Professional Documents
Culture Documents
Prepared by:
Hans Kolbe
Managing Partner, Celantra Systems REMINDER
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Hans Kolbe
3
San Francisco, CA 94114 +1 415 824 8344, e-mail:
info@celantrasystems.com
http://www.celantrasystems.com
Fixed Assets
Extensity
Travel Payroll
Operating Unit
MySource
Markview HR Data
Accounts Payable
AP Imaging Qtime
Labor Tracking
Purchasing iProcurement
BottomLine
(or Custom)
Electronic Pmts
Project Accounting
New OU Model - Business Objectives
Reduce the time (from months to days) that it takes to add a new legal entity (LE)
into Oracle
This could be for either an acquisition or an existing LE that is not yet on Oracle
Ensure that any changes to business operations resulting from this new approach do
not negatively impact:
Qualcomm accounting operations
ERP support by FSG & IT
Month-end close processes are not negatively impacted
Design this new solution around a typical international implementation scope – GL,
FA, PO, AP and Projects
Assumption is that orgs requiring either manufacturing, component inventory or
order management must have separate LE
What are the critical requirements for an LE
■ Document sequencing
▪ General Ledger journal sequencing
— Separate issue from multi-LE OU
▪ Sub-ledger transaction sequencing
■ Accurate automated accounting
▪ Default accounting strings, normally provided at OU level
■ Transaction Tax compliance (VAT) & Reporting
▪ VAT calculation and reporting
■ Legal entity customer facing forms
▪ Purchase Orders, Invoices
Multi-LE OU – Pros & Cons
Pros Cons
■ Document sequencing ■ Impact on business operations
▪ General Ledger journal resulting from configuration
sequencing differences is not known
— Separate issue from multi-LE ■ Impact on support functions (IT &
OU FSG) not known
▪ Sub-ledger transaction ▪ Will require further testing to
sequencing determine impact
■ Accurate automated accounting ■ Not intended to support
manufacturing-related activities
▪ Default accounting strings,
normally provided at OU level ■ If a legal entity grows too large, it
could entail configuring a separate
■ Transaction Tax compliance (VAT) & OU at a later date
Reporting
▪ VAT calculation and reporting
■ Legal entity customer facing forms
▪ Purchase Orders, Invoices
Current State Project Goals
One Legal Entity (Multiple BSVs) Consolidate US OUs to one OU and design scalable
One Ledger Source to Pay business process for operational
Multiple OUs (owns multiple Inventory Orgs) efficiency gains
Common Asset book (Corporate and Tax Books) Define Legal Entities using standard functionality
and assign BSVs (company codes)
Proposed State Reduce PO cancellations significantly
One Legal Entity per BSV requiring sub-ledger Improvise US Payments accuracy and turn around
support (more than One Legal entity) time
One Ledger Accounting accuracy
Common OU (Own all US Inv orgs) Reduce Period close overhead (multi OU to single
Common Asset book (Corporate and Tax Books) US OU)
OU Consolidation Impact
Eliminates need for supplier setup in multiple operating units
Eliminates need to run key processes like invoice validation, create accounting, transfer to GL in multiple OUs
Improvise PO change process and eliminates need for PO cancellation
Allows transfers between inventory orgs within US OU for all US data centers
Speeds up close process (avoids review and sweeping of unaccounted transactions in multiple US OUs)
Improves IT's velocity / ability to roll out new entities from current time line of 4-6 weeks to few days to one
week
Simplify Invoice to Pay process leading to productivity gains overall Outsourcing effort
Supplier site cleanup including obsoleting redundant sites and merge duplicates
OU Consolidation Impact
Eliminates need for supplier setup in multiple operating units
Eliminates need to run key processes like invoice validation, create accounting, transfer to GL in multiple OUs
Improvise PO change process and eliminates need for PO cancellation
Allows transfers between inventory orgs within US OU for all US data centers
Speeds up close process (avoids review and sweeping of unaccounted transactions in multiple US OUs)
Improves IT's velocity / ability to roll out new entities from current time line of 4-6 weeks to few days to one
week
Simplify Invoice to Pay process leading to productivity gains overall Outsourcing effort
Supplier site cleanup including obsoleting redundant sites and merge duplicates
Key Challenges
Delinking of BSV from existing Legal Entity and assigning it to new Legal Entities
Ensuring seamless transition to users for accounting impact
Non PO Invoices processing and accounting (Expense Accruals)
Payment processing transition - ‘transition towards standard functionality of using bank account owning legal
entity to achieve segregation of payments’
Sub-ledger reporting as existing OUs are consolidated in common OU. Correlating POs / Invoices / Payments to
BSVs in post OU consolidation requires reporting changes
EB Tax / Vertex changes to support Common OU
The Celantra Solution for R12
customers-Cross-Legal-Entity-
Operating unit “CLEO”
Opportunities through CLEO Design
■ Transaction Ownership?
▪ LE column in Finance Modules
▪ Nominate Data Element in all others (Company Segment)
info@celantrasystems.com
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