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Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Copyright © 2015, Oracle and/or its affiliates. All rights reserved. JD Edwards Summit JD Edwards Chart of Accounts Design and Leading Practices James Hill Principal Sales Consultant National JD Edwards Sales Consulting February 5 th , 2015

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Copyright © 2015, Oracle and/or its affiliates. All rights reserved. Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

JD Edwards Summit

JD Edwards Chart of Accounts Design and Leading Practices

James Hill Principal Sales Consultant National JD Edwards Sales Consulting February 5th, 2015

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Program Agenda

Introductions

Organizational Structure Review (COA Context)

Messaging

The Chart of Accounts

Chart of Accounts Leading Practices

Open Discussion

1

2

3

4

5

Oracle Confidential – Internal/Restricted/Highly Restricted 2

6

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Program Agenda

Introductions

Organizational Structure Review (COA Context)

Messaging

The Chart of Accounts

Chart of Accounts Leading Practices

Open discussion

1

2

3

4

5

Oracle Confidential – Internal/Restricted/Highly Restricted 3

6

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Jim Hill, Principal Sales Consultant

4

Finance Roles:

Financial Consolidations and Reporting Manager

Controller

Sr. Financial Analyst

Consulting:

18 years experience in JD Edwards:

Finance Consulting (7 years)

Solutions / Pre-Sales (8 years)

Program/Project Management (5 years)

Practice Director (3 years)

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Bill

ings

Oracle Confidential – Internal/Restricted/Highly Restricted

All roads lead to General Ledger!

5

Purchases,

Sub-contracts

Service Request

Service Billings

Fixed Assets

Vouchered

Expenses,

T&E

Credit Card

Charges

Invoices &

Payments Basis for

Billings Employees &

Skills

Depreciation

Expense

Suppliers Customers

Time Entry

HR AP Expense

Management AR Contracts

Purchasing Production Equipment Inventory Service

Sales

Billings,

Maintenance

Receiving

General

Ledger

Pricing

Invoices

Maintenance

Repairs

His

tory

Transactions,

Demand Product Data

Mfg Execution

Budgets,

Commitments

Labor

Cost

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Program Agenda

Introductions

Organizational Structure Review (COA Context)

Messaging

The Chart of Accounts

Chart of Accounts Leading Practices

Open discussion

1

2

3

4

5

Oracle Confidential – Internal/Restricted/Highly Restricted 6

6

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

US Operations Companies: • Fiscal Date Pattern

• Base Currency

• Balancing Entity

Accounts: • Belong to Business Unit

• 43+ Category Codes or

Dimensions

Business Unit Company

Business Unit #100 Company 1 Business Unit #200 Company 2 Business Unit #300 Company 3 Business Unit #400 Company 4 Business Unit #500 Company 5 Business Unit #600 Company 6

Business Units: • Belong to a Company

• Own the Chart of Accts

• 50+ Category Codes or

Dimensions

Company 1 Company 6 Company 2 Company 5

Chart of Accounts

1010 Capital One (STS AR) 1110 Allowance for Doubtful Account 1680 Construction in Progress 2000 Accounts Payable 2600 Long Term Debt - Revolver 4000 Rental Sales/Revenue

Account Category Codes

Business Unit Category Codes Business Units

Accounts

Subledger / Adv.

Accounting • Transactional based

Dimensions

Company 4 Company 3

7

European Operations

Consolidation

Region Geography Type

User Defined Up To 50 Cat

Codes

US Operations Central Mfg European Operations France Dist Center US Operations West Admin US Operations North East Dist Center US Operations Mountain Dist Center Europe US 0perations United Kingdom Dist Center

Cash Flow Report Acct

User Defined Up to 43 Cat

Codes

Cash Current Assets Current Liability Current Assets Investment LT Assets Operations Current Liability Operations LT Liability Operations Revenue

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

US Operations Companies: • Fiscal Date Pattern

• Base Currency

• Balancing Entity

Accounts: • Belong to Business Unit

• 43+ Category Codes or

Dimensions

Company 1 Company 6 Company 2 Company 5

Chart of Accounts

1010 Capital One (STS AR) 1110 Allowance for Doubtful Account 1680 Construction in Progress 2000 Accounts Payable 2600 Long Term Debt - Revolver 4000 Rental Sales/Revenue

Account Category Codes Accounts

Subledger / Adv.

Accounting • Transactional based

Dimensions

Company 4 Company 3

8

European Operations

Consolidation

Cash Flow Report Acct

User Defined Up to 43 Cat

Codes

Cash Current Assets Current Liability Current Assets Investment LT Assets Operations Current Liability Operations LT Liability Operations Revenue

Business Units: • Belong to a Company

• Own the Chart of Accts

• 50+ Category Codes or

Dimensions

Business Unit Category Codes Business Units

Region Geography Type

User Defined Up To 50 Cat

Codes

US Operations Central Mfg European Operations France Dist Center US Operations West Admin US Operations North East Dist Center US Operations Mountain Dist Center Europe US 0perations United Kingdom Dist Center

Business Unit Company

Business Unit #100 Company 1 Business Unit #200 Company 2 Business Unit #300 Company 3 Business Unit #400 Company 4 Business Unit #500 Company 5 Business Unit #600 Company 6

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted

Business Unit Category Codes (Mgmt Reporting)

Business Unit Effective

Date Region Area Div . . . Cat 50

10

12/31/1013

US Central Retail ?

20 US Central Wholesale ?

30 US Central E-Commerce ?

40 US East Retail ?

50 US East Retail ?

60 US West Wholesale ?

70 US West Wholesale ?

80 US South Retail ?

Category Codes

9

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted

Business Unit Category Codes (Financial Reporting)

Business Unit Effective

Date Consolidation

Level 1 Consolidation

Level 2 Consolidation

Level 3

10

12/31/2013

USD North America USA

20 USD North America USA

30 USD North America Canada

40 USD Asia China

50 USD Asia China

60 USD Asia Taiwan

70 USD Asia Hong Kong

80 USD Euro UK

90 USD Euro UK

100 USD Euro UK

110 USD Euro Germany

120 USD Euro Germany

Category Codes

10

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted

Sample Ledger Types

11

AA BA B2 B3 B4 D1 D2 PA

Actual Budget 2nd Qtr

Reforecast 3rd Qtr

Reforecast 4th Qtr

Reforecast Federal Tax State Tax Commitments

Operational Ledger Types

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted

Financial Reporting Ledger Types

AA CA XA GP * Rate AC

Local Currency Local GAAP

Foreign Amt of

Transaction

Original USD Value of

Transaction

Adjustment between US

GAAP and IFRS Consolidated USD

12

Currency and Consolidation

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted

Sub-Ledgers

Business Unit

Object Subsidiary Description Amount Sub-Ledger

Type* Number Description

100 8200 1000 Travel - Airfare

$100 A 2000 James Hill

$200 A 2100 Bob Jones

$150 A 2300 Sally Johnson

100 7000 2000 Repairs and Maintenance

$500 W 1500 Work Order #1500

•A = Address Book, W = Work Order Others include Business Unit, Equipment Number, Call Number, Service Contract Number, Item Number, Lease Number, Mfg Work Order, Purchase Order Number.

Example Sub-ledger

13

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Program Agenda

Introductions

Organizational Structure Review (COA Context)

Messaging

The Chart of Accounts

Chart of Accounts Leading Practices

Open discussion

1

2

3

4

5

Oracle Confidential – Internal/Restricted/Highly Restricted 15

6

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted

Your JD Edwards Organizational Structure can adapt to your changing business!!

Changing Organizational Structures

16

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Program Agenda

Introductions

Organizational Structure Review (COA Context)

Messaging

The Chart of Accounts

Chart of Accounts Leading Practices

Open discussion

1

2

3

4

5

Oracle Confidential – Internal/Restricted/Highly Restricted 17

6

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

US Operations Companies: • Fiscal Date Pattern

• Base Currency

• Balancing Entity

Accounts: • Belong to Business Unit

• 43+ Category Codes or

Dimensions

Business Unit Company

Business Unit #100 Company 1 Business Unit #200 Company 2 Business Unit #300 Company 3 Business Unit #400 Company 4 Business Unit #500 Company 5 Business Unit #600 Company 6

Business Units: • Belong to a Company

• Own the Chart of Accts

• 50+ Category Codes or

Dimensions

Company 1 Company 6 Company 2 Company 5

Account Category Codes

Business Unit Category Codes Business Units

Subledger / Adv.

Accounting • Transactional based

Dimensions

Company 4 Company 3

18

European Operations

Consolidation

Region Geography Type

User Defined Up To 50 Cat

Codes

US Operations Central Mfg European Operations France Dist Center US Operations West Admin US Operations North East Dist Center US Operations Mountain Dist Center Europe US 0perations United Kingdom Dist Center

Cash Flow Report Acct

User Defined Up to 43 Cat

Codes

Cash Current Assets Current Liability Current Assets Investment LT Assets Operations Current Liability Operations LT Liability Operations Revenue

Chart of Accounts

1010 Capital One (STS AR)

1110 Allowance for Doubtful Account

1680 Construction in Progress

2000 Accounts Payable

2600 Long Term Debt - Revolver

4000 Rental Sales/Revenue

Accounts

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

JDE Sample Account Structure

Typical Object

Account Range* Type

1000-1999 Assets

2000-2999 Liability

3000-3999 Equity

4000-4999 Revenue

5000-5999 Direct Expenses

6000-6999 Indirect Expenses

7000-7999 Sales & Marketing

8000-8999 SG&A

9000-9999 Units or Statistics

Oracle Confidential – Internal/Restricted/Highly Restricted

*Account ranges are suggestions only.

19

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

JDE Account Structure

• Account Masters

• Copy Accounts from Existing BU

• Inherit Company and Business Unit Attributes

Oracle Confidential – Internal/Restricted/Highly Restricted

Business Unit

. Object . Subsidiary LOD Post Description

100 . 8000 . 6 N Salaries and Wages

100 . 8000 . 1000 7 Regular Time

100 . 8000 . 2000 7 Overtime

100 . 8000 . 3000 7 Vacation and Holiday Pay

Where What

20

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Statutory Reporting

21

JDE Account Description Alternative Account

1.1110.100 Cash Chicago Acct Current Assets

1.1110.200 Cash Detroit Acct Current Assets

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account System Considerations

• Object Account order must be Assets, Liabilities, Equity, and then Revenue and Expenses

• It is HIGHLY recommended that Object Accounts be standardized across all Companies!

• Do not skip Levels of Detail

• Do not change an account with history to a non-posting account

Oracle Confidential – Internal/Restricted/Highly Restricted 22

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Accounts Design Approach

• Define reporting requirements

• Analyze existing reports

• Develop list of Object and Subsidiary Accounts in sequential order based on requirements and existing reports

• Determine system required Object Account ranges (i.e. AAI’s)

• Define KPIs and Metrics that may impact COA.

Oracle Confidential – Internal/Restricted/Highly Restricted 23

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Program Agenda

Introductions

Organizational Structure Review (COA Context)

Messaging

The Chart of Accounts

Chart of Accounts Leading Practices

Open discussion

1

2

3

4

5

Oracle Confidential – Internal/Restricted/Highly Restricted 24

6

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account Leading Practices

• Minimize Levels of Detail

Oracle Confidential – Internal/Restricted/Highly Restricted 25

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Minimize Level of Detail

26

Account Description PEC LOD

8000 Sales and Marketing Expenses N 3

8050 Sales Expenses N 4

8100 Sales Promotional Expenses N 5

8200 Sales Promotional Advertising N 6

8250 Sales Promotional Advertising Catalogs N 7

8300 Sales Promotional Advertising Print Catalogs N 8

8400 Sales Promotional Advertising Print Winter Catalog 9

8500 Marketing Expenses N 4

8550 Marketing Promotional Expenses N 5

8600 Marketing Promotional Advertising N 6

8650 Marketing Promotional Advertising Catalogs N 7

8700 Marketing Promotional Advertising Print Catalogs N 8

8800 Marketing Promotional Advertising Print Winter Catalog 9

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account Leading Practices

• Minimize Levels of Detail

• Take advantage of LOD functionality

Oracle Confidential – Internal/Restricted/Highly Restricted 27

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted

Taking Advantage of Level of Detail

28

Object LOD Description

1000 3 Total Assets

1100 4 Current Assets

1700 4 Long-Term Assets

1900 4 Intangible Assets

2000 3 Total Liabilities

2100 4 Current Liabilities

2700 4 Long-Term Liabilities

2900 4 Notes Payable

3000 3 Equity

3100 4 Retained Earnings

Object LOD Description

4000 4 Revenue

4100 5 Retail Revenue

4200 5 Wholesale Revenue

5000 4 Direct Expenses

5100 5 Direct Labor

6000 4 Administrative Expenses

6100 5 Salaries

7000 4 Other Expenses

7100 5 Facilities

7200 5

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account Leading Practices

• Minimize Levels of Detail

• Take advantage of LOD functionality

• Leave enough space in between Object and Subsidiary Account Numbers for future growth

Oracle Confidential – Internal/Restricted/Highly Restricted 29

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Not Recommended

30

Account Description

8000 Sales and Marketing Expenses

8001 Sales Expenses

8002 Sales Promotional Expenses

8003 Sales Promotional Advertising

8004 Sales Promotional Advertising Catalogs

8005 Sales Promotional Advertising Print Catalogs

8006 Sales Promotional Advertising Print Winter Catalog

8007 Marketing Expenses

8008 Marketing Promotional Expenses

8009 Marketing Promotional Advertising

8010 Marketing Promotional Advertising Catalogs

8011 Marketing Promotional Advertising Print Catalogs

8012 Marketing Promotional Advertising Print Winter Catalog

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Better

31

Account Description

8000 Sales and Marketing Expenses

8005 Sales Expenses

8010 Sales Promotional Expenses

8015 Sales Promotional Advertising

8020 Sales Promotional Advertising Catalogs

8025 Sales Promotional Advertising Print Catalogs

8030 Sales Promotional Advertising Print Winter Catalog

8035 Marketing Expenses

8040 Marketing Promotional Expenses

8045 Marketing Promotional Advertising

8050 Marketing Promotional Advertising Catalogs

8055 Marketing Promotional Advertising Print Catalogs

8060 Marketing Promotional Advertising Print Winter Catalog

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Best

32

Account Description

8000 Sales and Marketing Expenses

8100 Sales Expenses

8150 Sales Promotional Expenses

8200 Sales Promotional Advertising

8250 Sales Promotional Advertising Catalogs

8300 Sales Promotional Advertising Print Catalogs

8350 Sales Promotional Advertising Print Winter Catalog

8400 Marketing Expenses

8450 Marketing Promotional Expenses

8500 Marketing Promotional Advertising

8550 Marketing Promotional Advertising Catalogs

8600 Marketing Promotional Advertising Print Catalogs

8650 Marketing Promotional Advertising Print Winter Catalog

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account Leading Practices

• Minimize Levels of Detail

• Take advantage of LOD functionality

• Leave enough space in between Object and Subsidiary Account Numbers for future growth

• Minimize “smart numbering” of account numbers

Oracle Confidential – Internal/Restricted/Highly Restricted 33

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account Leading Practices

• Minimize Levels of Detail

• Take advantage of LOD functionality

• Leave enough space in between Object and Subsidiary Account Numbers for future growth

• Minimize “smart numbering” of account numbers

• COA should be only as “thick” as necessary (use transaction details for very detailed reporting)

Oracle Confidential – Internal/Restricted/Highly Restricted 34

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account Leading Practices

• Minimize Levels of Detail

• Take advantage of LOD functionality

• Leave enough space in between Object and Subsidiary Account Numbers for future growth

• Minimize “smart numbering” of account numbers

• COA should be only as “thick” as necessary (use transaction details for very detailed reporting)

• Proper governance over COA changes

Oracle Confidential – Internal/Restricted/Highly Restricted 35

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account Leading Practices

• Minimize Levels of Detail

• Take advantage of LOD functionality

• Leave enough space in between Object and Subsidiary Account Numbers for future growth

• Minimize “smart numbering” of account numbers

• COA should be only as “thick” as necessary (use transaction details for very detailed reporting)

• Proper governance over COA changes

• Security over who has access to make COA changes

Oracle Confidential – Internal/Restricted/Highly Restricted 36

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account Leading Practices

• Keep account descriptions generic to account for potential acquisitions in other industries

Oracle Confidential – Internal/Restricted/Highly Restricted 37

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Not Recommended

38

Account Account Description LOD

8000 Cost of Sales 4

8100 Material - Recombinant Proteins 5

8150 Material - Proteome Profiler Antibody Arrays 5

8200 Material - Activity Assays & Reagents 5

8250 Material - Stem Cell & Cell Culture Products 5

8300 Material - Flow Cytometry & Cell Selection/Detection 5

8350 Material - General Laboratory Reagents 5

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted

Recommended

39

Account Account Description LOD Cost Object

8000 Cost of Sales 4

8100 Material 5

Recombinant Proteins

Proteome Profiler Antibody Arrays

Activity Assays & Reagents

Stem Cell & Cell Culture Products

Flow Cytometry & Cell Selection/Detection

General Laboratory Reagents

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Chart of Account Leading Practices

• Keep account descriptions generic to account for potential acquisitions in other industries

• Corporate versus local control over additions / changes i.e. Object versus Subsidiary account

Oracle Confidential – Internal/Restricted/Highly Restricted 40

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Local Versus Corporate Governance

41

Object Subsidiary Description LOD PEC

8000 Cost of Sales 5 N

8100 Cost of Sales - Material 6 N

8100 1100 Cost of Sales - Material (Location Specific) 7

8100 1200 Cost of Sales - Material (Location Specific) 7

Governance and maintenance at Corporate level

Governance and maintenance at Local level if conditions met

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Oracle Confidential – Internal/Restricted/Highly Restricted

Why Chart of Account Matters

42

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Generates Purpose

Funds to Invest

Nature of Business

Investment decisions are

based on financial results

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Investors (SEC)

Nature of Business

Government Agencies

Finance Community

Governed by GAAP / IFRS, government

regulations, and industry

associations

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

Program Agenda

Introductions

Organizational Structure Review (COA Context)

The Chart of Accounts

Chart of Accounts Leading Practices

Open discussion

1

2

3

4

5

Oracle Confidential – Internal/Restricted/Highly Restricted 45

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. Copyright ©2008, Oracle. All rights reserved. Oracle Confidential

A Q &

46

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Oracle Confidential – Internal/Restricted/Highly Restricted

Copyright © 2015, Oracle and/or its affiliates. All rights reserved.

JD Edwards Chart of Accounts Design and Leading Practices

James Hill Principal Sales Consultant National JD Edwards Sales Consulting February 5th, 2015