

Combination.


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Feature Comparison by Accounting Configuration

Feature Shared Exclusive Other

Open/Close GL

Accounting Periods

Same time Different Time Independent of

other ledgers.

VAT Controls All LEs share the

same VAT in

Oracle Payables

Have autonomous

VAT controls.

N/ANo Subledger

transactions exists.

Consolidated

Payments

Allow consolidated

invoice payments

across multiple

LEs.

No ability to make

lumpsum payment

across LE.

N/A. No Subledger


Multiple LE

Journals

Allows journals

across multiple LE.

No ability to create

journals that cross

multiple LE.

N/A. No Subledger



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Currency

Difference Between Secondary Ledgers and

Reporting Currencies

Corporate

Chart of accounts

Monthly

Calendar

Accounting

Method

US GAAPAccrual

Use a Secondary Ledger

If difference isonly currency,

Use ReportingCurrencies

If one ormore of the following are different,


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Conversion Levels

BalanceUse GL Consolidation

to Transfer Balances

JournalUse GL Posting for

Automatic Journal

Replication

AP ARFA

Subledger Use SLA for Automatic

Maintenance

Adjustments

Only

Manual Adjustments in

GL

Level of Detail Path to SL Path to RC

Use SLA

(Full-MRC)

Use GL Posting

(Thin-MRC)

Use GL Translation


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Key Concepts and Terminology

You only need to maintain an additional accountingrepresentation at the balances level

You do not need the balances to be updated in real-time;you can wait until they have been transferred to thesecondary ledger

Use Balance Level Secondary LedgerSecondary Ledgerif:


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RCC

onversion Level Balance Highest Level (No Control)

Subledger Level Lowest Level (Tight

Control)

Journal Level Posted

transactions(Moderate control)


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SLAM in SL SLAM in SL can be used only when

conversion is done at Subledger Level or

Adjustment Only Level.

All the 3Cs (Currency, Calendar and

COA)should be same if conversion is done

at Adjustment only Level.


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Levels ofC

onversion


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SLC

onversion Level


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Other Topics

Flex field

Cross Validation Rules

Dynamic Inserts

Security Rules

AHM Roll up Groups and Parent Account

Data Access Set


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Thank You

general ledger sathya

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