r12 financials rcd
TRANSCRIPT
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RELEASE CONTENT DOCUMENT
Release 12
Financial Applications
Prepared by Financials Product Management Team
Last Updated: 27th February 2006
Version: 25
Company Confidential - For Oracle Internal Use Only
Copyright 2006, Oracle. All rights reserved.
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Table of Contents
1. Disclaimer 1
2. Introduction 2
2.1. Purpose of Document 2
3. Release 12 Objectives 3
4. Oracle Financials Applications Architectural and Closely-related Enhancements 6
4.1. Multi-Org Access 6
4.1.1. Overview 64.1.2. Features 6
4.1.2.1. Multi-Org Access Control 64.1.2.2. Multi-Org Security Profile Preferences 64.1.2.3. Enhanced Multi-Org Reporting 74.1.2.4. Multi-Org Integration with Accounting Setup Manager 7
4.2. Oracle Cash Management 84.2.1. Overview 84.2.2. Features 8
4.2.2.1. Bank Account Model 84.2.2.2. Multi-Org Access Control 84.2.2.3. Subledger Accounting 8
4.2.2.4. Bank Account Balances and Interest Calculation 94.2.2.5. Bank Account Transfers 94.2.2.6. Cash Pooling 94.2.2.7. Bank Statement Accounting 104.2.2.8. Bank Account Signing Authorities 114.2.2.9. Cash Positioning Intra-day Activities 11
4.3. Oracle General Ledger 124.3.1. Overview 124.3.2. Features 12
4.3.2.1. Accounting Setup 124.3.2.2. Improved Processing Efficiency 134.3.2.3. Data Security 144.3.2.4. Auditability 154.3.2.5. Others 16
4.3.3. Terminology 17
4.4. Oracle Subledger Accounting New Product 194.4.1. Overview 194.4.2. Features 19
4.4.2.1. Journal Entry Setups 194.4.2.2. Date Effective Application Accounting Definitions 204.4.2.3. Multiple Accounting Representations 204.4.2.4. Online Accounting 214.4.2.5. Replacement for Disabled Accounts 21
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4.4.2.6. Process Category Accounting 214.4.2.7. Straight Through Accounting Processing 214.4.2.8. On-line inquiries 224.4.2.9. Journal Entry Sequencing 224.4.2.10. Third Party Merge Accounting 224.4.2.11. Manual Journal Entries 234.4.2.12. Third Party Control Accounts 234.4.2.13. Transaction Account Builder 234.4.2.14. Multi-period Accounting 23
4.4.2.15. Accrual Reversal Accounting 234.4.2.16. Business Flows 244.4.2.17. Accounted and Gain/Loss Amount Calculations 244.4.2.18. Application Accounting Definitions Loader 244.4.2.19. Errors Accounting and Reporting 244.4.2.20. Standard Reports 254.4.2.21. Enhanced Reporting Currency Functionality 254.4.2.22. Diagnostics Framework 25
4.4.3. Oracle Subledger Accounting Enhances the Functionality of the Global Accounting Engine 254.4.4. Terminology 27
4.5. Oracle Legal Entity Configurator 294.5.1. Overview 294.5.2. Features 29
4.5.2.1. Oracle Legal Entity Configurator 294.5.2.2. Legal Authorities and Jurisdiction 304.5.2.3. Legal Date Tracking and Auditing 30
4.5.3. Terminology 30
4.6. Oracle Advanced Global Intercompany System 324.6.1. Overview 324.6.2. Features 32
4.6.2.1. Intercompany Balancing 324.6.2.2. Intercompany Invoicing 324.6.2.3. Intercompany Reconciliation 334.6.2.4. Manual Intercompany Transactions 33
4.6.3. Terminology 33
4.7. Oracle E-Business Tax New Product 344.7.1. Overview 344.7.2. Features 34
4.7.2.1. Configuration Options and Provider Service Subscriptions 344.7.2.2. Events and Configuration Owner Options 354.7.2.3. Tax Configuration Manager 354.7.2.4. Tax Determination Services 354.7.2.5. Centralized Tax Record Repository for Audit and Reporting 364.7.2.6. Tax Reporting 364.7.2.7. Tax Simulator 364.7.2.8. Guided Configuration 374.7.2.9. Additional Enhancements 37
4.7.3. Terminology 37
5. Oracle Financial Applications - Features and Enhancements 40
5.1. Oracle Advanced Collections 405.1.1. Overview 405.1.2. Features 40
5.1.2.1. Multi-Org Access Control 405.1.2.2. Uptake of Cross-Operating Unit Initiative 405.1.2.3. Consolidation of Collections Functionality into Advanced Collections 405.1.2.4. New Implementation Checklist and Setup Screens 415.1.2.5. Improved Payment Processing and Customer Funds Capture 41
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5.1.2.6. Use of Oracle Territory Management to Define Collections Territory Hierarchy 415.1.2.7. AR Collector Field and Extension to Territory Management 415.1.2.8. XML Publishing Technology for Collections Correspondence 425.1.2.9. Configurable Metrics 425.1.2.10. Aging-based Dunning Plans 425.1.2.11. Collections Best Practices 435.1.2.12. Filterable Bali Tables 435.1.2.13. Consolidated Collections with Lease Contracts or Loans 445.1.2.14. Search Tool Enhancements 44
5.1.2.15. Enhanced Scoring Capability 445.1.2.16. Automatic Strategy Changing 44
5.2. Oracle Assets 465.2.1. Overview 465.2.2. Features 46
5.2.2.1. Subledger Accounting 465.2.2.2. Enhanced Mass Additions Interface for Legacy Conversions 465.2.2.3. Automatic Preparation of Mass Additions 465.2.2.4. Enhanced functionality for Energy Industry 475.2.2.5. Flexible Reporting using XML Publisher 475.2.2.6. Automatic Depreciation Rollback 475.2.2.7. Enhanced Logging for Asset Transactions and Programs 48
5.3. Oracle Bill Presentment Architecture 495.3.1. Overview 495.3.2. Features 49
5.3.2.1. Balance Forward Bill Presentment 495.3.2.2. Enhanced Template Assignment 495.3.2.3. Attachment Printing 495.3.2.4. BPA Profile Option Access 495.3.2.5. Legal Entity 505.3.2.6. Multi-Org Access Control 50
5.4. Oracle Credit Management 515.4.1. Overview 515.4.2. Features 51
5.4.2.1. Common Components for Leasing and Loan Applications 515.4.2.2. Enhancements to User-Defined Data in Credit Case Folders 515.4.2.3. Multi-Period Financial Data Comparison 515.4.2.4. Credit Scoring Model Enhancements 525.4.2.5. Credit Recommendation Enhancements 525.4.2.6. Credit Decision Appeals Processing 525.4.2.7. Dynamic Credit Analyst Assignments 525.4.2.8. Automatic Assessments of Guarantors 52
5.5. Oracle Enterprise Performance Foundation 545.5.1. Overview 545.5.2. Features 54
5.5.2.1. Oracle Release 12 Schema 545.5.2.2. Enhanced Oracle General Ledger Integration 54
5.5.2.3. Shared, Reformatted Ledger Data 545.5.2.4. Oracle Workflow Integration 555.5.2.5. Integration with Concurrent Manager 555.5.2.6. Oracle Warehouse Builder Replaces Balance & Control 555.5.2.7. New User Interfaces 555.5.2.8. Security and System Administration 555.5.2.9. User Defined Signage Methodologies 565.5.2.10. Configurable Home Page 575.5.2.11. Tuning Options Administration User Interface 575.5.2.12. Rule Migration, Import and Export 575.5.2.13. Multi-Dimensional Data Model 57
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5.5.2.14. Dimension Member Attributes 585.5.2.15. Data Set Registration and Creation 585.5.2.16. Dataset Groups 595.5.2.17. Business Rule Definition and Management 595.5.2.18. Conditions 615.5.2.19. Data Inspector 615.5.2.20. Auditing and Data Integrity 615.5.2.21. Production Datasets 615.5.2.22. Process Locking 62
5.5.2.23. Rule Auditing 625.5.2.24. Effective Dating & Versioning 625.5.2.25. Seeded Reports 62
5.5.3. Terminology 62
5.6. Oracle Enterprise Planning and Budgeting 675.6.1. Overview 675.6.2. Features 67
5.6.2.1. Usability Enhancements 675.6.2.2. Scalability Enhancements 67
5.7. Oracle Financial Consolidation Hub New Product 695.7.1. Overview 695.7.2. Features 69
5.7.2.1. Enterprise View 695.7.2.2. Unity of Statutory and Management Results 695.7.2.3. Consolidation Versatility 695.7.2.4. Entire Consolidation Cycle Monitored 705.7.2.5. Automated Workflow and Exception Handling 705.7.2.6. Dynamic Ownership Structures 705.7.2.7. Analytical Reporting Capabilities 705.7.2.8. Audit Entries from Every Stage of Consolidation 705.7.2.9. Accessibility of Complete Consolidation History 705.7.2.10. Best Practices Automated 705.7.2.11. Complex Calculations and Eliminations Handled 715.7.2.12. Global Consolidation Requirements Managed 715.7.2.13. Internal Controls Manager Integration 71
5.7.2.14. Excel Add-in and Oracle General Ledger Drilldown 715.7.2.15. Concurrent Programs for Reporting 725.7.2.16. Line Item Intercompany Maps 72
5.7.3. Terminology 72
5.8. Oracle Financials for Asia Pacific 735.8.1. Overview 735.8.2. Features 73
5.8.2.1. Korean Withholding Tax 735.8.2.2. Taiwan Transaction Numbering 735.8.2.3. Asia Pacific Reports 735.8.2.4. Multi-Org Access Control 735.8.2.5. Legal Entity Architecture 73
5.9. Oracle Financials for EMEA 755.9.1. Overview 755.9.2. Features 75
5.9.2.1. EMEA VAT Reporting 755.9.2.2. EMEA Country Specific Reports 75
5.10. Oracle Financials for India 765.10.1. Overview 765.10.2. Features 76
5.10.2.1. CENVAT Rules 2004 Changes 765.10.2.2. Tax Deducted at Source (TDS) Thresholds 77
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5.10.2.3. Value Added Tax (VAT) 775.10.2.4. DFF Elimination 785.10.2.5. Multi-Org Access Control 785.10.2.6. AP Invoice Lines 785.10.2.7. Subledger Accounting 785.10.2.8. OPM Inventory Convergence 79
5.10.3. Terminology 79
5.11. Oracle Financials for Latin America 805.11.1. Overview 805.11.2. Features 80
5.11.2.1. General Ledger Inflation Adjustments 805.11.2.2. Receivables Latin Tax Engine 805.11.2.3. Latin America Extended Withholding 805.11.2.4. Brazil Receivables Bank Transfer 805.11.2.5. Latin America Reports 815.11.2.6. Multi-Org Access Control 815.11.2.7. Legal Entity Configurator 81
5.12. Oracle Financial Services Accounting Hub (FSAH) New Product 825.12.1. Overview 825.12.2. Features 825.12.3. Oracle Enterprise Performance Foundation 83
5.12.4. Oracle Profitability Manager 835.13. Oracle Internal Controls Manager 84
5.13.1. Overview 845.13.2. Features 84
5.13.2.1. External Auditor Ready Reporting 845.13.2.2. Export Search Results to Excel 845.13.2.3. DBI for Compliance 845.13.2.4. Segregation Of Duties: Concurrent programs in Constraint Definition 855.13.2.5. Segregation Of Duties: Constraints with incompatible sets 855.13.2.6. Segregation Of Duties: Re-validating constraints after corrective actions 865.13.2.7. Segregation Of Duties: Complaint Provisioning of User Accounts 865.13.2.8. Upload Recommended Settings 865.13.2.9. Application Controls Change History Reports 865.13.2.10. Application Control Overrides in Suppliers and Supplier Sites 865.13.2.11. Profile Option Change Tracking 86
5.14. Oracle Internet Expenses 875.14.1. Overview 875.14.2. Features 87
5.14.2.1. Expense Allocations 875.14.2.2. Global Per Diem and Mileage 885.14.2.3. Cash Advances Management 895.14.2.4. Bar Coding 895.14.2.5. Manager Approvals 895.14.2.6. Audit Management 905.14.2.7. Audit Automation 91
5.14.2.8. Receipts Management 915.14.2.9. Entertainment and Fringe Benefits Policy Compliance 915.14.2.10. Credit Cards 925.14.2.11. Expense Report-Level Descriptive Flexfields 925.14.2.12. Attachments 935.14.2.13. Expense Analysis and Reporting 935.14.2.14. Ad Hoc Reporting 935.14.2.15. Terms and Agreements 935.14.2.16. Region-Based Confirmation Page Messages 935.14.2.17. Help Desk Support 945.14.2.18. Contact Us 94
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5.15. Oracle iReceivables 955.15.1. Overview 955.15.2. Features 95
5.15.2.1. Oracle Trading Community Architecture 955.15.2.2. Oracle Payments 955.15.2.3. Multi-Org Access Control 955.15.2.4. Enhanced User Self Registration 965.15.2.5. Cross Customer Site Payments 96
5.16. Oracle Loans 975.16.1. Overview 975.16.2. Features 97
5.16.2.1. Loan Type and Product Configuration 975.16.2.2. Multiple Disbursements 975.16.2.3. Loan Portfolios, Graphs & Online Reporting 975.16.2.4. Sophisticated Credit Decisioning 985.16.2.5. Federal Budgetary Control 985.16.2.6. Floating Rate and Weekly Payment Frequency 985.16.2.7. Enhanced Payment Plans with Rules 98
5.17. Oracle Payables 995.17.1. Overview 995.17.2. Features 99
5.17.2.1. Legal Entity 995.17.2.2. Multi-Org Access Control 995.17.2.3. Representation of Suppliers in the Trading Community Architecture (TCA) 995.17.2.4. New User Interface for Supplier Entry and Maintenance 1005.17.2.5. Introduction of Invoice Lines 1005.17.2.6. Invoice Processing for Contract Financing, Retainage, and Progress Terms 1015.17.2.7. Enhanced Invoice Approval Includes Line Level Approval 1025.17.2.8. Non PO Invoices Entered via iSupplier Portal 1025.17.2.9. Collaboration with Suppliers to Resolve Disputes 1025.17.2.10. Oracle E-Business Disbursement Requests 1025.17.2.11. Enhancements to Payment Banks, Branches, and Accounts 1025.17.2.12. Payment Process Enhancements 1035.17.2.13. Accounts Receivable / Accounts Payable Netting 103
5.18. Oracle Payments 1045.18.1. Features 104
5.18.1.1. Advanced and Highly Configurable Formatting Framework 1045.18.1.2. Flexible Validation Model 1055.18.1.3. Secure Payment Data Repository 1055.18.1.4. Improved Electronic Transmission Capability 1065.18.1.5. Flexible Support for Various Business Payment Models 106
5.18.2. Funds Disbursement Features 1065.18.2.1. Enhanced Disbursement Process 1065.18.2.2. Enhanced Electronic Payment Processing 1075.18.2.3. Configurability 1075.18.2.4. Payment Processing User Interface 1085.18.2.5. Enhanced Check Printing Process 1085.18.2.6. Migration of Global Features to Central Engine 1085.18.2.7. Consolidation of Payment Formats 1095.18.2.8. Improved Remittance Advice Reporting 109
5.18.3. Funds Capture Features 1095.18.3.1. Enhanced Configurability 1095.18.3.2. Improved Support for Credit Card Security Features 1105.18.3.3. Enhanced Payment Processing User Interface 1105.18.3.4. PINless Debit Card Transaction Support 1105.18.3.5. Improved Payer Notification of Settlement 1115.18.3.6. Direct Debit Enhancements 111
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5.18.3.7. Improved Batch Settlement Performance 1115.18.4. Terminology 111
5.19. Oracle Profitability Manager New Product 1135.19.1. Product Overview and Foundation 1135.19.2. Release Overview 1135.19.3. Features 114
5.19.3.1. Powerful Allocation System 1145.19.3.2. Rule Sets 1155.19.3.3. Transaction Costing 1155.19.3.4. Multi-Dimensional Activities and Cost Objects 1155.19.3.5. Activity Rates 1155.19.3.6. Activity Cost Rollup 1155.19.3.7. Mapping to Cost Objects 1165.19.3.8. Bill and Cost Object Unit Cost 1165.19.3.9. Cost Object Extended Costs and Cost Object Total Costs 1165.19.3.10. Customer Profitability 1175.19.3.11. Seeded Reports 117
5.19.4. Features Not Included 1175.19.4.1. Common Features 1175.19.4.2. Oracle Profitability Manager Features 118
5.20. Oracle Public Sector Budgeting 119
5.20.1. Overview 1195.20.2. Features 1195.20.2.1. Enhanced Position Default Rules 1195.20.2.2. Configurable Position Worksheet Function Security 1195.20.2.3. Posting Statistical Balance 120
5.21. Oracle Public Sector Financials 1215.21.1. Overview 1215.21.2. Features 121
5.21.2.1. Centralized and Configurable Accounting 1215.21.2.2. Integrated Budgetary Control 1215.21.2.3. Flexible Reporting and Inquiry 121
5.22. Oracle Receivables 122
5.22.1. Overview 1225.22.2. Features 122
5.22.2.1. Revenue Management Enhancements 1225.22.2.2. Line Level Cash Applications 1235.22.2.3. Funds Capture Enhancements Uptake 1235.22.2.4. Refunds Enhancements 1235.22.2.5. Credit Card Error Handling 1235.22.2.6. Credit Card Chargebacks 1235.22.2.7. Deduction Management 1235.22.2.8. Balance Forward Billing 1245.22.2.9. Late Charges 1245.22.2.10. Customer Standard User Interface Redesign 1245.22.2.11. Multi-Org Access Control 124
5.22.2.12. E-Business Tax 1255.22.2.13. Legal Entities 1255.22.2.14. Subledger Accounting 1255.22.2.15. Receivables Reconciliation Enhancements 1255.22.2.16. Additional Bills Receivable Reference Field 1265.22.2.17. Collections Workbench Obsolescence 1265.22.2.18. Bills of Exchange Obsolescence 1265.22.2.19. Trade Accounting Obsolescence 1265.22.2.20. AP/AR Netting 126
5.23. Oracle Transfer Pricing 127
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5.23.1. Overview 1275.23.1.1. Enhanced Multi-Currency Support 1275.23.1.2. Single Assumption/Processing Dimension (Product Leaf) 1275.23.1.3. Node Level Assumptions 1285.23.1.4. Conditional Assumptions 1285.23.1.5. Enhanced Ledger Migration Dimensionality 1285.23.1.6. Cash Flow Edits Administration 1285.23.1.7. Interest Rate Administration 1295.23.1.8. Seeded Reports 129
5.24. Oracle Treasury 1305.24.1. Overview 1305.24.2. Features 130
5.24.2.1. Cash Pooling Across Legal Entities 1305.24.2.2. Foreign Exchange Hedge Effectiveness and Accounting Under IAS 39 and FAS 133 1305.24.2.3. Automatic Bond Rate Resetting 1315.24.2.4. Bank Account Update Program 1315.24.2.5. Inter-Account Transfer Enhancements 1315.24.2.6. Bank Account Model 1315.24.2.7. Bank Account Balances 131
5.24.3. Terminology 132
5.25. Oracle U.S. Federal Financials 133
5.25.1. Overview 1335.25.2. Features 1335.25.2.1. Centralized and Configurable Accounting 1335.25.2.2. Integrated Budgetary Control 1335.25.2.3. Flexible Reporting and Inquiry 133
6. Daily Business Intelligence 134
6.1. Daily Business Intelligence (DBI) for Compliance 1346.1.1. Overview 1346.1.2. Features 134
6.1.2.1. Financial Statement Certification Dashboard 1346.1.2.2. Open Remedial Action Summary 1356.1.2.3. Significant Account Evaluation Result 135
6.1.2.4. Significant Account Evaluation Summary 1356.1.2.5. Organization Certification Result 1366.1.2.6. Organization Certification Summary 1366.1.2.7. Process Certification Result 1366.1.2.8. Process Certification Summary 1366.1.2.9. List Reports 1366.1.2.10. Compliance Environment Change 1366.1.2.11. View Significant Account Details 1376.1.2.12. Manage Closing Performance Findings and Remediation 1376.1.2.13. Drill and Pivot the Report Layout 137
6.2. Daily Business Intelligence for Financials 1386.2.1. Overview 1386.2.2.
Features 138
6.2.2.1. Expense Analysis dashboard 1386.2.2.2. DBI for Public Sector Financials 1396.2.2.3. DBI for Payables 1396.2.2.4. Budget/Forecast Import from General Ledger 1406.2.2.5. Role Based Security for Profit & Loss and Expense Management Dashboards 1406.2.2.6. User Defined Dimension 1406.2.2.7. DBI for Financials Back-End Enhancements 140
6.3. Financials Intelligence 1426.3.1. Overview 142
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7. Customer Data Management 143
7.1. Customer Data Hub 1437.1.1. Overview 1437.1.2. Features 143
7.1.2.1. Tax Geography Hierarchy Setup UIs 1437.1.2.2. Multi-Org Access Control (MOAC) 1437.1.2.3. Tax and Geography Validation 1437.1.2.4. Data Quality Management Enhancements 1447.1.2.5. Customer Data Librarian Enhancements 1447.1.2.6. Integration Services 1447.1.2.7. TCA Bulk Import Enhancements 1467.1.2.8. New Workflow Synchronization 146
7.2. Customer Data Librarian 1477.2.1. Overview 1477.2.2. Features 147
7.2.2.1. Multi-Org Access Control (MOAC) 147
7.3. Customers Online 1487.3.1. Overview 1487.3.2. Features 148
7.3.2.1. Multi-Org Access Control (MOAC) 148
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1. Disclaimer
This Release Content Document (RCD) describes product features that are
proposed for the specified release of the Oracle E-Business Suite. This document
describes new or changed functionality only. Existing functionality from prior
releases is not described. It is intended solely to help you assess the businessbenefits of upgrading to Release 12.
This document in any form, software or printed matter, contains proprietary
information that is the exclusive property of Oracle. Your access to and use of
this confidential material is subject to the terms and conditions of your Oracle
Software License and Service Agreement, which has been executed and with
which you agree to comply. This document and information contained herein
may not be disclosed, copied, reproduced or distributed to anyone outside Oracle
without prior written consent of Oracle. This document is not part of your
license agreement nor can it be incorporated into any contractual agreement with
Oracle or its subsidiaries or affiliates.
This document is for informational purposes only and is intended solely to assist
you in planning for the implementation and upgrade of the product features
described. It is not a commitment to deliver any material, code, or functionality,
and should not be relied upon in making purchasing decisions. The
development, release, and timing of any features or functionality described in this
document remains at the sole discretion of Oracle.
Due to the nature of the product architecture, it may not be possible to safely
include all features described in this document without risking significant
destabilization of the code.
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2. Introduction
2.1. Purpose of Document
The Release Content Document (RCD), produced as part of OraclesApplications Product Lifecycle (APL), communicates information about new or
changed functionality in the specified release of the Oracle E-Business Suite.
Existing functionality from prior point releases is not described. However,
content introduced by Family Packs, Mini-packs or Standalone patches since the
prior point release has been included in this document and denoted accordingly.
New features available with Oracle Financials Family Pack G or with any
product level Mini-packs that have been released since the release of Oracle E-
Business Suite 11i10 are included in this document and are denoted accordingly.
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3. Release 12 Objectives
Release 12 is designed to increase the ease with which you understand and
process your worldwide business and address compliance in every nation. It
reflects the maturity of several initiatives designed to rationalize subledger
bookkeeping, generalize transaction tax compliance and improve access tosubledger data, with the intention of both facilitating subledger shared services
and improving and standardizing throughput. Also in support of shared service
ideals, weve revised our bank and disbursement models.
Weve distinguished the data from the management of general ledgers, improved
legal entity support and intercompany processing, and built a new row and
column consolidation system, rich in financial management functions. These
features are designed to expedite your regional and group control, lower your
finance expenses, and speed decision making by centralizing the processing of
dispersed data. Daily Business Intelligence is greatly expanded, and XML
Publisher brings powerful report customization to the end-users desktop. Your
decision-making requirements also drove radical improvements to our budgeting,profit management and activity analytics, which along with the new Financial
Consolidation Hub are applications built on the shared Enterprise Performance
Foundation.
In addition to these initiatives, weve included many more enhancements and
new features to the E-Business Suite.
In Release 11i, a user assigned to an Operating Unit (OU) would process data
from the products deployed in that OU. To process data for another OU, a user
would log out of the first and into the second. The data generated in that OU
would be accounted for according to rules generated by various product
accounting engines, and posted to general ledger in ways appropriate for thedifferent products, some generating part of the detail at different times in the
process. General Ledger sets of books (SoB) were self-contained, reflecting the
balances of the entity to which youd assigned the SoB, and managed by users
assigned to the SoB.
In Release 12, by contrast, users can be assigned to multiple operating units, and
are supported by processes and transactions that can span operating units. Their
data is book-kept according to rules stored in a single accounting engine, and the
accounting is stored in subledger tables that are standard across all products.
Complete accounting is maintained for every appropriate event, and all subledger
entries are fully balanced and detailed. A single, common posting engine
summarizes to your required level of detail, and posts to General Ledger. Sets ofBooks are replaced by the accounting entitys ledger for data, and its Ledger
Set for processing, from reporting, opening and closing, through allocations.
Ledgers can be combined into ledger sets, and GL users are assigned to the
ledger sets.
User access to multiple operating units is called Multi-Org Access Control,
(MOAC). The new subledger accounting architecture is described in the
Subledger Accounting (SLA) section. Ledgers, ledger sets and multiple ledgers
are described in the General Ledger section.
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Financial Management
Information Architecture Release 12Ledgers and Ledger Sets
Lower Cost, Better Data
Ledgers and Ledger Sets
Lower Cost, Better DataCentralized Accounting
Rules and Entries
Centralized Accounting
Rules and Entries
Data Segmentation AND
Processing Efficiencies
Fewer Responsibilities
Ledger and LedgerLedger and LedgerSetsSets
FeederSystemsFeederFeeder
SystemsSystems
Subledger
AccountingSubledgerSubledger
AccountingAccounting
DrDr CrCr
AssetsAssetsAssets
ProjectsProjectsProjects
Work inProcessWork inWork inProcessProcess
ReceivablesReceivablesReceivablesInventoryInventoryInventory
PayablesPayablesPayablesPurchasingPurchasingPurchasing Operating Units withOperating Units withMOACMOAC
1 Responsibility1 Responsibility
1 Responsibility1 Responsibility
Enterprise PerformanceFoundation
Enterprise PerformanceFoundation
Planning &
BudgetingPlanning &Planning &
BudgetingBudgeting
ConsolidationConsolidationConsolidation
ScorecardScorecardScorecard
Profitability
AnalysisProfitabilityProfitability
AnalysisAnalysis
Were sure you will derive many benefits from the new architecture. The SLA
approach to subledger accounting brings an immediate improvement in subledger
to general ledger reconciliation, for example, before you take any steps to exploit
the features.
Accounting for subledger transactions at the event in a standard manner with a
single accounting engine allows us to provide multiple accounting
representations for a single event. A purchase can be simultaneously accountedfor an increment to inventory for your US GAAP or IAS/IFRS accounting, and
as a debit to the P&L for your national compliance accounting. The accounting
entity involved can maintain multiple ledgers, each complying with a different
set of accounting principles we call them accounting methods, and, of course,
the transactions and ledgers can be valued and denominated in different
currencies; indeed, you can now generate currency views of a ledger at the
subledger transaction, general ledger transaction, general ledger balance, or
consolidation workplace levels, whether you use IAS 21 or FAS 52 Translation
or Remeasurement conversion methods.
Combining ledgers into sets will be attractive not only in nations where you
might have many ledgers serving regulated registered companies, but also acrosscontinental regions where locally managed statutory ledgers are echoed
automatically by centrally managed single currency corporate ledgers at the
parents management style or GAAP, whether that be IAS/IFRS, Japan, China, or
US GAAP.
Our new transaction tax engine is nexus driven; that is, it looks to the appropriate
transaction data to figure the authority and taxes involved. This allows a shared
service center to more easily process VAT and sales taxes accurately for its
clients, no matter what country they might be in. Equally, the new bank account
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and disbursement models facilitate the payment of invoices and other payables
out of different operating units, from an appropriate bank account, and with the
appropriate intercompany handling.
Intercompany processing is dramatically revised by enhancements in both
Financials intercompany management and Supply Chain Managements
Enhanced Drop Shipments. Rather than a GL only system, Financials now links
into Receivables and Payables to generate matching and tied documents(configurable though Bill Presentment) and a new reconciliation scheme.
Related SCM products, discussed in the SCM RCD, provide transfer pricing
modeling and enforcement, inventory consignment (at subsidiaries or otherwise),
and tracking of profit in inventory. All feed back to General ledger and the
Financial Consolidation Hub for elimination.
Underlying many of the improvements in transaction tax, intercompany, and
shared service capabilities is a reinforced legal entity model, more closely
aligned, we hope, with your actual legal structure.
Weve striven to keep your upgrade path straightforward. After upgrading to
Release 12, your installation should behave as it did on Release 11i. What wasin a Set of Books will be in a Ledger with its own Ledger Set. SLA will return
the same accounting as the earlier accounting engine did. Operating Units will
still stripe your transaction data. Youll see immediate benefits in subledger
accounting, XML publishing applied to reports, additional DBI portlets and
pages, and many other features like AR-AP netting, gross margin analytics in
AR, and so on.
You can then exploit the new features at your own pace. Start by assigning
several OUs to individual users, or by combining several ledgers into one ledger
set. Later explore revising accounting rules with the SLA engine, or tackling a
complex tax situation with the tax engine. Pretty soon, youll be thinking of
simplifying the processes, eliminating Sarbanes-Oxley or Eight Directive
problem areas, and shifting into top gear.
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4. Oracle Financials Applications Architectural and
Closely-related Enhancements
4.1. Multi-Org Access
4.1.1. Overview
A Shared Services model of operations drives cost savings and increases
information quality. In an effort to focus business units on their core
competencies, increase efficiencies company-wide, and better manage and access
information, companies consolidate non-revenue generating, administrative tasks
in Shared Service Centers. Eliminating redundant processes, continuously
lowering the unit costs per transaction through self-service, automating
processes, and standardizing common business practices reduces costs. By
centralizing information through a Shared Service Center, a consolidated view of
essential decision-making information is available and accessible globally.
Standardization of common business practices also adds to the timeliness and
accuracy of data. With consistent business processes throughout the enterprise,
information can be gathered uniformly, with consistent quality.
Services can be shared at many different levels, and shared service centers can
exist for different reasons. For example, many Oracle customers have created
Shared Service Order desks, Shared Service Reporting Centers, Shared Service
General Ledger Centers, Shared Service Disbursement Centers, Shared Service
Inventory Management Centers, Shared Service Procurement Centers and so on.
Many of these centers may be combined as one center.
This chapter discusses release content facilitating sharing services in subledger
products. Various products exploit these features to provide powerful cross
organization processes, and exploit the intercompany features to supply the
mandatory and appropriate interorganization accounting.
4.1.2. Features
4.1.2.1. Multi-Org Access Control
Multi-Org Access Control enables companies that have implemented a Shared
Services operating model to efficiently process business transactions by allowing
them to access, process, and report on data for an unlimited number of operating
units within a single applications responsibility. This increases the productivity
of Shared Service Centers, as users and processes no longer have to switch
applications responsibilities when processing transactions for multiple operating
units at a time. Data security and access privileges are still maintained using
security profiles that now support a list of operating units.
4.1.2.2. Multi-Org Security Profile Preferences
A Multi-Org Security Profile defines the list of operating units to which a user
has access. If a user typically uses a subset of the operating units in his security
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profile, he may set up Preferences to limit the operating units available to him
during transaction processing. The user can also set a default operating unit to
minimize manual data entry when an operating unit context is required.
4.1.2.3. Enhanced Multi-Org Reporting
Consistent with the Multi-Org Access Control feature, users are able to run
reports using two levels:
Ledger: The report runs for all operating units within a ledger to which the
user has access
Operating Unit: The report runs for a selected operating unit that belongs to
the users security profile
4.1.2.4. Multi-Org Integration with Accounting Setup Manager
The Accounting Setup Manager is a central location to define your accounting-
related setup across all financial applications. Here, you can define your legal
entities and their accounting context, which includes the ledgers that will contain
the accounting data for each legal entity. Multi-Org is integrated into theAccounting Setup Manager such that users can define operating units and their
relationship to ledgers. For each operating unit, users can also select a legal
entity to provide a default legal context during transaction processing. This
centralizes your setup and makes it easier to inquire on and maintain
relationships between ledgers, legal entities, and operating units.
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4.2. Oracle Cash Management
4.2.1. Overview
Oracle Cash Management is an enterprise-wide solution for managing liquidity
and controlling cash.
4.2.2. Features
4.2.2.1. Bank Account Model
Shared Service approaches to disbursement and collections are enhanced by the
deployment of Oracle Cash Managements new Bank Account model.
Overall, the set up, maintenance, and control of all internal bank account
information is much easier and more reliable with this new feature. It provides a
single access point for defining and managing internal bank accounts for Oracle
Payables, Oracle Receivables, Oracle Payroll, Oracle Cash Management, and
Oracle Treasury. Bank account access for each application is explicit for internalsecurity and control purposes. Each account is associated with a Bank and Bank
Branch defined in Oracles common Trading Community Architecture (TCA).
A single Legal Entity is granted ownership of each internal bank account. One or
more Organizations are granted usage rights, which provides significant benefits
in key areas like reconciliation that previously required managing multiple
account records for these types of purposes. Additionally, reconciliation options
can now be defined at the bank account level, providing even more flexibility
and control of that process.
4.2.2.2. Multi-Org Access Control
Multi-Org Access Control enables companies that have implemented a Shared
Services operating model to efficiently process business transactions by allowing
them to access, process, and report on data for an unlimited number of operating
units within a single applications responsibility. This increases the productivity
of Shared Service Centers for users no longer have to switch applications
responsibilities when processing transactions for multiple operating units at a
time. Data security is still maintained using security profiles that are defined for
a list of operating units and determine the data access privileges for a user.
Support for Shared Services, and related Multi-Org Access Control features, is
available in Oracle Cash Management. This set of features greatly enhances
processing and reporting efficiency for Oracle Cash Management users. Please,refer to the full feature descriptions in the Multi-Org Access section of this
document for more details.
4.2.2.3. Subledger Accounting
Oracle Subledger Accounting provides tools that allow users to meet External
Reporting (IAS.IFRs, US GAAP, etc.), corporate management, and national
fiscal accounting requirements. With a flexible tool called Accounting Methods
Builder, users can determine the accounts, lines, descriptions, summarization,
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and dates of their journal entries. Users can also add detailed transaction
information to journal headers and lines. Detailed subledger accounting journals
are available for analytics, auditing, and reporting. They are summarized,
transferred, imported and posted to Oracle General Ledger. For more details,
please see the Oracle Subledger Accounting section of this document.
Oracle Cash Management utilizes Oracle Subledger Accounting for setting up
accounting rules and for generating journal entries related to Cash Managementtransactions.
4.2.2.4. Bank Account Balances and Interest Calculation
Many new bank account balance types are supported for all internal bank
accounts including ledger, available, value dated, 1-day float, 2-day float, and
projected balances. Users are able to track closing ledger and available balances
as well as month-to-date and year-to-date averages. Flexible reporting tools are
available to view all this centrally stored balance history for trend analysis as
well as to compare actual versus expected balances based on daily cash position
projections. Additionally, the system allows the user to verify interest amounts
charged or credited by their banks based on balance history and user-definedinterest rate schedules.
4.2.2.5. Bank Account Transfers
Bank Account Transfer functionality was previously supported only through
Oracle Treasury. Now, bank account transfers are supported directly in Oracle
Cash Management. This feature allows users to create these types of cash
transfers between internal bank accounts manually or automatically through
physical cash pools. The related cash flows are stored in Oracle Cash
Management for reporting purposes and are reflected in positioning. Payment
processing and accounting is managed via Oracle Payments and Oracle
Subledger Accounting.
4.2.2.6. Cash Pooling
Organizations frequently use cash pooling techniques to optimize funds by
consolidating bank balances from across multiple bank accounts. By
consolidating balances and minimizing idle funds, organizations may decrease
external borrowing costs and increase overall investment returns.
Oracle Cash Management supports common cash pooling techniques by allowing
users to group bank accounts into different types of pooling structures and by
managing the associated activity for either centralized or decentralized business
environments. This functionality was originally made available to OracleTreasury users in Oracle Financials Family Pack G and will now be supported
via Oracle Cash Management. The following types of cash pools are supported.
4.2.2.6.1. Self-Initiated Physical Cash Pools
Organizations may choose to monitor individual bank account balances
manually and then physically move cash to or from their accounts only as
needed based on their particular preferences or objectives.
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Oracle Cash Management allows users to define and manage these types of
bank account structures called Self-Initiated Physical Cash Pools. These
pool definitions include rules to automatically determine when bank account
transfers should be made and for what amounts. Users are able to review
transfer proposals from their Cash Positions based on daily activity as well as
target balances, minimum transfer amounts, and rounding rules. Users are
able to accept or overwrite system proposed transfers, and Oracle Cash
Management then generates all their bank account transfers automatically.
Note: Cash Pools spanning multiple legal entities often require tracking
internal loans and interest, or In House Banking. Related functionality is
available for Oracle Treasury users and is described in the Oracle Treasury
section of this document.
4.2.2.6.2. Bank-Initiated Physical Cash Pools, or Zero Balance Accounts
(ZBAs)
Organizations may choose to utilize a bank service that automatically sweeps
all end-of-day balances to or from main concentration accounts. Since this
type of physical cash pool arrangement typically leaves no cash in the sub
accounts overnight, it is often referred to as a Zero Balance Account or ZBArelationship.
Oracle Cash Management allows users to define and manage these types of
bank account structures called Bank-Initiated Physical Cash Pools. Oracle
Cash Management automatically creates and reconciles all the related sweep
transactions based on reported prior-day bank statement activity.
Note: Cash Pools spanning multiple legal entities often require tracking
internal loans and interest, or In House Banking. Related functionality will
be available for Oracle Treasury users and is described in the Oracle
Treasury section of this document.
4.2.2.6.3. Notional Cash PoolsOrganizations may choose to utilize notional cash pool arrangements offered
by banks that track not only individual account balances but also the net
balance across all accounts. This technique is common in some countries
and does not require physical cash transfers to be made between accounts for
concentration purposes.
Oracle Cash Management allows users to define and manage these types of
bank account structures called Notional Cash Pools. The consolidated
notional account balance is calculated, and users are able to manage the net
notional balance along with individual bank accounts in Oracle Cash
Management.
4.2.2.7. Bank Statement Accounting
This feature allows users to define mapping rules that can automatically create
and reconcile transactions in Oracle Cash Management based on reported prior-
day bank statement lines. Users are able to define flexible matching rules based
on bank accounts, transaction codes, and text search strings. This feature
significantly reduces reconciliation issues associated with repetitive first notice
items like bank fees or bank account interest. The transactions generated and
stored in Oracle Cash Management are available for reporting as well as for
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automatic reconciliation. Accounting for these transactions is managed via
Oracle Subledger Accounting.
This feature was first released in Oracle Financials Family Pack G.
4.2.2.8. Bank Account Signing Authorities
This feature allows Oracle Cash Management users to enter, maintain, and reporton those people in their organizations with bank account signing authority. Users
are able to indicate single and joint signing limits for each bank account as well
as signer group categories, effective dates, approval status, and other relevant
information. Users are also allowed to attach electronic copies of documents like
passport photos, signature files, or bank documents directly to the signing
authority records. It is possible to use Oracle Workflow to route approval
requests for signing authority, or users can set statuses manually. Reporting used
for internal control and audit purposes is available via an Oracle Discoverer
view. People with signing authority need to be defined in Oracle HRMS or via
HR Foundation, if Oracle HRMS is not installed.
This feature was first released in Oracle Financials Family Pack G.
4.2.2.9. Cash Positioning Intra-day Activities
This feature provides additional flexibility in how users view intra-day bank
statement activity in their cash positions. It is possible to include all or portions
of intra-day bank statement activity in the cash position, and these cash flows are
used when calculating projected closing balances. Alternatively, the set up for
cash positions still allows users to exclude the intra-day bank statement activity
entirely or to include it for reference purposes against expected activity from
other sources (but not include intra-day bank statement activity in the calculation
of closing projected balances).
This feature was first released in Oracle Financials Family Pack G.
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4.3. Oracle General Ledger
4.3.1. Overview
Oracle General Ledger delivers extraordinary enhancements in this release so
you can maximize accounting process efficiencies across your enterprise while
still achieving a high level of information and setup security. Fundamentalimprovements in Oracle General Ledger enable you to perform simultaneous
accounting for multiple reporting requirements and allow superusers to access
and process data for multiple ledgers and legal entities at the same time powering
ledger and reporting shared services. For those users who should have more
limited access, you can secure both information and setup definitions, like
MassAllocations and FSG reports, so they can only view, update, or execute
those processes to which they have access. You are able to achieve a high level
of efficiency and security, without having to sacrifice one for the other, with
these new enhancements in Oracle General Ledger.
4.3.2. Features
4.3.2.1. Accounting Setup
4.3.2.1.1. Simultaneous Accounting for Multiple Reporting Requirements
Companies that are global in nature and that have operations in different
localities often have multiple reporting requirements. These companies and
their subsidiaries often need to satisfy the accounting and reporting
requirements for each country as well as those of the parent company. This
involves performing accounting in accordance with accounting principles
and standards of multiple countries and in different currencies, charts of
accounts, and/or calendars. The reporting requirements can also be statutory
in nature, and one subsidiary may even need to satisfy multiple sets of
statutory requirements. Oracle General Ledger simplifies the simultaneous
management of the accounting for all of these different reporting
requirements in this latest release. You are able to define your legal entities
and the setup needed to address each accounting and reporting requirement
using the Accounting Setup Manager. New enhancements and integration
with Subledger Accounting enable Oracle General Ledger to perform
accounting for all reporting requirements of a legal entity simultaneously.
4.3.2.1.2. Centralized Accounting Setup
The Accounting Setup Manager is a central location to define your
accounting-related setup across all financial applications. Here you can
define your legal entities and their accounting context, which includes theledgers* that contain the accounting data for each legal entity. If a legal
entity has multiple reporting requirements, you can include additional
reporting currencies or ledgers in the accounting context to satisfy the
additional requirements.
4.3.2.1.3. Enhanced Reporting Currency Functionality
Multiple Reporting Currencies functionality is enhanced to support all
journal sources. Reporting sets of books are now simply reporting
currencies. Every journal that is posted in the primary currency of a ledger
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can be automatically converted into one or more reporting currencies. This
conversion can be performed by Subledger Accounting, to convert all
subledger journal entries, or by General Ledger, to convert more summarized
General Ledger journals. You can choose to convert any journal sources and
categories.
4.3.2.2. Improved Processing Efficiency
4.3.2.2.1. Simultaneous Data Access to Multiple Legal Entities and
Ledgers
You can access multiple legal entities and ledgers when you log into Oracle
General Ledger using a single responsibility. This improves processing
efficiency by reducing the need to switch between responsibilities when
trying to access data for different ledgers or legal entities.
4.3.2.2.2. Simultaneous Opening and Closing of Periods for Multiple
Ledgers
The Open and Close Periods Programs has multiple enhancements. You are
able to run any of the Open and Close Periods Programs from the Concurrent
Manager. This allows you to take advantage of scheduling and request setcapabilities for greater processing efficiency. Also, if you manage multiple
ledgers, you can open or close periods for multiple ledgers simultaneously.
You can even keep the status of periods across multiple ledgers in synch with
new programs that ensure a specific period is Open or Closed for all of the
ledgers you manage.
4.3.2.2.3. Cross-Ledger and Foreign Currency Allocations
You are able to allocate financial data from one or more ledgers to a different
target ledger. This enables you to perform cross-ledger allocations, which is
useful for purposes such as allocating corporate or regional expenses to local
subsidiaries when each entity has its own ledger. This is possible even if the
target ledger is in a different currency than the source ledger(s) because you
can create allocations in foreign currencies. Foreign currency allocations are
also useful within a single ledger if you need to allocate amounts to a
currency that is different from the primary currency of a ledger.
4.3.2.2.4. Simultaneous Currency Translation of Multiple Ledgers
If you manage multiple ledgers, you can run the Translation program for
multiple ledgers simultaneously.
4.3.2.2.5. Financial Reporting Across Ledgers
You are able to run Financial Statement Generator (FSG) reports for multiple
ledgers simultaneously. This is useful if you manage multiple ledgers andwant to run a balance sheet or income statement report for all of your ledgers
at the same time. You can also create an FSG report that includes data from
multiple ledgers in a single report; the data in each ledger can be displayed in
a separate row or column, or data from multiple ledgers can be aggregated
into a single row or column. This is useful for reports such as consolidating
financial statements that display data for each subsidiary in separate columns,
as well as aggregated data in a total column.
4.3.2.2.6. Automatic Journal Copy
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You are able to automatically copy an existing journal batch to create a new
journal batch with the same journals and journal lines. This reduces the
amount of work you need to do to re-create a journal that has already been
defined. During the copying process, you have the option to change the
period and effective date of the journal batch.
4.3.2.2.7. Streamline Automatic Posting
AutoPost Criteria can be shared across ledgers that have the same chart ofaccounts and calendar. This dramatically reduces the number of AutoPost
Criteria sets you need to define. Furthermore, you can automatically post
journals across multiple ledgers simultaneously.
4.3.2.2.8. Streamline AutoReversal Criteria Setup
AutoReversal Criteria can be shared across ledgers. This dramatically
reduces the number of AutoReversal Criteria sets you need to define.
4.3.2.2.9. Streamline Consolidation Mappings
You are able to define Chart of Accounts Mappings (formerly known as
Consolidation Mappings) between two charts of accounts. Therefore, if you
have multiple Consolidation Definitions for parent and subsidiary ledgersthat share the same chart of accounts pair, and their mapping rules are the
same, you only have to define a single Chart of Accounts Mapping. This
significantly reduces the number of mappings you need to define if your
Consolidation Definitions involve the same pair of charts of accounts and the
mapping rules are the same.
4.3.2.2.10. Replacement for Disabled Accounts
When an account is disabled, you can prevent transactions that include the
account from erroring during journal import by defining a replacement
account for the disabled account. Journal import replaces the disabled
account with the replacement account and continue the journal import
process if the replacement account is valid. This improves processing
efficiency by preventing the journal import process from erroring and
enabling the successful creation of the journal with minimal user intervention
when an account has been disabled.
4.3.2.3. Data Security
4.3.2.3.1. Data Security across Legal Entities and Ledgers
In this release, since you can access multiple legal entities and ledgers when
you log into Oracle General Ledger using a single responsibility, Oracle
General Ledger provides you with flexible ways to secure your data by legal
entity, ledger, or even balancing segment values or management segmentvalues. You are able to control whether a user can only view data, or
whether they can also enter and modify data for a legal entity, ledger,
balancing segment value or management segment value.
4.3.2.3.2. Management Reporting Security
You can designate any segment (except the natural account segment) of your
chart of accounts to be your management segment and use Oracle General
Ledgers security model to secure the management segment for reporting and
entry of management adjustments.
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4.3.2.3.3. Prevent Reversal of Journals with Frozen Sources
Journals with frozen journal sources are prevented from being reversed to
streamline the reconciliation of data from Subledger Accounting sources.
4.3.2.3.4. Prevent Reversal of Unposted Journals
Users are no longer allowed to reverse Unposted journals.
4.3.2.3.5. Control Accounts
You are able to control data entry to an account by ensuring it only contains
data from a specified journal source and to prevent users from entering data
for the account either in other journal sources or manually within general
ledger.
4.3.2.3.6. Definition and Setup Security
You can secure your setup and definitions by granting specific privileges to
users to view, modify, and/or execute a definition. This enables you to
control which of your users can view a definition, but not modify or execute
it, or execute a definition without modifying it, or vice versa. For example,
since MassAllocations and Financial Statement Generator components are
sharable across ledgers that have the same chart of accounts, you can secure
these definitions so that some users cannot view or modify the definitions
created by other users. Following is a list of definitions that have this
security available:
MassAllocation and MassBudget Formulas
FSG Reports and Components
Accounting Calendars
Transaction Calendars
AutoPost Criteria Sets
AuoReversal Criteria Sets
Budget Organizations
Chart of Accounts Mappings
Consolidation Definitions
Consolidation Sets
Elimination Sets
Ledger Sets
Recurring Journals and Budget Formulas
Rate Types
Revaluations
4.3.2.4. Auditability
4.3.2.4.1. Accounting and Reporting Sequencing
Sequential numbering of accounting entries is a strong business requirement
in many countries in Europe, Asia Pacific and Latin America and is used by
fiscal authorities to check the completeness of a companys accounting
records. You can assign sequence numbers to journals during the posting
process to ensure that finalized journal entries are properly sequenced.
Separately, you can also assign a sequence number to journals when a period
is closed to sequence journals for reporting purposes.
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4.3.2.4.2. Journal Line Reconciliation
The GL Entry Reconciliation feature within Oracle Financials Common
Country features is part of Oracle General Ledger and renamed Journal Line
Reconciliation. This feature enables you to reconcile journal lines that
should net to zero. This is often done to reconcile suspense accounts, or in
countries like Norway, Germany, or France, it is used to audit or reconcile
payroll and tax payable accounts, or to verify the open balances of specific
accounts at the end of the period.
4.3.2.5. Others
4.3.2.5.1. Entered Currency Reporting and Analysis
Oracle General Ledger tracks the balances that are entered in your ledgers
primary currency. This enables customers to perform currency analysis on
amounts that are entered in the ledgers primary currency for the purposes of
currency valuation and hedging.
4.3.2.5.2. Foreign Currency Recurring Journals
You can use Recurring Journals to create foreign currency journals. This
enables you to pre-define journals that are recurring in nature and that are in
foreign currencies and simply generate them when you need them. For
example, a subsidiary (with a different primary currency than its parent
company) that has borrowed money from its parent company can generate a
recurring monthly interest payable entry to the parent company in the
parents currency.
4.3.2.5.3. Intercompany Balancing Support for Encumbrances
Intercompany encumbrance journals are automatically balanced during
journal posting.
4.3.2.5.4. New iSetup APIs
Oracle General Ledger adds the following iSetup APIs to enable you to
quickly create your setup data and definitions:
Ledger Sets
Data Access Sets
4.3.2.5.5. Integration with Subledger Accounting
Oracle Subledger Accounting provides tools that allow users to meet multi-
gaap, corporate, and fiscal accounting requirements. With a flexible tool
called Accounting Methods Builder, users can determine the accounts, lines,
descriptions, summarization, and dates of their journal entries. Users can
also add detailed transaction information to journal headers andlines. Detailed subledger accounting journals are available for analytics,
auditing, and reporting. They are summarized, transferred, imported and
posted to Oracle General Ledger.
Oracle General Ledgers integration with Subledger Accounting provides a
unified process to post data to general ledger from Oracle subledgers and
external feeder systems. Also, it provides a consistent view when drilling
down from general ledger balances to subledger transactions. Please refer to
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the Oracle Subledger Accounting section of this document for more
information.
4.3.2.5.6. Enhanced Intercompany
The Global Intercompany System (GIS) feature from previous releases has
been incorporated into the Oracle Advanced Intercompany System product.
Please refer to the Oracle Advanced Global Intercompany System section of
this document for more information.
4.3.2.5.7. Account Analysis and Drilldown
Account Analysis & Drilldown is a new web-based interface that allows you
to easily review and analyze your general ledger financial data. You can view
the balances of multiple detail or summary accounts in a single page and drill
down to supporting journal entries and subledger transactions all within a
browser window. You can control the display of your data by choosing from
various layouts, specifying your sort criteria, or defining filters to only
retrieve balances that meet your specific conditions. After fine-tuning your
personal search criteria, you can even save the search criteria for future use.
These features give you immediate access to your live general ledger data so
that you have the information you need to make better business decisions.
Note: This feature was first released in Oracle Financials Family Pack G.
4.3.2.5.8. GL Standard Reports Integration With XML Publisher
Oracle General Ledgers Account Analysis, General Journals and Trial
Balance standard reports are now integrated with XML Publisher. Using
XML Publisher allows you to leverage the formatting features of a word
processing application to design the layout of your report. You can
personalize your report by changing fonts, adding images, inserting headers
and footers, creating borders, changing column widths, and reordering/
adding/deleting columns. This enables you to create professional-quality
reports directly from the general ledger, which ensures the integrity andauditability of the information. For more information on all formatting
features, please refer to the XML Publisher User Guide.
Note: This feature was first released in Oracle Financials Family Pack G.
4.3.3. Terminology
Term Definition
LedgerDefined in Oracle General Ledger, one or more legal or
business entities that share a common chart of accounts,
calendar, currency, and accounting method. Ledgersreplace set of books in Release 12.
Ldger setsA group of ledgers that share the same chart of accounts
calendar, and period type. In Oracle General Ledger, the
enable you to perform certain operations for multiple
ledgers at the same time, i.e. opening periods and runnin
reports.
Set of booksSet of books is converted to a ledger in Release 12. See
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Term Definition
ledger.
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4.4. Oracle Subledger Accounting New Product
4.4.1. Overview
Oracle Subledger Accounting is a new product in this release.
Oracle Subledger Accounting enables corporations to comply with corporate,
local and managerial accounting and audit requirements via increased control,
visibility and efficiency.
Oracle Subledger Accounting increases control by storing a complete and
balanced journal entry for each subledger transaction and GL date. Detailed
drilldown and audit information is captured for each journal entry line. By
storing journal entries in a common data model, Oracle Subledger Accounting
constitutes a single source of truth for all accounting, reconciliation and
analytical reporting. As Oracle Subledger Accounting stores the articulated
balance sheet side of every entry and cross references it to the businesstransactions evidentiary document, reconciliation from General Ledger through
Subledgers to the documents and from there to the business transactions is
greatly simplified.
Oracle Subledger Accounting facilitates exercising internal control and policy by
implementing accounting rules you define. The rules refer to system data from
many sources, and can be tailored very finely by document type and document
line.
Oracle Subledger Accounting streamlines the close by providing a common
posting engine, so that all subledger products and non-Oracle products can
transfer controlled and summarized data to the General Ledger using a standardmethodology and auditable, reviewable process.
Oracle Subledger Accounting improves efficiency by speeding period close,
simplifying business and regulatory changes and making acquisitions easier.
Oracle Subledger Accounting increases management visibility by supporting
multiple parallel accounting representations. Corporate accounting policies can
be defined and implemented globally; free from limitations imposed by local
fiscal reporting requirements. Oracle Subledger Accounting allows accounting
policies to be created once and deployed many times. Minimization of
maintenance and elimination of duplication makes accounting policies easier to
implement, maintain and hence, control. Subledger accounting enables businessusers to control all aspects of journal entries including debits and credits;
accounting flexfields, descriptions and GL date
4.4.2. Features
4.4.2.1. Journal Entry Setups
Oracle Subledger Accounting gives users control over the definition of their
journal entries.
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Users are able to define the following components of journal entries:
GL Dates
Entry Descriptions
Line Descriptions
Amounts (accounted and gain/loss)
Accounts: rules can be created for either the entire account combination or
for individual segments based upon constants or from transaction information
Journal Lines: side, summarization, type
Reconciliation References
The definition of these components can be based upon information from
subledger applications such as transaction or setup values. Conditions may be
used to determine how and when many of these components are used, and to
create defaults. Setups can be quickly copied and altered to modify seeded
definitions. Multi-language support is available for journal entry descriptions.
For each setup, Oracle Subledger Accounting stores information to determine
whether it was seeded or completed by the user allowing customers to take
advantage of upgrades without worrying about overwriting their customized
setups.
4.4.2.2. Date Effective Application Accounting Definitions
Oracle Subledger Accounting allows users to group a consistent set of journal
entry setups used in generating accounting for the transactions of an application.
These are called application accounting definitions. For example, a user can
create an application accounting definition that consists of setups to provide a
U.S. GAAP representation of their inventory accounting.
Because accounting requirements change over time, Oracle Subledger
Accounting provides the ability to enter date ranges for application accounting
definitions. Multiple application accounting definitions can be created for eachproduct with different date ranges. New definitions can be tested and
implemented in advance of required changes and scheduled to automatically take
effect on a chosen date. The setups related to an application accounting
definition can be locked to prevent changes.
4.4.2.3. Multiple Accounting Representations
Oracle Subledger Accounting offers the ability for users to create multiple
accounting representations for the same subledger transactions each to be stored
in a separate ledger. These can be used to meet mutually exclusive accounting
requirements.
For example, a customer may need to use a fiscally mandated chart of accounts
and at the same time create a corporate representation using a management chart
of accounts. Any of the Oracle Subledger Accounting journal entry setups can
vary by representation.
4.4.2.3.1. Summarization Options
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For each ledger, customers can decide, by application, whether they would
like to summarize their journal entries. If they would like to summarize, they
can do it either by GL Date, or by GL Period.
4.4.2.3.2. Draft Accounting
When users create accounting they can elect to use draft mode. This allows
them to view and report on the accounting without saving it. They can
change Oracle Subledger Accounting setups or transaction data if they aredissatisfied with the accounting for any reason. The accounting can be
recreated as final, and any changes in setups or data will be used to derive the
final accounting.
Draft accounting may be used in an unlimited manner for each journal entry
allowing iterative corrections before committing the accounting as final.
This minimizes the need for correcting journal entries and facilitate a clean
audit.
4.4.2.4. Online Accounting
Users have the ability to immediately create, view, transfer and post accountingin General Ledger when entering transactions into Oracle subledger applications
such as Oracle Payables and Oracle Receivables.
Oracle Subledger Accounting uses the same accounting rules and validations for
both the offline and online accounting. Users can create the accounting online in
draft mode, which allows them to preview accounting online, and to make
adjustments before accounting in final mode.
4.4.2.5. Replacement for Disabled Accounts
When an account is disabled, users can continue creating accounting for
transactions that include the account, without erroring. Oracle SubledgerAccounting replaces the disabled account with the replacement account and
continues processing. This improves processing efficiency by enabling the
successful creation of journal entries with minimal user intervention if an account
has been disabled.
Oracle Subledger Accounting stores substituted disabled accounts on subledger
journal lines for audit and reconciliation purposes.
4.4.2.6. Process Category Accounting
Users are able to elect to account for a limited subset of their journals based upon
business transaction entities using process categories.
4.4.2.7. Straight Through Accounting Processing
Oracle Subledger Accounting allows users to create subledger accounting and
transfer and post the GL accounting in a single step. When creating journal
entries either online or offline by the concurrent program, users can choose to
immediately transfer and post the accounting in General Ledger. Oracle
Subledger Accounting therefore supports straight through processing from the
subledger transaction to General Ledger balances.
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4.4.2.8. On-line inquiries
Oracle Subledger Accounting provides multiple inquiries to view subledger
accounting. Key transaction information are stored so users can easily
understand what transaction has been accounted.
For example, a journal entry for an Oracle Receivables invoice includes the
customer name, customer number, the source, the transaction type, transaction
date, and the invoice number.
Users can inquire upon all the accounting for a transaction either from the
transaction workbench or from a common inquiry form. In the case of
multiple accounting representations, they can compare the journals for each
representation side by side to see the differences
Users can inquire based upon subledger journal entry header information
such as the GL date, or the ledger
Users can inquire based upon subledger journal entry line information such
as the amount or account
Users can view their subledger journal entries in a T-account format
Oracle Subledger Accounting takes advantage of the Oracle personalization
framework that allows users to customize their view of the accounting using any
of the attributes of the journal entry and to save predefined searches. Embedded
flows support a bi-directional drill between journal entry headers, lines, T-
accounts, and transaction data.
4.4.2.9. Journal Entry Sequencing
Oracle Subledger Accounting supports two different mechanisms of sequencing
its journal entries. The sequencing information is available for querying and
display of journals.
4.4.2.9.1. Accounting Sequencing
Oracle Subledger Accounting assigns a sequence to its journal entries as they
are completed.
4.4.2.9.2. Reporting Sequencing
Oracle Subledger Accounting supports separate sequencing designed to meet
legal requirements in Southern Europe. The reporting sequenceis assigned
to both the subledger and general ledger journal entries when the General
Ledger period is closed. This feature replaces the Accounting Engine (AX)
legal sequencing and Libro Giornale features.
This type of sequencing is used by most of the legal reports required in some
countries as the main sorting criterion to display the journal entries
4.4.2.10. Third Party Merge Accounting
Users have the ability to account for changes in third parties. These would
include correcting the third party related accounting if the party involved in the
transaction was incorrect, or managing the impact of third party merges or
acquisitions on control accounts.
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4.4.2.11. Manual Journal Entries
Oracle Subledger Accounting offers manual subledger journal entries that are
within the context of an application. These can be used to record changes in
third party information or reference values. Manual entries can be accounted on-
line. They can be accessed via on-line inquiries and reports.
4.4.2.12. Third Party Control Accounts
Oracle Subledger Accounting stores balances for control accounts by customer
and supplier. It uses a new key accounting flexfield qualifier that allows users to
specify control accounts. General Ledger also prevents the entry of manual
journal entry lines for control accounts thus ensuring that subledger control
account balances are consistent with General Ledger balances for the same
account combination.
To calculate the balances, Subledger Accounting uses the customer and supplier
information it stores on journal entry lines. Users can complete inquiries based
upon the customer and supplier information. Reports are available that detail, by
third party, the journal lines that are used to create the balance for each third
party control account.
4.4.2.13. Transaction Account Builder
Transaction Account Builder provides a flexible mechanism to derive default
accounts for transactions. Product development and implementation teams can
create rules to determine the accounts that will be defaulted onto transactions.
Rules can be created for either an entire account combination or for individual
segments. They can be based upon transaction information or created as constant
values.
4.4.2.14. Multi-period Accounting
Users can create accrual and recognition journal entries to allocate costs over a
range of accounting periods.
When creating transactions, users specify the date range for which a line should
be accounted. The standard Subledger Accounting journal entry setups such as
how to determine the account and description of the subledger journal entry lines
are available for defining both the accrual and recognition journal entries.
Users can also configure the GL dates, a prorating method, and have the ability to
create a single recognition journal based upon the multiperiod end date.
Recognition journals for future periods are created as incomplete until the periodis open or enterable and are available for inquiries and reports.
4.4.2.15. Accrual Reversal Accounting
Users can indicate that a journal entry should automatically be reversed on either
the next day or in the next GL period. This feature can be used for period end
accruals or for other accounting that requires an automatic reversal of an accrual.
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It is possible to drill to the related reversal when viewing an accrual journal entry
and vice versa.
4.4.2.16. Business Flows
Users can create accounting policies based upon both intra and inter-product
business flows. This allows accounting definitions to explicitly handle cases
where there is a logical relationship between accounting for two or moretransactions faclitating reconciliation for intermediary accounts.
Examples are as follows.
When creating the accounting for a payment, the user can indicate that the
account used to book the invoice liability through the invoice transaction
should be relieved
When accounting for a Payables invoice matched to a receipt, the user can
indicate that the receipt accrual booked at the time of receipt be relieved and
that the description from the receipt be used
4.4.2.17. Accounted and Gain/Loss Amount Calculations
Subledger Accounting can use conversion information such as the conversion
rate, entered amount and currency information to calculate accounted and
gain/loss amounts.
Rules can be created that determine the account used to account for gain or loss
based upon whether there is a gain or a loss.
4.4.2.18. Application Accounting Definitions Loader
The Application Accounting Definitions (AAD) Loader enables customers to
import and export application accounting definitions and journal entry setups.Users can build and test their journal entry setups on a test instance, export them,
and then import them to their production instance.
The AAD Loader also supports concurrent development and version control of
the application accounting definitions.
4.4.2.19. Errors Accounting and Reporting
Subledger Accounting creates journals as completely as possible, even if there
are conditions that make the journal invalid. These journals have an error status
and are not eligible for GL transfer and posting. However, they are useful for
troubleshooting setup and information issues.
For example, if the journal entry has a GL date in a closed period, the entry is be
created and an error message indicates that the GL date must be adjusted or the
period must be opened.
To minimize reconciliation issues, Subledger Accounting ensures that when there
are multiple representations, all journals related to a given transaction must be
valid before they may be accounted.
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Users can resubmit a request to create accounting and specify that they would
like to only process entries that have previously had errors. Errors may be
viewed both on standard XML Publisher templates and via on-line inquiries.
4.4.2.20. Standard Reports
Oracle Subledger Accounting reports is built to allow users to take full advantage
of the features of Oracle XML Publisher. Oracle Subledger Accounting deliversdata definitions and Oracle XML Publisher templates for the following reports:
Journal Entries Report: This report provides detailed journal entry
information on a transaction-by-transaction basis for a period or period range
Account Analysis Report: This report provides drill-down information
about the movement on a particular account or account range for a period or
period range
Third Party Balances Report: This report provides balances and account
activity information for suppliers and customers for a period or period range
Open Account Balances Listing: This report gives users the ability to net
account activity across all the journals related to a document, and to reconcilethe outstanding amounts with the GL balances. This report replaces existing
product functionality such as the Payables Trial Balance
4.4.2.21. Enhanced Reporting Currency Functionality
Multiple Reporting Currencies functionality is enhanced to support all journal
sources. Reporting sets of books are now known simply as reporting currencies.
Every journal that is posted in the primary currency of a ledger can be
automatically converted into one or more reporting currencies. This conversion
can be performed by Subledger Accounting, to convert all subledger journal
entries, or by General Ledger, to convert more summarized General Ledger
journals. You can choose to convert any journal sources and categories.
4.4.2.22. Diagnostics Framework
Oracle Subledger Accounting relies upon transaction information provided by
other applications to create accounting. The Diagnostics Framework provides a
tool to view the information used to create subledger journal entries.
This can assist in understanding how the journal entry setups were used to create
journals. It can also be useful for Oracle support and for customers using
Subledger Accounting to better understand the information provided to
Subledger Accounting.
The results of the diagnostics are available as an HTML report.
4.4.3. Oracle Subledger Accounting Enhances the Functionality of the
Global Accounting Engine
In this release, Oracle Subledger Accounting replaces the Global Accounting
Engine. Oracle Subledger Accounting further extends the Global Accounting
Engine functionality by providing customizable accounting rules via a flexible
and robust accounting rules setup.
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All Global Accounting Engine features are supported by Oracle Subledger
Accounting.
A fully automated migration of all Global Accounting Engine generated data to
Oracle Subledger Accounting is provided.
The following table lists the Oracle Subledger Accounting feature(s) that replace
the functionality of the Global Accounting Engine:
Global Accounting Engine Oracle Subledger Accounting
AX Rules Journal Entry Setups
Subledger Setup Date Effective Application Accounting
Definitions
Dual Posting Multiple Accounting Representations
Draft Accounting Draft Accounting
On-Line Inquiries On-Line Inquiries
AX Sequences Journal Entry Sequences
Customer Merge Third Party Merge Accounting
Manual Journal Entries Manual Journal Entries
Control Accounts Third Party Control Accounts
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The following table lists the Oracle Subledger Accounting reports that replace
the corresponding reports of the Global Accounting Engine. XML Publisher
templates are provided so that any user can comply with their fiscal or statutory
specific reporting requirements.
Global Accounting Engine Oracle